Since 2017, Microsoft has offered its Office suite to Chromebook users via the Google Play store, but that is set to come to an end in a few short weeks.
As of Sept. 18, Microsoft is discontinuing support for Office, which includes Word, Excel, PowerPoint, OneNote and Outlook, on Chromebook. Microsoft is not, however, abandoning the popular mobile device altogether. Instead of an app that is downloaded, Microsoft is encouraging users to go to the web instead.
“In an effort to provide the most optimized experience for Chromebook customers, Microsoft apps (Office and Outlook) will be transitioned to web experiences (Office.com and Outlook.com) on September 18, 2021,” Microsoft wrote in a statement emailed to TechCrunch.
Microsoft’s statement also noted that “this transition brings Chromebook customers access to additional and premium features.”
The Microsoft web experience will serve to transition its base of Chromebook users to the Microsoft 365 service, which provides more Office templates and generally more functionality than what the app-based approach provides. The web approach is also more optimized for larger screens than the app.
In terms of how Microsoft wants Chromebook users to get access to Office and Outlook, the plan is for customers to, “..sign in with their personal Microsoft Account or account associated with their Microsoft 365 subscription,” according to the statement. Microsoft has also provided online documentation to show users how to run Office on a Chromebook.
Chromebooks run on Google’s Chrome OS, which is a Linux-based operating system. Chromebooks also enable Android apps to run, as Android is also Linux based, with apps downloaded from Google Play. It’s important to note that while support for Chromebooks is going away, Microsoft is not abandoning other Android-based mobile devices, such as tablets and smartphones.
For those Chromebook users that have already downloaded the Microsoft Office apps, the apps will continue to function after September 18, though they will not receive any support or future updates.
With more than 270,000 stickers, Stipop’s library of colorful, character-driven expressions has a little something for everyone.
The company offers keyboard and social app stickers through ad-supported mobile apps on iOS and Android, but it’s recently focused more on providing stickers to developers, creators and other online businesses.
“We were able to gather so many artists because we actually began as our own app that provided stickers,” Stipop co-founder Tony Park told TechCrunch. The team took what they learned from running their own consumer-facing app — namely that collecting and licensing hundreds of thousands of stickers from artists around the world is hard work — and adapted their business to help solve that problem for others.
Stipop was the first Korean company to go through Yellow, Snapchat’s exclusive accelerator. The company is also part of Y Combinator’s Summer 2021 cohort.
Stipop’s sticker library is accessible through an SDK and an API, letting developers slot the searchable sticker library into their existing software. The company already has more than 200 companies that tap into its huge sticker trove, which offers a “single-day solution” for a process that would otherwise necessitate a lot more legwork. Stipop launched a website recently that helps developers integrate its SDK and API through quick installs.
“They can just add a single line of code inside their product and will have a fully customized sticker feature [so] users will be able to spice up their chats,” Park said.
Park points out that stickers encourage engagement — and for social software, engagement means growth. Stickers are a playful way to send characters back and forth in chat, but they also pop up in a number of other less obvious spots, from dating apps to ecommerce and ridesharing apps. Stipop even drives the sticker search in work collaboration software Microsoft Teams.
The company has already partnered with Google, which uses Stipop’s sticker library in Gboard, Android Messages and Tenor, a GIF keyboard platform that Google bought in 2018. That partnership drove 600 million sticker views within the first month. A new partnership between Stipop and Coca-Cola on the near horizon will add Coke-branded stickers to its sticker library and the company is opening its doors to more brands that understand the unique appeal of stickers in messaging apps.
Park says that people tend to compare stickers and gifs, two ways of wordlessly expressing emotion and social nuance, but stickers are a world unto themselves. Stickers exist in their own creative universe, with star artists, regional themes and original casts of characters that take on a life of their own among fans. “Sticker creators have their own profession,” Park said.
Visual artists can also find a lot of traction releasing stickers, even without sophisticated illustrations. And since they’re all about meaning rather than refinement, non-designers and less skilled artists can craft hit stickers too.
“Stickers are great for them because it [is] so easy to go viral,” Park said. The company has partnered with 8,000 sticker creators across 25 languages, helping those artists monetize their creations and generate income based on how many times a sticker is shared.
Stickers command their own visual language around the world, and Park has observed interesting cultural differences in how people use them to communicate. In the West, stickers are often used in place of text, but in Asia, where they’re used much more frequently, people usually send stickers to enhance rather than replace the meaning of text.
In East Asia, users tend to prefer simple black and white stickers, but in India and Saudi Arabia, bright, golden stickers top the trends. In South America, popular stickers take on a more pixelated, unique quality that resonates culturally there.
“With stickers, you fall in love with [the] characters you send… that becomes you,” Park said.
The meeting, which also included attendees from the financial and education sectors, was held following months of high-profile cyberattacks against critical infrastructure and several U.S. government agencies, along with a glaring cybersecurity skills gap; according to data from CyberSeek, there are currently almost 500,000 cybersecurity jobs across the U.S that remain unfilled.
“Most of our critical infrastructure is owned and operated by the private sector, and the federal government can’t meet this challenge alone,” Biden said at the start of the meeting. “I’ve invited you all here today because you have the power, the capacity and the responsibility, I believe, to raise the bar on cybersecurity.”
In order to help the U.S. in its fight against a growing number of cyberattacks, Big Tech pledged to invest billions of dollars to strengthen cybersecurity defenses and to train skilled cybersecurity workers.
Apple has vowed to work with its 9,000-plus suppliers in the U.S. to drive “mass adoption” of multi-factor authentication and security training, according to the White House, as well as to establish a new program to drive continuous security improvements throughout the technology supply chain.
Google said it will invest more than $10 billion over the next five years to expand zero-trust programs, help secure the software supply chain and enhance open-source security. The search and ads giant has also pledged to train 100,000 Americans in fields like IT support and data analytics, learning in-demand skills including data privacy and security.
“Robust cybersecurity ultimately depends on having the people to implement it,” said Kent Walker, Google’s global affairs chief. “That includes people with digital skills capable of designing and executing cybersecurity solutions, as well as promoting awareness of cybersecurity risks and protocols among the broader population.”
And, Microsoft said it’s committing $20 billion to integrate cybersecurity by design and deliver “advanced security solutions.” It also announced that it will immediately make available $150 million in technical services to help federal, state and local governments with upgrading security protection, and will expand partnerships with community colleges and nonprofits for cybersecurity training.
Other attendees included Amazon Web Services (AWS), Amazon’s cloud computing arm, and IBM. The former has said it will make its security awareness training available to the public and equip all AWS customers with hardware multi-factor authentication devices, while IBM said it will help to train more than 150,000 people in cybersecurity skills over the next five years.
While many have welcomed Big Tech’s commitments, David Carroll, managing director at Nominet Cyber, told TechCrunch that these latest initiatives set a “powerful precedent” and show “the gloves are well and truly off” — but some within the cybersecurity industry remain skeptical.
“So 500,000 open cybersecurity jobs and almost that same amount or more looking for jobs,” said Khalilah Scott, founder of TechSecChix, a foundation for supporting women in technology, in a tweet. “Make it make sense.”
On October 27, we’re taking on the ferociously competitive field of software as a service (SaaS), and we’re thrilled to announce our packed agenda, overflowing with some of the biggest names and most exciting startups in the industry. And you’re in luck, because $75 early-bird tickets are still on sale — make sure you book yours so you can enjoy all the agenda has to offer and save $100 bucks before prices go up!
Throughout the day, you can expect to hear from industry experts, and take part in discussions about the potential of new advances in data, open source, how to deal with the onslaught of security threats, investing in early-stage startups and plenty more.
We’ll be joined by some of the biggest names and the smartest and most prescient people in the industry, including Javier Soltero at Google, Kathy Baxter at Salesforce, Jared Spataro at Microsoft, Jay Kreps at Confluent, Sarah Guo at Greylock and Daniel Dines at UiPath.
You’ll be able to find and engage with people from all around the world through world-class networking on our virtual platform — all for $75 and under for a limited time with even deeper discounts for nonprofits and government agencies, students and up-and-coming founders!
Our agenda showcases some of the powerhouses in the space, but also plenty of smaller teams that are building and debunking fundamental technologies in the industry. We still have a few tricks up our sleeves and will be adding some new names to the agenda over the next month, so keep your eyes open.
In the meantime, check out these agenda highlights:
We’ll have more sessions and names shortly, so stay tuned. But get excited in the meantime, we certainly are.
Pro tip: Keep your finger on the pulse of TC Sessions: SaaS. Get updates when we announce new speakers, add events and offer ticket discounts.
Why should you carve a day out of your hectic schedule to attend TC Sessions: SaaS? This may be the first year we’ve focused on SaaS, but this ain’t our first rodeo. Here’s what other attendees have to say about their TC Sessions experience.
“TC Sessions: Mobility offers several big benefits. First, networking opportunities that result in concrete partnerships. Second, the chance to learn the latest trends and how mhttps://techcrunch.com/2021/06/24/databricks-co-founder-and-ceo-ali-ghodsi-is-coming-to-tc-sessions-saas/obility will evolve. Third, the opportunity for unknown startups to connect with other mobility companies and build brand awareness.” — Karin Maake, senior director of communications at FlashParking.
“People want to be around what’s interesting and learn what trends and issues they need to pay attention to. Even large companies like GM and Ford were there, because they’re starting to see the trend move toward mobility. They want to learn from the experts, and TC Sessions: Mobility has all the experts.” — Melika Jahangiri, vice president at Wunder Mobility.
Welcome back to This Week in Apps, the weekly TechCrunch series that recaps the latest in mobile OS news, mobile applications and the overall app economy.
The app industry continues to grow, with a record 218 billion downloads and $143 billion in global consumer spend in 2020. Consumers last year also spent 3.5 trillion minutes using apps on Android devices alone. And in the U.S., app usage surged ahead of the time spent watching live TV. Currently, the average American watches 3.7 hours of live TV per day, but now spends four hours per day on their mobile devices.
Apps aren’t just a way to pass idle hours — they’re also a big business. In 2019, mobile-first companies had a combined $544 billion valuation, 6.5x higher than those without a mobile focus. In 2020, investors poured $73 billion in capital into mobile companies — a figure that’s up 27% year-over-year.
This Week in Apps offers a way to keep up with this fast-moving industry in one place with the latest from the world of apps, including news, updates, startup fundings, mergers and acquisitions, and suggestions about new apps and games to try, too.
Do you want This Week in Apps in your inbox every Saturday? Sign up here: techcrunch.com/newsletters
(Photo Illustration by Jakub Porzycki/NurPhoto via Getty Images)
Creator platform OnlyFans is getting out of the porn business. The company announced this week it will begin to prohibit any “sexually explicit” content starting on October 1, 2021 — a decision it claimed would ensure the long-term sustainability of the platform. The news angered a number of impacted creators who weren’t notified ahead of time and who’ve come to rely on OnlyFans as their main source of income.
However, word is that OnlyFans was struggling to find outside investors, despite its sizable user base, due to the adult content it hosts. Some VC firms are prohibited from investing in adult content businesses, while others may be concerned over other matters — like how NSFW content could have limited interest from advertisers and brand partners. They may have also worried about OnlyFans’ ability to successfully restrict minors from using the app, in light of what appears to be soon-to-come increased regulations for online businesses. Plus, porn companies face a number of other issues, too. They have to continually ensure they’re not hosting illegal content like child sex abuse material, revenge porn or content from sex trafficking victims — the latter which has led to lawsuits at other large porn companies.
The news followed a big marketing push for OnlyFans’ porn-free (SFW) app, OFTV, which circulated alongside reports that the company was looking to raise funds at a $1 billion+ valuation. OnlyFans may not have technically needed the funding to operate its current business — it handled more than $2 billion in sales in 2020 and keeps 20%. Rather, the company may have seen there’s more opportunity to cater to the “SFW” creator community, now that it has big names like Bella Thorne, Cardi B, Tyga, Tyler Posey, Blac Chyna, Bhad Bhabie and others on board.
The TikTok logo is seen on an iPhone 11 Pro max. Image Credits: Nur Photo/Getty Images
Earlier this month, Senators Amy Klobuchar (D-MN) and John Thune (R-SD) sent a letter to TikTok CEO Shou Zi Chew, which said they were “alarmed” by the change, and demanded to know what information TikTok will be collecting and what it plans to do with the data. This wouldn’t be the first time TikTok got in trouble for excessive data collection. Earlier this year, the company paid out $92 million to settle a class-action lawsuit that claimed TikTok had unlawfully collected users’ biometric data and shared it with third parties.
Image Credits: Apple
Image Credits: Facebook
Image Source: The Pokémon Company
Image Credits: Sensor Tower
Image Credits: Samsung
South Korea’s GS Retail Co. Ltd will buy Delivery Hero’s food delivery app Yogiyo in a deal valued at 800 billion won ($685 million USD). Yogiyo is the second-largest food delivery app in South Korea, with a 25% market share.
Gaming platform Roblox acquired a Discord rival, Guilded, which allows users to have text and voice conversations, organize communities around events and calendars and more. Deal terms were not disclosed. Guilded raised $10.2 million in venture funding. Roblox’s stock fell by 7% after the company reported earnings this week, after failing to meet Wall Street expectations.
Travel app Hopper raised $175 million in a Series G round of funding led by GPI Capital, valuing the business at over $3.5 billion. The company raised a similar amount just last year, but is now benefiting from renewed growth in travel following COVID-19 vaccinations and lifting restrictions.
Indian quiz app maker Zupee raised $30 million in a Series B round of funding led by Silicon Valley-based WestCap Group and Tomales Bay Capital. The round values the company at $500 million, up 5x from last year.
Danggeun Market, the publisher of South Korea’s hyperlocal community app Karrot, raised $162 million in a Series D round of funding led by DST Global. The round values the business at $2.7 billion and will be used to help the company launch its own payments platform, Karrot Pay.
Bangalore-based fintech app Smallcase raised $40 million in Series C funding round led by Faering Capital and Premji Invest, with participation from existing investors, as well as Amazon. The Robinhood-like app has over 3 million users who are transacting about $2.5 billion per year.
Social listening app Earbuds raised $3 million in Series A funding led by Ecliptic Capital. Founded by NFL star Jason Fox, the app lets anyone share their favorite playlists, livestream music like a DJ or comment on others’ music picks.
U.S. neobank app One raised $40 million in Series B funding led by Progressive Investment Company (the insurance giant’s investment arm), bringing its total raise to date to $66 million. The app offers all-in-one banking services and budgeting tools aimed at middle-income households who manage their finances on a weekly basis.
Indian travel booking app ixigo is looking to raise Rs 1,600 crore in its initial public offering, The Economic Times reported this week.
Trading app Robinhood disappointed in its first quarterly earnings as a publicly traded company, when it posted a net loss of $502 million, or $2.16 per share, larger than Wall Street forecasts. This overshadowed its beat on revenue ($565 million versus $521.8 million expected) and its more than doubling of MAUs to 21.3 million in Q2. Also of note, the company said dogecoin made up 62% of its crypto revenue in Q2.
Image Credits: Polycam
3D scanning software maker Polycam launched a new 3D capture tool, Photo Mode, that allows iPhone and iPad users to capture professional-quality 3D models with just an iPhone. While the app’s scanner before had required the use of the lidar sensor built into newer devices like the iPhone 12 Pro and iPad Pro models, the new Photo Mode feature uses just an iPhone’s camera. The resulting 3D assets are ready to use in a variety of applications, including 3D art, gaming, AR/VR and e-commerce. Data export is available in over a dozen file formats, including .obj, .gtlf, .usdz and others. The app is a free download on the App Store, with in-app purchases available.
Jiobit, the tracking dongle acquired by family safety and communication app Life360, this week partnered with emergency response service Noonlight to offer Jiobit Protect, a premium add-on that offers Jiobit users access to an SOS Mode and Alert Button that work with the Jiobit mobile app. SOS Mode can be triggered by a child’s caregiver when they detect — through notifications from the Jiobit app — that a loved one may be in danger. They can then reach Noonlight’s dispatcher who can facilitate a call to 911 and provide the exact location of the person wearing the Jiobit device, as well as share other details, like allergies or special needs, for example.
When your app redesign goes wrong…
Prominent App Store critic Kosta Eleftheriou shut down his FlickType iOS app this week after too many frustrations with App Review. He cited rejections that incorrectly argued that his app required more access than it did — something he had successfully appealed and overturned years ago. Attempted follow-ups with Apple were ignored, he said.
Anyone have app ideas?
Music streaming service Spotify today said it will spend up to $1 billion between now and April 21, 2026 to repurchase its own shares. The dollar amount represents just under 2.5% of Spotify’s market cap, with the company valued at $41.06 billion this morning as its shares rose 5.1% following the repurchase news.
The company previously executed a similar buyback program in 2018.
A public company using some of its cash to repurchase its shares is nothing new. Many public companies, including Apple, Alphabet, and Microsoft, have active share repurchase programs, and it is common to see mature or nearly-mature companies devoting a fraction of their balance sheet or a regular percentage of their free cash flow to buying back their own equity.
The goal of such efforts is to return cash to shareholders. Buybacks, along with dividends, are among the key ways that companies can use their wealth to reward shareholders. Also, by buying their own stock, companies can boost the value of their individual shares. By limiting the shares in circulation, the company’s share count declines and the value of each share consequently rises, in theory, as it represents a larger fraction of ownership in the corporation.
Spotify shares have traded as high as $387.44 apiece in the past 12 months, but are now worth just $215.84, inclusive of today’s gains. From that perspective, seeing Spotify decide to deploy some cash to repurchase its own equity makes sense — the company is buying low.
But if you ask a recently public company what it intends to do with its excess cash, buybacks are not usually the answer. For example, TechCrunch asked Root Insurance CEO Alex Timm if his company intended to use cash reserves to purchase its own equity after its recent Q2 2021 earnings report. Root’s share price has declined in recent months, perhaps making it an attractive time to reward shareholders through buybacks. Timm demurred on the idea, saying instead that his company is building for the long-term. That translates to: That cash is earmarked for growth, not shareholder return.
But isn’t Spotify still a growth company? It certainly isn’t valued on the weight of its profits. In the first half of 2021, for example, Spotify posted net profit of a mere €3 million on revenues of €4.5 billion.
If Spotify is still a growth-focused company, shouldn’t it preserve its capital to invest in exclusive podcasts and the like — efforts that may grant it pricing power in the future and allow for stronger revenue growth and gross margins over time?
To answer that, we’ll have to check the company’s balance sheet. From its Q2 2021 earnings, here are the key numbers:
More simply, despite paying up for efforts that are generally understood to be key to Spotify’s long-term ability to improve its gross margins — and therefore its net profitability — the company is still throwing off cash. And with a huge bank account earning little, thanks to globally low prices for cash and equivalent holdings, Spotify is using a chunk of its funds to buy back stock.
By spending $1 billion over the next few years, Spotify won’t materially harm its cash position. Indeed, it will remain incredibly cash-rich. However, the move may help defend its valuation and keep itchy investors happy. Moreover, as the company is buying its stock at a firm discount to where the market valued it recently, it could get something akin to a deal, given Spotify’s long-term faith in the value of its own business.
Perhaps the better question as this juncture is not whether Spotify is a weird company for deciding to break off a piece of its wealth for shareholders, but instead why we aren’t seeing other breakeven-ish tech companies with neutral cash flows and fat accounts doing the same.
Microsoft has invested $5 million in Indian budget hotel chain Oyo, according to a regulatory filing this week. The investment confirms a TechCrunch scoop from last month.
The new investment values Oyo at $9.6 billion, only slightly below the $10 billion implied valuation from the Indian startup’s previous financing round in 2019. The startup, which lost significant business to the pandemic, was valued at just $3 billion in recent quarters by SoftBank, one of its largest investors.
TechCrunch reported earlier that this strategic investment may also involve Oyo shifting to use Microsoft’s cloud services. The company is planning to file for an IPO later this year, according to two people familiar with the matter.
Oyo, which is one of India’s most valuable startups, has aggressively expanded to many markets including Southeast Asia, Europe and the U.S. in recent years. But some of its missteps — “toxic culture,” lapse in governance, and relationship with many hotel owners — have scarred its growth.
Just as the startup was pledging to improve its relationship with hotel owners, the pandemic arrived. In response, Oyo slowed its growth and laid off thousands of employees globally earlier this year as nations across the world enforced lockdowns.
The pandemic hit the seven-year-old startup like a “cyclone,” Agarwal told Bloomberg TV last month. “We built something for so many years and it took just 30 days for it drop by over 60%,” he said, adding that the firm had not made any decision on exploring the public markets.
Airbnb-backed Oyo had between $780 million to $800 million in its bank, Agarwal said at a virtual conference recently and had pared its “monthly burn” across all businesses to $4 million to $5 million. (The startup had about $1 billion in the bank in December 2020.)
Last month — after Agarwal’s remarks at the aforementioned conference — Oyo said it had raised $660 million in debt. That debt was used to pay off the previous debt, according to a person familiar with the matter.
If the deal between the two firms materializes, it will be Microsoft’s latest investment in an Indian startup. The firm has backed a handful of startups in the South Asian market, including news aggregator and short-video platform DailyHunt, e-commerce giant Flipkart, and logistics SaaS firm FarEye.
It’s often said in baseball that a prospect has a high ceiling, reflecting the tremendous potential of a young player with plenty of room to get better. The same could be said for the cloud infrastructure market, which just keeps growing with little sign of slowing down any time soon. The market hit $42 billion in total revenue with all major vendors reporting, up $2 billion from Q1.
Synergy Research reports that the revenue grew at a speedy 39% clip, the fourth consecutive quarter that it has increased. AWS led the way per usual, but Microsoft continued growing at a rapid pace and Google also kept the momentum going.
AWS continues to defy market logic, actually increasing growth by 5% over the previous quarter at 37%, an amazing feat for a company with the market maturity of AWS. That accounted for $14.81 billion in revenue for Amazon’s cloud division, putting it close to a $60 billion run rate, good for a market leading 33% share. While that share has remained fairly steady for a number of years, the revenue continues to grow as the market pie grows ever larger.
Microsoft grew even faster at 51%, and while Microsoft cloud infrastructure data isn’t always easy to nail down, with 20% of market share according to Synergy Research, that puts it at $8.4 billion as it continues to push upward with revenue up from $7.8 billion last quarter.
Google too continued its slow and steady progress under the leadership of Thomas Kurian, leading the growth numbers with a 54% increase in cloud revenue in Q2 on revenue of $4.2 billion, good for 10% market share, the first time Google Cloud has reached double figures in Synergy’s quarterly tracking data. That’s up from $3.5 billion last quarter.
Image Credits: Synergy Research
After the Big 3, Alibaba held steady over Q1 at 6% (but will only report this week) with IBM falling a point from Q1 to 4% as Big Blue continues to struggle in pure infrastructure as it makes the transition to more of a hybrid cloud management player.
John Dinsdale, chief analyst at Synergy, says that the big three are spending big to help fuel this growth. “Amazon, Microsoft and Google in aggregate are typically investing over $25 billion in capex per quarter, much of which is going towards building and equipping their fleet of over 340 hyperscale data centers,” he said in a statement.
Meanwhile Canalys had similar numbers, but saw the overall market slightly higher at $47 billion. Their market share broke down to Amazon with 31%, Microsoft with 22% and Google with 8% of that total number.
Canalys analyst Blake Murray says that part of the reason companies are shifting workloads to the clouds is to help achieve environmental sustainability goals as the cloud vendors are working toward using more renewable energy to run their massive data centers.
“The best practices and technology utilized by these companies will filter to the rest of the industry, while customers will increasingly use cloud services to relieve some of their environmental responsibilities and meet sustainability goals,” Murray said in a statement.
Regardless of whether companies are moving to the cloud to get out of the data center business or because they hope to piggyback on the sustainability efforts of the big 3, companies are continuing a steady march to the cloud. With some estimates of worldwide cloud usage at around 25%, the potential for continued growth remains strong, especially with many markets still untapped outside the U.S.
That bodes well for the big three and for other smaller operators who can find a way to tap into slices of market share that add up to big revenue. “There remains a wealth of opportunity for smaller, more focused cloud providers, but it can be hard to look away from the eye-popping numbers coming out of the big three,” Dinsdale said.
In fact, it’s hard to see the ceiling for these companies any time in the foreseeable future.
Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.
We were a smaller team this week, with Natasha and Alex together with Grace and Chris to sort through a week that brought together both this quarter’s earnings cycle, and the Q3 IPO rush. So, it was just a little busy!
Before we get to topics, however, a note that we are having a lot of fun recording these live on Twitter Spaces. We’ve found a hacky way to capture local audio and also share the chats live. So, hit us up on Twitter so you can hang out with us. It’s fun – and we may even bring you up on stage to play guest host.
Ok, now, to the Great List of Subjects:
Indian budget hotel chain Oyo may have lost a significant portion of its business amid the pandemic, but it is inching closer to finding a new investor: Microsoft.
Microsoft is in advanced stages of talks to invest in Oyo, according to two people with knowledge of the matter. The size of the investment and the valuation are unclear. Oyo was valued at about $10 billion in 2019, though SoftBank, a major investor in Oyo, had slashed the Indian startup’s valuation to $3 billion earlier this year.
The deal may also involve Oyo shifting to use Microsoft’s cloud services, one of the people said. Both the sources requested anonymity as the matter is private.
Microsoft and Oyo founder and chief executive Ritesh Agarwal declined to comment Thursday evening.
The Indian startup, which laid off thousands of employees globally earlier this year as nations across the world enforced lockdowns, still has between $780 million to $800 million in its bank, Agarwal said at a recent virtual conference. (The startup had about $1 billion in the bank in December 2020.)
The pandemic hit the startup like a “cyclone,” he told Bloomberg TV earlier this month. “We built something for so many years and it took just 30 days for it drop by over 60%,” he said.
Earlier this month, and after Agarwal’s remarks at the aforementioned conference, Oyo said it had raised $660 million in debt. That debt was used to clear the previous debt, a third person familiar with the matter told TechCrunch.
If the deal materializes, it will be Microsoft’s latest investment in an Indian startup. The firm has backed a handful of startups in the past, including news aggregator and short-video platform DailyHunt.
Facebook’s booming business is dominated by digital ads, but it also has hardware ambitions beyond VR. During the company’s latest earnings call, CEO Mark Zuckerberg said its next product release would be a pair of smart glasses from Ray-Ban.
“The glasses have their iconic form factor, and they let you do some pretty neat things,” the Facebook co-founder said. “So I’m excited to get those into people’s hands and to continue to make progress on the journey toward full augmented reality glasses in the future.”
Facebook’s sunglasses have been the subject of rumors since 2019. Back then, sources told CNBC that Facebook was working with Ray-Ban owner EssilorLuxottica on AR eyewear nicknamed “Orion.” The glasses were billed as a full-fledged phone replacement on which you could take calls, see information and even broadcast livestreams. That inevitably drew comparisons to Google Glass (another Luxottica collab) instead of the phone-tethered Spectacles from Snap. Last year, Hugo Barra, then VP VR at Facebook Reality Labs, confirmed that the glasses would land in 2021. But, we haven’t heard much since.
For Facebook, the glasses hold the key to its future. Alongside virtual reality, augmented reality (AR) is integral to building the “metaverse,” Zuckerberg said. In the future, Facebook will morph into a shared, liveable platform that lets you “teleport” between different social experiences using VR and AR, Zuckerberg explained.
The term metaverse is the latest buzzword seized upon by Silicon Valley and futurists. While the concept has been around for well over a decade, it gained traction after the breakout success of multiplayer game creation platforms like Fortnite and Roblox. Earlier this week, Microsoft chief Satya Nadella mentioned an “enterprise metaverse” on his company’s earnings call.
For Facebook, the metaverse is more than just a fad. The company is spending billions in order to build its shared universe, which will be populated with Facebook users and digital ads, according to Zuckerberg. In order for it to become a reality, the company needs more people to buy its computing hardware. Therefore, the plan is to make those devices more affordable.
“Our business model isn’t going to primarily be around trying to sell devices at a large premium or anything like that because our mission is around serving as many people as possible,” Zuckerberg noted. “So we want to make everything that we do as affordable as possible, so as many people as possible can get into it and then compounds the size of the digital economy inside it. So that’s kind of at a high level how I’m thinking about this.”
Sunglasses aren’t the only hardware Facebook is reportedly working on. Multiple reports have claimed Facebook is developing a smartwatch with a built-in cellular connection and a detachable display. Initially, it was believed that the watch would be first out the gate, but it seems Zuckerberg had other plans.
Editor’s note: This post originally appeared on Engadget.
Canadian e-commerce juggernaut Shopify this morning reported its second-quarter financial performance. Like Microsoft and Apple in the wake of their after-hours earnings reports, its shares are having a muted reaction to the better-than-expected results.
In the second quarter of 2021, Shopify reported revenues of $1.12 billion, up 57% on a year-over-year basis. The company’s subscription products grew 70% to $334.2 million, while its volume-driven merchant services drove their own top line up 52% to $785.2 million.
Investors had expected Shopify to report revenue of $1.05 billion.
Shopify also posted an enormous second-quarter profit. Indeed, from its $1.12 billion in total revenues, Shopify managed to generate $879.1 million in GAAP net income. How? The outsized profit came in part thanks to $778 million in unrealized gains related to equity investments. But even with those gains filtered out, Shopify’s adjusted net income of $284.6 million more than doubled its year-ago Q2 result of $129.4 million. Shopify’s earnings per share sans unrealized gains came to $2.24, far ahead of an expected 97 cents.
After reporting those results, Shopify shares are up less than a point.
In light of somewhat muted reactions to Big Tech earnings surpassing expectations, it’s increasingly clear that investors were anticipating that leading tech companies would trounce expectations in the second quarter; their earnings beats were largely priced-in ahead of the individual reports.
The rest of Shopify’s quarter is a series of huge figures. In the second three-month period of 2021, the company posted gross merchandise volume (GMV) of $42.2 billion, up 40% compared to the year-ago period. That was more than a billion dollars ahead of expectations. And the company’s monthly recurring revenue (MRR) grew 67% to $95.1 million in the quarter. That’s quick.
Shopify is priced like the growth will continue. Using its Q2 revenue result to generate an annual run rate for the firm, Shopify is currently valued at around 43x its present top line. That’s aggressive for a company that generates the minority of its revenues from recurring software fees, an investor favorite. Instead, investors seem content to pay what is effectively top dollar for the company’s blend of GMV-based service revenues and more traditional software incomes.
Consider the public markets bullish on the continued pace of e-commerce growth.
It will be interesting to see how BigCommerce, a Shopify competitor and fellow public company, performs when it reports earnings in early August. Shares of BigCommerce are up more than 3% today in wake of Shopify’s results. Ironic given Shopify’s relaxed market reaction to its own results? Sure, but who said the public markets are fair?
Thoma Bravo-owned Sophos has announced it’s acquiring Braintrace, a cybersecurity startup that provides organizations visibility into suspicious network traffic patterns. Terms of the deal were not disclosed.
Braintrace, which was founded in 2016 and has raised $10 million in funding, has developed a network detection and response (NDR) solution that helps organizations to easily inspect network traffic to identify and filter out suspicious activity. It does this using remote network packet capture (RNCAP) technology, which provides visibility into network traffic patterns, including encrypted traffic, without the need for man-in-the-middle decryption. It also provides visibility into cloud network traffic, a task that typically needs to be carried out on-site, and supports all of the major cloud providers including AWS and Microsoft Azure.
The deal will see Sophos integrate Braintrace’s NDR technology into its own adaptive cybersecurity ecosystem, which underpins all of its security products and services. The technology will also help Sophos collect data from firewalls, proxies and VPNs, allowing it to look for network traffic that contains instructions for malware like TrickBot, and attackers that misuse Cobalt Strike, as well as pre-empting other malicious traffic that might lead to ransomware attacks
Braintrace’s developers, data scientists and security analysts have joined its global Sophos’ managed threat response (MTR) and rapid response teams as part of the deal.
Commenting on the deal, which Sophos claims will make it one of the largest and fastest-growing managed detection and response (MDR) providers, the company’s CEO Joe Levy said: “We’re excited that Braintrace built this technology specifically to provide better security outcomes to their MDR customers. It’s hard to beat the effectiveness of solutions built by teams of skilled practitioners and developers to solve real-world cybersecurity problems.”
Bret Laughlin, co-founder and CEO of Braintrace, added: “We built Braintrace’s NDR technology from the ground up for detection and now, with Sophos, it will fit into a complete system to provide cross-product detection and response across a multi-vendor ecosystem.”
The deal comes a little over a year after Thoma Bravo completed its $3.9 billion takeover of Sophos, and sees the private equity firm further increasing its reach in the cybersecurity space. It acquired security vendor Proofpoint for $12.3 billion back in April, and recently led a $225 million funding round in zero trust unicorn Illumio.
Spotify announced this morning a new partnership with online GIF database GIPHY to enable discovery of new music through GIFs. No, the GIFs themselves won’t play song clips, if that’s what you’re thinking. Instead, through a series of new Spotify-linked GIFs, there will be an option to click a button to be taken to Spotify directly to hear the artist’s music. At launch, artists including Doja Cat, The Weeknd, Post Malone, Nicki Minaj, The Kid LAROI, Conan Gray and others will have Spotify-linked GIFs available on their official GIPHY profile page. More artists will be added over time.
The idea behind the new integration is to help connect users with Spotify music from their everyday communications, like texts, group chats and other places where GIFs are used. This is similar to Spotify’s existing integrations with social media apps like Snapchat and Instagram, where users can share music through the Stories and messages they post. Essentially, it’s a user acquisition strategy that leverages online social activities — in this case, sharing GIFs — while also benefiting the artists through the exposure they receive.
You can find the new Spotify-linked GIFs on the artist’s page on GIPHY.com or through GIPHY’s mobile app. The supported GIFs will include a new “Listen on Spotify” button at the bottom which will appear alongside the GIF when it’s shared. When clicked, users are redirected from the GIF to the artist’s page on Spotify, where they can stream their music or browse to discover more songs they want to hear.
Image Credits: Spotify/GIPHY
Spotify says the feature is part of a broader partnership it has with GIPHY, which will later focus on bringing a more interactive listening experience to users.
The move to partner with GIPHY follows a recent expansion of the existing partnership between Spotify and GIPHY’s parent company, Facebook. The social networking giant bought the popular GIF platform in a deal worth a reported $400 million back in 2020, a couple years after Google snatched up GIPHY rival, Tenor. Since then, Facebook has worked to better integrate GIPHY with its apps, like Facebook and Instagram.
Earlier this year, Facebook and Spotify had also teamed up on a new “Boombox” project that allows Facebook users to listen to music hosted on Spotify while browsing the Facebook app. This is powered by a “miniplayer” that allows anyone who comes across the shared music to click to play the content while they scroll their feed.
Spotify says the new feature will be available to users globally from verified GIPHY artists’ pages.
The deal, the terms of which were not disclosed, is the latest cybersecurity acquisition by Microsoft, which just last week announced that it’s buying threat intelligence startup RiskIQ. The firm also recently acquired IoT security startups CyberX and Refirm Labs as it moved to beef up its security portfolio. Security is big business for Microsoft, which made more than $10 billion in security-related revenue in 2020 — a 40% increase from the year prior.
CloudKnox, which was founded in 2015 and emerged from stealth two years later, helps organizations to enforce least-privilege principles to reduce risk and help prevent security breaches. The startup had raised $22.8 million prior to the acquisition, with backing from ClearSky, Sorenson Ventures, Dell Technologies Capital, and Foundation Capital.
The company’s activity-based authorization service will equip Azure Active Directory customers with “granular visibility, continuous monitoring and automated remediation for hybrid and multi-cloud permissions,” according to a blog post by Joy Chik, corporate vice president of identity at Microsoft.
Chik said that while organizations were reaping the benefits of cloud adoption, particularly as they embrace flexible working models, they often struggled to assess, prevent and enforce privileged access across hybrid and multi-cloud environments.
“CloudKnox offers complete visibility into privileged access,” Chik said. “It helps organizations right-size permissions and consistently enforce least-privilege principles to reduce risk, and it employs continuous analytics to help prevent security breaches and ensure compliance. This strengthens our comprehensive approach to cloud security.”
In addition to Azure Active Directory, Microsoft also plans to integrate CloudKnox with its other cloud security services including 365 Defender, Azure Defender, and Azure Sentinel.
Commenting on the deal, Balaji Parimi, CloudKnox founder and CEO, said: “By joining Microsoft, we can unlock new synergies and make it easier for our mutual customers to protect their multi-cloud and hybrid environments and strengthen their security posture.”
Over the weekend, an international consortium of news outlets reported that several authoritarian governments — including Mexico, Morocco, and the United Arab Emirates — used spyware developed by NSO Group to hack into the phones of thousands of their most vocal critics, including journalists, activists, politicians and business executives.
A leaked list of 50,000 phone numbers of potential surveillance targets was obtained by Paris-based journalism non-profit Forbidden Stories and Amnesty International, and shared with the reporting consortium, including the Washington Post and The Guardian. Researchers analyzed the phones of dozens of victims to confirm they were targeted by the NSO’s Pegasus spyware, which can access all of the data on a person’s phone. The reports also confirm new details of the government customers themselves, which NSO Group closely guards. Hungary, a member of the European Union where privacy from surveillance is supposed to be a fundamental right for its 500 million residents, is named as an NSO customer.
The reporting shows for the first time how many individuals are likely targets of NSO’s intrusive device-level surveillance. Previous reporting had put the number of known victims in the hundreds or over a thousand.
NSO Group sharply rejected the claims. NSO has long said that it doesn’t know who its customers target, which it reiterated in a statement to TechCrunch on Monday.
Researchers at Amnesty, whose work was reviewed by the Citizen Lab at the University of Toronto, found that NSO can deliver Pegasus by sending a victim a link which when opened infects the phone, or silently and without any interaction at all through a “zero-click” exploit, which takes advantage of vulnerabilities in the iPhone’s software. Citizen Lab researcher Bill Marczak said in a tweet that NSO’s zero-clicks worked on iOS 14.6, which until today was the most up-to-date version.
Amnesty’s researchers showed their working by publishing meticulously detailed technical notes and a toolkit that they said may help others identify if their phones have been targeted by Pegasus.
The Mobile Verification Toolkit, or MVT, works on both iPhones and Android devices, but slightly differently. Amnesty said that more forensic traces were found on iPhones than Android devices, which makes it easier to detect on iPhones. MVT will let you take an entire iPhone backup (or a full system dump if you jailbreak your phone) and feed in for any indicators of compromise (IOCs) known to be used by NSO to deliver Pegasus, such as domain names used in NSO’s infrastructure that might be sent by text message or email. If you have an encrypted iPhone backup, you can also use MVT to decrypt your backup without having to make a whole new copy.
The Terminal output from the MVT toolkit, which scans iPhone and Android backup files for indicators of compromise. (Image: TechCrunch)
The toolkit works on the command line, so it’s not a refined and polished user experience and requires some basic knowledge of how to navigate the terminal. We got it working in about ten minutes, plus the time to create a fresh backup of an iPhone, which you will want to do if you want to check up to the hour. To get the toolkit ready to scan your phone for signs of Pegasus, you’ll need to feed in Amnesty’s IOCs, which it has on its GitHub page. Any time the indicators of compromise file updates, download and use an up-to-date copy.
Once you set off the process, the toolkit scans your iPhone backup file for any evidence of compromise. The process took about a minute or two to run and spit out several files in a folder with the results of the scan. If the toolkit finds a possible compromise, it will say so in the outputted files. In our case, we got one “detection,” which turned out to be a false positive and has been removed from the IOCs after we checked with the Amnesty researchers. A new scan using the updated IOCs returned no signs of compromise.
Given it’s more difficult to detect an Android infection, MVT takes a similar but simpler approach by scanning your Android device backup for text messages with links to domains known to be used by NSO. The toolkit also lets you scan for potentially malicious applications installed on your device.
The toolkit is — as command line tools go — relatively simple to use, though the project is open source so not before long surely someone will build a user interface for it. The project’s detailed documentation will help you — as it did us.
You can send tips securely over Signal and WhatsApp to +1 646-755-8849. You can also send files or documents using our SecureDrop. Learn more.
The Biden administration has formally accused China of the mass-hacking of Microsoft Exchange servers earlier this year, which prompted the FBI to intervene as concerns rose that the hacks could lead to widespread destruction.
The mass-hacking campaign targeted Microsoft Exchange email servers with four previously undiscovered vulnerabilities that allowed the hackers — which Microsoft already attributed to a China-backed group of hackers called Hafnium — to steal email mailboxes and address books from tens of thousands of organizations around the United States.
Microsoft released patches to fix the vulnerabilities, but the patches did not remove any backdoor code left behind by the hackers that might be used again for easy access to a hacked server. That prompted the FBI to secure a first-of-its-kind court order to effectively hack into the remaining hundreds of U.S.-based Exchange servers to remove the backdoor code. Computer incident response teams in countries around the world responded similarly by trying to notify organizations in their countries that were also affected by the attack.
In a statement out Monday, the Biden administration said the attack, launched by hackers backed by China’s Ministry of State Security, resulted in “significant remediation costs for its mostly private sector victims.”
“We have raised our concerns about both this incident and the [People’s Republic of China’s] broader malicious cyber activity with senior PRC Government officials, making clear that the PRC’s actions threaten security, confidence, and stability in cyberspace,” the statement read.
The National Security Agency also released details of the attacks to help network defenders identify potential routes of compromise. The Chinese government has repeatedly denied claims of state-backed or sponsored hacking.
The Biden administration also blamed China’s Ministry of State Security for contracting with criminal hackers to conduct unsanctioned operations, like ransomware attacks, “for their own personal profit.” The government said it was aware that China-backed hackers have demanded millions of dollars in ransom demands against hacked companies. Last year, the Justice Department charged two Chinese spies for their role in a global hacking campaign that saw prosecutors accuse the hackers of operating for personal gain.
Although the U.S. has publicly engaged the Kremlin to try to stop giving ransomware gangs safe harbor from operating from within Russia’s borders, the U.S. has not previously accused Beijing of launching or being involved with ransomware attacks.
“The PRC’s unwillingness to address criminal activity by contract hackers harms governments, businesses, and critical infrastructure operators through billions of dollars in lost intellectual property, proprietary information, ransom payments, and mitigation efforts,” said Monday’s statement.
The statement also said that the China-backed hackers engaged in extortion and cryptojacking, a way of forcing a computer to run code that uses its computing resources to mine cryptocurrency, for financial gain.
The Justice Department also announced fresh charges against four China-backed hackers working for the Ministry of State Security, which U.S. prosecutors said were engaged in efforts to steal intellectual property and infectious disease research into Ebola, HIV and AIDS, and MERS against victims based in the U.S., Norway, Switzerland and the United Kingdom by using a front company to hide their operations.
“The breadth and duration of China’s hacking campaigns, including these efforts targeting a dozen countries across sectors ranging from healthcare and biomedical research to aviation and defense, remind us that no country or industry is safe. Today’s international condemnation shows that the world wants fair rules, where countries invest in innovation, not theft,” said deputy attorney general Lisa Monaco.
Microsoft has confirmed it’s buying RiskIQ, a San Francisco-based threat intelligence company that provides cloud-based software as a service for organizations.
Terms of the deal, which will see RiskIQ’s threat intelligence services integrated into Microsoft’s flagship security offerings, were not disclosed, although Bloomberg previously reported that Microsoft will pay more than $500 million in cash for the company. Microsoft declined to confirm the reported figure.
The announcement comes amid a heightened security landscape as organizations shift to remote and hybrid working strategies. Microsoft says that by embedding RiskIQ’s technologies into its core products, its customers will be able to build a more comprehensive view of the global threats to their businesses as workforces continue to work outside of the traditional office environment.
It will also help organizations to keep an eye on supply-chain risks, Microsoft says. This is likely a growing priority for many: an attack on software provider SolarWinds last year saw affected at least 18,000 of its customers, and just this month IT vendor Kaseya fell victim to a ransomware attack that spread to more than 1,000 downstream businesses.
Eric Doerr, vice president of cloud security at Microsoft, said: “RiskIQ helps customers discover and assess the security of their entire enterprise attack surface—
RiskIQ was founded in 2009 and has raised a total of $83 million over four rounds of funding. Elias Manousos, who co-founded RiskIQ and serves as its chief executive, said he was “thrilled” at the acquisition.
“The vision and mission of RiskIQ is to provide unmatched internet visibility and insights to better protect and inform our customers and partners’ security programs,” said Manousos. “Our combined capabilities will enable best-in-class protection, investigations, and response against today’s threats.”
The acquisition is one of many Microsoft has made recently in the cybersecurity space in recent months. The company last year bought Israeli security startup CyberX in a bid to boost its Azure IoT business, and just last month it acquired Internet of Things security firm ReFirm Labs.
Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast where we unpack the numbers behind the headlines.
This is Equity Monday, our weekly kickoff that tracks the latest private market news, talks about the coming week, digs into some recent funding rounds and mulls over a larger theme or narrative from the private markets. You can follow the show on Twitter here and myself here.
It was a busy weekend for everyone, regardless of whether you were watching the technology, what Branson was up to or the footie. I won’t take sides on the match, but I will say that it was gripping unto the very end and a great example of sport. Now, the news:
And don’t forget that earnings season is just around the corner. It’s a pretty important cycle. Why? Because startup valuations are hot, and could take a hit if earnings come up short. And the IPO market is pretty freaking active; poor earnings from major tech companies could crimp exit prices for mature startups.
OK! Talk to you on Wednesday!