Month: June 2018

India’s food delivery race is hotting up after Swiggy, one of the startups vying for pole position, landed $210 million in new capital for expansion and joined the billion-dollar startup unicorn club.

The investment is led by existing backer Naspers, the media conglomerate famous for an early bet on Tencent in China, and new investor DST Global. Others taking part in the round include returning investor China’s Meituan Dianping and (another new investor) Coatue Management.

The deal takes Swiggy’s valuation past the $1 billion mark for the first, with sources close to the company confirming that the deal values the company at around $1.3 billion. That’s perhaps not a tonne of surprise around today’s announcement since it has been rumored in Indian press for some time, with Economic Times first reporting on it in April.

This Series G investment comes just months after Naspers and Meituan Dianping invested $100 million into Swiggy in February. The new round takes Swiggy to over $465 million raised from investors to date, making it India’s most-capitalized food delivery startup. Nearest competitor Zomato has raised some $440 million from investors that include Alibaba’s Ant Financial affiliate, Sequoia Capital and Temasek, but its business also includes markets outside of India, whereas Swiggy’s is firmly focused on its homeland. (Zomato was most recently valued at $1.1 billion.)

Swiggy claims to cover 35,000 restaurants with a delivery fleet of over 40,000. The company isn’t giving financials at this point, but it said that it has seen “a three-fold increase in revenues in the last financial year.”

The company isn’t saying in specifics how it will use the new capital, but a representative told TechCrunch that the plan is to invest in extending its reach to new locations in India and also to build out its logistics network to better serve customers.

“With this investment, we will continue to widen Swiggy’s offerings, along with bolstering our capabilities and plugging the gaps in the on-demand delivery ecosystem,” added Swiggy CEO Sriharsha Majety in a statement.

In addition, no doubt the business is capital intensive given the competition, so you’d imagine that a significant amount of money is needed to offset the monthly burn rate that Swiggy and others chalk up.

Beyond Zomato, Swiggy’s competitors also include ride-hailing companies Ola — which acquired the FoodPanda India business last year — and Uber, which has offered its Uber Eats service in India for over a year. A smaller player (but equally big-name) is Google, which launched its Areo food delivery service in India in April 2017.

from TechCrunch

Mighty Bear, a game studio startup that grew out of King.com’s former office in Singapore, has landed new funding as it readies its debut title for smartphones.

The startup was founded by four former King.com staffers — Simon Davis, Fadzuli Said, Benjamin Chevalier and Saurabh Shukul — after the gaming giant closed its Singapore office — inherited via the acquisition of Non Stop Games — following its $5.9 billion acquisition by Activision. Today, Mighty Bear’s team of 18 counts experience working with Ubisoft, EA, Lucasarts, Disney, Gameloft and others.

The startup previously raised $775,000 in a pre-seed round in early 2017, and this time around it has pulled in a seven-figure USD investment. The deal is officially undisclosed, but a source with knowledge of discussions told TechCrunch it is worth around $2.5 million.

The deal was led by U.S.-based Skycatcher, New York hedge fund banker Eric Mindich’s Everblue fund, and M Ventures from Los Angeles. Others in the round include Singapore’s Atlas Ventures, Lev Leviev — who is co-founder of VK.com among other things — and existing backer Global Founders Capital, which is affiliated with Rocket Internet.

“We’ve already got a good set of investors from Europe and Asia so we realized we needed networks in North America, too,” Mighty Bear CEO Simon Davis told TechCrunch in an interview.

Davis added that, beyond extending their reach for purposes like hiring, partnerships and more, they open up the potential for IP and media deals further down the road.

First thing first though: Mighty Bear is working to launch its first title, which Davis said will be an MMORPG. Right now, it is being secretly tested for scalability and technical capabilities among users in India and the Philippines with a view to a full launch on iOS and Android later this year. Davis said the company plans to launch another title, too, with both games managed concurrently.

“We’ve basically taken a genre that we know is monetized and engaged with hardcore users and tried to bring it to a large audience. Our goal is to take big desktop experiences and streamline them into five-minute bursts,” he told TechCrunch in an interview.

You may not know it, but you may have run into Mighty Bear’s concepts already even though it hasn’t fully launched a title yet. That’s because part of the research and development process includes creating and disseminating videos and advertising for mock games through channels like Facebook.

That, Davis explained, can help Mighty Bear in all manner of ways, from basics such as figuring out what kind of visuals or advertising approach gets engagement from users, to broader purposes such as understanding the types of games that people want to play.

“The process helps witter down ideas to those that will get traction with users. If a game makes it through the various internal gates we have, and to soft launch, then we have the best potential for it to perform well,” Davis said.

Developing artwork and advertising for ‘fake’ games isn’t as obscure as it may sound. While it isn’t usual for smaller studios, it’s a practice that Davis said is common at huge game development companies — that in turn is a reflection in the experience that the team at Mighty Bear has under its belt.

from TechCrunch

Drip Capital is raising a $20 million funding round from Accel, Wing VC and Sequoia India. The company is helping small exporters in emerging markets access working capital in order to finance big orders.

The startup also participated in Y Combinator back in 2015. Many small companies in emerging markets have to turn down orders because they can’t finance big orders. Even if you found a client in the U.S. or Europe, chances are companies will end up paying for your order a month or two after signing a contract.

If you’re an importer or an exporter, capital is arguably your most valuable resource. You know where to source your products and how to ship many goods. But you still need to buy goods yourself.

And in many emerging markets, you have to pay right away. It creates a sort of capital gap.

At the same time, local banks are often too slow and reject too many credit applications. Drip Capital thinks there’s an opportunity for a tech platform that finances exporters in no time.

The startup is first focusing on India because it meets many of the criteria I listed. This could be particularly useful for small and medium businesses. Large companies don’t necessarily face the same issues as they can access capital more easily.

So far, Drip Capital has funded more than $100 million of trade. After signing up to the platform, you can submit invoices and open a credit line to finance your next orders. Family offices and institutional investors can also invest some money in Drip Capital’s fund and get returns on investment.

This isn’t the only platform that helps you get paid faster. But larger companies tend to do it all and optimize the supply chain for the biggest companies in the world. Drip Capital is focusing on a specific vertical.

With today’s funding round, the company plans to get more customers and expand to other countries.

from TechCrunch