Month: April 2018

Procurement isn’t the most exciting topic in the world, but for large businesses, it’s an area where inefficiencies can quickly affect the bottom line. Simply getting a complete view of all of the products and services that a company buys is a challenge in itself, though, which in turn makes it hard to find savings, ensure compliance with company policy or government regulations or detect potential fraud. Suplari wants to change this by bringing its AI systems to bear on this problem.

The company today announced that it has raised a $10.3 million Series A round led by Shasta Ventures. Existing investors Madrona Ventures and Amplify Partners also joined this round, as well as new investors Two Sigma Ventures and Workday Ventures.

“Suplari uses advanced artificial intelligence on top of existing enterprise systems to proactively uncover the highest-value opportunities to pursue and empower the CFO or Chief Procurement Officer to unlock savings and profit that can be invested in growth, innovation, and their people,” said Suplari CEO and co-founder Nikesh Parekh in today’s announcement.

The company’s cloud-based service allows businesses to analyze all of their procurement data across platforms and formats. This data can include contracts, purchasing data, product usage information and data from corporate credit card accounts.

A number of Fortune 1000 customers have already signed up for the service and Supplari argues that it has helped its customers save software licensing fees by 33 percent and consolidate $200 million in professional service and temporary labor suppliers.

from TechCrunch

Comet.ml allows data scientists and developers to easily monitor, compare and optimize their machine learning models. The New York-based company is launching its product today, after completing the TechStars-powered Amazon Alexa Accelerator program and raising a $2.3 million seed round led by Trilogy Equity partners, together with Two Sigma Ventures, Founders Co-Op, Fathom Capital, TechStars Ventures and angel investors.

The service provides you with a dashboard that brings together the code of your machine learning (ML) experiments and their results. In addition, the service also allows you to optimize your models by tweaking the hyperparameters of your experiments. As you train your model, Comet tracks the results and provides you with a graph of your results, but it also tracks your code changes and imports them so that you can later compare all the different aspects of the various versions of your experiments.

Developers can easily integrate Comet into their machine learning frameworks, no matter whether they use the Keras API, TensorFlow, Scikit Learn, Pytorch or simply like to write Java code. To get started, developers simply add the CometML tracking code to their apps and run their experiments as usual. The service is completely agnostic as to where you train your models and  you can obviously share access to  your results with the rest of your team.

Ideally, this means that data scientist can stick with their existing workflow and development tools, but in addition to those, they now have a new tool that gives them better insights into how well their experiments are working.

“We realized that ML teams look a lot like software teams looked ten or fifteen years ago,” CometML co-founder and CEO Gideon Mendels told me. While software teams now have version control and tools like GitHub to share their code, ML teams still often share data and code by email. “The main issue isn’t discipline but the state of tooling,” said Mendels. “Current tools like GitHub are a great solution for software engineering, but for ML teams — even though code is a main component — it’s not everything.”

Mendels tells me that the team signed up about 500 data scientists (including from some top tier tech companies) during its closed beta. So far, these users have developers about 6,000 models on the platform.

Looking ahead, the CometML team plans to give developers more tools to build better and more accurate models, though as Mendels noted, to do that, the company had to get this first building block in place.

CometML is now available to all developers who want to give it a try. There’s a free tier that allows for unlimited public projects and, similar to GitHub, a number of paid tiers for teams that want to keep their project private.

from TechCrunch

Singapore-based smart lock maker Igloohome has closed a $4 million Series A round.

The investment was led by Insignia Ventures, the new firm started by ex-Sequoia venture partner Yinglan Tan. Phillip Private Equity, X Capital Ventures, K3 Venture’s Kuok Meng Xiong, angel investor Koh Boon Hwee, and existing backer Wavemaker Partners also took part.

The company is a rare example of a hardware startup coming out of Southeast Asia with a global presence.

Inspired by the rise of Airbnb and hosts on the platform, Igloohome sells a range of key-less products that include digital locks, digital deadbolts and a digital safety deposit box. The products are notable because they work offline, requiring either a manually entry pin code or ‘Bluetooth key’ on a phone to unlock. Despite that, owners can still control access remotely, while there’s a physical key just in case.

The Igloohome team

The company said that the new funding will go towards R&D for new products, and developing solutions for commercial projects, which could include hospitality, student accommodation and warehouse projects. The company is already a partner seller of Airbnb, rival HomeAway, and China’s Xiaozhu which helps it reach a very targeted audience. Outside of those relationships, it sells directly to consumers in over a dozen countries via the likes of Amazon, Walmart and Home Depot while there are online options for other global markets.

“We are very encouraged by the support provided by our investors. We believe that together, we will be able to bring even more innovative products and services to the table, and grow the Igloohome name into a lifestyle brand,” Anthony Chow, CEO and co-founder of Igloohome, said in a statement.

from TechCrunch

Fresh from announcing a deal to buy out Uber in Southeast Asia, Grab looks set to gain further firepower with Chinese e-commerce giant Alibaba preparing to invest in the ride-hailing firm.

Alibaba is in the early stages of making an investment in Grab, two sources with knowledge of discussions told TechCrunch. Isn’t yet clear what size that might be or at what valuation for Grab, which was last valued by investors at $6 billion.

In addition, the timing is unclear due to current anti-trust investigations into the Grab-Uber deal. The Competition Commission of Singapore has said there are grounds to believe the merger may violate the law, while other countries are looking into its implications. But still, there is intent from both sides and key investor SoftBank to make the deal.

Grab declined to comment for this story. An Alibaba spokesperson said the company “doesn’t confirm on market rumors.”

Alibaba and Grab first held talks over an investment last summer but a deal never materialized after the Chinese firm became pre-occupied chasing an investment in Tokopedia, the Indonesia-based e-commerce unicorn. That deal was prioritized because Alibaba’s arch-rival Tencent was in advanced talks over an investment that could give it a foothold in Indonesia, Southeast Asia’s largest economy and the world’s fourth most populous country.

Alibaba leaned heavily on its long-time ally SoftBank — an early backer of Tokopedia and Grab — to get the Tokopedia deal ahead of Tencent. That’s despite Tokopedia’s own founders’ preference for Tencent due to Alibaba’s ownership of Lazada, an e-commerce rival to Tokopedia. SoftBank, however, forced the deal through.

“It was literally SoftBank against every other investor,” a separate source with knowledge of negotiations told TechCrunch.

Ultimately, Alibaba was successful and it led a $1.1 billion investment in Tokopedia in August which did not include Tencent.

TechCrunch understands that one condition SoftBank attached to the Tokopedia deal was that Alibaba would invest in Grab when the time was right. SoftBank is widely seen to have been the deal-maker in the recent Grab-Uber consolidation and now, with that transaction agreed, Alibaba’s investment will follow.

The timing may be ideal for Grab. While it has plenty of money in the bank from past investments, Indonesian rival Go-Jek is preparing to expand into regional markets so the firm will need to brace itself for a new wave of competition.

Despite the background, this is far from Alibaba being strong-armed into an investment, a deal with Grab makes plenty of sense for the firm.

It has been actively seeking investment deals in Southeast Asia’s top internet companies for some time, and Grab clearly fits the bill. In particular, Grab’s focus on payments and its recently-announced financial services play is aligned with Alibaba and its fintech arm Ant Financial’s goals, too.

Last year, Ant Financial went on an investment spree which included multiple investments deals across Southeast Asia and the failed acquisition of MoneyGram. Involvement in Grab Pay, which is shaping up to be a major payment player across the region, would massively boost Alibaba and Ant’s objective.

Finally, there’s the good old competition factor. With Tencent an investor in Grab rival Go-Jek, Alibaba has motivation enough to back a horse in Southeast Asia’s ride-hailing space.

As I wrote last year, the two Chinese internet giants have been carving up Southeast Asia’s most promising startups in search of investments that give them a good position as the region’s internet economy grows.

A report co-authored by Google last year forecast that Southeast Asia’s internet economy will grow to $200 billion in 2025 from $50 billion in 2017. Right now, it is Chinese companies, not those from the U.S., that are seizing the opportunity.

from TechCrunch

Many will rightly say that raising money as a startup in Southeast Asia is no easy thing, but up-and-coming online fashion service Zilingo sure doesn’t seem to have problems on that front.

Fresh from raising an $18 million Series B round last September, Zilingo has announced its $54 million Series C to takes it to $82 million from investors to date.

The round was led by new investor Sofina — an investor in Flipkart-owned fashion site Myntra among others — and existing backers Burda and Sequoia India. Zilingo’s other existing investors, including Tim Draper, SIG, Venturra, Beenext, Manik Arora, all took part with Amadeus Capital joining the party, too.

Raising this much money is rare over the lifecycle of any startup in Southeast Asia, but to do it less than 2.5 years after launching your product is unprecedented.

E-commerce is a hot space in the region but few companies have made the jump to Series B and beyond with success, in order to make the leap Singapore-headquartered Zilingo has gone about things in a different way to others in its immediate space.

Beyond consumer sales

The company started out in Thailand in 2015 when it was founded by Ankiti Bose (CEO) and Dhruv Kapoor (CTO). Bose, a former analyst with Sequoia India and McKinsey, had the idea of bringing traditional sellers online after visiting Bangkok and marveling at the rich variety of fashion items being sold at street markets.

Now, however, the company has risen above online sales to a position as a platform that caters to merchants, retailers and brands for both B2C and B2B sales. That’s been enabled by an early focus on providing basic services for retailers beyond just an online storefront.

We noted when we first wrote about Zilingo that the company offered a seller management tool which handled processes like inventory management, stock and sales for small retailers who might not already be digital. Aside from boosting touch points with merchants, its key target, these services have evolved over time and become both an additional revenue generator and an important defensive moat for Zilingo’s business, while not to mention providing insight and direction for product development.

Zilingo’s e-commerce site sells directly to consumers in Indonesia, Thailand, Singapore, and it ships internationally to four more countries. Its tech team is in India while it has supply bases in Singapore, Thailand, Indonesia, China, Bangladesh, Vietnam and Cambodia, but it has pushed on.

With financial services from third parties, a ‘style hunter’ that aggregates upcoming trends from fashion watchers and icons, product sourcing, and content and photography services, the targets have expanded to include professional fashion sellers, SMEs, brands, and B2B buyers located outside of Southeast Asia.

The idea is no longer just about bringing the longtail of market sellers online, but instead to enable increased efficiencies for all. That means organization services, financial products and sales for the longtail merchants, but trend analysis, B2B sales/sourcing and more advanced options to the more sophisticated end of brands and larger retailers.

Zilingo co-founders Ankiti Bose and Dhruv Kapoor

“We realized that the longtail is a good way to start, but if you want to build the biggest player in this space, then you have to have all the supply,” Bose told TechCrunch. “The reason they’d stay with us is because they have a dependence with us.”

Bose said that Zilingo doesn’t pressure its merchants to use Zilingo.com for consumers sales — although it is obviously preferential — which means it has a potential in that allows it to start working with those who are on rival services, which chiefly includes Rocket Internet’s well-funded Zalora business.

So a brand using Zalora for sales, for example, might source its products or materials from sellers on Zilingo. Further down the line, Zilingo could use that relationship to persuade it to open a Zilingo.com store.

That has seen revenue skyrocket. While Bose isn’t revealing exact sales figures, she said that revenue has grown “over 10X” in the last 12 months with more than 10,000 sellers and two million products now on the Zilingo.com platform.

That jump is primarily thanks to a move into Indonesia, Southeast Asia’s largest economy, the emergence of B2B sales — i.e. labels or merchants using Zilingo to buy fashion items to then sell to consumers — and some of the optional, paid-for services such as loans or credit. Now, Bose said, the once-core B2C business from Zilingo.com accounts for just 40 percent of the revenue.

That platform strategy goes some way to explaining why investors are doubling down on the business despite a “bloodbath” — as Bose puts it — in the B2C fashion commerce space in Southeast Asia.

Zalora is the big player, while others include JD.com-backed Pomelo and Singapore’s Love Bonito, both of which have raised low double-digit USD rounds to move into brick and mortar retail. Zilingo, meanwhile, has transcended the sales race by building a product that can live without a dependency on its Zilingo.com e-commerce service.

Looking to U.S. and Europe

The company is putting that to the test this week with the launch of a B2B service for U.S. and Europe-based fashion sellers and labels.

ZilingoAsiaMall.com is a destination where smaller retailers and other B2B buyers can source fashion items from Southeast Asia-based resellers for similar prices to that which top global fashion names enjoy, but without the commitment of massive order volumes.

Zilingo Asia Mall

“Major global fashion brands source most apparel from Asia at $1.5/piece for massive quantities of over a million pieces,” a Zilingo representative explained. “We saw how Zilingo could leverage its existing Asian supply chain network built from its consumer business to drive value for the American and European fashion businesses. ZAM has figured out how retailers can source quality, current products at $2/piece for quantities as low as 200 and also make it an easy experience.”

“Some 49% of all exports globally in fashion come from ASEAN, China and Bangladesh [so] we are basically sitting at the source,” Bose told TechCrunch.

“Merchants want to buy from our B2B platforms and sell on B2C channels, Zilingo could be one of them,” she added. “It’s a high margin profitable business and we want to scale that up.”

Future plans

Zilingo said it still has its Series B round in the bank so that, combined with this newest funding, gives it quite the war chest for investment.

Aside from pushing its international strategy, the company plans to add more tech services to its merchant ecosystem while also expanding its Zilingo.com e-commerce site deeper into Southeast Asia. The Philippines is top of the list, but opening up in Vietnam and Malaysia is also on the planner.

The company will also continue to build its brand and market share in its existing Southeast Asian markets. There’s a particular focus on Indonesia where it recently signed up actress Pevita Pearce to front its first TV ad campaign.

As for raising more money right after the Series B, Bose said that the timing felt right.

“The logic behind raising this round is that Southeast Asia is heating up but fashion doesn’t have a big leader because Zalora is stumbling, but it is also the only high margin vertical in e-commerce,” she said.

“When things are going well, there’s momentum, and we figured that we might as well use that because this is a fantastic time to be running a startup in Southeast Asia — people are taking the region seriously,” she added, referencing increased investments from Tencent and Alibaba.

Unbelievably, Zilingo closed the Series C round “weeks” after its Series B, according to Sequoia India managing director Shailendra Singh. Bose explained that investors had begun to see the results of the B2B push and were keen to double down right there and then.

Luckily for the rest of the market, there are no imminent Series D plans at this point… apparently.

from TechCrunch