MyStay International
- Type: Retail
- Total Round Size (min): AUD$200,000
- Total Round Size (max): AUD$500,000
- Price per share: AUD$0.51
MyStay International
MyStay International is now accepting investments!
- Fees Paid by Issuer: 5% of funds raised
- Cooling-Off Rights: 5 working days
- Minimum Investment Parcel: $1020
- Company: MyStay International Pty Ltd
Key Documents
Offer Overview
MyStay International Overview
MyStay International Pty Ltd (MSI) is an Australian-based technology and business solutions company specialising in the international student experience market. Our Group began creating its foundations in 2007 with the formation of the Australian Homestay Network (AHN).
Over the past 13 years we have placed more than 62,000 international students into properly managed standards-based homestays across Australia using a unique system-driven approach. Our standards for homestay have been commended by both the Australian Senate Inquiry into the Welfare of International Students and the NSW Parliamentary Inquiry into International Student Accommodation.
Since our first placement in 2008 we have built a talented team, developed new products, and opened new markets consistent with and complementary to our homestay offering. Our business expanded into the USA in 2012 with the launch of the American Homestay Network.
Brands developed by our Group include MyStay International, the Australian Homestay Network, the American Homestay Network, MyStay English and StudentRoomStay.
Investment Highlights
- Industry Leader
MyStay International and its network of brands have been at the forefront of international education homestays for over a decade. The group is well-respected with government and key stakeholders with a leading reputation for quality and innovation.
- Strong Traction & Growth
MyStay International has grown into a large portfolio of brands across Australia and the world, with close to $40m in group cash flow for 2019. The group was experiencing a strong growth trajectory prior to COVID-19 and managed to effectively pivot our model to adapt.
- Growth Partnerships
The group has established a number of valuable growth partnerships within its network to facilitate innovation and global expansion, securing investment from AmeriStudent, and relationships including Morneau Shepell and Tower Bridge International.
- Experienced Team
The team behind MyStay International is deeply experienced and connected within the industry. We have backgrounds across high growth businesses and management, and team members have played key advisory roles with government and other organisations.
- Robust Business Model
We demonstrated our resilience in response to the pandemic by shifting our strategic focus to domestic market opportunities. We still generated millions in revenue for the pandemic year and continue to grow important parts of the company.
- Significant Market Opportunity
The domestic market presents a strong and growing opportunity, particularly following the end of the pandemic. We are also positioning ourselves to take advantage of overseas opportunities as they arise.
Core Business Model
Our core intended business model is to be a SaaS (Software as a Service) provider as we develop our Business Aggregator Model. The customer pays us and we organise the accommodation and support services. We collect all revenue and retain a percentage of the revenue to cover our costs and business support, as well as contribute to our profits.
In 2019, our combined cash flow from our homestay businesses (including the R&D work and government incentive) was $38,179,513 AUD. We retained $5,976,506 (excludes host revenue) in gross profit before licensing fees, expenses and tax.
In addition to this, MSI has been focused on R&D projects to build new technology in the student accommodation areas that we are renowned for. This work has delivered us $2,585,690 in Australian Government R&D funding acknowledging our work in this area over the past five years.
Group Structure
Our Group currently directly employs 15 people and is indirectly responsible for 15 other jobs through direct affiliates and franchisees.
MyStay International Pty Ltd (MSI) is the holding company for a number or entities which operate under the MSI umbrella. Further information can be found in Figure 2 of the Offer Document.
Our brands are part of the Global Homestay Alliance, an alliance of the most recognised companies in homestay for international students on the planet, including Australian Homestay Network, American Homestay Network, AmeriStudent, Canada Homestay Network and StudentRoomStay.com.
Strategic Partnerships
As part of our wider network strategy, we have formed and continue to pursue growth through a number of key global partnerships.
StudentRoomStay International (SRSI)
StudentRoomStay International (SRSI) is an initiative of MSI and MSI’s major shareholder AmeriStudent. Tower Bridge International (TBI) from China is also a partner as they are AmeriStudent’s major shareholder.
SRSI has already launched in the USA, with plans to expand to Australia, Canada and other regions in 2022. MSI has both development and operation agreements in place with SRSI going into the future.
Morneau Shepell
MSI has also worked with Morneau Shepell to develop a system to offer the new International Student Welfare Program (ISWP) – a counselling support app – to Chinese students and their parents both in China and wherever they are studying anywhere in the world. Morneau Shepell is a $2 billion publicly listed company based in Toronto, Canada.
Tower Bridge International
Through our association with our major shareholder AmeriStudent we have been able to build a strong connection with local China-based company Tower Bridge International. This means that we have direct access to a key networking group that has an interest in MSI and access to the Chinese international student market.
Student Parachute (Crisis Cover)
MSI has secured a distribution agreement with Student Parachute, bringing world-leading technology to Australia to offer students real-time emergency response services while studying at home or overseas.
Education Agents
We work with more than 2,400 agents from across the globe who have helped us place more than 67,000 international students from more than 185 countries in homestays across Australia (~62,000) and the USA (~5,000).
Education Providers
More than 340 education providers in Australia and the USA have partnered with MSI including universities, language schools, technical colleges, high schools and primary schools. Even in 2020, AHN achieved active placements in all of the prestigious Group of Eight universities in Australia.
The Market Opportunity
The international education hosting market represents a large and expanding industry in Australia. International education is Australia’s fourth-largest export industry contributing $37.5 billion to the economy in the 2019/20 financial year. At Australia’s peak intake in 2019 there were more than 750,000 international students in the country, with MSI homestay placements accounting for a very small proportion of the total opportunity of providing hosted accommodation to these students.
In addition, significant opportunities remain in other areas of the market, including homestay placements in other countries around the world, and other domestic opportunities to strengthen our reliance on global movement. With our strong brand reputation and foundations in place, we are well-placed to continue to scale our business model further across the globe.
Growth Strategy
Our Group intends to build off the success of the Australian Homestay Network Pty Ltd (AHN) program by entering into new markets. The AHN has been very successful for us both in brand and profit.
In 2020, we were experiencing our best start of the year ever in Australia. New bookings were up on the previous year by 25%. Then COVID-19 hit and our core business – homestay for international students studying in Australia – was severely impacted. In response, MSI developed a plan to reposition the business to strengthen our resilience and capitalise on new opportunities until COVID-19 restrictions lift and business returns to normal.
Our growth strategy predominantly focuses on using our existing technology, infrastructure, and intellectual property (IP) to build new programs for the domestic market. The majority of these should provide positive change and help alleviate hardship in the community, and also create new revenue streams for MSI. Seven out of the ten priority projects – the Disability Homestay Network, Helping Hand, HealthStay, MyRegionalStay, MyCityStay, FarmStay and Student Parachute – represent a shift to new businesses that will diversify our offering beyond the international student market.
In addition, we plan to seize industry acquisition opportunities resulting from the anticipated closures of other student homestay operations in Australia and expand our homestay services in key international student destinations such as New Zealand and the United Kingdom.
Why Equity Crowdfunding
MyStay International has chosen to raise capital through equity crowdfunding on the Equitise platform to provide our hosts and key stakeholders the chance to get in on the ground floor and own a piece of the company. By allowing our community to buy shares in the business, we are both boosting growth and allowing our stakeholders to share in any potential success.
We have already raised some funding through traditional avenues, and will likely do so again in the future. Equity crowdfunding allows us to raise the capital we need while allowing the people most important to the company, the hosts, to become co-owners of MyStay International.
Key Team Members
For more information please see section 2.5 of the Offer Document.
David is acknowledged in this industry as a leading innovator and business developer. He has assisted global companies like Allianz grow their international student business and in Australia led the strategy and marketing for Allianz to claim the number one position in their international student business.
As the key initiator of the highly successful AHN project, David has led the development of the business during a critical time for the international student accommodation industry and is currently an Executive Director of the MSI Group.
His contributions to the Australian Senate Inquiry into the Welfare of International Students findings (November 2009) and the ESOS review (February 2010) have greatly assisted bringing better controls and standards to this critical part of the international education industry. David worked with the Department
of Immigration in 2012 to create the widely promoted ‘Community Placement Network’ (CPN) to improve the conditions and outcomes for onshore processing of asylum seekers, and successfully placed 600 asylum seekers with Australian families.
David was appointed as the only QLD resident of the NSW Government Taskforce on International Education and Research received an ‘Outstanding Contribution Award’ from the Council of International Students of Australia (CISA) for his remarkable support of CISA.
Adam is currently CEO/Co-Founder of StudentRoomStay International. StudentRoomStay is a platform that helps students book accommodations and navigates them throughout the duration of their stay. Prior to launching StudentRoomStay Adam started AmeriStudent, LLC. AmeriStudent is MSI’s largest shareholder. AmeriStudent’s goal is to provide a safe and enriching cultural experience for all those studying abroad.
Adam has nearly 20 years of business experience and has co-founded/owned several successful start- ups over the last decade. Adam resides in Arroyo Grande, California with his wife Jen, daughter Sienna (12) and son Samuel (7).
Dawei (David) Wang
Dawei is a senior executive of the Chinese-based Tower Bridge International group (TBI).
TBI promotes cross cultural education and exchange through collaboration and partnerships with public school districts in the United States. In each of their regions they establish local branches and hire qualified staff to support international students, host families, and schools.
The TBI Exchange Platform was created to support global education at every level. Whether it is a school looking to try out a short-term program or a student hoping to graduate from an American high school and enrol in an American college, the TBI exchange platform is able to support many groups’ global education needs.
Chris was a part of the team who created the original AHN concept. He is now Executive Manager of the Group responsible for managing all aspects of the business. He is the lead designer of AHN’s unique Homestay Management Systems, working closely with key stakeholders and developers in delivering improvements that are specifically tailored to the needs of the business. He has also held a variety of roles during AHN’s formative years, giving him a unique insight into all levels of operations.
Chris has a degree in Communications and Media Studies, and since 2017 has been responsible for the management of the MSI Group of companies.
Ella has also been with the AHN Group since day one and has performed multiple roles during the development of the respective projects. In her current position she works closely with all entities and stakeholders to ensure successful communication, development, and operations. She has been key to the successful linking of all affiliates to the AHN project.
Prior to joining our Group in 2006, Ella was the Business Development/Marketing Manager at Teacher’s Union Health and accumulated over 16 years’ experience in the private health insurance industry, working across all areas. Ella also managed client liaison in international education for the very successful Overseas Student Health Cover (OSHC) project with Allianz Global Assistance, and assisted with functions, events and marketing activities associated with that project.
Julie is responsible for the day to day management of key business processes and activities across the Group and leads the head office team to support our national and global operations.
Prior to commencing with MSI, Julie was General Manager for online accommodation giant Wotif.com. She joined Wotif during its infancy in 2002 and was instrumental in the company’s future success by leading the service teams to operational excellence and implementing strategies that shaped Wotif’s award-winning customer experience. During her tenure Julie was part of the Executive team through several acquisitions and a successful public listing on the ASX.
Terri Barry joined MSI as Financial Controller in 2016. Terri has extensive experience in financial control across all areas of business including financial results, compliance, audit process, account controls, payroll, budgeting, and forecasting, etc.
Prior to joining MSI Terri spent 16 years with her former company – a major supplier both nationally and internationally of fresh produce, particularly to the major Australian players including Coles, Woolworths and IGA.
Terri provides management with timely and accurate financial statements, ongoing cash flow projections, insight to accounting and finance operations, as well as design and maintenance of the financial reporting structures.
Ryan has over 15 years’ experience within the international education industry. Ryan has worked in most levels of the industry, from leading nationwide delivery of international education programs to heading up strategic initiatives in recruitment and finance.
He has a deep understanding of the global supply and demand metrics within international education and can apply practical knowledge to the dynamic range of MSI initiatives. As Business Analyst for MyStay International, Ryan provides metrics, strategy and insight to compliment the development of all core and new projects as well as to the high-level strategy of the Group.
Historical Financials
Use of Funds
Key Risks Facing the Business
For more information please see section 2.6 of the Offer Document.
In the past we have had an over-reliance on incoming international students and travel for our business in Australia. Our current revenue would drop significantly if the global vaccine rollout were to be hampered and if worldwide travel restrictions were to continue to the end of 2022.
The primary target market for our Australian operations up to this point has been international students coming to Australia to live and learn. If students do not have the ability to travel outside their home country to study, or if countries other than Australia become more desirable, revenue from our core business would face significant decline.
The success of the Company depends to a significant degree on its key personnel and its ability to retain experienced and high performing personnel. The loss of key management personnel, and any delay in their replacement, may adversely affect the Company’s ability to develop and implement its business and growth strategies or increase the costs of obtaining suitable personnel. There is also a risk that the Company cannot attract, retain or develop the relevant skilled individuals it requires to successfully execute its business plan.
Without appropriate capital our Group may not be able to diversify and take advantage of relevant opportunities post COVID-19.
As our business model is growing and we have proven the concept, there is an ongoing risk that a major competitor will challenge our market share at some stage.
The Company’s operating activities involve a series of cash inflows and outflows. Although the Company seeks to manage its cash flow efficiently, there is a risk that the Company may not have sufficient cash or working capital, at times, to fund both its operations and its expansion plans. This could affect the Company’s profitability, future prospects, and its ability to meet its business objectives.
The homestay industry is subject to domestic and international competition and while the Company exercises all reasonable due diligence in its business decisions and operations, it will have no influence or control over the activities or actions of its competitors, which may, positively or negatively, affect the operating and financial performance of the Group.
The Company considers that the funds to be raised under the Private Offer are sufficient to meet the Company’s current business objectives. However, additional funding will be required from outside investors to meet our plans for maximising shareholder ROI. The Company will look to raise additional funds through open crowdfunding, equity financing, debt financing or a combination of both. Failure to obtain sufficient funding may result in delay and possible indefinite postponement of the Company’s activities or expansion plans. There can be no assurance that additional financing will be available when needed, on terms appropriate to the Company or that do not involve substantial dilution to Shareholders.
The Company has taken measures to protect its intellectual property. However, there is a risk that the intellectual property protection measures in place are inadequate or ineffective, which could have an adverse impact on the Company’s ability to compete, control the representation of its brand, and pursue its business objectives.