Today with this article we will proceed with our article arrangement in which we talk about the case study and business model of various new companies and huge organizations. So today I am with you with another new business and we will discuss Internshala Case Study – Business Model, Founders, Competition, Funding, Revenue, Investors.
Nowadays new bachelors who are graduating from colleges are facing difficulty in placement. Companies are not able to find out good employees. The difficulty everyone is facing which is now Internshala is trying to sort out.
Unemployment is at the peak in India many skilled bachelors are not getting a chance to express themselves. The general complaint the Indian industry has is that students who graduate from colleges are not employable.
To solve this issue the All India Council for Technical Education and the Human Resource Development Ministry recently decided that engineering students in all colleges across the country would have to do mandatory internships to get their degrees.
To provide Internships to students they partner with companies like Larsen & Toubro, General Motors Technical Center, Bajaj Allianz General Insurance, Aditya Birla Retail Limited, Uber, OYO Rooms, Alibaba Group’s UCWeb, Chumbak, Jabong, and Paper Boat.
They have also agreements with educational institutions like the Indian Institute of Technology-Bombay and Indian Institute of Science-Bangalore; and non-profits like CRY, and World Wildlife Fund.
Internshala Case Study –
Internships that are being offered by Internshala are in various fields like sales, marketing, content writing, fashion, engineering, product management, design, volunteering, human resource and finance.
If we deep study how was Internshala was born that get stick to us we will tell you the whole story. The idea to start Internshala, a platform for students who wanted to do internships, came to Sarvesh Agrawal.
He felt there was LinkedIn for your professional life, Facebook for your social life, but everyone should have something for academic life. There was nothing for your academic life.
As a student, he may have many academic queries, but they don’t have any platform where and how they can ask questions and get answers.
The first thing to be started thinking about the things that students need help on – board exams, various competitive exams, internships.
Sarvesh tells in his interview that his friend from IIT, who was doing MBA in London, wanted to do an internship in India but couldn’t find what he was looking for. He thought that if somebody with that kind of qualification could not find an internship, what about others?
And here is the time when Internshala was born. Internshala was started as a blog on internships in December 2010.
Sarvesh studied civil engineering in his college life, so his programming knowledge was zero. Ankur Khator, a friend from IIT-Bombay, he was working with Microsoft, agreed to work part-time in Internshala.
After that, they became the co-founders of Internshala, and Ankur took care of the technical part and Sarvesh the content part.
Sarvesh used to collect information on various internship programs, both within and outside India. Once the blog was up, they reached out to colleges all over India and they started circulating the link among their students.
Then they hired their first employee, Shadab Aalam. When they were not having many resources they moved out of the study room, took two co-working seats on rent, and started working from there.
Shadab Aalam still works for Internshala, 13 people work under him now. Internshala is having have 50 people working for us.
Around October 2013 they launched their actual website. Till then, it was only a blog.
The industry complaint about students that they are unemployable because they are not having the required skills. This is true to a large extent.
The problem is that “What the industry wants is not taught in the classroom, and what is taught in the classroom is not what the industry wants”.
So Sarvesh look and opportunity that our curriculum is outdated. Education is not moving as fast as the industry.
Internshala Founders –
Internshala was founded by Sarvesh Agrawal and Ankur Khator. Both were graduated from IIT.
Sarvesh Agrawal is the founder & CEO of Internshala – an internship and training platform. He is an alumnus of IIT Madras 2001. He had worked with Capital One, Barclays, and Aviva plc before starting up.
He is from the small town Nawalgarh which is in Rajasthan. He had 5-year dual degree program at IIT-Madras.
He tells about his past struggles that my conversational English was not good. I landed at IIT-Madras where the medium of instruction was only English.
In the hostel, a good number of students spoke only in English. So for communicating in English it was a struggle for me.
After graduation, he has a job as a business analyst with Capital One in the US. He decided to take up the job. But by the time he got the degree certificate, the quota for the H-1B visa was over.
So, Capital One sent him to their UK business office and posted me at Nottingham.
Ankur Khator is an IIT Bombay alumnus (Class of 2005). He has 8 years of technology experience working with the giants of the internet and software industry (Microsoft).
He was Internshala’s first CTO (and co-founder) and played a critical role in setting Internshala up for success in its first year of operations and managed the technical team and infrastructure.
Internshala Business Model –
If we talk about the business model of Internshala then they are using some unique like other companies.
Sarvesh himself says about the business model of Internshala that companies started registering on our website. Then they call for interns and interns use our platform to contact those companies.
The most interesting thing is that you will see they don’t charge anything from anyone. But they make sure that interns are paid a stipend by companies.
From the first day, they were certain that they would not allow unpaid internships on their platform because many times companies use interns for free work. Internshala didn’t want to encourage this and they do not like this model.
If anyone is working hard then he should be paid an appropriate amount. In starting off their phase till December 2012, they also ran Internshala only with hired interns.
At Internshala, we have figured 3 ways to monetize the startup –
Charge Form the student
Either for core service (i.e. ability to search and apply for internships) or for value-added services (say a resume writing service, skill-based training or simply ‘promoting’ your application up the order in the list etc.).
At Internshala core platform is free of cost and they offer 2 value-added services (resume writing and online skill-based training) for which they charge students.
Charge Form the employer
They charge for posting internships (again models may vary in details such as you may charge per posting, per successful hire, per application received etc.)
Value-added service (such as publicising the internship on social media platforms or in newsletter etc.). At Internshala, so far they have kept it completely free for employers.
Charge Form the 3rd party
They charge advertisers who may want to advertise their offerings to the student base of the website through a banner on the website, through email burst to the users etc.
Internshala Funding –
In May 2014, they got an angel investment of ₹15 lakh from some friends and relatives, and we moved to our own office.
Along with the website, Internshala founders also launched our own online training programs which were paid courses – for students. They designed these programs to help students prepare for internships.
Their revenue comes mainly from the training programs and advertisements.
Internshala has been growing 300 per cent every year; from ₹15,000 a month, in the beginning, our revenue this year will be ₹3 crores a year.
Currently, they are having 250+ employees in the team.
Internshala Competition –
There are nowadays many competitors in every field. If we talk about the competition on Lets Intern, Oyster, Intrest stripe, are the three main competitors of Internshala.
These services you can get in competition also but it is not sure that you get all the facilities at one place. Their service and management are also far better.
Final Words –
At last, we understand many things about Internshala Case Study – Business Model, Founders, Competition, Funding, Services so if you have any query let me know in the comment section.
Internshala is continuously working for finding better opportunities for bachelors. These internships help them ahead in their career and they can get a good-paying job.
Internshala plays an important role in the life of 30 million college students in India and our mission is to provide at least one meaningful internship to every college student whether s/he is an engineering, arts or science student, before s/he graduates.