Danggeun Market, the startup behind Karrot, South Korea’s largest neighborhood marketplace and networking app, announced today that that it has raised a $33 million Series C. The round was led by Goodwater Capital and Altos Ventures.
The funding brings Danggeun Market’s total raised so far to $40.5 million. Its list of investors also include Kakao Ventures, Strong Ventures, SoftBank Ventures and Capstone Partners. Danggeun Market, which launched Karrot in the United Kingdom last November, will use part of the funding to expand into more international markets and increase its monetization tools.
One of Karrot’s most unique features is that its peer-to-peer marketplace only shows people listings from sellers located within a 6-kilometer radius (the distance is set slightly wider for more remote areas), and most transactions are completed in person. As a safety measure, all user identities are verified through their mobile numbers and location.
In a call with TechCrunch, Danggeun Market co-founder and co-CEO Gary Kim and vice president Chris Heo said Karrot’s model works because of the high population density in many South Korean cities. As the app launches overseas, the company will focus on other densely populated areas, especially ones that don’t already have a dominant neighborhood marketplace app.
Danggeun Market planned to enter three new countries this year, but slowed down the pace of its expansion because of the COVID-19 pandemic. Instead, it will focus on enhancing its community features in South Korea, with the goal of launching in at least one new country by the end of this year.
Danggeun Market was founded in 2015 by Gary Kim and Paul Kim, both of whom previously worked at KakaoTalk, South Korea’s largest messaging app. Before Danggeun Market launched, the most popular online secondhand marketplace in South Korea was website Joonggonara, but it didn’t have a mobile app.
Being designed for smartphones helps Karrot differentiate from other peer-to-peer marketplaces. For example, its distance limits make listings easier to spot, and also encourages interactions among neighbors. Its approach to neighborhood networking is also the foundation of the company’s monetization model. Instead of charging listing fees, the app is free to use, and the company makes money through hyperlocalized advertising.
Danggeun Market says its monthly active users have grown 130% year-over-year, reaching seven million in April and making Karrot the second-largest shopping app in South Korea after Coupang, the country’s largest e-commerce platform. Users spend an average of 20 minutes per day on the app, and gross merchandise value increased by 250% year-over-year, despite the COVID-19 pandemic.
Heo said the number of listings on the app actually grew from 4.4 million in January to 8.4 million in April, as more people spent time at home and found things they wanted to get rid of, and also preferred to remain within their neighborhoods. Danggeun Market’s community features also saw a jump in the number of postings made.
Heo said face-to-face transactions continued, because many South Koreans were already used to wearing masks and other safety measures that were ramped up during the pandemic. The company added a new feature called Karrot Help, with tools to help match people with neighbors who needed help running errands and a mask inventory checker for nearby pharmacies, and implemented tools to automatically control the price of mask listings and prevent profiteering.
Events in May offered support to the thesis that Africa can incubate tech with global application.
Two startups that developed their business models on the continent — MallforAfrica and Zipline — were tapped by international interests.
Link Commerce offers a white-label solution for doing online-sales in emerging markets.
Retailers can plug into the company’s platform to create a web-based storefront that manages payments and logistics.
Nigerian Chris Folayan founded MallforAfrica in 2011 to bridge a gap in supply and demand for the continent’s consumer markets. While living in the U.S., Folayan noted a common practice among Africans — that of giving lists of goods to family members abroad to buy and bring home.
With MallforAfrica, Folayan aimed to allow people on the continent to purchase goods from global retailers directly online.
The e-commerce site went on to onboard more than 250 global retailers, and now employs 30 people at order processing facilities in Oregon and the U.K.
Folayan has elevated Link Commerce now as the lead company above MallforAfrica.com. He and DHL plan to extend the platform to emerging markets around the world and offer it to companies who want to wrap online stores, payments and logistics solution around their core business.
“Right now the focus is on Africa…but we’re taking this global,” Folayan said.
Another startup developed in Africa, Zipline, was tapped by U.S. healthcare provider Novant for drone delivery of critical medical supplies in the fight against COVID-19.
The two announced a partnership whereby Zipline’s drones will make 32-mile flights on two routes between Novant Health’s North Carolina emergency drone fulfillment center and the nonprofit’s medical center in Huntersville — where front-line healthcare workers are treating coronavirus patients.
Zipline and Novant are touting the arrangement as the first authorized long-range drone logistics delivery flight program in the U.S. The activity has gained approval by the U.S. Federal Aviation Administration and North Carolina’s Department of Transportation.
The story behind the Novant, Zipline UAV collaboration has a twist: The capabilities for the U.S. operation were developed primarily in Africa. Zipline has a test facility in the San Francisco area, but spent several years configuring its drone delivery model in Rwanda and Ghana.
Image Credits: Novant Health
Co-founded in 2014 by Americans Keller Rinaudo, Keenan Wyrobek and Will Hetzler, Zipline designs its own UAVs, launch systems and logistics software for distribution of critical medical supplies.
The company turned to East Africa in 2016, entering a partnership with the government of Rwanda to test and deploy its drone service in that country. Zipline went live with UAV distribution of life-saving medical supplies in Rwanda in late 2016, claiming the first national drone-delivery program at scale in the world.
The company expanded to Ghana in 2016, where in addition to delivering blood and vaccines by drone, it now distributes COVID-19-related medication and lab samples.
The presidents of Rwanda and Ghana — Paul Kagame and Nana Akufo-Addo, respectively — were instrumental in supporting Zipline’s partnerships in their countries. Other nations on the continent, such as Kenya, South Africa and Zambia, continue to advance commercial drone testing and novel approaches to regulating the sector.
African startups have another $100 million in VC to pitch for after Novastar Ventures’ latest raise.
The Nairobi and Lagos-based investment group announced it has closed $108 million in new commitments to launch its Africa Fund II, which brings Novastar’s total capital to $200 million.
With the additional resources, the firm plans to make 12 to 14 investments across the continent, according to Managing Director Steve Beck .
On-demand mobility powered by electric and solar is coming to Africa.
Vaya Africa, a ride-hail mobility venture founded by Zimbabwean mogul Strive Masiyiwa, launched an electric taxi service and charging network in Zimbabwe this week with plans to expand across the continent.
The South Africa-headquartered company is using Nissan Leaf EVs and has developed its own solar-powered charging stations. Vaya is finalizing partnerships to take its electric taxi services on the road to countries that could include Kenya, Nigeria, South Africa and Zambia, Vaya Mobility CEO Dorothy Zimuto told TechCrunch.
The initiative comes as Africa’s on-demand mobility market has been in full swing for several years, with startups, investors and the larger ride-hail players aiming to bring movement of people and goods to digital platforms.
Uber and Bolt have been operating in Africa’s major economies since 2015, where there are also a number of local app-based taxi startups. Over the last year, there’s been some movement on the continent toward developing EVs for ride-hail and delivery use, primarily around motorcycles.
Beyond environmental benefits, Vaya highlights economic gains for passengers and drivers of shifting to electric in Africa’s taxi markets, where fuel costs compared to personal income is generally high for drivers.
Using solar panels to power the charging station network also helps Vaya’s new EV program overcome some of challenges in Africa’s electricity grid.
Vaya is exploring EV options for other on-demand transit applications — from mini-buses to Tuk Tuk taxis.
In more downbeat news in May, Africa-focused tech talent accelerator Andela had layoffs and salary reductions as a result of the economic impact of the COVID-19 crisis, CEO Jeremy Johnson confirmed to TechCrunch.
Backed by $181 million in VC from investors that include the Chan Zuckerberg Initiative, the startup’s client-base is comprised of more than 200 global companies that pay for the African developers Andela selects to work on projects.
There’s been a drop in the demand for Andela’s services, according to Johnson.
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African tech around the ‘net
The COVID-19 pandemic is taking a heavy toll on ride-hailing services, like Uber and Lyft. Grab, Southeast Asia’s largest ride-hailing company, has also been impacted, but the company has adapted by quickly transitioning many of its ride-hailing drivers to its on-demand delivery verticals and expanding services needed by customers during social distancing measures.
The company told TechCrunch that its ride-hailing drivers saw their incomes decrease by about a double-digit percentage in April 2020, compared to October 2019, in line with a double-digit drop in gross merchandise volume for Grab’s ride-hailing business in some markets. Between March and April, more than 149,000 Grab ride-hailing drivers switched to performing on-demand deliveries. In some markets, the transition was done very quickly. For example, in Malaysia, 18,000 drivers moved to delivery in a single day. The platform also saw an influx of new driver requests, many from people who had been laid off or furloughed, as well as merchants who needed a new way to make income.
Russell Cohen, Grab’s regional head of operations, told Extra Crunch that to redeploy driver capacity to delivery verticals, the company worked with governments in its eight markets to understand how different COVID-19 responses, including stay-at-home orders, affected on-demand logistics. Anticipating shifts in consumer behavior, it also started adding new services that will continue after the pandemic.
Grab currently has about nine million “micro-entrepreneurs,” or what it calls the drivers, delivery, merchants and agents on its platform. Cohen says the company began to see an effect on ride-hailing and transportation patterns in January and February as flights out of China, and air travel in general, began to decrease. Then COVID-19 started to have a material impact on its ride-hailing business in March, with a sharp drop after countries began implementing stay-at-home orders.
London-based Greyparrot, which uses computer vision AI to scale efficient processing of recycling, has bagged £1.825 million (~$2.2M) in seed funding, topping up the $1.2M in pre-seed funding it had raised previously. The latest round is led by early stage European industrial tech investor Speedinvest, with participation from UK-based early stage b2b investor, Force Over Mass.
The 2019 founded startup — and TechCrunch Disrupt SF battlefield alum — has trained a series of machine learning models to recognize different types of waste, such as glass, paper, cardboard, newspapers, cans and different types of plastics, in order to make sorting recycling more efficient, applying digitization and automation to the waste management industry.
Greyparrot points out that some 60% of the 2BN tonnes of solid waste produced globally each year ends up in open dumps and landfill, causing major environmental impact. While global recycling rates are just 14% — a consequence of inefficient recycling systems, rising labour costs, and strict quality requirements imposed on recycled material. Hence the major opportunity the team has lit on for applying waste recognition software to boost recycling efficiency, reduce impurities and support scalability.
By embedding their hardware agnostic software into industrial recycling processes Greyparrot says it can offer real-time analysis on all waste flows, thereby increasing efficiency while enabling a facility to provide quality guarantee to buyers, mitigating against risk.
Currently less than 1% of waste is monitored and audited, per the startup, given the expensive involved in doing those tasks manually. So this is an application of AI that’s not so much taking over a human job as doing something humans essentially don’t bother with, to the detriment of the environment and its resources.
Greyparrot’s first product is an Automated Waste Monitoring System which is currently deployed on moving conveyor belts in sorting facilities to measure large waste flows — automating the identification of different types of waste, as well as providing composition information and analytics to help facilities increase recycling rates.
It partnered with ACI, the largest recycling system integrator in South Korea, to work on early product-market fit. It says the new funding will be used to further develop its product and scale across global markets. It’s also collaborating with suppliers of next-gen systems such as smart bins and sorting robots to integrate its software.
“One of the key problems we are solving is the lack of data,” said Mikela Druckman, co-founder & CEO of Greyparrot in a statement. “We see increasing demand from consumers, brands, governments and waste managers for better insights to transition to a more circular economy. There is an urgent opportunity to optimise waste management with further digitisation and automation using deep learning.”
“Waste is not only a massive market — it builds up to a global crisis. With an increase in both world population and per capita consumption, waste management is critical to sustaining our way of living. Greyparrot’s solution has proven to bring down recycling costs and help plants recover more waste. Ultimately it unlocks the value of waste and creates a measurable impact for the environment,” added Marie-Hélène Ametsreiter, lead partner at Speedinvest Industry, in another statement.
Greyparrot is sitting pretty in another aspect — aligning with several strategic areas of focus for the European Union, which has made digitization of legacy industries, industrial data sharing, investment in AI, plus a green transition to a circular economy core planks of its policy plan for the next five+ years. Just yesterday the Commission announced a €750BN pan-EU support proposal to feed such transitions as part of a wider coronavirus recovery plan for the trading bloc.
Vaya Africa, a ride-hail mobility venture founded by Zimbabwean mogul Strive Masiyiwa, has launched an electric taxi service and charging network in Zimbabwe with plans to expand across the continent.
The South Africa headquartered company has acquired a fleet of Nissan Leaf EVs and developed its own solar powered charging stations.
The program goes live in Zimbabwe this week, as Vaya finalizes partnerships to begin on-demand electric taxi and delivery services in markets that could include Kenya, Nigeria, South Africa and Zambia.
“Zimbabwe is a sandbox really. We’ve moved on to doing pilots with other countries right across Africa,” Vaya Mobility CEO Dorothy Zimuto told TechCrunch on a call from Harare.
Masiyiwa has become one of Africa’s Gates, Branson type figures, recognized globally as a business leader and philanthropist with connections and affiliations from President Obama to the Rockefeller Foundation.
The initiative comes as Africa’s on demand mobility market has been in full swing for several years, with startups, investors, and the larger ride-hail players aiming to bring movement of people and goods to digital product models.
Ethiopia has local ride-hail ventures Ride and Zayride. Uber’s been active in several markets on the continent since 2015 and like competitor Bolt, got into the motorcycle taxi business in Africa in 2018.
Over the last year, there’s been some movement on the continent toward developing EV’s for ride-hail and delivery use, primarily around two-wheeled transit.
In 2019, Nigerian mobility startup MAX.ng raised a $7 million Series A round backed by Yamaha, a portion of which was dedicated to pilot e-motorcycles powered by renewable energy.
Last year the Government of Rwanda established a national plan to phase out gas motorcycle taxis for e-motos, working in partnership with EV startup Ampersand.
Vaya Mobility CEO Dorothy Zimuto, Image Credits: Econet Group
The appeal of shifting to electric in Africa’s taxi markets — beyond environmental benefits — is the unit economics, given the cost of fuel compared to personal income is generally high for most of the continent’s drivers.
“Africa is excited, because we are riding on the green revolution: no emissions, no noise and big savings… in terms of running costs of their vehicles,” Zimuto said.
She estimates a cost savings of 40% on the fuel and maintenance costs for drivers on the ride-hail platform.
At the moment, with fuel prices in Vaya’s first market of Zimbabwe at around $1.20 a liter, the average trip distance is 22 kilometres for a price of $19, according to Econet Group’s Oswald Jumira.
With the Nissan Leaf vehicles on Vaya’s charging network, the cost to top up will be around $5 for a range of 150 to 200 kilometres.
Image Credits: Vaya Africa
“It’s the driver who benefits. They take more money home. And that also means we can reduce the tariff for ride hailing companies to make it more affordable for people,” Jumira told TechCrunch .
The company has adapted its business to the spread of COVID-19 in Africa. Vaya provides PPE to its drivers and sanitizes its cars four to five times a day, according to Zimuto.
Vaya is exploring EV options for other on-demand transit applications — from delivery to motorcycle and Tuk Tuk taxis.
On the question of competing with Uber in Africa, Vaya points to the reduced fares offered by its EV program as one advantage.
The CEO of Vaya Mobility, Dorothy Zimuto, also points to certain benefits of knowing local culture and preferences.
“We speak African. That’s the language we understand. We understand the people and what they want across our markets. That’s what makes the difference.” she said.
It will be something to watch if Vaya’s EV bet and local consumer knowledge translates into more passenger flow and revenue generation as it goes head to head with other ride-hail companies, such as Uber, across Africa.
That brings the company’s total VC to $4 million, which Carry1st will deploy to support and invest in game publishing across Africa.
The startup — with offices in New York, Lagos, and South Africa — was co-founded in 2018 by Sierra Leonean Cordel Robbin-Coker, American Lucy Parry, and Zimbabwean software engineer Tinotenda Mundangepfupfu.
Robbin-Coker and Parry met while working in investment banking in New York, before forming Carry1st.
“I convinced her to avoid going to business school and instead come to South Africa to Cape Town,” Robbin-Coker told TechCrunch on a call.
“We launched with the idea that we wanted to bring the gaming industry…to the African continent.”
The startup has already launched two games as direct downloads from its site, Carry1st Trivia and Hyper!.
“In April, [Carry1st Trivia] did pretty well. It was the number one game in Nigeria, and Kenya for most of the year and did about one and a half million downloads.” Robbin-Coker said.
Image Credit: Carry1st
The startup will use a portion of its latest round and overall capital to bring more unique content onto its platform. “In order to do that, you need cash…to help a developer finish a game or entice a strong game to work with you,” said Robbin-Coker.
The company will also expand its distribution channels, such as partnerships with mobile operators and the Carry1st Brand Ambassador program — a network of sales agents who promote and sell games across the continent.
The company will also invest in the gaming market and itself.
“We want to dedicate at least a million dollars to actually going out and acquiring users and scaling our user base. And then, the final piece is really around the tech platform that we’re looking to build,” said Robbin-Coker.
That entails creating multiple channels and revenue points to develop, distribute, and invest in games on the continent, he explained.
Image Credits: Carry1st
Robbin-Coker compared the Carry1st’s strategy in Africa as something similar to Sea: an Asia regional mobile entertainment distribution platform — publicly traded and partially owned by Tencent — that incubated the popular Fornite game.
“We’re looking to be the number one regional publisher of [gaming] content in the region…the publisher of record and the app store,” said Robbin-Coker.
That entails developing and distributing not only games originating from the continent, but also serving as channel for gaming content from other continents coming into Africa.
That generates a consistent revenue stream for the startup, Robbin-Coker explained, but also creates opportunities for big creative wins.
“It’s a hits driven business. A single studio will work and toil in obscurity for a decade and then they’ll make Candy Crush. And then that would be worth $6 billion, very quickly,” Carry1st’s CEO said.
He and his team will use a portion of their $4 million in VC to invest in that potential gaming success story in Africa.
The company’s co-founder Lucy Parry directs aspirants to the company’s homepage. “There’s a big blue button that says ‘Pitch Your Game’ at the bottom of our website.”
As the fallout from COVID-19 continues to grip Africa’s major economies, the tech ventures in those countries need state support.
National legislation that creates clear frameworks and operational support for startups are one of the best ways to help Africa’s digital companies survive and thrive through the coronavirus crisis — and improve their environment over the long term.
Africa has dozens of thriving startup ecosystems that are persevering through this crisis, but now more than ever, they need a boost. The gains made by founders thus far are in danger due to the ongoing economic slowdown. The World Bank estimates that economic growth in sub-Saharan Africa alone will decline from 2.4% last year to -2.1 to -5.1% this year. If correct, the region will experience its first recession in a quarter of a century.
Now is the time for something that was already long-overdue in many African countries: political leaders should support startups through national startup acts.
Village Capital’s Adedana Ashebir, Image Credits: Village Capital
Last December, Senegal became the second African nation to enact a national Startup Act, following Tunisia’s landmark bill that passed in April 2018. Other countries may follow soon: startup legislation was being discussed in Ghana and Mali before the novel coronavirus monopolized headlines.
The rest of the continent can learn a lot from Tunisia, which passed its Startup Act in 2018 after receiving input from entrepreneurs and economists. In addition to clarifying rules surrounding angel, seed and venture capital funding, the act bestows benefits on companies designated as startups. This includes alleviating their tax and social security contribution burdens, providing access to forex bank accounts and offering subsidized salaries for founders. More than 50 startups have taken advantage of the “startup” label. A number of Tunisian entrepreneurs have told me that thanks to the new legislation, they are able reinvest savings from these incentives back into their businesses.
It seems the demand for Safaricom’s M-Pesa payment product never eases. Since its 2007 launch in Kenya, the fintech app has commanded over 70% of the mobile money market in that country. When COVID-19 hit the East African nation of 53 million in March, the Kenyan Central Bank turned to M-Pesa as a public health tool to reduce use of cash.
And last month, one of the world’s financial services giants — Visa — connected M-Pesa to its global network.
The arrangement opens up M-Pesa’s own extensive financial services network in East Africa to Visa’s global merchant and card network across 200 countries.
The companies will also collaborate “on development of products that will support digital payments for M-Pesa customers.” The partnership is still subject to regulatory approval.
The details remain vague, but the payment providers also said they will use the collaboration to facilitate e-commerce.
Images Credits: Getty Images
On a continent that is still home to the largest share of the world’s unbanked population, Kenya has one of the highest mobile-money penetration rates in the world. This is largely due to the dominance of M-Pesa in the country, which has 24.5 million customers and a network of 176,000 agents.
As we detailed in ExtraCrunch, Visa has been on a VC and partnership spree with African fintech companies. The global financial services giant has named working with the continent’s payments startups as core to its Africa expansion strategy.
One of those fintech ventures Visa has teamed up with, Flutterwave, launched an e-commerce product in April. The San Francisco and Lagos-based B2B payments company announced Flutterwave Store, a portal for African merchants to create digital shops to sell online.
The product is less Amazon and more eBay — with no inventory or warehouse requirements. Flutterwave insists the move doesn’t represent any shift away from its core payments business.
The company accelerated the development of Flutterwave Store in response to COVID-19, which has brought restrictive measures to SMEs and traders operating in Africa’s largest economies.
After creating a profile, users can showcase inventory and link up to a payment option. For pickup and delivery, Flutterwave Store operates through existing third party logistics providers, such as Sendy in Kenya and Sendbox in Nigeria.
The service will start in 15 African countries and the only fees Flutterwave will charge (for now) are on payments. Otherwise, it’s free for SMEs to create an online storefront and for buyers and sellers to transact goods.
While the initiative is born out of the spread of coronavirus cases in Africa, it will continue beyond the pandemic. And Flutterwave’s CEO Olugbenga Agboola — aka GB — is adamant Flutterwave Store is not a pivot for the Y-Cominator backed fintech company.
“It’s not a direction change. We’re still a B2B payment infrastructure company. We are not moving into becoming an online retailer, and no we’re not looking to become Jumia,” he told TechCrunch .
In early stage startup activity, a relatively new company — Okra — has created a unique platform that allows it to generate revenue on both sides of the fintech aisle.
Founded in June 2019 by Nigerians Fara Ashiru Jituboh and David Peterside, the company refers to itself as a “super-connector API” with a platform that links bank accounts to third party applications.
Okra’s clients include fintech startups and large financial institutions in Nigeria. The company got the attention of TLcom Capital — a $71 million Africa focused VC firm —that backed Okra with $1 million in pre-seed funding. The Nigerian startup is using the funds to hire and expand to new markets in Africa, most likely Kenya .
African tech around the ‘net
New vehicles today can produce a treasure trove of data. Without the proper tools, that data will sit undisturbed, rendering it worthless.
A number of companies have sprung up to help automakers manage and use data generated from connected cars. Israeli startup Otonomo is one such player that jumped on the scene in 2015 with a cloud-based software platform that captures and anonymizes vehicle data so it can then be used to create apps to provide services such as electric vehicle management, subscription-based fueling, parking, mapping, usage-based insurance and emergency service.
The startup announced this week it has raised $46 million to take its automotive data platform further. The capital was raised in a Series C funding round that included investments from SK Holdings, Avis Budget Group and Alliance Ventures. Existing investors Bessemer Venture Partners also participated. Otonomo has raised $82 million, to date.
The funds will be used to help Otonomo scale its business, improve its products and help it remain competitive, according to the company. Otonomo is also aiming to expand into new markets, particularly South Korea and Japan.
“We now have the expanded resources needed to deliver on our vision of making car data as valuable as possible for the entire transportation ecosystem, while adhering to the strictest privacy and security standards,” Otonomo CEO and founder Ben Volkow said in a statement.
Otonomo’s pitch focuses on creating opportunities to monetize connected car data while keeping it safe from the moment it is captured. Once the data is securely collected, the platform modifies it so companies can use it to develop apps and services for fleets, smart cities and individual customers. The platform also enables GDPR, CCPA and other privacy regulation-compliant solutions using both personal and aggregate data.
Today, Otonomo’s platform takes in 2.6 billion data points a day from more than 20 million vehicles through partnerships with more than automakers, fleets and farm and construction manufacturers. Otonomo has more than 25 partnerships, a list that includes Daimler, BMW, Mitsubishi Motor Company and Avis Budget Group. The company said it’s preparing to bring on seven more customers.
That opportunity for Otonomo is growing based on forecasts, including one from SBD Automotive that predicts connected cars will account for more than 70% of cars sold in North American and European markets in 2020.
Oriente, a Hong Kong-based startup that develops tech infrastructure for digital credit and other online financial services, has raised $50 million for its ongoing Series B round. The funding was led by Peter Lee, co-chairman of Henderson Land, one of Hong Kong’s largest property developers, with participation from investors including website development platform Wix.com.
Launched in 2017 by Geoff Prentice, one of Skype’s co-founders, Hubert Tai and Lawrence Chu, Oriente focuses on markets that are underserved by traditional financial institutions. The new funding will be used for growth in Oriente’s existing markets, the Philippines and Indonesia, and expansion into new countries including Vietnam.
It will also be used to continue building Oriente’s technology, which uses big data analytics to help merchants increase sales conversions and lower risk. Oriente has now raised over $160 million in equity and debt, including a $105 million round in November 2018.
While many large tech companies, including Grab, Google, Facebook, Amazon, Uber, Apple and Samsung, are looking at digital payments and other online financial services, they need the tech infrastructure to do so, and partners that can also help them handle regulations in different markets.
Oriente doesn’t compete with payment providers. Instead, it is “innovating credit as a service,” Prentice told TechCrunch, by building technology that allows offline and online merchants to launch digital credit solutions quickly.
Oriente “is the only company that is focusing on building an end-to-end digital financial services infrastructure,” he added, with services created for consumers, online and offline merchants, and enterprise clients.
For consumers, the startup currently offers two apps, Cashalo in the Philippines and Finmas in Indonesia, which it says has a combined 5 million users and over 1,000 merchants. Services include cash loans, online credit and working capital for small- to medium-sized enterprises.
Oriente says that in 2019, it saw a 700% year-over-year growth in transactions and served more than 4 million new users, while merchant partners had a more than 20% increase in sales volume.
Over the next few months, Oriente plans to expand its Pay Later digital credit feature and launch new growth capital solutions for small businesses that need financing. Oriente also has several partnerships in the works to expand its enterprise solutions for larger businesses and corporations.
In Vietnam, Oriente is currently beta testing a consumer platform similar to Cashalo and Finmas. It will offer online credit and financing, as well as other services in partnership with local companies.
Oriente has also started focusing on how to serve businesses during the COVID-19 pandemic, since many merchants are coping with revenue declines, loss of users and cash flow issues.
“Over the past few weeks, we’ve reprioritized our corporate strategy to focus on the top opportunities within each market. We have also taken various steps to rebuild our organizations for optimized operational and financial efficiency in line with current and forecasted market conditions and our more focused strategy,” Prentice said.
“Our aim is not only to mitigate anticipated headwinds on liquidity but to demonstrate that our business has the potential to overcome and outperform the market in a recession—unlocking value for all stakeholders for years to come.”
Being a supply chain merchant often means cobbling together different ways of keeping in touch with buyers, including emails, text messages and paper invoices. Tinvio wants to simplify the process with a communication and commerce platform designed especially for managing orders.
The Singapore-based startup announced today that it has raised $5.5 million in seed funding, led by Sequoia Capital India’s Surge early-stage accelerator program, with participation from Global Founders Capital and Partech Partners.
Along with a pre-seed round from Rocket Internet, this brings Tinvio’s total raised so far to $6.5 million. The startup was founded in July 2019 by Ajay Gopal, who previously worked at Rocket Internet in Berlin. Before that, he was a fintech investment banker at Credit Suisse.
Since launching, Tinvio’s customer base has grown to over 1,000 businesses in more than 10 cities. Over the next 12 months, it plans to add more cities and languages, as well as digital financial services.
Tinvio is targeted at small-to mid-sized merchants, and many of its customers are in the food and beverage (F&B), retail and healthcare supply industries.
“At its core, Tinvio is a real-time messaging app. For every 10 orders placed on Tinvio, there’s an average of two messages sent, reinforcing that communication is critical in fragmented supply chains,” Gopal told TechCrunch.
One of Tinvio’s selling points is that merchants can continue to receive orders through their existing channels, including email, SMS or WhatsApp. By consolidating those orders in one app, Tinvio is also able to create a real-time digital ledger, making it easier for merchants to track invoices, fulfillment and finances.
During the COVID-19 pandemic, order volumes between merchants and suppliers on Tinvio have fallen about 30% to 50% in most cities, Gopal said, “though retention rates remain high, suggesting that many businesses are trying their best to stay open. We talk to them often, and we’re quite awed by their resilience to keep trying, keep finding a way to make it work.”
He added, “Our tech is designed to be fully customizable, so we’ve started organically supporting many of their new use cases.”
For example, some food and beverage merchants have started using Tinvio to manage group orders with consumers instead. Since many businesses have let go of staff, this means merchants have become more reliant on the app to keep track of orders and inbound/outbound deliveries. Tinvio has started expanding this into a new feature and also begun customizing soft-integrations for suppliers so they don’t have to manually add data to their ERP software.
Two weeks ago, Tinvio also launched a project called Save Our Nomnoms to help direct more orders to food and beverage merchants in Singapore, which is currently under partial lockdown. The project started with 40 brands, and has since grown to include more than 300 brands.
BuyMed, a Vietnamese startup that wants to fix Southeast Asia’s complex pharmaceutical distribution networks, announced today it has raised $2.5 million in pre-Series A funding. Investors include Sequoia Capital India’s Surge early-stage accelerator program, and Genesia Ventures. Returning investor Cocoon Capital also participated.
Founded in 2018, BuyMed operates Thuocsi.vn, a pharmaceutical distribution platform in Vietnam. Over the past 12 months, the company says it has tripled its annual revenue, and now plans to add new product lines, including cosmetics, medical devices, supplements and medical services, with the goal of becoming a “one-stop marketplace” for supplies needed by healthcare providers in Southeast Asia.
BuyMed verifies suppliers on its platform, improving safety and reducing the risk of medications making its way into the grey market (or unofficial distribution channels). The startup currently has 700 verified suppliers, distributors and manufacturers on its platform, who serve over 7,000 healthcare providers.
In a press statement, Genesia Ventures general partner Takahiro Suzuki, said, “There is still a tremendous opportunity for growth and improvement in Vietnam’s pharmaceutical supply chain and we believe that BuyMed’s founders have the experience, execution and operational management necessary to tackle this problem.”
BuyMed Co-founder and CEO Peter Nguyen formerly served as a consultant for companies like Eli Lilly, Roche and Siemens, helping them create more efficient operations and supply chains.
Nguyen told TechCrunch that there are no major multi-brand distributors in Vietnam, so most pharmaceutical manufacturers and brands need to set up their own networks. This means the process of getting medications and other pharmaceutical supplies to healthcare providers is highly-fragmented.
There are roughly 200 domestic manufacturers in Vietnam, in addition to imported brands, and their products are handled by over 3,000 distributors. While about 2% of pharmacies in Vietnam are part of a franchise or chain, the vast majority are independent. This means distributors need to serve over 40,000 independent pharmacies and about 5,000 independent clinics.
Nguyen added that fragmentation is similar in many other Southeast Asian markets, giving BuyMed an opportunity to expand across the region.
Thuocsi.vn’s usage has grown over the last 60 days, as more Vietnamese pharmacies source from online channels. In response to the COVID-19 pandemic, BuyMed has expanded its platform so more of its partners can sell online, and added safety measures like frequent warehouse and office sanitization and a no-contact drop-off and cash collection system.
Singapore-based Igloo, formerly known as Axinan, has raised $8.2 million as the insurance-tech startup looks to broaden its foothold in half a dozen Southeast Asian markets and Australia.
InVent, a corporate venture capital arm of telecommunications firm Intouch Holdings, led Igloo’s extended Series A round, the startup told TechCrunch. Existing investors Openspace Ventures, a venture capital fund that invests in Southeast Asia, and Linear Capital, a Shanghai-based early-stage venture capital firm focusing on tech-driven startups, participated in this round, which makes four-year-old Igloo’s to-date raise to $16 million. It raised about $1 million in its Seed financing round.
Igloo — founded by Wei Zhu, who previously served as Chief Technology Officer at Grab — works with e-commerce and travel firms such as Lazada, RedDoorz, and Shopee in Southeast Asia to offer their customers insurance products that provide protection on electronics, and coverage on accidents and travel.
The startup, which also operates in Vietnam, Philippines, Thailand, Singapore, Indonesia, and Malaysia, said more than 15 million users have benefitted from its insurance products to date, and in the last one year it has processed more than 50 million transactions.
Igloo, which rebranded from Axinan this month, said insurance products are proving especially useful to — and popular among — people during the coronavirus outbreak.
Raunak Mehta, Chief Commercial Officer at Igloo, told TechCrunch that the startup has seen a surge in transactions and customer acquisitions in the last 45 days. “While some travel related business have seen a dip, the larger e-commerce business continues to see a surge,” he added.
“With COVID-19 impacting every facet of personal life and business, digitisation can help the world adjust to the new normal. This is especially apparent in insurance, where we can tap on digital channels for distribution and also for creating awareness,” said Zhu.
“We see that digital insurance is on the rise in Southeast Asia, and we believe that Igloo, with our digital-first approach and expansion of our product portfolio into personal health, accident and other related products can help fill those gaps and address consumers’ needs for personal well-being,” he added.
He said the digital insurance penetration remains low in Southeast Asia, and Igloo sees massive opportunity in the space. According to one estimate (PDF), Southeast Asia’s digital insurance market is currently valued at $2 billion and is expected to grow to $8 billion by 2025.
The startup, which competes with a handful of startups including Singapore Life and Saphron, will use the fresh capital to expand its business development and engineering teams and broaden its presence in the half-dozen markets. It is already engaging with telecom operators, banks, non-banking financial firms, and travel agencies, it said.
Representatives from the government and the utility managing the power of Los Angeles are proposing a sweeping infrastructure package worth roughly $150 billion centered on the broad electrification of transportation and industry.
Drafted by the Los Angeles-based public-private Transportation Electrification Partnership, a collaboration between the Office of Mayor Eric Garcetti, Southern California Edison, the Los Angeles Department of Water and Power and the Los Angeles Cleantech Incubator, the proposal lays out a number of initiatives based on work that’s already being done in Los Angeles to electrify the city’s infrastructure.
As the nation’s second-largest metropolitan area, boasting an over $1 trillion economy, decisions made in the city can have broad economic and social implications that ripple far beyond the Southern California region. Alongside New York, Los Angeles has set some of the nation’s most aggressive targets for the rollout of renewable and sustainable industries.
The proposal sets out four big initiatives, including zero-emissions vehicle manufacturing, assembly and adoption; zero-emissions infrastructure investments; commitments to public transit investments; workforce development; and job training. There’s also a relatively modest request (of only $4 billion) for funding devoted to pilot projects, startup companies, and public clean technology investment initiatives (like LACI).
The initiative reserves the largest cash pile for the development of electric charging infrastructure around the country, according to the proposal seen by TechCrunch and sent to House and Senate leadership including House Speaker Nancy Pelosi, Minority Leader Kevin McCarthy, Senate Majority Leader Mitch McConnell and Minority Leader Chuck Schumer.
Image Credits: Monty Rakusen / Getty Images
Of the $85 billion set aside for the deployment of zero-emission vehicle infrastructure, the TEP proposal reserves roughly one-fourth for upgrades to the electricity grid. The funding would include $20 billion for utility upgrades. Of that, $10 billion will go toward solar and energy storage projects designed to make grids more resistant to climate-related catastrophes like extreme weather events, wildfires and other disasters. The remaining $10 billion would support commercial and residential vehicle charging, solar energy development and energy storage projects.
Another $15 billion is dedicated to medium- and heavy-duty vehicle charging that would be administered by state governments, transit agencies or regional agencies. New developments could be added to truck yards, truck stops and plazas, as well as strategic locations, such as ports and airports.
“Funding of the scale proposed here could enable a transformation not only in the LA metropolitan area, but across the country, as well as provide opportunities where possible for local hire through community benefit agreements, which are an effective mechanism to ensure charging infrastructure projects include workers living local to a project, as well as other targeted hiring policies, such as US Veteran hiring, are achieved,” writes LACI chief executive, Matt Peterson.
Light-duty charging infrastructure occupies another $10 billion of the suggested stimulus measures. The goal, is to get local, shovel-ready projects the financing they’d need to start the process of hiring workers immediately. One project that’s already being rolled out in Los Angeles is the development of curbside charging infrastructure on streetlight poles to serve drivers who don’t have access to charging infrastructure at home.
Finally under the infrastructure bucket, the proposal recommends that Congress set aside $11 billion for transit and school bus charging to be administered via states, transit agencies and school districts; $5 billion for state and local government fleets; and $4 billion to support the Low-Income Home Energy Assistance Program.
The LIHEAP money is critical for the over 12 million Americans who have recently lost their job, the consortium argues and could also help finance the Department of Energy’s Weatherization program.
Popular programs like Opportunity Zones, New Market Tax Credits and Community Development Finance Institutions could be used to boost the government’s commitment with private capital, the plan’s authors argue.
Non-Electric vehicles fill a parking lot in Rosemead, California, where two Electric Vehicle charging stations are offered on September 12, 2018.
All of that charging infrastructure and grid upgrades are in part designed to help meet the increased power demands that the proposal expects to bring onto the grid through another $25 billion in government funding for electric vehicles of all types. The funds could be allocated through existing programs including the extension of the electric vehicle tax credit for automakers and new programs that would allow consumers to trade in older model vehicles for newer, preferably electric, vehicles.
An additional way the government could juice the auto industry — and specifically electric vehicles — is by providing point of sale rebates for all vehicles that could be issued through car dealerships, according to the proposal. “This will also help dealerships increase sales and bring needed sales tax revenues to local and state governments,” Peterson writes.
There’s $25 billion in money set aside for public transit and $12.5 billion set aside for workforce retraining and education.
For startups, the programs that could have the most impact — aside from the broad infrastructure package that could mean additional demand for new technologies — is a far smaller and more targeted proposal for roughly $4 billion that would allocate money directly to small and medium sized businesses and local incubation and corporate development programs.
“Startups and small businesses are the engine of every local and regional economy,” writes Peterson. “Targeting resources to this sector is critical to help entrepreneurs continue America’s leadership in technology innovation, restart small businesses, and help put people back to work.”
TEP is proposing a $1 billion grant for early stage research and development of cleantech and zero-emission mobility innovations and $1 billion for shovel ready pilot projects deployed by startups and small businesses via local governments.
Still more money would include $500 million in emergency loans and grants for cleantech startups and small businesses that are involved in solar installations, energy storage, and electric vehicle technology development. Revenues for these companies have dropped precipitously as consumer-facing demand has fallen off a cliff.
There’s also a $500 million pot targeted for startups and small businesses founded by women and people of color and $500 million for nonprofit cleantech and innovation incubators.
Alongside LACI, there are a few of these nonprofit investment programs which have cropped up across the Midwest that could be a boon to budding entrepreneurs.
Finally, the proposal advocates for at least $500 million in funding to train unemployed or underemployed would-be laborers along with veterans and the formerly incarcerated.
Some of these initiatives have been tried in the past, and despite partisan complaints, proved effective. The Obama-era loan program established to boost clean energy companies generated revenues for the government despite the much-publicized flameout of the solar startup, Solyndra. Even Tesla benefited from the program, paying back a $460 million loan from the program a decade ahead of schedule.
With increasing volatility in oil prices, the move to an increasingly electric infrastructure makes sense because it offers more stability for energy buyers, including consumers and businesses.
China-based electric car startup Byton has furloughed about half of the 450 employees who work at its North American headquarters in Santa Clara, Calif., putting the release date of the automaker’s upcoming M-Byte vehicle into question.
Byton told TechCrunch the furloughs were the result of the COVID-19 pandemic. The intention is to bring these furloughed employees back, the company said without providing a timeline.
“Given the impact of the pandemic on the global economy and the auto industries we, like several companies, have had to take action to face the challenge,” a Byton spokesperson wrote in an email to TechCrunch. “The furloughs have affected all areas within Byton’s U.S. operations. Employees in China have not been furloughed.”
Electrek was the first to report the furloughs.
The furloughs come as the company is preparing to bring its M-Byte electric SUV into volume production later this year. The vehicle, perhaps best known for its massive 48-inch wraparound digital dashboard, will be produced at Byton’s factory in Nanjing, China. The M-Byte will be sold in China, the U.S. and Europe.
Byton previously said sales will begin in China in the second half of 2020, followed by the U.S. The vehicle will come to the first European markets in the first half of 2021. However, the COVID-19 pandemic — and the ensuing furloughs and cuts — could delay Byton’s timeline.
Byton told TechCrunch it is evaluating the impact of COVID-19 on production of the M-Byte. Byton’s China factory reopened in mid-February and is now nearly fully operational, according to the company.
Byton has raised about $820 million from investors that include the company’s founding team, FAW Group, Nanjing Qiningfeng New Energy Industry Investment Fund and CATL.
The startup has been working to close a Series C round of fundraising for months now. The company told TechCrunch it is in the “final stage” of the round, which will include investors FAW Group and the industrial investment fund of Nanjing municipal government, Myoung Shin Co. of South Korea, MS Autotech and Japanese enterprise Marubeni Corporation .
Africa focused payment startup PalmPay will waive transfer fees in Nigeria and offer direct payouts to customers who have contracted COVID-19 in the West African country.
The venture — that launched in 2019 backed by China’s Transsion — has created the PalmPay Support Fund. The initiative will start with 100 million Naira (≈ $300K) and offer individual payments of 100,000 Naira (≈ $250) to PalmPay customers who have contracted the coronavirus.
The startup will expand the fund’s value by providing a matching gift per customer transaction for at least on month. PalmPay will also extend the fund to offer grants to organizations working on coronavirus mitigation and assistance efforts in Nigeria.
On the structure of the initiative — and adding a matching function — PalmPay aims to create interactivity with its clients on coronavirus relief efforts. “We want to provide relief…and get our customers feeling that they’re adding something to it as well,” PalmPay CEO Greg Reeve told TechCrunch on a call.
The company has created a page on its app for applications and funds dispersal. PalmPay is working with Nigeria’s Center for Disease Control on a verification process to confirm those who apply have tested positive for COVID-19, according to Reeve.
Image Credits: PalmPay
PalmPay’s initiative comes as COVID-19 has hit Africa’s largest economies and the continent’s fintech platforms have been mobilized as tools to stem the spread.
Early in March, Africa’s coronavirus numbers by country were in the single digits, but by mid-month those numbers had spiked, leading the World Health Organization’s Regional Director Dr Matshidiso Moeti to sound an alarm.
Countries such as South Africa, Kenya and Nigeria — which happen to be Africa’s top tech hubs — have imposed social distancing and lockdown practices.
Governments and startups on the continent have also turned to measures to shift a greater volume of financial transactions to digital payments and away from cash — which the World Health Organization flagged as a conduit for the coronavirus.
It’s an option facilitated by the boom in fintech that’s occurred in Africa over the last decade. By several estimates, the continent is home to the largest share of the world’s unbanked population and has a sizable number of underbanked consumers and SMEs.
But because of that opportunity, fintech startups now receive the majority of VC funding annually in Africa, according to recent data.
Increasingly, Nigeria has become the focal point for digital finance development on the continent, boasting Africa’s largest economy and population (200 million).
PalmPay launched in Nigeria last year on the back of one of Africa’s largest 2019 seed-rounds — $40 million led by Transsion. In addition to a lot of capital, the investment came with an additional competitive advantage for the startup. Through its Tecno brand, Transsion is the largest seller of smartphones in Africa and PalmPay now comes preinstalled on all Tecno devices.
Image Credits: Jake Bright
While PalmPay reamins in the race to capture fintech market share in Nigeria, for now the startup looks to weather the COVID-19 crisis in the country. Like most of Nigeria — and much of the world — PalmPay’s staff are on lockdown and working from home, according to the company’s CEO.
Commercial times in the country could be tough into the next year. Nigeria has already seen a reduction in economic activity as a result of COVID-19, and as a major oil producer, the country will face an additional economic blow due to the drop in demand the pandemic has dealt to petroleum markets.
A trend that could come out of the crisis that benefits fintech players, according to PalmPay CEO Greg Reeve, is greater digital finance adoption in Nigeria. In the past, the country has shown a cash-is-king reluctance by parts of the population to use mobile payments and lagged Africa’s digital finance leaders Kenya and South Africa.
The current health crisis could shift consumer habits in Nigeria, according to Reeve. “We’ve seen an increased use in our service, whilst people aren’t able to move around,” he said.
“There is a natural uptake right now for services like mobile money and I think when people start to use it, they’ll continue to use it when the COVID-19 ceases.”
Uber Eats customers have given $3 million in direct contributions to restaurants using a new feature on the app designed in response to the COVID-19 pandemic.
The milestone caps off a related campaign by Uber Eats to match up to $3 million in contributions made by customers. Uber Eats is sending its $3 million in matched funds to the National Restaurant Association’s Restaurant Employee Relief Fund. The company had previously donated $2 million to RERF.
The matching campaign has ended. However, the restaurant contribution feature, which was first rolled out in New York and is now in 20 countries, will continue.
The restaurant contribution feature was developed by a team of engineers in a flurry of activity over about seven days, according to Therese Lim, who leads the restaurant product management team for Uber Eats.
“There was no executive who said ‘oh we need to build this feature, you all go build this now,” Lim said, adding that this was a grassroots effort prompted by the wave of restaurants that were forced to close regular dine-in eating due to the spread of COVID-19. Lim said Uber Eats users started reaching out to employees via LinkedIn, email and other means to ask how they could help restaurants.
“We started to see restaurants get impacted severely by this,” Lim said. “This was particularly true as the various states started implementing shelter-in-place or stay-at-home orders.”
The team had two primary concerns — beyond the basic backend operations — about the feature. They didn’t want it to cannibalize the amount of tips that users gave delivery workers, nor did they want it to cause customers to buy less from restaurants.
The team started to roll out the feature in a small area within New York City on April 1 to make sure tipping of delivery workers wasn’t impacted. The feature launched April 3 across the entire city and then expanded over the next week to the rest of the United States. The contribution feature is now live on the Uber Eats in 20 countries.
“We didn’t want to introduce anything that actually hurts restaurants,” Lim said. “It was important to make sure we weren’t introducing friction into the experience that would cause a user to become impatient or displeased with the outcomes and maybe not actually finish their order.”
Those concerns didn’t bear out, according to data compiled since the app feature launched. Customers not only tipped more, they were also frequent users of Uber Eats.
Users who made restaurant contributions tipped their couriers 30% to 50% more than orders without a contribution, according to Uber. About 15% of Uber Eats customers in the U.S. who made a restaurant contribution were repeat contributors.
Data also shows that early dinner time, around 6 p.m., was the most generous time period, according to Lim. Dinner time, between 5 p.m. to 11 p.m., was the most popular for contributions, making up 60% of contribution dollars.
And certain foods, namely international cuisine, encouraged more contributions from users. French, Ethiopian, Argentinian and Thai restaurants had the highest contribution rates, according to Uber.
Some states were more generous than others. The top five most generous states, by percentage of active Uber Eats users who made at least one contribution, were Washington, Vermont, Montana, Connecticut, and South Carolina.
The world’s population is aging, but the needs of elderly people are still being underserved. A United Nations report found that older people make up more than one-fifth of the population in 17 countries, and by 2100, a majority of the world’s population, or 61%, will be aged 60 and above.
One of the most urgent needs for families is caregiving, with demand outstripping the pool of qualified providers. This means many people in their thirties and forties are now part of the “sandwich generation,” juggling jobs and child care while looking after elderly relatives. This creates both an opportunity and challenge for tech startups and investors in almost every market around the world.
In Southeast Asia, Homage is addressing the issue with a platform that takes a curated approach to pairing caregivers and families, using a combination of in-person screening and its matching engine to make the process more efficient. Currently operating in Singapore and Malaysia, the startup announced earlier this year that it will use its Series B funding to expand into five new countries in the region.
Backed by investors, including HealthXCapital, Golden Gate Ventures and EV Ventures, Homage was co-founded in 2016 by chief executive officer Gillian Tee, who grew up in Singapore and was inspired by her family’s own experiences looking for caregivers. Tee says she wanted to build a platform that would make the process of matching caregivers and clients easier, and be scalable into different markets.
“It’s not the easiest space to be in, and I would say that you do need to want to be intentionally working in this space, rather than just falling into it. It goes hand in hand,” she told TechCrunch. “We found that there is a huge market opportunity, but why we’re doing it goes way beyond that.”
Visa has prioritized growth in Africa, and partnering with startups is central to its strategy.
This became obvious in 2019 after the global financial services giant entered a series of collaborations on the continent, but Visa confirmed it in their 2020 Investor Day presentation.
On the company’s annual call, participants mentioned Africa 28 times and featured regional startups prominently in the accompanying deck. Visa’s regional president for Central and Eastern Europe, Middle East and Africa (CEMEA), Andrew Torre, detailed the region’s payments potential and his company’s plans to tap it. “We’re partnering with non-conventional players to realize this potential — fintechs, neobanks and digital wallets — to reach the one billion consumer opportunity,” he said.
TechCrunch has covered a number of Visa’s Africa collaborations and spoke to two execs driving the company’s engagement with startups from Nigeria to South Africa.
Visa’s head of Strategic Partnerships, Fintech and Ventures for Africa, Otto Williams, has been out front, traveling the continent and engaging fintech founders.
Located in Cape Town, Visa’s group general manager for Sub-Saharan Africa, Aida Diarra, oversees the company’s operations in 48 countries. Visa has a long track record working with the region’s large banking entities, but that’s shifted to smaller ventures.
Image Credits: Visa
Grab announced today that it has hired Peter Oey as its new chief financial officer. Prior to joining Grab, Oey was the chief financial officer at LegalZoom, an online legal services company based near Los Angeles.
Before that, he served the same role at Mylife.com, an online platform that aggregates information about people based on public records. Oey also held financial leadership positions at Activision for twelve years, including corporate controller.
In a statement, Grab said Oey will be based in Singapore and report to co-founder and CEO Anthony Tan. He will also work with Grab president Ming Maa, who took over many responsibilities from Grab’s last CFO, Linda Hoglund, when she left in 2016. Grab said Maa will continue to lead its strategic business planning.
Grab, which acquired Uber’s Southeast Asia business in March 2018, has reportedly been in discussions to merge with merge with rival GoJek.
Grab, whose services include ride-sharing, food delivery and online financial services provider GrabPay, also announced in February that it had raised a total of $856 million from Japanese investors Mitsubishi UFJ Financial Group and TIS INTEC, to grow its financial services and digital payments infrastructure.
In a press statement, the company said that in 2019, GrabFood’s gross merchandise volume grew by over 400%, while GrabPay increased payment volume by 170%, thanks to strong performance in Indonesia.
Tan said “Last year, we made tremendous progress in growing our food delivery, payments and financial services business. The growth of these businesses give us a good foundation for achieving long-term sustainable growth for our company. I’m excited to welcome Peter to the Grab family where his extensive experience scaling rapidly growing technology companies makes him a valuable addition to our business.”
Grab has raised a total of about $9.9 billion from investors including SoftBank Vision Fund, which invested $1.46 billion into the company last year. Tan told CNBC last November that the company will not go public until its entire business is profitable.