Hello dear reader,
Each week, we cover startups solving geography-specific problems or those enabled by local context, as well as look at those expanding beyond their current markets.
Not much news this week, but still:
Financing education in Italy
Intercity bus demand growing in India
Location, Location, Location
Italy: Loans for Learning
An Italian education company, Habacus, raised €5 million to enhance its student financing offerings.
The Product
Habacus provides an integrated suite of services tailored to three key customer groups:
Students: The company assists with career orientation, offers student loans, provides housing solutions, and supports job placement.
Schools: Through partnerships with educational institutions, Habacus creates tailored solutions to reach students and address institutional needs.
Corporations: Habacus facilitates talent attraction projects, builds partnerships between businesses and schools, and enhances communication among all parties involved.
The Business Model
While details about Habacus’s business model are limited, here’s what we know.
In a 2020 interview, founder Paolo Cuniberti explained that the company’s core offering is education loans. The platform assesses students’ academic performance to determine their eligibility for loans covering tuition and living expenses. By integrating data from students, schools, and financial institutions, Habacus converts academic achievements into financial credit.
In a more recent interview, Cuniberti revealed to Corriere della Sera that Habacus now also evaluates candidates’ economic and personal attributes. Additionally, Habacus collaborates with companies to provide scholarships for final-year students, who often secure jobs with their sponsoring companies. (Disclaimer: my Italian isn’t perfect, can’t speak for Google Translate, so nuances here may vary.)
The Local Angle
Low Higher Education Penetration: Only 30.6% of Italians hold a tertiary degree, compared to the EU average of 49%. Italy ranks fourth-lowest in the region.
Tuition Fees Limit Addressable Market: A study found that reducing tuition by 10% could increase enrollment in Italy by 3.3%. However, the same study highlights inequality: wealthier students are likelier to enroll in prestigious universities, leaving less-privileged students at a disadvantage.
Job Prospects: Although anecdotal evidence varies, data suggests that higher education improves job opportunities. EURES estimates that 34.3% of jobs in Italy between 2023 and 2027 will require a tertiary degree. Salary data also indicates graduates earn more, though this is harder to verify conclusively.
India: All Aboard
Indian intercity bus platform Zingbus has raised a $9 million Series A round to scale its operations, with a particular focus on enhancing its electric bus services.
The Product
Zingbus is a marketplace for bus travel with multiple booking options: users can reserve tickets via its website or app, through platforms like Paytm, or by purchasing tickets in person at over 400 partner stores.
Company’s differentiation point is that unlike traditional marketplaces that disappear after selling you a ticket, Zingbus stays involved throughout the customer journey. This helps address inconsistencies common in a market dominated by small operators.
Moreover, Zingbus sets itself apart with perks like refunds for cancellations and free cancellations, focusing on reliability and quality travel. Their promise: a smooth, comfortable trip—or your money back. They also offer various bus classes, including the recently launched Zingbus Max, offering a “7-star travel experience” complete with a 5-course meal and an AI-driven monitoring system.
The Business Model
Two important things about the company’s business model with blending Uber’s asset-light approach and focusing on standardizing customer experiences.
1. No Bus Ownership: Zingbus doesn’t own buses. Instead, it provides technology infrastructure, creates standard operating procedures (SOPs) for operators, and brands its buses.
2. Selective Partnerships: The company is particular about the operators it partners with, ensuring quality control.
As for revenue, Zingbus makes money by taking a 17-18% cut of each booking.
The Local Angle
A Nation of Small Operators: India’s bus market comprises 15,000 companies operating around 60,000 buses. This fragmented ecosystem creates wildly inconsistent experiences—a problem Zingbus is tackling by standardizing services.
A Solve for a Low Trust Society: In a low-trust society like India, consistent service matters. Zingbus builds trust with features like bus tracking, refunds, and standardized trips.
Growing Demand: The intercity bus market is projected to double from $10 billion in 2021 to $20 billion by 2026. Affordability drives this growth: while plane tickets cost 7-8 rupees per km, bus fares are just 1.5-3.5 rupees. Improved infrastructure also plays a role—India’s highway network has grown by 59% over the past decade, making buses faster than trains on some routes.
From Here to There
Omni HR: Managing Employees Across Asia
Singapore-based Omni HR has secured $7.4 million to fuel its expansion in the Asia-Pacific region. The platform focuses on simplifying employee management for businesses operating multi-country teams, addressing the unique challenges of managing talent across borders.
Loadar: Freight Solutions Goes to the US
Northern Ireland-based Loadar has raised $4 million to introduce its freight procurement software to the US market. The platform helps clients save costs and improve efficiency in managing freight contracts and processes.
EME: Recycling Smarter in Saudi Arabia
Dutch company Excess Materials Exchange (EME) has secured $5 million to expand into Saudi Arabia. EME connects producers with optimal reuse and recycling options, helping companies turn waste into value.
Eureka Robotics: Automating America’s Factories
Singapore-based Eureka Robotics has raised $10.5 million to expand into the US market. Its automation solutions enable factories to tackle dangerous and repetitive tasks, improving safety and efficiency.
