Get Hired with Unstop: Platform Connecting Students with Top Companies

Unstop is a startup company founded by Ankit Agarwal, who is the CEO of the company. He started his company as Dare2compete in the year 2017, but rebranded it in May 2022 as Unstop. Agarwal was motivated to start the company because he faced difficulties attempting competitive examinations during his MBA degree due to poor internet facilities. Unstop is an app that aims to address the issue of unemployment among graduates.

The Unstop app has several features such as Discover, Engage, Assess, and Hire. Users undertake various tests in Unstop, and as they progress through different rounds, they can win prizes and opportunities. Over 5 lakh people have participated in the tests offered by Unstop, with more than 90000 women giving the tests and 300 women getting selected for Walmart. The app has over 10000 registered colleges with more than 40 lakhs registered students, and more than 200 registered companies that hire from Unstop. Unstop organizes coding and different quizzes like KBC to ensure a smooth hiring process for the students.

AIM OF THE STARTUP

The aim of Unstop is to help solve the issue of unemployment among graduates. The company recognizes that despite completing higher education, many graduates face challenges in finding suitable job opportunities due to various reasons such as lack of experience, skills, and knowledge of the job market.

Unstop's innovative approach is to offer an app that provides students with access to various tests, quizzes, and opportunities that help them build skills and gain experience. As students progress through the levels, they can win prizes and access job opportunities, making the app both engaging and rewarding.

Moreover, Unstop offers a smooth hiring process for companies that are looking to recruit talented graduates. By organizing coding challenges, quizzes, and other activities, the company ensures that companies have access to the best and most suitable candidates.

BUSINESS MODEL

The business model of Unstop is based on a two-sided marketplace, connecting students seeking job opportunities with companies looking for talented graduates. The company generates revenue by charging companies a fee for using their platform to access and recruit candidates.

Unstop also offers a range of services to companies, including organizing coding challenges, quizzes, and other activities to help them identify and hire suitable candidates. The company charges companies a fee for these services as well.

Moreover, Unstop has a freemium business model, where students can access the basic features of the app for free, but they can upgrade to a premium version to access additional features and opportunities. The company generates revenue from the premium subscriptions as well as from the prizes and rewards it offers to students.

Unstop's revenue streams include fees from companies using the platform to hire candidates, fees for additional services, and revenue from premium subscriptions and rewards.

TARGET MARKET

he target market of Unstop is primarily students and recent graduates who are seeking job opportunities and looking to build their skills and gain experience. Unstop offers a range of tests, quizzes, and opportunities that help students improve their employability and access job opportunities.

The platform is particularly well-suited to students who are interested in gaining experience in coding, technology, and other areas in demand in today's job market. Unstop's coding challenges and hackathons provide opportunities for students to showcase their skills and connect with potential employers.

Additionally, Unstop caters to companies that are looking for talented graduates to fill their job vacancies. The platform offers a range of services, including organizing hiring challenges, quizzes, and other activities, to help companies identify and recruit the best candidates.

Unstop's target market includes students from various colleges and universities across India, as well as companies across different industries and sectors that are looking to recruit talented graduates.

SALES AND REVENUE

Unstop had sales of 16 crore rupees in the financial year 21-22, and as of now, the sales are 12 crore rupees, with an expected sales target of 30 crore rupees. This suggests that the company is experiencing significant growth and expansion, which is a positive sign for its long-term sustainability.

The gross margin of Unstop is stated to be 90%, which is a healthy profit margin for any business. This indicates that the company is generating substantial revenue from its operations, and is able to cover its expenses while still making a significant profit.

The EBITDA of Unstop is 30%, which is also a good indicator of the company's financial health. EBITDA, or earnings before interest, taxes, depreciation, and amortization, is a measure of a company's operating performance, and a 30% EBITDA suggests that Unstop is operating efficiently and profitably.

One interesting aspect of Unstop's business model is that they do not charge students to register with them. Instead, they charge companies for the number of students they are dealing with, with an average price per student of 100 to 150 rupees. This approach is a smart way to attract and retain a large user base of students, while generating revenue from the companies that are looking to recruit them.

FUNDING IN SHARK TANKS INDIA

The founder made an initial ask of ?1 crore for 1% equity of the company, valuing the company at ?100 crores.

The offers and counter offers began with Amit offering 5 crore rupees for 10% equity at a valuation of 50 crore rupees. Aman and Namita countered with an offer of 60 lakhs for 1% equity and 40 lakhs debt. Anupam then counter offered 1 crore rupees for 2% equity.

Amit and Anupam later combined to counter offer 2.5 crore rupees for 5% equity. Finally, Amit, Anupam, Namita, and Aman combined to offer 2 crore rupees for 4% equity in the company.

The final deal was struck with Amit, Anupam, Aman, and Namita for ?2 crore rupees for 4% equity in the company. This implies a valuation of ?50 crore rupees, which is lower than the founder's initial ask but still a significant amount of funding for the company.