Event: 2019 Phocuswright Europe
Category: Startup Company
HQ: Zurich, Switzerland
Principal(s): Oliver Flueckiger, CEO; Roland Zeller, Chairman; Anil Özdemir, COO
Funding: Klazz raised US$1.2M from business angels and will raise a seed round in 4Q2019.
Product Description: Klazz offers a full language travel experience in a digitalized and global world: Students can see the full course list including teacher and future classmates before they book. Classes take place in modern and centrally located co-working spaces, where meeting rooms serve as classrooms. In our app, customers can choose their host family and book additional tour elements as activities or extend their stay.
Business Model: Klazz has built a platform to match students directly with freelance teachers abroad, cutting (almost) all intermediaries. Klazz automatically provides a full-immersive language travel experience with fully integrated third-party providers as host family agencies and tour operators. Klazz generates a gross-margin of 50% on bookings.
Competitors: Mainly offline agencies reselling courses at small to mid-sized language schools abroad; and vertically integrated language travel provider EF.
Competitive Edge: Klazz automates processes and cuts out intermediaries. This ensures 1) transparency: students can see their teachers and classmates before they book; and 2) lower prices: Klazz doesn't own any buildings, has no fixed costs and hires freelance teachers, thereby making language travel cost-efficient.
Market Opportunity: Klazz is a multi-sided platform focusing on language travel, a US$35B market. Every year, 2.3M students travel to a foreign country for a few weeks (up to one year) to attend courses in specialized ESL schools. Klazz launched in 2017 in France and Italy, offering courses in London. Since August 2017, 220 students have booked their language travel via Klazz. Expansion plans include new sourcing markets, new destinations and additional languages.
Early Customers: More than 220 happy European students and young professionals between 18-35 years, and 6 professional freelance teachers in London.