Roam is raising a $4m seed round to expand its international student services marketplace into East Asia and add tuition payments and housing.
Roam has relocated about 7,500 students and holds contracts with Western Australia's government, Cambridge University and HSBC.
All three investors on Capital Calling decline to invest, citing timing, focus and the need for clearer revenue streams and team.
Investors pass on Roam, saying universities hold the recurring revenue
Roam is building the operating system for the seven million students who cross borders each year, starting with the bank account, SIM card and insurance that take weeks to arrange. Its edge is distribution through 3,700 South Asian study abroad aggregators, which reach about 70% of students leaving the subcontinent. The panel's verdict is that reach is not the problem. Students use the service once and the recurring money sits with universities, so Roam has to sell to institutions before it looks venture-scale.
Takeaways
International student setup is slow and costly. Krish Bajaj spent close to three weeks and $5,000 on a bank account, SIM card and insurance after arriving at NYU in 2021. Roam plugs in after admission, when counselors are done and nobody helps students start their life abroad.
Distribution through aggregators is the real moat. Roam reaches about 70% of students leaving South Asia through 3,700 study abroad aggregators, including schools, counselors, test prep agencies and lenders, who are paid to push its services. It has relocated 7,500 students and signed Western Australia, Cambridge and HSBC.
Three revenue streams, none yet dominant. Roam earns affiliate commissions from 40 partners and trades SIM cards in bulk at about $150,000 of monthly volume and an 8% blended rate. Global Access subscriptions bring $50,000 to $100,000 a year per institution, and Roam plans to keep half the forex on HSBC's payments platform.
One-time use is the model's weak point. Michael Nogen and Michelle Kwok doubt students return after setting up a bank account and housing, and see a cap on international students entering the US. The panel agrees Roam lacks a clear recurring revenue stream.
Lead nurturing is the biggest missed opportunity. Krish Bajaj says a couple hundred clicks a month go to a visa service that pays $3,000 per student, with no follow-up. He calls this the largest gap in the funnel.
The seed round targets East Asia and payments. The $4m raise would replicate South Asian distribution in East Asia including China, hire university decision-makers with longstanding relationships, and add tuition payments and student housing natively. All three investors declined, citing timing, focus and unclear revenue.
How the panel would rebuild Roam
Make universities the customer. Vansh Langer argues the recurring revenue sits with institutions and suggests white-labelled portals in each university's colours.
Charge a partnership fee plus a student subscription, or a per-student fee to the university. Langer puts student pricing at $20 to $30.
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On this episode 5
Show 1
Build it razor-and-blade. Michael Nogen would build the platform for one university such as NYU, let the university push it to parents and students, then replicate it elsewhere.
Lead with a case study. Nogen wants one college showing the platform raised its NPS score, paid for by someone who will pay recurring revenue.