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.
This week:
Pakistani fashion for the global diaspora
Making German homes smarter
Helping British investors with AI
Location, Location, Location
Pakistan: Fashion Goes Diaspora
LAAM, an online store from Pakistan, raised $5.5 million to help customers access locally designed ethnic wear.
The Product
LAAM operates as a traditional online store but focuses on ethnic wear from nearly 1,200 local designers. Founder Arif Iqbal spent over a decade in the US working for major tech companies, where he found access to ethnic fashion severely limited. Upon returning to Pakistan after the pandemic, he noticed how slow local fashion brands were to embrace e-commerce—and so LAAM was born.
The Business Model
LAAM’s business stands out for its global focus. Its top markets by revenue are the US, Canada, and the UK, but its sales span over 100 countries and 500,000 customers.
The company earns revenue through two streams:
Commissions: Unlike traditional marketplaces with fixed commission rates, LAAM negotiates fees individually with sellers.
Complementary Services: These include offerings like shoot-as-a-service and advertising.
The Local Angle
Large TAM: Targeting countrymen living abroad isn’t always viable for B2C products, but Pakistan is an exception. In 2020, the UN estimated 6.3 million Pakistanis were living abroad, a number that might have reached 10 million by now. The migrant stock nearly doubled between 1990 and 2020. Additionally, Laam positions itself as a hub for South Asian fashion, encompassing India—the world’s largest country by population—with 35 million Indians living abroad.
A Lot of Supply: Pakistan’s textile and apparel sector is massive. It accounts for 46% of the total manufacturing sector and 40% of the labor force. The textile industry is responsible for 44.3% of the country’s exports and nearly 80% of its manufacturing output.
Avoiding Scams: While local designers have been more open to establish their online presence, there challenges still. According to the most reputable source on planet Earth—Reddit—direct orders from some designers have led to customers being scammed.
Germany: Energized Savings
SpotmyEnergy, a German energy management solution, raised €10.5 million in a seed round to help households save on energy bills.
The Product
SpotmyEnergy claims it can help households save up to €790 annually on electricity bills and grid fees through its three main offerings:
Smart Meter: Positioned as the “speedometer” of a home energy management system, this device provides precise electricity usage readings.
SpotPilot: A control box that connects to all in-house devices, coordinating energy flows to use the most cost-effective energy source. For instance, homes with solar panels can maximize usage during peak sunlight hours and switch to the grid at night.
SpotDynamic: A dynamic electricity tariff that adjusts rates based on hourly wholesale prices. Flexible devices, like EV chargers, operate during low-price periods and pause during price hikes.
The Business Model
The company operates a B2B2C model. SpotmyEnergy have a 50 member partner network installing their devices. The company is paid two types of monthly fees: as metering point operator and a €5.99 basic fee as an electricity supplier.
SpotmyEnergy operates a B2B2C model, relying on a 50-member partner network for device installations. The company earns two types of monthly fees: as a metering point operator and a €5.99 base fee as an electricity supplier.
The Local Angle
Electric Inefficiencies: According to different sources, between 2% and 14% of Germany’s 53 million electricity customers use smart meters, compared to near-universal adoption in Spain and Sweden. The slow rollout in Germany is primarily attributed to poor industry regulations.
Smart Meter Demand: Despite low adoption, 60% of German households are open to installing smart meters. However, dynamic electricity pricing—which will debut in Germany in 2025—is unknown to 81% of the population.
Energy Efficiency’s Impact on Housing: Older, energy-inefficient homes in Germany are rapidly losing value. Renters increasingly avoid properties with high energy bills, especially those using gas heating. Homes with energy efficiency ratings below D are seeing price discounts of 20-30%.
UK: Investing by AI
Synthera, a London-based generative AI company helping professional investors better predict market scenarios, raised a $1.86M pre-seed round.
The Product
Synthera’s premise is straightforward: traditional financial models fall short in several key areas. They often miss non-linear correlations, rely entirely on historical data, and struggle to adapt quickly to changing market conditions, leaving investors exposed to greater risks.
To address these issues, Synthera uses synthetic data to:
Account for volatility underestimated by an over-reliance on historical data.
Align with investors’ market views to better suit their risk profiles.
Fill gaps where historical data is unavailable.
The Business Model
The product isn’t live yet, so… no business model.
The Local Angle
A Dominant Financial Market: If you’re building a product for professional investors, New York City and London are natural starting points. London has been ranked a top-two financial center every year for many, many years. The city handles $3.8 trillion in forex trade—one-third of the global volume—and attracts 25% of Europe’s financial sector FDI projects.
British Investors Underperform: In the first half of 2023, British investors experienced a record-setting period of underperformance. Small-cap investors were hit hardest, with 95% of actively managed funds underperforming. Over the 2021–2023 period, 80% of actively managed funds lagged behind the FTSE, the UK’s main index.
China: Fused for Growth
Superfuse, a Chinese company specializing in fuse products for energy systems, raised tens of millions of yuan in a Series B funding round.
The Product
Superfuse produces fuse products that protect electrical circuits and equipment from overcurrent conditions like short circuits and overloads.
The Business Model
Superfuse caters to five key industries: electric four-wheelers (E4Ws), electric two-wheelers (E2Ws), EV charging stations, wind and solar energy producers, and energy storage systems. The company offers tailored products for each sector, with a catalog that includes dozens of devices manufactured at its two production facilities and supplied directly to customers.
The Local Angle
China as an EV Powerhouse: In 2020, China produced around 1 million EVs (excluding hybrids). By 2023, that number skyrocketed to over 6 million. Including hybrids, the total production of new energy vehicles in China this year might reach 12 million.
Charging Station Galore: With this EV boom comes an urgent need for an extensive charging station network. As of May, the total number of charging stations—public and private—reached 9.9 million, an astounding 56% increase year-on-year. Public charging stations alone account for 3 million. For comparison, the EU and the US combined have just over 1 million public stations.
From Here to There
Quindi: Smart Manufacturing for Europe and the US
Italian smart manufacturing startup Quindi raised €525,000 in seed funding to fuel its expansion into other European countries and the US. Quindi’s AI algorithms optimize production by integrating data from machinery, orders, and people.
Brighty: Banking Meets Crypto in Europe
Swiss digital finance app Brighty raised $10 million to further its expansion into the EU and UK. Brighty merges traditional digital banking with stablecoin investing, offering a hybrid approach to financial services.
Cerve: Digitizing Food Supply Chains in Europe and North America
UK-based infrastructure and API solutions provider Cerve secured €4.2 million in seed funding to expand into other European markets and North America. The company is on a mission to digitize the global food supply chain.
Happydemics: Ads ROI for the UK
French adtech company Happydemics raised €13 million in Series B funding to launch operations in the UK. Happydemics helps advertisers optimize their return on ad spend through its platform.
Mimin: Building Chatbots in Southeast Asia
Indonesia-based generative AI startup Mimin secured $1.5 million to expand its AI-driven solutions, like chatbots, across Southeast Asia.
HUB2: APIs Powering Africa
Mauritian fintech HUB2 raised $8.4 million in Series A funding to scale its unified payment infrastructure solutions across Francophone Africa.
Enakl: Reinventing African Transit
Moroccan mobility startup Enakl raised $1.4 million in pre-seed funding to expand its alternative to public bus rapid transit systems in African cities.
