Pesto

Pesto launched with compelling behavioral signals: thousands of software engineers in India applied for their Income Share Agreement program, with conversion rates exceeding 40% from application to enrollment. ​​‌‌‌‌‌‌‌​‌‌​​‌​​​​​​‌‌​‌‌‌​​​‌‌Early cohorts filled within weeks, suggesting genuine urgency around upskilling. The team measured interest through actual payment commitments—students paid enrollment fees and completed assessments, not just expressing casual interest. By 2022, Pesto had enrolled over 1,000 students across multiple cohorts, generating meaningful revenue through ISA repayments from graduates earning higher salaries. However, the critical warning sign emerged in unit economics. While demand appeared strong, the actual repayment rates and graduate salary outcomes didn't match projections. Many students completed programs but failed to secure the high-paying remote positions Pesto promised, making ISA repayments unsustainable. The platform confused application volume with viable business fundamentals. Pesto ultimately shut down in 2023, revealing that behavioral engagement masked a broken underlying model: demand for affordable education existed, but demand for *Pesto's specific financial structure* didn't.