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MatchUP Global

Smart ecosystem for the EdFinTech industry

Argentina
Market: Education, training
Stage of the project: Operating business

Date of last change: 18.08.2022
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Idea

Smart-matching marketplace to connect and engage prospective students with universities. MatchUP is an ecosystem where both parties can solve all roadblocks to international higher education.

Current Status

❖ We have surpassed the 2021 revenue target of USD 100.000 (USD 113,708)
❖ We have surpassed 21k followers in Instagram
❖ We have signed over 700 contracts with universities
❖ We have signed 3 lending partners
❖ We have signed 1 job placement company
❖ We received more than 325,000 visitors, over 50,000 leads, and over 5,400 prospects looking for universities and programs in MatchUP
❖ We have 272 paying students for the Premium advisory service
❖ We achieved 300 successfully admitted students to Italy, Spain, US, Canada, Argentina, UK, Germany, among others.

Market

During MatchUP´s present growth phase, we target both LAC region higher education students, as well as educational institutions in selected destinations around the globe who are ideal matches for our audience, and who are searching for international students:
- 2021 LAC region higher education students: TAM: 30.8M, SAM: 740.000, SOM: 360.000
- Educational Institutions focusing on the USA, Canada, Argentina, UK, Spain, Italy, Germany, France, Australia, and New Zealand, among others (approximately 10.000)
Total available market size: USD 46,500,000,000

Problem or Opportunity

Only 1 in 10 higher education students from Latin America & the Caribbean region are able to study abroad.

According to UNESCO, in Latin America there are 31M students engaged in HE and 3,6M of
them who wish to study abroad but are unable to. So why can't they?
Two main reasons:
1. They need to find the right place which matches their needs
2. They need to know how to afford it
From the 3,6 million students willing to study abroad per year, 2,7 million (76%) have revealed that the reason they give up this dream is due to financial problems.

Solution (product or service)

MatchUP marketplace, is the platform where the students from Latin America can plan their future overseas by reviewing and comparing the offering of hunderd of universities from all over the world, and match themselves witht the one that suit them best. Since we launched the MVP:
-We signed 700+ universities offering 15,000+ programs
-Attracted 300,000+ leads 45000+ students
-Enrolled 300+ students in their dream Universtity
Now we are launching MatchUP FinTech, a hub of finnancial partners with already 3 partners, for offering student loans and boost our conversion rate x10.

Competitors

The EdTech industy is growing steadily. In the most mature market in the world, the US, we reviewed several companies, many of them which have a very robust offering, and cater well to the needs of the market. However, we have considered them to be benchmarks for us rather than competitors. Outside of the US, we have identified four companies that we consider to be competitors, since they are offering a product similar to ours. These companies are: Applyboard, Studyportals, Yocket and Adventus. However, the main difference is that their target audience is from other regions and they all are focused on the same four markets as study destinations. These markets are the USA, Canada, UK and Australia. We will cater to students from the LAC market, and although we also offer these four destinations to students, our audience tends to have a better match with Spain, Italy and Portugal, as well as other destinations that are cheaper and offer a great life-experience.
Therefore, we increased the number of destinations on offer, from the four original, and have closed agreements in new destinations such as Italy, Spain, and Portugal, among others. These are destinations which fit much more adequately to our students and their family´s budget, their linguistic capabilities and their expectations for studying in a prestigious University. By adding these study destinations, we were able to increase our market by 50%.

Advantages or differentiators

We cater to students from the LAC market, and while our competitors only offer to four main destinations (See above: US, UK, Canada & Australia), we also offer these four destinations to students, however, our audience tends to have a better match with Spain, Italy, Portugal, Germany, France and Argentina, as well as other destinations that are cheaper and offer a great life-experience. These are destinations which fit much more adequately to our students and their family´s budget, their linguistic capabilities, and their expectations for studying in a prestigious University. By adding these study destinations, we were able to increase our market reach from 5% of LAC students who are able to study in the USA, Canada, UK and Australia to a total 50% of total students in higher education in the region (1,54M to 15,5M).
We have 12 years of experience in the higher education business, so we know very well what our prospective target audience is looking for and what do the expect, and we have a very robust and well established reputation among the educational institutions world. We know how to successfully achieve and end-to-end internationalization process.

Finance

Stage of the company: Revenue. We accomplished our 2021 target revenue of USD 100,000, and due to the type of business we operate, we can anticipate expected income up to 12 months in advance. Therefore, with a high degree of certainty, we can expect to receive 63% of the projected income for 2022. The remaining 37% will be generated during the year, allowing us to reach our objective of USD 300,000 in 2022.

As a marketplace MatchUP serves two well-defined customers, educational institutions, and prospective students. We make money from both ends, as well as from collateral services provided through partners.
1. Success Commission: from the University for each successfully placed student
2. Service fee: Prospective students pay us a fee for our international counseling services

- 2021 revenue: USD 113,708 (+13,7%). Last month’s revenue (December 2021): USD 13,976
- 2022 expected revenue: USD 300,000
- Current CAC: students USD 195 / universities USD 69,59
- Current Churn Rate (%): students 0,61 / universities 0,82
- Current Monthly Burn Rate: USD 9,654
- Current Runaway (months): 20,33
- Breakeven point: Given the current conditions, we will reach breakeven in September 2022. Taking into consideration the new investment round, and the growth plan, we will reach breakeven by January 2024
- Customer Lifetime revenue students: USD 1,440
- Customer Lifetime revenue universities: USD 40,800

Business model

MatchUP is a marketplace that solves the pains that students and higher educational institutions face when they want to find and select each other. Through solving all these pains we deliver value and generate revenues.
Current Revenue Streams:
● University commissions for student’s enrollment (average trx value USD 1400)
● Loan origination revenue sharing (average rev. shar. is 2%, equivalent to USD 100 out of average loans of USD 5K)
● Students premium fees for international counseling services (average trx value USD 200)
● University marketing campaigns (average trx value USD 500)

Money will be spent on

To take advantage of the fact that our main competitors are busy in their own markets, we need to accelerate MatchUP from a technological, HR, business, and product development perspective. Therefore, we are planning to invest as follows:
1. Bring the three founders to work full-time for the company. Currently only one, Sebastian Fraga, is working full time for MatchUP, whereas Ezequiel Garcia Castera and Federico Fraga are working part time.
2. The IT team will grow from the current five employees to twenty by the end of 2023, this will allow us to develop MatchUP´s product and deploy the entire Ecosystem by July 2023, resulting with a direct impact on the current 0,41% conversion rate lead / student customer, to a minimum 1% conversion rate.
3. The total quantity of employees will increase from the twenty we currently have to one hundred and forty-six by the end of 2023. This growth will be accompanied by revenue growth totaling USD 1,635,718 USD at the end 2023 and 33,995,064 at the end of 2027.
4. The marketing budget will increase from USD 900 monthly to an average of USD 38.634 monthly over the next 5 years. Taking the current ratios into account, this will allow us to achieve 5,000 admitted students we expect to have by end of 2024, and increasing to an accumulated total of 61,323 by the end of 2027
5. MatchUP EdFinTech: This is probably the most disruptive solution we are proposing, and without a doubt a game changer. Becoming a FinTech or Financial company as it is, is a huge and expensive challenge, therefore, we will build this in various stages. We will begin by creating a network of financial partners, private and public, individuals and enterprises, who will offer loans to the students. Students will be qualified and scored, their information will be transparent, and the partners will be able to offer loans to the students they decide on, according to the scope of their licenses. By doing this, we aim to create a trade market of students loans, or, in other words, a hub of student loans. It’s important to mention that we already have a signed partner for student loans, and we are in conversations with several others.
6. MatchUP Scholarship finder: This is the second most important advance we are developing. Scholarships are a very powerful and common tool for totally or partially financing a student’s higher education costs, as well as a very powerful marketing tool. There are many types of scholarships available, and for students it’s a challenge to discover them and understand which ones they are eligible for. To date, there is no such smart engine existing in the market, focusing on helping LAC students. We already have a significant database with multiple sources of scholarship information, and now we need to create a smart engine that can make them available in an easy and fast way.

Offer for investor

We are looking for experienced and creative investors with capital, and smart money to join us in this amazing venture and become one of the life-changing protagonists of the new generations. Offered equity 10%.

Team or Management

Risks

New lockdowns due to the covid pandemic
Our competitors coming to LAC market

Incubation/Acceleration programs accomplishment

Supercharger Ventures

Won the competition and other awards

We won the Endeavor Argentina pitch competence 2021
We were selected as a top 50 startup by Seedstars competence

Photos

Photo 1 - Smart ecosystem for the EdFinTech industry
Photo 2 - Smart ecosystem for the EdFinTech industry
Photo 3 - Smart ecosystem for the EdFinTech industry
Photo 4 - Smart ecosystem for the EdFinTech industry
Photo 5 - Smart ecosystem for the EdFinTech industry

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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video
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