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Singapore’s trade finance startup Incomlend raises $20M led by Sequoia Capital India

Incomlend, a Singapore-headquartered startup that operates a trading platform to connect exporters and importers with investors, has raised $20 million in a new financing round, it said on Tuesday.

Sequoia India, the India and SEA investment arm of the storied U.S. headquartered venture firm, led the Series A round in four-year-old Incomlend. The CMA CGM Group, one of the world’s largest shipping and logistics firms, also participated in the round.

Incomlend’s invoice trading platform is solving three pain points. Exporters typically get paid weeks or months after shipping goods and lack working capital to move to service other orders until they have received the due. Incomlend says its platform employs AI-powered underwriting technology to enable exporters to receive early payment.

Similarly, the startup says importers on its platform are able to minimize the risk of supply chain disruption and set more favorable payment terms. And investors have found a new alternative asset class to invest in through Incomlend that offers returns in shorter durations.

These roadblocks have prompted traditional banks to pull back from financing such deals, creating a cash crunch among cross-border trading firms worldwide. “This has led to a $1.5 trillion trade finance gap, hitting mid-cap companies hard. This gap has worsened with Covid-19,” the startup said, citing its own research.

“The impact is acute in high-growth Asia where SMEs — which account for more than 95% of all businesses and provide two out of three private-sector jobs in the region — need more financing options to meet their growing demand. Further, low-interest rates in Asia — and negative rates in Europe — are prompting many global investors to seek alternative asset classes,” the startup said.

Morgan Terigi, co-founder and chief executive of Incomlend, said the startup’s trading platform is able to onboard clients and process deals in a more timely fashion with higher flexibility. Incomlend has facilitated over $330 million in financing and covered invoice finance trades across 50 countries to date.

“The massive trade finance gap, combined with declining global interest rates and the high credit quality of Incomlend’s customers, has helped them create a compelling business that helps solve one of the most important challenges faced by global SMEs,” said Abheek Anand, Managing Director at Sequoia Capital India, in a statement.

Terigi said the startup will deploy the fresh capital to expand into Europe, Southeast Asia, and North Asia and bulk up its technology stack.

Kleiner Perkins has already blown through much of the $600 million it raised last year

Kleiner Perkins, one of the most storied franchises in venture capital, has already invested much of the $600 million it raised last year and is now going back out to the market to raise its 19th fund, according to multiple sources.

The firm, which underwent a significant restructuring over the last two years, went on an investment tear over the course of 2019 as new partners went out to build up a new portfolio for the firm — almost of a whole cloth.

A spokesperson for KPCB declined to comment on the firm’s fundraising plans citing SEC regulations.

The quick turnaround for KPCB is indicative of a broader industry trend, which has investors pulling the trigger on term sheets for new startups in days rather than weeks.

Speaking onstage at the Upfront Summit, an event at the Rose Bowl in Pasadena, Calif. organized by the Los Angeles-based venture firm Upfront Ventures as a showcase for technology and investment talent in Southern California, venture investor Josh Kopelman spoke to the heightened pace of dealmaking at his own firm.

The founder of First Round Ventures said that the average time from first contact with a startup to drawing up a term sheet has collapsed from 90 days in 2004 to 9 days today.

Josh Kopelman of First Round Capital: we can look at every company we’ve ever funded, and learned that the time from first email/contact to term sheet has shrunk from 90 days in 2004 to just 9 today.

— Dan Primack (@danprimack) January 29, 2020

 

“This could also be due to changes in the competitive landscape … and there may be changes with First Round Capital itself,” says one investor. “It may have been once upon a time that they were looking at really early raw stuff… But, today, First Round is not really in the first round anymore. Companies are raising some angel money or Y Combinator money.”

At KPCB, the once-troubled firm has been buoyed by recent exits in companies like Beyond Meat, a deal spearheaded by the firm’s former partner Amol Deshpande (who now serves as the chief executive of Farmers Business Network) and Slack.

And its new partners are clearly angling to make names for themselves.

“KP used to be a small team doing hands-on company building. We’re moving away from being this institution with multiple products and really just focusing on early-stage venture capital,” Kleiner Perkins  partner Ilya Fushman said when the firm announced its last fund.

Kleiner Perkins partner Ilya Fushman

“We went out to market to LPs. We got a lot of interest. We were significantly oversubscribed,” Fushman said of the firm’s raise at the time.

In some ways, it’s likely the kind of rejuvenation that John Doerr was hoping for when he approached Social + Capital’s Chamath Palihapitiya about “acquiring” that upstart firm back in 2015.

At the time, as Fortune reported, Palihapitiya and the other Social + Capital partners, Ted Maidenberg and Mamoon Hamid would have become partners in the venture firm under the terms of the proposed deal.

Instead, Social + Capital walked away, the firm eventually imploded and Hamid joined Kleiner Perkins two years later.

The new Kleiner Perkins is a much more streamlined operation. Gone are the sidecar and thematic funds that were a hallmark of earlier strategies and gone too are the superstars brought in by Mary Meeker to manage Kleiner Perkins’ growth equity investments. Meeker absconded with much of that late stage investment team to form Bond — and subsequently raised hundreds of millions of dollars herself.

Those strategies have been replaced by a clutch of young investors and seasoned Kleiner veterans including Ted Schlein who has long been an expert in enterprise software and security.

“Maybe at this point they think they can raise based on the whole story about Mamoon taking over and a few years from now they won’t be able to raise on that story and will have to raise on the results,” says one investor with knowledge of the industry. “Mamoon is a pretty legit, good investor. But the legacy of the firm is going to be tough to overcome.”

All of these changes are not necessarily sitting well with limited partners.

“LPs are not really happy about what’s going on,” says one investor with knowledge of the venture space. “Everybody thinks valuations are too high since 2011 and people are thinking there’s going to be a recession. LPs think funds are coming back to market too fast and they’re being greedy and there’s not enough vintage diversification but LPs … feel almost obligated that they have to do these things… Investing in Sequoia is like that saying that you don’t get fired for buying IBM .”

MediaLab acquires messaging app Kik, expanding its app portfolio

Popular messaging app Kik is, indeed, “here to stay” following an acquisition by the Los Angeles-based multimedia holding company, MediaLab.

It echoes the same message from Kik’s chief executive Tim Livingston last week when he rebuffed earlier reports that the company would shut down amid an ongoing battle with the U.S. Securities and Exchange Commission. Livingston had tweeted that Kik had signed a letter-of-intent with a “great company,” but that it was “not a done deal.”

Now we know the the company: MediaLab. In a post on Kik’s blog on Friday the MediaLab said that it has “finalized an agreement” to acquire Kik Messenger.

Kik is one of those amazing places that brings us back to those early aspirations,” the blog post read. “Whether it be a passion for an obscure manga or your favorite football team, Kik has shown an incredible ability to provide a platform for new friendships to be forged through your mobile phone.”

MediaLab is a holding company that owns several other mobile properties, including anonymous social network Whisper and mixtape app DatPiff. In acquiring Kik, the holding company is expanding its mobile app portfolio.

MediaLab said it has “some ideas” for developing Kik going forwards, including making the app faster and reducing the amount of unwanted messages and spam bots. The company said it will introduce ads “over the coming weeks” in order to “cover our expenses” of running the platform.

Buying the Kik messaging platform adds another social media weapon to the arsenal for MediaLab and its chief executive, Michael Heyward .

Heyward was an early star of the budding Los Angeles startup community with the launch of the anonymous messaging service, Whisper nearly 8 years ago. At the time, the company was one of a clutch of anonymous apps — including Secret and YikYak — that raised tens of millions of dollars to offer online iterations of the confessional journal, the burn book, and the bathroom wall (respectively).

In 2017, TechCrunch reported that Whisper underwent significant layoffs to stave off collapse and put the company on a path to profitability.

At the time Whisper had roughly 20 million monthly active users across its app and website, which the company was looking to monetize through programmatic advertising, rather than brand-sponsored campaigns that had provided some of the company’s revenue in the past. Through widgets, the company had an additional 10 million viewers of its content per-month using various widgets and a reach of around 250 million through Facebook and other social networks on which it published posts.

People familiar with the company said at the time that it was seeing gross revenues of roughly $1 million and was going to hit $12.5 million in revenue for that calendar year. By 2018 that revenue was expected to top $30 million, according to sources at the time.

The flagship Whisper app let people post short bits of anonymous text and images that other folks could like or comment about. Heyward intended it to be a way for people to share more personal and intimate details —  to be a social network for confessions and support rather than harassment.

The idea caught on with investors and Whisper managed to raise $61 million from investors including Sequoia, Lightspeed Venture Partners, and Shasta Ventures . Whisper’s last round was a $36 million Series C back in 2014.

Fast forward to 2018 when Secret had been shut down for three years while YikYak also went bust — selling off its engineering team to Square for around $1 million. Whisper, meanwhile, seemingly set up MediaLab as a holding company for its app and additional assets that Heyward would look to roll up. The company filed registration documents in California in June 2018.

According to the filings, Susan Stone, a partner with the investment firm Sierra Wasatch Capital, is listed as a director for the company.

Heyward did not respond to a request for comment.

Zack Whittaker contributed reporting for this article. 

India’s Ola spins out a dedicated EV business — and it just raised $56M from investors

Ola, Uber’s key rival in India, is doubling down on electric vehicles after it span out a dedicated business, which has pulled in $56 million in early funding.

The unit is named Ola Electric Mobility and it is described as being an independent business that’s backed by Ola. TechCrunch understands Ola provided founding capital, and it has now been joined by a series of investors who have pumped Rs. 400 crore ($56 million) into Ola Electric. Notably, those backers include Tiger Global and Matrix India — two firms that were early investors in Ola itself.

While automotive companies and ride-hailing services in the U.S. are focused on bringing autonomous vehicles to the streets, India — like other parts of Asia — is more challenging thanks to diverse geographies, more sparse mapping and other factors. In India, companies have instead flocked to electric. The government had previously voiced its intention to make 30 percent of vehicles electric by 2030, but it has not formally introduced a policy to guide that initiative.

Ola has taken steps to electrify its fleet — it pledged last year to add 10,000 electric rickshaws to its fleet and has conducted other pilots with the goal of offering one million EVs by 2022 — but the challenge is such that it has spun out Ola Electric to go deeper into EVs.

That means that Ola Electric won’t just be concerned with vehicles, it has a far wider remit.

The new company has pledged to focus on areas that include charging solutions, EV batteries, and developing viable infrastructure that allows commercial EVs to operate at scale, according to an announcement. In other words, the challenge of developing electric vehicles goes beyond being a ‘ride-hailing problem’ and that is why Ola Electric has been formed and is being capitalized independently of Ola.

An electric rickshaw from Ola

Its leadership is also wholly separate.

Ola Electric is led by Ola executives Anand Shah and Ankit Jain — who led Ola’s connected car platform strategy — and the team includes former executives from carmakers such as BMW.

Already, it said it has partnered with “several” OEMs and battery makers and it “intends to work closely with the automotive industry to create seamless solutions for electric vehicle operations.” Indeed, that connected car play — Ola Play — likely already gives it warm leads to chase.

“At Ola Electric, our mission is to enable sustainable mobility for everyone. India can leapfrog problems of pollution and energy security by moving to electric mobility, create millions of new jobs and economic opportunity, and lead the world,” Ola CEO and co-founder Bhavish Aggarwal said in a statement.

“The first problem to solve in electric mobility is charging: users need a dependable, convenient, and affordable replacement for the petrol pump. By making electric easy for commercial vehicles that deliver a disproportionate share of kilometers traveled, we can jumpstart the electric vehicle revolution,” added Anand Shah, whose job title is listed as head of Ola Electric Mobility.

The new business spinout comes as Ola continues to raise new capital from investors.

Last month, Flipkart co-founder Sachin Bansal invested $92 million into the ongoing Series J round that is likely to exceed $1 billion and would value Ola at around $6 billion. Existing backer Steadview Capital earlier committed $75 million but there’s plenty more in development.

A filing — first noted by paper.vc — shows that India’s Competition Commission approved a request for a Temasek-affiliated investment vehicle’s proposed acquisition of seven percent of Ola. In addition, SoftBank offered a term sheet for a prospective $1 billion investment last month, TechCrunch understands from an industry source.

Ola is backed by the likes of SoftBank, Tencent, Sequoia India, Matrix, DST Global and Didi Chuxing. It has raised some $3.5 billion to date, according to data from Crunchbase.

Insider raises $11M to help internet marketers do better internet marketing

Insider, a service that aims to help brands go about their internet marketing with greater efficiency and success, has landed an $11 million investment led by Sequoia India.

The startup is originally from Turkey where it began life in 2012 as a platform that helped optimize online marketing campaigns. Now at 240 staff across 16 markets, it recently moved HQ to Singapore and today it launches its new ‘Growth Management Platform.’

Those three words together don’t really tell much about Insider’s new product, the aim of which is to help brands, marketers and website owners generally serve dynamic content that is tailored to their visitors. The idea according to Insider CEO Hande Cilingir — who is one of six co-founders of the business — is to give a visitor the most optimized version of the site based on who they are. In many ways, it is similar to LiftIgniter, the U.S. startup that raised $6.4 million last year and was a finalist at TechCrunch Disrupt London 2016.

Insider goes about that task by collecting pieces of data about the visitor — the 90-odd parameters include obvious things include location, the website they are visiting from, the device they are on, etc — all of which is used to showcase the most relevant content or information to ensure that this visitor gets the best experience. Insider said it uses artificial intelligence and machine learning to boost its model, too, helping match potential similarities between users to build a wider and more intelligent picture about the type of people visiting a website.

The goal is really quite simple: keep people more engaged on a website and help website owners with their call to action, whatever that may be. Insider believes it can help lower customer acquisition costs through increased efficiency, while also boost existing conversion rates through customization.

Insider’s six co-founders

In the case of internet marketing, it is most often to e-commerce or other types of purchases.

That’s strongly reflected in the customer base that Insider claims. The company has put a big focus on Asia’s growing internet market — hence the move to Singapore — and publicly-announced clients for the startup include Singapore Airlines, Indonesian e-commerce firm Tokopedia, UNIQLO, Samsung, McDonald’s, Nissan and CNN.

Sequoia could help open doors, too, since the firm has invested in major consumer names in Asia such as Go-Jek, Carousell and Zomato.

“We were impressed with Insider’s AI platform, and the profound impact on their customer’s key metrics: lower customer acquisition costs, higher retention, faster growth. These customers quickly started to use more and more products from the Insider platform. That has put Insider on a fast growth trajectory, especially in Asia,” said Pieter Kemps, principal at Sequoia India.

Cilingir said the new funds will go towards expanding Insider’s sales team and hiring data scientists and machine learning engineers to develop the platform. The headquarters may be in Singapore now, but Istanbul remains the base for product development while the company’s core tech team is located in Ukraine.

The team is firmly focused on developing its business in Southeast Asia, she added, but it is also eying potential expansions with China and the U.S. among the more audacious new markets that it is considering at this point.

Already, Cilingir said the startup is on track to hit $100 million in annual recurring revenue by the end of 2018 while it is bullish that there’s more to come. Marketing giant Group M predicts that this is the year that online advertising spend overtakes TV for the first time in 17 countries worldwide and she’s optimistic that there will be a greater need for Insider’s products among brands and major consumer names worldwide.

Alongside Sequoia, Insider said that its existing investors Wamda Capital and Dogan Group also took part in the newest round, which is its Series B. The company previously raised a $2.2 million Series A in September 2016 to fund its initial foray into emerging markets.

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