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In today’s fiercely competitive job market, a college degree alone no longer opens doors. As industries transform with new technologies, students need to go beyond academic credentials, mastering the skills that keep them ahead of the curve.

But there is a mismatch between the skills employers need and the skills workers possess, often driven by evolving industry demands and insufficient training.

To address this issue, several edtech firms are offering products and services for learners in different segments. 

TeamLease EdTech has taken this challenge head-on by offering online learning solutions to help learners gain the essential skills needed. It is doing this while achieving profitability—a crucial factor for long-term survival of companies providing these solutions amid the turbulence in the edtech sector.

“Our philosophy was to help universities convert traditional, age-old distance education into a digital mode of learning,” says Shantanu Rooj, Founder and CEO of TeamLease Edtech.

Founded over a decade ago, TeamLease Edtech, which is focused on higher education, collaborates with universities to design, develop, and deliver online degrees. To enhance student engagement and job readiness, the company offers programmes to supplement online learning with practical work experience through collaborations with employers. These partnerships via work-integrated degree programmes allow students gain real-world experience through internships while studying, helping students get employed.

For example, a student pursuing a BSc in Mechatronics might work as a trainee in a manufacturing company. While studying online, they could gain hands-on experience in operating machinery, troubleshooting technical issues, and applying theoretical knowledge to real-world engineering challenges. This blend of academic and practical experience aims to bridge the skills gap and improve employability.

The company has specialists managing contracts and scaling student admissions, and at the same time, it is collaborating with employers to identify job opportunities and connect students to industries where they are needed.

Market advantage

India’s youth population, which is around 420 million, is looking for the right educational infrastructure to develop skills and find adequate opportunities to get employed. TeamLease EdTech is trying to bridge this gap between education and employment, says Rooj. 

He recalls that early on, the company realised a significant problem—while students were enrolling in online and distance education, there was some scepticism about the validity of online degrees. 

According to him, employers believe that online or distance education degrees are inferior compared to regular classroom degrees.

And rightly so, because the physical distance between the educator and the learner creates significant engagement challenges, he explains, adding that managing engagement and consequently learning outcomes is more difficult to achieve in an online environment.

“We realised that students who pass out with online degrees normally do not get a job by virtue of the degrees. Employers treat them as second-class citizens because they believe the learning outcomes are inferior,” he remarks.

Most of the times, students opt for online or distance education as they cannot afford college fees, they need to work while studying, or face other constraints such as relocating to an area without accessible colleges. 

Effective collaboration

To help students improve their skills, TeamLease has partnered with several employers, such as Tech Mahindra, Teachnook, Corizo, Allsec Technologies, Mphasis, Intellipaat, and NoBroker, to create work-integrated degree programmes.

The edtech firm has also tied-up with over 65 top Indian universities, which, according to Rooj, represent nearly 55% of the universities that offer online degrees. About 300 courses are enabled in partnership with these universities and premiere institutes.

Some of the most preferred courses on the platform include BA in Psychology, Sociology, and Economics; BBA; BCom; BSc in Mechatronics; BBA in Retail; and MBA. 

For different streams, notable courses include MS in Psychology in South India; MBA specialisations such as General Marketing, Logistics & Supply Chain, Product Management, and Finance; MCA; BCom; and BA & MA in Political Science in North India. Course pricing and structure vary by university type and course offerings.

The company offers university partnerships for online and distance education programmes, including undergraduate degrees, postgraduate degrees, diplomas, and certificate programmes, providing flexibility and accessibility for students from diverse backgrounds and locations. 

TeamLease Edtech also offers campus immersion programmes, which allow students to spend part of their study period on campus, blending online learning with on-campus experiences to provide a comprehensive understanding of their field and a taste of campus life.

Additionally, the work-linked programmes combine academic learning with practical work experience, enhancing students’ employability and job readiness.

So, a student enrolled in a work-linked degree programme simultaneously joins an employer as a full-time trainee. For example, a BCom student may start working as an accounts trainee with one of the employer partners while pursuing their degree.

In essence, a fresher student completing this programme graduates with three years of work experience. They gain practical knowledge beyond what a regular full-time student learns in the classroom, such as operating Tally and handling real-world tasks.

TeamLease EdTech currently works with 4,000 corporate clients across industries, including manufacturing, ecommerce, retail, BFSI, automotive, BPOs, telecom, and hospitality.

Rooj says, since most of these students face financial challenges, receiving a monthly stipend during internship is proving helpful. The monthly stipend is set according to the government’s minimum wage standards, ranging from Rs 10,000 to Rs 20,000, depending on the city and industry.

“Continuing my studies was challenging because I needed to support my family financially. This programme offers a valuable opportunity to earn a stipend while gaining work experience, making it possible for me to balance both responsibilities,” shares Bodela Kiran, a student who is pursuing BA at Andhra University while working with Apollo Pharmacies.

Today, TeamLease EdTech has around 85,000 learners who are studying at a university while being employed.

This concept also aligns with the National Education Policy (NEP), which is a government framework designed to reform India’s education system by focusing on skill development, vocational training, and employability to better prepare students for the job market.

Rooj emphasises that the company knew that if a product benefits all stakeholders—students, universities, employers, and the government—it has to win.

This concept has gained significant traction with employers, universities, and policymakers over the past 14-15 months, shares Rooj. At least five to six state governments have signed MoUs with the company, requesting their assistance in implementing this concept not only in distance education but also in all regular colleges.

In August this year, the edtech firm announced a collaborative partnership with the Government of Kerala to address the skill requirements, skill gap, and employability challenges in Kerala—India’s most literate state.

Solving for employment

Rooj highlights that IITs are highly respected for their strong signal of employability. “My dad knew that I would land a great job because I went to an IIT,” he adds.

For non-engineering students—arts, science, commerce, and management—it is crucial to offer programmes that assure strong career prospects through work-integrated degrees, Rooj explains.

While students pursuing general degrees find various non-technical roles in sales, customer service, logistics, and accounting, it all depends on their soft skills, he adds. 

During the three-year programme, students rotate through various departments, and based on their performance and fit, they are offered a position in the department where they excel.

Moreover, at the end of the programme, if a student likes the job offered by a company, they can stay, but they are not bound to it. They are free to join other companies, says Rooj.

About 80-85% of students are absorbed by the same employer, and the remaining students either face a lack of open positions or prefer to switch employers.

According to Rooj, employers are realising that the return on investment (ROI) from this model is much higher than the ROI from the traditional method of hiring entry-level employees.

Learners see their pay increase from Rs 10,000-12,000 in the first year of their internship to Rs 18,000 by the third year. By the time they graduate, they typically start earning around Rs 25,000 per month, depending on the city and industry.

Navigating growth and market competition

TeamLease EdTech integrates education, employability, and career development by working with educational institutions, learners, corporates, and government bodies. Other players in this space include upGrad, TimesPro, Jaro Education, Emeritus, and L&T Edutech.

The company earns revenue from universities based on a share of course fees paid by learners. The fee varies depending on the services provided, which include enrolment, technology, academic content, faculty support, student assistance, online examinations, and career services. Fees range from 20% to 70% of the course fee, depending on the services the university chooses. 

TeamLease EdTech’s revenue grew at a CAGR of approximately 61.16% from FY20 to FY24. The company has been profitable for the past four years.

Anil Joshi, Managing Partner, Unicorn India Ventures, believes that TeamLease EdTech has optimised its unit economy, resulting in profitability compared to its peers who are having higher operational cost compared to the revenue being generated. 

“TeamLease EdTech is certainly setting an example for others to revisit their business offering and make corrections so that they can also be profitable,” Joshi adds.

The company, which has about 500 full-time employees and around 2,000 contract or part-time workers, has witnessed a 50% increase in profit in FY24. It did experience a drop in profit and slower revenue growth in FY23. Rooj attributes these to investments in expanding the team and the divestment of a corporate training business.

“The intersection of the world of work and the world of education is set to become increasingly interesting. We believe we are shaping this convergence, which will grow to be both significant and exciting in India,” remarks Rooj.

(Cover image and infographics designed by Sharath Ravishankar)