Tata Digital, a subsidiary of Indian conglomerate Tata Sons, said on Monday it has signed a deal to invest up to $75 million in fitness startup CureFit. As part of the deal, CureFit co-founder and chief executive Mukesh Bansal will join Tata Digital as President and continue in his role at the Bangalore-headquartered startup.
Monday’s investment is the salt-to-steel giant’s latest effort to expand its presence in the consumer tech space. Earlier this year, Tata Group acquired majority stakes in online grocery startup BigBasket, and is reportedly in talks to acquire online pharmacy 1mg, according to local media reports.
Prior to today’s announcement, CureFit had raised about $418 million and was last valued at $815 million, according to insight firm Tracxn.
“Joining Tata Digital marks an exciting new step for me and my team and is a recognition of the value we have created with CureFit for fitness enthusiasts in India. Being part of Tata Digital will enable us to nationally scale up our offerings for our customers,” said Bansal, who sold his previous venture Myntra to Flipkart, in a statement.
This is a developing story. More to follow…
Cash is the predominant method of sending and receiving payments in the Middle East. If you owe someone a cup of coffee or a trip over a long period, repaying via cash is your best bet. This is one problem out of many financial issues that haven’t been addressed in the region.
The good news is that startups are springing up to provide solutions. Last month Telda, a now two-month-old startup in Egypt, raised an impressive sum as pre-seed to offer digital banking services. Today, Ziina, another startup based in Dubai, has closed $7.5 million in seed funding to scale its peer-to-peer (P2P) payment service across the Middle East and North Africa.
Ziina has managed to enlist top global investors and fintech founders in the round. Avenir Growth and Class 5 Global led this latest tranche of financing. Wamda Capital, FJ Labs, Graph Ventures, Goodwater Capital, Jabbar Internet Group, Oman Technology Fund’s Jasoor Ventures, and ANIM also participated.
The founders who took part include Checkout CEO Guillaume Pousaz via his investment fund Zinal Growth; Krishnan Menon, BukuKas CEO, as well as executives from Paypal and Venmo. This adds to a roster of executives and early employees from Revolut, Stripe, Brex, Notion, and Deel that joined Ziina’s round.
According to the company, it has raised over $8.6 million since launching last year. This includes the $850,000 pre-seed raised in May 2020 and $125,000 secured after going through Y Combinator’s Winter batch early this year.
Ziina was founded by Faisal Toukan, Sarah Toukan, and Andrew Gold. It’s the latest addition to the Middle East’s bubbling fintech ecosystem and is capitalising on the region’s rapid adoption of fintech friendly regulation.
The company allows users to send and receive payments with just a phone number —no IBAN or swift code required as is the de facto method in the UAE and some parts of the Middle East. It also claims to be the country’s first licensed social peer-to-peer application “on a mission to simplify finance for everyone.”
After meeting during a hackathon in the U.S., Faisal and Gold began exchanging ideas on how to build wallets, wanting to mirror the successes platforms like WePay, Paytm have had. At the time, VCs seemed to be interested in how the wallets ecosystem intersected with banking.
“The lines between wallets and banking have become really blurred. Every wallet has a banking partner, and people who use wallets use them for their day-to-day needs,” CEO Faisal Toukan said to TechCrunch.
On the other hand, Sarah, who is Faisal’s sister, was on her personal fintech journey in London. There, she attended several meetups headlined by the founders of Monzo and Revolut. With her knowledge and the experience of the other two, the founders decided that solving P2P payments issues was their own way of driving massive impact in the Middle East.
So how far have they gone? “We launched a beta for the market but it’s restricted for regulatory reasons and basically to keep ourselves in check with the ecosystem,” Toukan remarked. “Since then, we’ve gotten regulated. We’ve got a banking partner, one of the three largest banks in the UAE, and we’ve set a new wallet a month from now. That’s also what we were working throughout our period in YC. So it’s been quite an eventful year.”
The fintech sector in MENA is growing fast; in terms of numbers, at a CAGR of 30%. Also, in the UAE, it is estimated that over 450 fintech companies will raise about $2 billion in 2022 compared to the $80 million raised in 2017. Fintechs in the region are focused on solving payments, transfers, and remittances. Alongside its P2P offering, these are the areas Ziina wants to play in, including investment and cryptocurrency services.
According to Toukan, there’s no ease of making online investments, and remittances are done in exchange houses, a manual process where people need to visit an office physically. “So what we’re looking to do is to bring all these products to life in the UAE and expand beyond that. But the first pain point we’re solving for is for people to send and receive money with two clicks,” the CEO affirmed.
Starting with P2P has its own advantages. First, peer-to-peer services is a repeat behavioural mechanism that allows companies to establish trust with customers. Also, it’s a cheaper customer acquisition model. Toukan says that as Zinna expands geographically — Saudi Arabia and Jordan in 2022; and Egypt and Tunisia some years from now — as he wants the company’s wallet to become seamless cross border. “We want a situation where if you move into Saudi or Dubai, you’re able to use the same wallet versus using different banking applications,” he added.
To be on the right side of regulation is key to any fintech expansion, and Toukan says Ziina has been in continuous dialogue with regulators to operate efficiently. But some challenges have stemmed from finding the right banking partners. “You need to make a case to the banks that this is basically a mutually beneficial partnership. And the way we’ve done that is by basically highlighting different cases globally like CashApp that worked with Southern Bank,” he said.
Now that the company has moved past that challenge, it’s in full swing to launch. Presently, Ziina has thousands of users who transacted more than $120,000 on the platform this past month. According to the company, there are over 20,000 users on its waiting list, and they will be onboarded post-launch.
Ziina has already built a team with experience across tech companies like Apple, Uber, Stanford, Coinbase, Careem, Oracle, and Yandex. It plans to double down on hiring with this new investment and customer acquisition and establishing commercial partnerships.
Grupo Bursátil Mexicano (GBM) is a 35-year-old investment platform in the Mexican stock market. In its first three decades of life, GBM was focused on providing investment services to high net worth individuals and local and global institutions.
Over the past decade, the Mexico City-based brokerage has ramped up its digital efforts, and, in the past five years, has evolved its business model to offer services to all Mexicans with the same products and services it offers large estates.
Today, GBM is announcing it has received an investment of “up to” $150 million from SoftBank via the Japanese conglomerate’s Latin America Fund at a valuation of “over $1 billion.” The investment is being made through one of GBM’s subsidiaries and is not contingent on anything, according to the company.
Co-CEO Pedro de Garay Montero told TechCrunch that GBM has built an app, GBM+, that organizes and invests clients’ money through three different tools: Wealth Management, Trading and Smart Cash.
Last year was a “historic” one for the company, he said, and GBM went from having 38,000 investment accounts in January 2020 to more than 650,000 by year’s end. In the first quarter of 2021, that number had grown to over 1 million — representing more than 30x growth from the beginning of 2020.
For some context, according to the National Banking and Securities Commission (CNBV), there were only 298,000 brokerage accounts in Mexico at the end of 2019, and that number climbed to 940,000 by the end of 2020 — with GBM holding a large share of them.
Most of GBM’s clients are retail clients, but the company also caters to “most of the largest investment managers worldwide,” as well as global companies such as Netflix, Google and BlackRock. Specifically, it services 40% of the largest public corporations in Mexico and a large base of ultra high net worth individuals.
The company is planning to use its new capital in part to invest “heavily” in customer acquisition.
Montero said that half of its team of 450 are tech professionals, and that the company plans to also continue hiring as it focuses on growth in its B2C and B2B offerings and expanding into new verticals.
“We are improving our already robust financial education offering,” he added, “so that Mexicans can take control of their finances. GBM’s mission is to transform Mexico into a country of investors.”
Because Mexico is such a huge market — with a population of over 120 million and a GDP of more than $1 trillion — GBM is laser-focused on growing its presence in the country.
“The financial services industry is dominated by big banks and is inefficient, expensive and provides a poor client experience. This has resulted in less than 1% of individuals having an investment account,” Montero told TechCrunch. “We will be targeting clients through our own platform and internal advisors, as well as growing our base of external advisors to reach as many people as possible with the best investment products and user experience.”
When it comes to institutional clients, he believes there is “enormous potential” in serving both the large corporations and the SMEs “who have received limited services from banks.”
Juan Franck, investment lead for SoftBank Latin America Fund in Mexico, believes the retail investment space in Mexico is at an inflection point.
“The investing culture in Mexico has historically been low compared to the rest of the world, even when specifically compared to other countries in Latin America, like Brazil,” he added. “However, the landscape is quickly changing as, through technology, Mexicans are being provided more education around investing and more investment alternatives.”
In the midst of this shift, SoftBank was impressed by GBM’s “clear vision and playbook,” Franck said.
So, despite being a decades-old company, SoftBank sees big potential in the strength of the digital platform that GBM has built out.
“GBM is the leading broker in Mexico in terms of trading activity and broker accounts,” he said. “The company combines decades of industry know-how with an entrepreneurial drive to revolutionize the wealth management space in the country.”
The events of the past year have only served to accelerate interest in all things robotics and automation. It’s a phenomenon we’ve seen across a broad range of categories, and automotive is certainly no different.
Of course, carmakers are no strangers to the world of robotics. Automation has long played a key role in manufacturing, and more recently, robotics have played another central role in the form of self-driving vehicles. For this panel, however, we’re going to look past those much-discussed categories. Of late, carmakers have been investing heavily to further fuel innovation in the category.
It’s a fascinating space — and one that covers a broad range of cross-sections, from TRI’s (Toyota) Woven City project to Ford’s recent creation of a research facility at U of M to Hyundai’s concept cars and acquisition of Boston Dynamics. At TC Sessions: Mobility on June 9, we will be joined by a trio of experts from these companies for what’s sure to be a lively discussion on the topic.
Max Bajracharya is Vice President of Robotics at Toyota Research Institute. Previously serving as its Director of Robotics, he leads TRI’s work in robotics. He previously served at Alphabet’s X, as part of the Google Robotics team.
Mario Santillo is a Technical Expert at Ford. Previously serving as a Research Engineer for the company, he’s charged with helping lead the company’s efforts at a recently announced $75 million research facility at the University of Michigan, Ann Arbor. The work includes both Ford’s own robotics work, as well as partnerships with startups like Agility.
Ernestine Fu is a director at Hyundai Motor Group. She heads development at the newly announced New Horizons Studio, a group tasked with creating Ultimate Mobility Vehicles (UMVs). She also serves as an adjunct professor at Stanford University, where she received a BS, MS, MBA and PhD.
Get ready to talk robots at TC Sessions: Mobility. Grab your passes right now for $125 and hear from today’s biggest mobility leaders before our prices go up at the door.
First Move Capital, the Boulder-based venture firm that has invested in used car marketplaces Frontier Auto Group and Vroom as well as mobility-as-a-service startup Via, has closed a new $150 million fund that will focus on the automotive and transportation sectors.
Existing strategic investors such as OEMs, dealers, distributors, fleet management, remarketing, insurance and software providers as well as family offices have backed the fund. Proceeds from the round will be exclusively allocated to new investments, the company said Thursday.
FM Capital has already made seven investments from the oversubscribed fund, including autonomous vehicle startup Gatik, cloud-based automotive retail platform Tekion and e-commerce startup Revolution Parts.
“We hit our hard cap in the max that we could raise, but have deployed a minority of that amount so we’re still very much, actively investing and will be for the next couple of years,” Managing Partner Mark Norman said in a recent interview.
FM Capital launched in 2012 with a $40 million fund that invested in auto commerce and dealership technologies as well as other broader retail and enterprise software startups. Its second fund, which more than doubled to $90 million, is when FM Capital became an automotive-focused VC interested in auto commerce, autonomy and sensors, connectivity, electrification and shared mobility. FM Capital typically invests between $5 million to $10 million in companies with what the partners view as “transformative solutions in transportation” typically at the Series A stage. FM Capital will sometimes do a later seed round where there’s commercial traction and revenue, said Norman, who noted that in this new fund the firm has already completed one seed deal out of the seven investments it has made so far.
FM Capital has backed a total of 40 companies based in North America, Europe and Tel Aviv.
Looking ahead, Norman sees opportunities stemming from the rising number of EVs and other forms of propulsion besides internal combustion engines.
“We see there’s just a huge transformation going on with propulsion, a lot driven, of course, by government mandates around the world,” Norman said. “Alternative fuels and distribution and related service infrastructure is going through a ton of flux right now. That’s everything from the technology going into propulsion in vehicles — that shift from internal combustion to in large part, EVs — and how that affects downstream service infrastructure, how it affects marketplaces like residual values, and how you estimate that and understand what a vehicle is worth over its lifecycle.”
For instance, Norman pointed to FM Capital’s latest investment into a startup called Indigo Technologies, which has developed a vehicle platform with an in-wheel motor and suspension that frees up space.
There also continues to be a lot of software opportunities, especially as more vehicles hit the marketplace with embedded connectivity, Norman said. He also noted additional opportunities in enterprise software.
“What had been a very fragmented retail environment continues to consolidate — whether we’re talking about car rentals, car dealers or fleet management — and their appetite for centrally driven tools and data is also much higher than that in the past. That’s real opportunity on the enterprise software side of things.”
Chinese-backed and Africa-focused fintech platform OPay is in talks to raise up to $400 million, The Information reported today. The fundraising will be coming two years after OPay announced two funding rounds in 2019 — $50 million in June and $120 million Series B in November.
The $170 million raised so far comes from mainly Chinese investors who have begun to bet big on Africa over the past few years. Some of them include SoftBank, Sequoia Capital China, IDG Capital, SoftBank Ventures Asia, GSR Ventures, Source Code Capital.
In 2018, Opera, popularly known for its internet search engine and browser, launched the OPay mobile money platform in Lagos. It didn’t take long for the company to expand aggressively within the city using ORide, a now-defunct ride-hailing service, as an entry point to the array of services it wanted to offer. The company has tested several verticals — OBus, a bus-booking platform (also defunct); OExpress, a logistics delivery service; OTrade, a B2B e-commerce platform; OFood, a food delivery service, among others.
While none of these services has significantly scaled, OPay’s fintech and mobile money arm (which is its main play) is thriving. This year, its parent company Opera reported that OPay’s monthly transactions grew 4.5x last year to over $2 billion in December. OPay also claims to process about 80% of bank transfers among mobile money operators in Nigeria and 20% of the country’s non-merchant point of sales transactions.Last year, the company also said it acquired an international money transfer license with a partnership with WorldRemit also in the works.
It’s quite surprising that none of OPay’s plans to expand to South Africa and Kenya (countries it expressed interest in during its Series B) has come to fruition despite its large raises. The company blamed the pandemic for these shortcomings. However, earlier this year, the country set up shop in North Africa by expanding to Egypt. This next raise, likely a Series C, will be instrumental in the company’s quest for expansion, both geographically and product offerings. Per The Information, OPay’s valuation will increase to about $1.5 billion, three times its valuation in 2019.
We reached out to OPay, but they declined to comment on the story.
Rock picking is probably not the first thing you think about when you think agricultural robotics. Understandably so. There are a number of companies out there looking to automate aspects like fruit and vegetable picking, weeding and field tending, but rocks are still a major issue for many farmers. They’re big, they’re heavy and they can really mess up a piece of machinery.
“This is something I’ve personally dealt with my entire life,” TerraClear CEO Brent Frei said in a press release. “There are more than 400 million arable acres worldwide that have been waiting for a cost-effective and productive solution to this problem. Repetitive tasks like this are optimal targets for automation, and the technologies we are bringing to the field dramatically reduce the labor and time needed to prep fields for planting.”
TerraClear has built an automated robotic solution, capable of picking up to 400 rocks per hour and picking and moving ones weighing up to 300 pounds. Back in 2019, the Bellevue, Washington-based company announced a $6 million raise to expand its offering, and today it has announced a $25 million Series A.
Madrona Venture Group returns to lead the round, which brings its total funding up to $38 million. The funding will go toward scaling up the company’s production and sales for next year, as well as growing headcount. TerraClear’s Rock Picker robot is now up for preorder. The system works with mapping and third-party drone systems, using AI to identify large rocks, which the robot can then be deployed to clear out.
Certain industries were hit harder by the COVID-19 pandemic than others, especially in its early days.
Small businesses, including retailers and restaurants, were negatively impacted by lockdowns and the resulting closures. They had to adapt quickly to survive. If they didn’t use much technology before, they were suddenly being forced to, as so many things shifted to digital last year in response to the COVID-19 pandemic. For companies like SpotOn, it was a pivotal moment.
The startup, which provides software and payments for restaurants and SMBs, had to step up to help the businesses it serves. Not only for their sake, but its own.
“We really took a hard look at what was happening to our clients. And we realized we needed to pivot, just to be able to support them,” co-CEO and co-founder Matt Hyman recalls. “We had to make a decision because our revenues also were taking a big hit, just like our clients were. Rather than lay off staff or require salary deductions, we stayed true to our core values and just kept plugging away.”
All that “plugging away” has paid off. Today, SpotOn announced it has achieved unicorn status with a $125 million Series D funding round led by Andreessen Horowitz (a16z).
Existing backers DST Global, 01 Advisors, Dragoneer Investment Group and Franklin Templeton also participated in the financing, in addition to new investor Mubadala Investment Company.
Notably, the round triples the company’s valuation to $1.875 billion compared to its $625 million valuation at the time of its Series C raise last September. It also marks San Francisco-based SpotOn’s third funding event since March 2020, and brings the startup’s total funding to $328 million since its 2017 inception.
Its efforts have also led to impressive growth for the company, which has seen its revenue triple since February 2020, according to Hyman.
Put simply, SpotOn is taking on the likes of Square in the payments space. But the company says its offering extends beyond traditional payment processing and point-of-sale (POS) software. Its platform aims to give SMBs the ability to run their businesses “from building a brand to taking payments and everything in-between.” SpotOn’s goal is to be a “one-stop shop” by incorporating tools that include things such as custom website development, scheduling software, marketing, appointment scheduling, review management, analytics and digital loyalty.
When the pandemic hit, SpotOn ramped up and rolled out 400 “new product innovations,” Hyman said. It also did things like waive $1.5 million in fees (it’s a SaaS business, so for several months it waived its monthly fee, for example, for its integrated restaurant management system). It also acquired a company, SeatNinja, so that it could expand its offering.
“Because a lot of these businesses had to go digital literally overnight, we built a free website for them all,” Hyman said. SpotOn also did things like offer commission-free online ordering for restaurants and helped retail merchants update their websites for e-commerce. “Obviously these businesses were resilient,” Hyman said. “But such efforts also created a lot of loyalty.”
Today, more than 30,000 businesses use SpotOn’s platform, according to Hyman, with nearly 8,000 of those signing on this year. The company expects that number to triple by year’s end.
Currently, its customers are split about 60% retail and 40% restaurants, but the restaurant side of its business is growing rapidly, according to Hyman.
The reason for that, the company believes, is while restaurants initially rushed to add online ordering for delivery or curbside pickup, they soon realized they “wanted a more affordable and more integrated solution.”
Image Credits: SpotOn co-founders Zach Hyman, Doron Friedman and Matt Hyman / SpotOn
What makes SpotOn so appealing to its customers, Hyman said, is the fact that it offers an integrated platform so that businesses that use it can save “thousands of dollars” in payments and software fees to multiple, “à la carte” vendors. But it also can integrate with other platforms if needed.
In addition to growing its customer base and revenue, SpotOn has also boosted its headcount to about 1,250 employees (from 850 in March of 2020). Those employees are spread across its offices in San Francisco, Chicago, Detroit, Denver, Mexico City, Mexico and Krakow, Poland.
SpotOn is not currently profitable, which Hyman says is “by choice.”
“We could be cash flow positive technically whenever we choose to be. Right now we’re just so focused on product innovation and talent to exceed the needs of our clients,” he said. “We chose the capital plan so that we could really just double down on what’s working so well.”
The new capital will go toward further accelerating product development and expanding its market presence.
“We’re doubling down on our single integrated restaurant management system,” Hyman said.
The raise marks the first time that a16z has put money in the startup, although General Partner David George told TechCrunch he was familiar with co-founders Matt Hyman and Zach Hyman through mutual friends.
George estimates that about 80% of restaurants and SMBs use legacy solutions “that are clunky and outdated, and not very customer friendly.” The COVID-19 pandemic has led to more of these businesses seeking digital options.
“We think we’re in the very early days in the transition [to digital], and the opportunity is massive,” he told TechCrunch. “We believe we’re at the tipping point of a big tech replacement cycle for restaurant and small business software, and at the very early stages of this transition to modern cloud-native solutions.”
George was also effusive in his praise for how SpotOn has executed over the past 14 months.
“There are companies that build great products, and companies that can build great sales teams. And there are companies that offer really great customer service,” he said. “It’s rare that you find two of those and extremely rare to find all three of those as we have in SpotOn.”
Less than a month after announcing a partnership with India’s largest two-wheeled vehicle maker, Gogoro is taking another big step in its global expansion plans. This time the market is China, where Gogoro’s technology, including its swappable smart batteries, will be used in scooters made by Dachangjiang Group (DCJ), one of the country’s biggest motorcycle makers, and Yadea, one of it top electric two-wheel companies. DCJ and Yadea will jointly invest $50 million in an operating company to develop new two-wheel vehicles with their own branding that use the Gogoro Network, including its batteries, drivetrains, controllers and other components.
“Think of it as DCJ and Yadea combining to create an AT&T,” Gogoro co-founder and chief executive officer Horace Luke told TechCrunch. “Gogoro will be the technology that powers them, so think about it like we’re the Ericsson.”
Last month, Gogoro and Hero MotoCorp announced a strategic partnership to build a battery-swapping network and electric two-wheeled vehicles in India. Gogoro’s new deals in India and China are the biggest steps it has taken for its global strategy since launching the first Gogoro Smartscooter in 2015.
Gogoro’s swappable batteries, its signature technology, means riders can replace their batteries for new ones at charging stations that are small enough to fit on a sidewalk. In Taipei City, where Gogoro is based, its swapping stations are a common sight, usually tucked against storefronts or by the side of gas stations and parking lots. Since Gogoro’s batteries are swappable, electric vehicles that use them don’t need to be parked to be charged. This addresses “range anxiety,” or consumer concerns about how far an electric vehicle can go before it needs to be charged again. The main challenge is making sure there are enough swapping stations to be convenient for riders of two-wheeled vehicles powered by the Gogoro Network.
DCJ and Yadea’s joint venture will launch first in Hangzhou, its pilot city, before expanding into other cities in 2022. Vehicle availability and pricing will be announced later.
Last year, China’s government introduced new regulations that require all new cars sold by 2035 to use “new energy” instead of fossil fuel. Combined, DCJ and Yadea have 47,000 retailers, covering 358 cities, or more than half the cities in China. Luke said this means once the joint venture expands beyond Hangzhou, it will be able to grow quickly.
Gogoro positions itself as a turnkey solution for other electric mobility companies, and its own brand was a way to develop its charging infrastructure and reputation. In Taiwan, where Gogoro-powered two-wheeled vehicles now account for nearly a quarter of monthly sales, its swappable batteries were first used in Gogoro Smartscooters before the technology was licensed to other makers like Kymco, Yamaha and Aeon.
“It was almost like a roundabout way to prove that the platform is feasible,” said Luke. “We had to build our own vehicles, our own retail chain and now we support 400,000 customers and 2,000 stations. That proof case enabled us to work with these larger partners, so when they asked us to pull up data, we could show them the unit economics, durability, stations and how it works. It took many years, but we were getting ready in the biggest way possible.”
DCJ ships about two million motorcycles a year and the joint venture marks the first time it will build an electric motorcycle. “They’ve been looking for technology to transition to electric, and we’ve been talking to them for almost two years to prove that our platform is the right platform for them to start the transition to electric vehicles,” said Luke.
Yadea sold more than 10 million electric two-wheelers in 2020, but wanted an alternative to lithium-ion batteries, he added. Along with Aima, Yadea is one of the best-known affordable electric two-wheeler brands in China, while Niu dominates the premium market.
Gogoro has raised about $480 million in funding since it was founded in 2011, with investors including HTC, Temasek Holdings and Generation Investment Management (GIM), the green-tech investment firm co-founded by former United States vice president Al Gore.
In a press statement, Gore, who is GIM’s chairman, said, “Gogoro’s partnership with Yadea and DCJ in China, which builds upon their existing work with Hero MotoCorp in India, sends a clear signal that the world’s two-wheel leaders are helping to fuel the sustainability revolution in Asia with smart battery swapping.”
Amount, a company that provides technology to banks and financial institutions, has raised $99 million in a Series D funding round at a valuation of just over $1 billion.
WestCap, a growth equity firm founded by ex-Airbnb and Blackstone CFO Laurence Tosi, led the round. Hanaco Ventures, Goldman Sachs, Invus Opportunities and Barclays Principal Investments also participated.
Notably, the investment comes just over five months after Amount raised $86 million in a Series C round led by Goldman Sachs Growth at a valuation of $686 million. (The original raise was $81 million, but Barclays Principal Investments invested $5 million as part of a second close of the Series C round). And that round came just three months after the Chicago-based startup quietly raised $58 million in a Series B round in March. The latest funding brings Amount’s total capital raised to $243 million since it spun off from Avant — an online lender that has raised over $600 million in equity — in January of 2020.
So, what kind of technology does Amount provide?
In simple terms, Amount’s mission is to help financial institutions “go digital in months — not years” and thus, better compete with fintech rivals. The company formed just before the pandemic hit. But as we have all seen, demand for the type of technology Amount has developed has only increased exponentially this year and last.
CEO Adam Hughes says Amount was spun out of Avant to provide enterprise software built specifically for the banking industry. It partners with banks and financial institutions to “rapidly digitize their financial infrastructure and compete in the retail lending and buy now, pay later sectors,” Hughes told TechCrunch.
Specifically, the 400-person company has built what it describes as “battle-tested” retail banking and point-of-sale technology that it claims accelerates digital transformation for financial institutions. The goal is to give those institutions a way to offer “a secure and seamless digital customer and merchant experience” that leverages Amount’s verification and analytics capabilities.
Image Credits: Amount
HSBC, TD Bank, Regions, Banco Popular and Avant (of course) are among the 10 banks that use Amount’s technology in an effort to simplify their transition to digital financial services. Recently, Barclays US Consumer Bank became one of the first major banks to offer installment point-of-sale options, giving merchants the ability to “white label” POS payments under their own brand (using Amount’s technology).
“The pandemic dramatically accelerated banks’ interest in further digitizing the retail lending experience and offering additional buy now, pay later financing options with the rise of e-commerce,” Hughes, former president and COO at Avant, told TechCrunch. “Banks are facing significant disruption risk from fintech competitors, so an Amount partnership can deliver a world-class digital experience with significant go-to-market advantages.”
Also, he points out, consumers’ digital expectations have changed as a result of the forced digital adoption during the pandemic, with bank branches and stores closing and more banking done and more goods and services being purchased online.
Amount delivers retail banking experiences via a variety of channels and a point-of-sale financing product suite, as well as features such as fraud prevention, verification, decisioning engines and account management.
Overall, Amount clients include financial institutions collectively managing nearly $2 trillion in U.S. assets and servicing more than 50 million U.S. customers, according to the company.
Hughes declined to provide any details regarding the company’s financials, saying only that Amount “performed well” as a standalone company in 2020 and that the company is expecting “significant” year-over-year revenue growth in 2021.
Amount plans to use its new capital to further accelerate R&D by investing in its technology and products. It also will be eyeing some acquisitions.
“We see a lot of interesting technology we could layer onto our platform to unlock new asset classes, and acquisition opportunities that would allow us to bring additional features to our platform,” Hughes told TechCrunch.
Avant itself made its first acquisition earlier this year when it picked up Zero Financial, news that TechCrunch covered here.
Kevin Marcus, partner at WestCap, said his firm invested in Amount based on the belief that banks and other financial institutions have “a point-in-time opportunity to democratize access to traditional financial products by accelerating modernization efforts.”
“Amount is the market leader in powering that change,” he said. “Through its best-in-class products, Amount enables financial institutions to enhance and elevate the banking experience for their end customers and maintain a key competitive advantage in the marketplace.”
Ride-hailing giant Gojek and marketplace Tokopedia said on Monday they have combined their businesses to form GoTo Group, the largest technology group in Indonesia, the fourth most populous nation that is currently navigating to contain the economic fallout from the coronavirus pandemic.
Gojek’s Andre Soelistyo will lead the combined business as GoTo Group CEO, with Tokopedia’s Patrick Cao serving as GoTo Group President. Kevin Aluwi will continue as CEO of Gojek and William Tanuwijaya will remain CEO of Tokopedia, the two firms said in a joint announcement.
The combined entity is “a globally unique and highly complementary ecosystem,” the two firms said, claiming that GoTo features:
The deal, which has been in the works for several months, comes after Gojek spent several quarters exploring a merger with its chief Southeast Asian rival Grab. Tokopedia meanwhile was in talks late last year to pursue a public listing this year. Gojek and Tokopedia last month moved to seek approval from their respective investors. During their talks, the proposed valuation of GoTo was $18 billion.
The companies, which have together raised about $8.2 billion (according to research firm Tracxn) didn’t comment on the final valuation today nor did they disclose any other financial terms of the deal.
The friendship of founders of Gojek and Tokopedia — two of the largest startups in Indonesia — may have helped secure this deal. The two companies first began working together in 2015 to accelerate e-commerce deliveries using Gojek’s local network of drivers.
“The companies will continue to thrive and coexist as stand-alone brands within the strengthened ecosystem,” they said on Monday.
In the meantime, Grab has since announced plans to go public in the U.S. via SPAC, and is seeking a valuation of $39.6 billion, which if materializes at the current terms, would be the biggest-ever deal of its kind. GoTo plans to go public as soon as this year via listings in New York and Jakarta, according to media reports.
“Today is a truly historic day as we mark the beginning of GoTo and the next phase of growth for Gojek, Tokopedia and GoTo Financial. Gojek drivers will deliver even more Tokopedia packages, merchant partners of all sizes will benefit from strengthened business solutions and we will use our combined scale to increase financial inclusion in an emerging region with untapped growth potential. For the consumer, GoTo Group will continue to reduce frictions and provide best in class delivery of goods and services. This is the next step of an exciting journey and I am humbled and proud to lead the GoTo movement,” said Andre Soelistyo, CEO of GoTo Group, in a statement.
We got insanely lucky to partner w both for 6+ yrs
Priceless war stories & scars @Sequoia_India
Inspired, filled w gratitude, excited about future #GoTo
— Shailendra J Singh (@singh_sequoia) May 17, 2021
Existing investors — including Alibaba Group, Astra International, BlackRock, Capital Group, DST, Facebook, Google, JD.com, KKR, Northstar, Pacific Century Group, PayPal, Provident, Sequoia Capital India, SoftBank Vision Fund 1, Telkomsel, Temasek, Tencent, Visa and Warburg Pincus — backed the merger, the two firms said.
Tokopedia’s Co-founder and CEO William Tanuwijaya said, “The establishment of GoTo Group proves that you can believe in an ‘Indonesian dream’ and make it a reality. Our goal has always been to build a company that creates social impact at scale, levelling the playing field for small businesses and giving consumers equal access to goods and services across the country. In addition to accelerating the growth of Indonesia’s digital economy, GoTo Group will make it easier for people from all walks of life to access quality products and services, anytime and anywhere. We still have a long way to go to achieve our goals, but today is about starting that journey together.”
Remote work is no longer a new topic, as much of the world has now been doing it for a year or more because of the COVID-19 pandemic.
Companies — big and small — have had to react in myriad ways. Many of the initial challenges have focused on workflow, productivity and the like. But one aspect of the whole remote work shift that is not getting as much attention is the culture angle.
A 100% remote startup that was tackling the issue way before COVID-19 was even around is now seeing a big surge in demand for its offering that aims to help companies address the “people” challenge of remote work. It started its life with the name Icebreaker to reflect the aim of “breaking the ice” with people with whom you work.
“We designed the initial version of our product as a way to connect people who’d never met, kind of virtual speed dating,” says co-founder and CEO Perry Rosenstein. “But we realized that people were using it for far more than that.”
So over time, its offering has evolved to include a bigger goal of helping people get together beyond an initial encounter –– hence its new name: Gatheround.
“For remote companies, a big challenge or problem that is now bordering on a crisis is how to build connection, trust and empathy between people that aren’t sharing a physical space,” says co-founder and COO Lisa Conn. “There’s no five-minute conversations after meetings, no shared meals, no cafeterias — this is where connection organically builds.”
Organizations should be concerned, Gatheround maintains, that as we move more remote, that work will become more transactional and people will become more isolated. They can’t ignore that humans are largely social creatures, Conn said.
The startup aims to bring people together online through real-time events such as a range of chats, videos and one-on-one and group conversations. The startup also provides templates to facilitate cultural rituals and learning & development (L&D) activities, such as all-hands meetings and workshops on diversity, equity and inclusion.
Gatheround’s video conversations aim to be a refreshing complement to Slack conversations, which despite serving the function of communication, still don’t bring users face-to-face.
Image Credits: Gatheround
Since its inception, Gatheround has quietly built up an impressive customer base, including 28 Fortune 500s, 11 of the 15 biggest U.S. tech companies, 26 of the top 30 universities and more than 700 educational institutions. Specifically, those users include Asana, Coinbase, Fiverr, Westfield and DigitalOcean. Universities, academic centers and nonprofits, including Georgetown’s Institute of Politics and Public Service and Chan Zuckerberg Initiative, are also customers. To date, Gatheround has had about 260,000 users hold 570,000 conversations on its SaaS-based, video platform.
All its growth so far has been organic, mostly referrals and word of mouth. Now, armed with $3.5 million in seed funding that builds upon a previous $500,000 raised, Gatheround is ready to aggressively go to market and build upon the momentum it’s seeing.
Venture firms Homebrew and Bloomberg Beta co-led the company’s latest raise, which included participation from angel investors such as Stripe COO Claire Hughes Johnson, Meetup co-founder Scott Heiferman, Li Jin and Lenny Rachitsky.
Co-founders Rosenstein, Conn and Alexander McCormmach describe themselves as “experienced community builders,” having previously worked on President Obama’s campaigns as well as at companies like Facebook, Change.org and Hustle.
The trio emphasize that Gatheround is also very different from Zoom and video conferencing apps in that its platform gives people prompts and organized ways to get to know and learn about each other as well as the flexibility to customize events.
“We’re fundamentally a connection platform, here to help organizations connect their people via real-time events that are not just really fun, but meaningful,” Conn said.
Homebrew Partner Hunter Walk says his firm was attracted to the company’s founder-market fit.
“They’re a really interesting combination of founders with all this experience community building on the political activism side, combined with really great product, design and operational skills,” he told TechCrunch. “It was kind of unique that they didn’t come out of an enterprise product background or pure social background.”
He was also drawn to the personalized nature of Gatheround’s platform, considering that it has become clear over the past year that the software powering the future of work “needs emotional intelligence.”
“Many companies in 2020 have focused on making remote work more productive. But what people desire more than ever is a way to deeply and meaningfully connect with their colleagues,” Walk said. “Gatheround does that better than any platform out there. I’ve never seen people come together virtually like they do on Gatheround, asking questions, sharing stories and learning as a group.”
James Cham, partner at Bloomberg Beta, agrees with Walk that the founding team’s knowledge of behavioral psychology, group dynamics and community building gives them an edge.
“More than anything, though, they care about helping the world unite and feel connected, and have spent their entire careers building organizations to make that happen,” he said in a written statement. “So it was a no-brainer to back Gatheround, and I can’t wait to see the impact they have on society.”
The 14-person team will likely expand with the new capital, which will also go toward helping adding more functionality and details to the Gatheround product.
“Even before the pandemic, remote work was accelerating faster than other forms of work,” Conn said. “Now that’s intensified even more.”
Gatheround is not the only company attempting to tackle this space. Ireland-based Workvivo last year raised $16 million and earlier this year, Microsoft launched Viva, its new “employee experience platform.”
Tapping the geothermal energy stored beneath the Earth’s surface as a way to generate renewable power is one of the new visions for the future that’s captured the attention of environmentalists and oil and gas engineers alike.
That’s because it’s not only a way to generate power that doesn’t rely on greenhouse gas emitting hydrocarbons, but because it uses the same skillsets and expertise that the oil and gas industry has been honing and refining for years.
At least that’s what drew the former completion engineer (it’s not what it sounds like) Tim Latimer to the industry and to launch Fervo Energy, the Houston-based geothermal tech developer that’s picked up funding from none other than Bill Gates’ Breakthrough Energy Ventures (that fund… is so busy) and former eBay executive, Jeff Skoll’s Capricorn Investment Group.
With the new $28 million cash in hand Fervo’s planning on ramping up its projects which Latimer said would “bring on hundreds of megawatts of power in the next few years.”
Latimer got his first exposure to the environmental impact of power generation as a kid growing up in a small town outside of Waco, Texas near the Sandy Creek coal power plant, one of the last coal-powered plants to be built in the U.S.
Like many Texas kids, Latimer came from an oil family and got his first jobs in the oil and gas industry before realizing that the world was going to be switching to renewables and the oil industry — along with the friends and family he knew — could be left high and dry.
It’s one reason why he started working on Fervo, the entrepreneur said.
“What’s most important, from my perspective, since I started my career in the oil and gas industry is providing folks that are part of the energy transition on the fossil fuel side to work in the clean energy future,” Latimer said. “I’ve been able to go in and hire contractors and support folks that have been out of work or challenged because of the oil price crash… And I put them to work on our rigs.”
Fervo Energy chief executive, Tim Latimer, pictured in a hardhat at one of the company’s development sites. Image Credits: Fervo Energy
When the Biden administration talks about finding jobs for employees in the hydrocarbon industry as part of the energy transition, this is exactly what they’re talking about.
And geothermal power is no longer as constrained by geography, so there’s a lot of abundant resources to tap and the potential for high paying jobs in areas that are already dependent on geological services work, Latimer said (late last year, Vox published a good overview of the history and opportunity presented by the technology).
“A large percentage of the world’s population actually lives next to good geothermal resources,” Latimer said. “25 countries today that have geothermal installed and producing and another 25 where geothermal is going to grow.”
Geothermal power production actually has a long history in the Western U.S. and in parts of Africa where naturally occurring geysers and steam jets pouring from the earth have been obvious indicators of good geothermal resources, Latimer said.
“Fervo’s technology unlocks a new class of geothermal resource that is ready for large-scale deployment. Fervo’s geothermal systems use novel techniques, including horizontal drilling, distributed fiber optic sensing, and advanced computational modelling, to deliver more repeatable and cost effective geothermal electricity,” Latimer wrote in an email. “Fervo’s technology combines with the latest advancements in Organic Rankine Cycle generation systems to deliver flexible, 24/7 carbon-free electricity.”
Initially developed with a grant from the TomKat Center at Stanford University and a fellowship funded by Activate.org at the Lawrence Berkeley National Lab’s Cyclotron Road division, Fervo has gone on to score funding from the DOE’s Geothermal Technology Office and ARPA-E to continue work with partners like Schlumberger, Rice University and the Berkeley Lab.
The combination of new and old technology is opening vast geographies to the company to potentially develop new projects.
Other companies are also looking to tap geothermal power to drive a renewable power generation development business. Those are startups like Eavor, which has the backing of energy majors like bp Ventures, Chevron Technology Ventures, Temasek, BDC Capital, Eversource and Vickers Venture Partners; and other players including GreenFire Energy, and Sage Geosystems.
Demand for geothermal projects is skyrocketing, opening up big markets for startups that can nail the cost issue for geothermal development. As Latimer noted, from 2016 to 2019 there was only one major geothermal contract, but in 2020 there were ten new major power purchase agreements signed by the industry.
For all of these projects, cost remains a factor. Contracts that are being signed for geothermal that are in the $65 to $75 per megawatt range, according to Latimer. By comparison, solar plants are now coming in somewhere between $35 and $55 per megawatt, as The Verge reported last year.
But Latimer said the stability and predictability of geothermal power made the cost differential palatable for utilities and businesses that need the assurance of uninterruptible power supplies. As a current Houston resident, the issue is something that Latimer has an intimate experience with from this year’s winter freeze, which left him without power for five days.
Indeed, geothermal’s ability to provide always-on clean power makes it an incredibly attractive option. In a recent Department of Energy study, geothermal could meet as much as 16% of the U.S. electricity demand, and other estimates put geothermal’s contribution at nearly 20% of a fully decarbonized grid.
“We’ve long been believers in geothermal energy but have waited until we’ve seen the right technology and team to drive innovation in the sector,” said Ion Yadigaroglu of Capricorn Investment Group, in a statement. “Fervo’s technology capabilities and the partnerships they’ve created with leading research organizations make them the clear leader in the new wave of geothermal.”
Fervo Energy drilling site. Image Credits: Fervo Energy
Weav, which is building a universal API for commerce platforms, is emerging from stealth today with $4.3 million in funding from a bevy of investors, and a partnership with Brex.
Founded last year by engineers Ambika Acharya, Avikam Agur and Nadav Lidor after participating in the W20 YC batch, Weav joins the wave of fintech infrastructure companies that aim to give fintechs and financial institutions a boost. Specifically, Weav’s embedded technology is designed to give these organizations access to “real time, user-permissioned” commerce data that they can use to create new financial products for small businesses.
Its products allow its customers to connect to multiple platforms with a single API that was developed specifically for the commerce platforms that businesses use to sell products and accept payments. Weav operates under the premise that allowing companies to build and embed new financial products creates new opportunities for e-commerce merchants, creators and other entrepreneurs.
Left to right: Co-founders Ambika Acharya, Nadav Lidor and Avikam Agur; Image courtesy of Weav
In a short amount of time, Weav has seen impressive traction. Recently, Brex launched Instant Payouts for Shopify sellers using the Weav API. It supports platform integrations such as Stripe, Square, Shopify and PayPal. (More on that later.) Since its API went live in January, “thousands” of businesses have used new products and services built on Weav’s infrastructure, according to Lidor. Its API call volume is growing 300% month over month, he said.
And, the startup has attracted the attention of a number of big-name investors, including institutions and the founders of prominent fintech companies. Foundation Capital led its $4.3 million seed round, which also included participation from Y Combinator, Abstract Ventures, Box Group, LocalGlobe, Operator Partners, Commerce Ventures and SV Angel.
A slew of founders and executives also put money in the round, including Brex founders Henrique Dubugras and Pedro Franceschi; Ramp founder Karim Atiyeh; Digits founders Jeff Seibert and Wayne Chang; Hatch founder Thomson Nguyen; GoCardless founder Matt Robinson and COO Carlos Gonzalez-Cadenas; Vouch founder Sam Hodges; Plaid’s Charley Ma as well as executives from fintechs such as Square, Modern Treasury and Pagaya.
Foundation Capital’s Angus Davis said his firm has been investing in fintech infrastructure for over a decade. And personally, before he became a VC, Davis was the founder and CEO of Upserve, a commerce software company. There, he says, he witnessed firsthand “the value of transactional data to enable new types of lending products.”
Foundation has a thesis around the type of embedded fintech that Weav has developed, according to Davis. And it sees a large market opportunity for a new class of financial applications to come to market built atop Weav’s platform.
“We were excited by Weav’s vision of a universal API for commerce platforms,” Davis wrote via email. “Much like Plaid and Envestnet brought universal APIs to banking for consumers, Weav enables a new class of B2B fintech applications for businesses.”
Weav says that by using its API, companies can prompt their business customers to “securely” connect their accounts with selling platforms, online marketplaces, subscription management systems and payment gateways. Once authenticated, Weav aggregates and standardizes sales, inventory and other account data across platforms and develops insights to power new products across a range of use cases, including lending and underwriting; financial planning and analysis; real-time financial services and business management tools.
For the last few years, there’s been a rise of API companies, as well as openness in the financial system that’s largely been focused on consumers, Lidor points out.
“For example, Plaid brings up very rich data about consumers, but when you think about businesses, oftentimes that data is still locked up in all kinds of systems,” he told TechCrunch. “We’re here to provide some of the building blocks and the access to data from everything that has to do with sales and revenue. And, we’re really excited about powering products that are meant to make the lives of small businesses and e-commerce, sellers and creators much easier and be able to get them access to financial products.”
In the case of Brex, Weav’s API allows the startup to essentially offer instant access to funds that otherwise would take a few days or a few weeks for businesses to access.
“Small businesses need access as quickly as possible to their revenue so that they can fund their operations,” Lidor said.
Brex co-CEO Henrique Dubugras said that Weav’s API gives the company the ability to offer real-time funding to more customers selling on more platforms, which saved the company “thousands of engineering hours” and accelerated its rollout timeline by months.
Clearly, the company liked what it saw, considering that its founders personally invested in Weav. Is Weav building the “Plaid for commerce”? Guess only time will tell.
China’s plan to introduce its digital currency is getting a lot of help from its tech conglomerates. JD.com, a major Chinese online retailer that competes with Alibaba, said Monday that it has started paying some staff in digital yuan (since January), the virtual version of the country’s physical currency.
China has been busy experimenting with digital currency over the past few months. In October, Shenzhen, a southern city known for its progressive economic policies, doled out 10 million yuan worth of digital currency to 500,000 residents, who could then use the money to shop at certain online and offline retailers.
Several other large Chinese cities have followed Shenzhen’s suit. The residents in these regions must apply through selected banks to start receiving and paying by digital yuan.
The electronic yuan initiative is a collective effort involving China’s regulators, commercial banks and technology solution providers. At first glance, the scheme still mimics how physical yuan is circulating at the moment; under the direction of the central bank, the six major commercial banks in China, including ICBC, distribute the digital yuan to smaller banks and a web of tech solution providers, which could help bring more use cases to the new electronic money.
For example, JD.com partnered with the Industrial and Commercial Bank of China (ICBC) to deposit the digital income. The online retailer has become one of the first organizations in China to pay wages in electronic yuan; in August, some government workers in the eastern city of Suzhou also began getting paid in the digital money.
Across the board, China’s major tech companies have actively participated in the buildout of the digital yuan ecosystem, which will help the central government better track money flows.
Aside from JD.com, video streaming platform Bilibili, on-demand services provider Meituan and ride-hailing app Didi have also begun accepting digital yuan for user purchases. Gaming and social networking giant Tencent became one of the “digital yuan operators” and will take part in the design, R&D and operational work of the electronic money. Jack Ma’s Ant Group, which is undergoing a major overhaul following a stalled IPO, has also joined hands with the central bank to work on building out the infrastructure to move money digitally. Huawei, the telecom equipment titan debuted a wallet on one of its smartphone models that allows users to spend digital yuan instantaneously even if the device is offline.
Updated the article to clarify the timeline of the digital salary rollout.
After spending much of his career in mission-critical environments, including the Israeli Air Force, Israeli Intelligence and leading development of a cybersecurity product at Microsoft, Amit Rosenzweig turned his attention to autonomous vehicles.
It was a technology that he soon recognized would need what every other mission-critical system requires: humans.
“I understood that there are so many edge cases that will not be solved purely by AI and machine learning, and there must be some kind of human-in-the-loop intervention,” Rosenzweig said in a recent interview. “You don’t have any mission-critical system on the planet — not nuclear power plants, not airplanes — without human supervision. A human must be in the loop or present in some way for autonomous mobility to exist, even in 10 or probably 20 years from now.”
That “human in the loop” conclusion led Rosenzweig to found teleoperations startup Ottopia in 2018. (His brother, Oren Rosenzweig is also in the autonomous vehicle business via the lidar company he co-founded, Innoviz.) Ottopia’s first product is a universal teleoperation platform that allows a human operator to monitor and control any type of vehicle from thousands of miles away. Ottopia’s software is combined with off-the-shelf hardware components like monitors and cameras to create a teleoperations center. The company’s software also includes assistive features, which provide “path” instructions to the AV without having to remotely control the vehicle.
Since launching, the small 25-person company has racked up investors and partners such as BMW, fixed-route AV startup May Mobility and Bestmile. Ottopia said Friday that it has raised $9 million from Hyundai Motor Group as well as Maven and IN Venture, the Israel-focused venture capital arm of Sumitomo Corporation. Existing investors MizMaa and Israeli firm NextGear also participated.
Hyundai and IN Venture also gained board seats. Woongjun Jang, who heads up Hyundai’s autonomous driving center, and IN Venture managing partner Eyal Rosner, are now on Ottopia’s board.
Ottopia has raised a total of $12 million to date, and Rosenzweig has already set his sights on a larger round to help fund the company’s growth.
For now, Rosenzweig is focused on doubling his workforce to 50 people by the end of the year and opening an office in the United States. Rosenzweig said the company is also expanding into other applications of its teleoperations software, including defense, mining and logistics. However, most of Ottopia’s resources will continue to be dedicated to automotive, and specifically the deployment of autonomous cars, trucks and shuttles.
“The motivation is really simple — it’s simple but it’s hard to do — and that’s to make affordable autonomous transportation closer to reality,” Rosenzweig said. “The problem of course is that when an AV does not have any kind of backup or any kind of safety net in the form of teleoperations and it gets stuck, passengers are going to get anxious, ‘what’s going on, why, why is this not moving’.”
The other problem, Rosenzweig noted, is that AVs need to be combined with an efficient transit service. That’s where he sees his newest partner, on-demand shuttle and transit software company Via, coming in.
Under the partnership, which was also announced this week, Via will offer autonomous vehicle fleets that combine its fleet management software with Ottopia’s teleoperations platform. Via is not developing its own self-driving software system. In November 2020, Via announced it had partnered with May Mobility to launch an autonomous vehicle platform that integrates on-demand shared rides, public transportation and transit options for passengers with accessibility needs.
The carbon accounting and management platform Persefoni now has $9.7 million more in funding to support its international expansion, product development, and recruitment efforts.
The round, led by Rice Investment Group with participation from NGP ETP, the electricity, renewable and sustainability-focused investment arm of the oil and gas and power focused investment fund NGP, comes only about six months after the startup’s initial launch in August.
Founded only last January, Persefoni touts its tools to assemble, calculate, manage, and report organizational carbon footprints.
The company’s software promises real time reports on scope 1 through 3 emissions (these are emissions generated by a company’s direct operations, its purchases of power and the emissions of its suppliers).
“On the back of a banner year of net-zero commitments from governments, asset managers, and organizations the world over, we saw the venture and software investor communities wake up to what is the formation of the largest regulatory compliance software market since the introduction of Sarbanes Oxley”, said Kentaro Kawamori, CEO and co-founder of Persefoni, in a statement. “We applaud the efforts of financial regulators around the world who are implementing carbon and climate disclosure requirements. Such regulation is one of the most impactful ways to get companies accounting for, and reducing, their carbon footprint.”
Private equity firms like TPG are signing on to Persefoni’s service and Greg Lyons, a principal at NGP will be taking a seat on the company’s board of directors.
Additional investors in the company include the Carnrite Group and Sallyport Investments.
“Sallyport looks to partner with high-growth companies with an aim of making a meaningful industry impact,” said Doug Foshee, founder and owner of Sallyport Investments, in a statement.
Boosting the company’s environmental, social, and corporate governance bona fides is the addition of Robert G. Eccles, the founding chairman of the Sustainability Accounting Standards Board, to Persefoni’s board of advisors.
PlexTrac, a Boise, ID-based security service that aims to provide a unified workflow automation platform for red and blue teams, today announced that it has raised a $10 million Series A funding round led by Noro-Moseley Partners and Madrona Venture Group. StageDot0 ventures also participated in this round, which the company plans to use to build out its team and grow its platform.
With this new round, the company, which was founded in 2018, has now raised a total of $11 million, with StageDot0 leading its 2019 seed round.
“I have been on both sides of the fence, the specialist who comes in and does the assessment, produces that 300-page report and then comes back a year later to find that some of the critical issues had not been addressed at all. And not because the organization didn’t want to but because it was lost in that report,” PlexTrac CEO and President Dan DeCloss said. “These are some of the most critical findings for an entity from a risk perspective. By making it collaborative, both red and blue teams are united on the same goal we all share, to protect the network and assets.”
With an extensive career in security that included time as a penetration tester for Veracode and the Mayo Clinic, as well as senior information security advisor for Anthem, among other roles, DeCloss has quite a bit of first-hand experience that led him to found PlexTrac. Specifically, he believes that it’s important to break down the wall between offense-focused red teams and defense-centric blue teams.
“Historically there has been more of the cloak and dagger relationship but those walls are breaking down– and rightfully so, there isn’t that much of that mentality today– people recognize they are on the same mission whether they are internal security team or an external team,” he said. “With the PlexTrac platform the red and blue teams have a better view into the other teams’ tactics and techniques – and it makes the whole process into an educational exercise for everyone.”
At its core, PlexTrac makes it easier for security teams to produce their reports — and hence free them up to actually focus on ‘real’ security work. To do so, the service integrates with most of the popular scanners like Qualys, and Veracode, but also tools like ServiceNow and Jira in order to help teams coordinate their workflows. All the data flows into real-time reports that then help teams monitor their security posture. The service also features a dedicated tool, WriteupsDB, for managing reusable write-ups to help teams deliver consistent reports for a variety of audiences.
“Current tools for planning, executing, and reporting on security testing workflows are either nonexistent (manual reporting, spreadsheets, documents, etc…) or exist as largely incomplete features of legacy platforms,” Madrona’s S. Somasegar and Chris Picardo write in today’s announcement. “The pain point for security teams is real and PlexTrac is able to streamline their workflows, save time, and greatly improve output quality. These teams are on the leading edge of attempting to find and exploit vulnerabilities (red teams) and defend and/or eliminate threats (blue teams).”
Facebook confirmed it’s testing a video speed-dating app called Sparked, after the app’s website was spotted by The Verge. Unlike dating app giants such as Tinder, Sparked users don’t swipe on people they like or direct message others. Instead, they cycle through a series of short video dates during an event to make connections with others. The product itself is being developed by Facebook’s internal R&D group, the NPE Team, but had not been officially announced.
“Sparked is an early experiment by New Product Experimentation,” a spokesperson for Facebook’s NPE Team confirmed to TechCrunch. “We’re exploring how video-first speed dating can help people find love online.”
They also characterized the app as undergoing a “small, external beta test” designed to generate insights about how video dating could work, in order to improve people’s experiences with Facebook products. The app is not currently live on app stores, only the web.
Sparked is, however, preparing to test the experience at a Chicago Date Night event on Wednesday, The Verge’s report noted.
Image Credits: Facebook
During the sign-up process, Sparked tells users to “be kind,” “keep this a safe space,” and “show up.” A walkthrough of how the app also works explains that participants will meet face to face during a series of 4-minute video dates, which they can then follow up with a 10-minute date if all goes well. They can additionally choose to exchange contact info, like phone numbers, emails, or Instagram handles.
Facebook, of course, already offers a dating app product, Facebook Dating.
That experience, which takes place inside Facebook itself, first launched in 2018 outside the U.S., and then arrived in the U.S. the following year. In the early days of the pandemic, Facebook announced it would roll out a sort of virtual dating experience that leveraged Messenger for video chats — a move came at a time when many other dating apps in the market also turned to video to serve users under lockdowns. These video experiences could potentially compete with Sparked, unless the new product’s goal is to become another option inside Facebook Dating itself.
Image Credits: Facebook
Despite the potential reach, Facebook’s success in the dating market is not guaranteed, some analysts have warned. People don’t think of Facebook as a place to go meet partners, and the dating product today is still separated from the main Facebook app for privacy purposes. That means it can’t fully leverage Facebook’s network effects to gain traction, as users in this case may not want their friends and family to know about their dating plans.
Facebook’s competition in dating is fierce, too. Even the pandemic didn’t slow down the dating app giants, like Match Group or newly IPO’d Bumble. Tinder’s direct revenues increased 18% year-over-year to $1.4 billion in 2020, Match Group reported, for instance. Direct revenues from the company’s non-Tinder brands collectively increased 16%. And Bumble topped its revenue estimates in its first quarter as a public company, pulling in $165.6 million in the fourth quarter.
Image Credits: Facebook
Facebook, on the other hand, has remained fairly quiet about its dating efforts. Though the company cited over 1.5 billion matches in the 20 countries it’s live, a “match” doesn’t indicate a successful pairing — in fact, that sort of result may not be measured. But it’s early days for the product, which only rolled out to European markets this past fall.
The NPE Team’s experiment in speed dating could ultimately help to inform Facebook of what sort of new experiences a dating app user may want to use, and how.
The company didn’t say if or when Sparked would roll out more broadly.
The crypto industry as a whole has seen a momentous year of growth, heavily spurred on by the entrance of institutional investors adopting bitcoin due to its store of value properties. The 2020 spike bitcoin experienced was also accelerated by its global adoption as the number of global cryptocurrency users surpassed 100 million in Q3 2020.
For Luno, a U.K.-based crypto company founded by Marcus Swanepoel and Timothy Stranex in 2013, it grew to 6 million customers from January 2020 to January 2021. However, that number has since gone up to 7 million. Today the company, headquartered in London, has nearly 400 employees across London, South Africa, Malaysia, Indonesia, Nigeria and Singapore, with customers in 40 countries globally.
According to CEO Swanepoel, Luno’s numbers have been increasing month-on-month over the last seven years. However, this is the first time it is observing an acceleration of this magnitude.
There are a couple of reasons for Luno’s surge in numbers (like any other crypto exchange startup). Generally, despite talks of bitcoin being used in everyday life by crypto enthusiasts and interests from institutional entrants like BNY Mellon, Mastercard and Tesla, it is a long shot before becoming mainstream.
For now, crypto mainly serves investment purposes. This singular factor has particularly made it very popular with Africans — a demographic that has been a major part of Luno’s growth and the huge traction it is witnessing.
Last year, the company surveyed the markets in which it currently operates. It featured 15,000 respondents from South Africa, U.K., France, Italy, Indonesia, Malaysia and Nigeria; the answers helped Luno understand how the pandemic influenced attitudes towards the current financial system. According to the survey, 54% of Africans were ready to adopt a single global digital currency, compared to 41% for Asia and 35% for Europe.
Africa’s dominance also shows in its numbers. Out of the 7 million customers it has globally, 4.7 million people are in Africa. This number was 2.3 million in January 2020. Luno’s app installs across the continent have increased by 271% within this time frame, and trading volumes skyrocketed 12x, from $555 million to $7 billion. For context, Luno did $8.3 billion in total trading volume.
But a large part of this growth is down to Luno’s early play in the market. Over the last few years, infrastructure in parts of the world that could not previously support the crypto market has improved substantially. Luno has played a vital role as one of the first platforms to improve the crypto marketplace experience by including local currencies. It also helped to lay the groundwork for educating people on digital currencies.
“The last time bitcoin went up as it did during the past year was in 2017 and 2018, and it was mostly driven by retail, but it was still very difficult to buy crypto. There were trust issues; it would take days to get your account verified and even set up a wallet,” Swanepoel told TechCrunch. “Now, over the last three years, companies like ours, especially in Africa, have built up this infrastructure, KYCs, new payment methods, customer experience and support. The experience is much better and education levels are a lot higher. To me, I think that’s played a large role in crypto adoption in the continent.”
In September last year, Luno got acquired by Digital Currency Group (DCG), an investment firm that builds, buys and invests in blockchain companies. Some of its portfolio companies include Coindesk, Genesis and Grayscale Investments. Before acquiring Luno, BCG first invested in the company’s seed round in 2014. Then last year, Swanepoel said he saw the opportunity to take Luno to a larger scale after noticing the immense growth and adoption on its platform.
“The first five to six years for us was on a small scale and now, we want to go big. So it helps to have a global platform like DCG to do it from because they have large amounts of capital and are committed to investing in Africa as well as outside the continent,” he remarked.
The CEO adds that DCG has more visibility on the crypto industry and trends. The acquisition was simply for Luno to leverage DCG’s insights and stay ahead of the curve, which looks to have paid off. Since the acquisition, Luno has seen the number of active users increase by 167%. As of January, the average user held more than $7,000 in their wallet, up 56% from December 2020.
Nothing lasts forever, but if the crypto market bull run is anything to go by, crypto isn’t the fad people once thought it was. In Q1 2021, companies like Coinbase (going public Wednesday) and Robinhood experienced monster numbers showing strong growth projections. For Luno, it expects to continue growing exponentially, a trajectory that sets the company on track to reach 1 billion customers by 2030.