Revolut, the London-based fintech that offers a digital banking account and sprawling set of other financial services, is disclosing that it has raised a whopping $250 million in Series C funding, less than three years since launching.
The new round, which gives the company a $1.7 billion post-money valuation — a five-fold increase in under a year, we’re told — was led by Hong Kong based DST Global, along with a group of new and existing investors that includes Index Ventures, and Ribbit Capital. In case you aren’t keeping up, it brings the total amount raised by Revolut to $340 million in less than 36 months.
To put this into context, TransferWise — London’s undisputed fintech darling and on some features a direct competitor to Revolut — recently announced $280 million in Series D investment, giving the company a reported post-money valuation of $1.6 billion. The difference? It took TransferWise seven years compared to Revolut’s three.
That’s testament to how much value investors are now placing on bank-disrupting fintech or perhaps signs of a fintech bubble. Or both. It is also worth remembering that these are private valuations with neither company yet to float on the public markets, even if TranserWise looks increasingly a candidate to do so.
Meanwhile, Revolut says the new round of funding and surge in valuation follows “incredible growth figures to date,” with the fintech now processing $1.8 billion through the platform each month and signing up between 6,000 and 8,000 new customers every day.
It claims nearly 2 million customers in total, of which 250,000 are daily active users, roughly 400,000 are weekly active users and 900,000 are monthly active users. The company says the target is 100 million customers in the next five years.
For a little more context, TransferWise has 3 million customers. I’m also told U.K. challenger bank Monzo now has 630,000 current account customers, of which 200,000 are daily active users, 360,000 are weekly active users and 500,000 are monthly active users. (In both Revolut and Monzo’s case, active users are defined as making at least one financial transaction.)
With the aim of persuading both consumers and businesses to ditch their traditional bank, Revolut offers most of the features you’d expect of a current account, including physical and virtual debit cards, direct debits and money transfer. Its “attack vector” (to borrow Monzo’s Tom Blomfield’s phrase) was originally low exchange fees when spending in a foreign currency, which undoubtedly fuelled much of the startup’s early growth and mindshare, but new features and products are being added at an increasingly fast pace.
Many of these are through partnerships with other fintech companies, and include travel insurance, phone insurance, credit, savings, and cryptocurrency. The latter looks like riding the hype cycle almost perfectly. Revolut is also applying for a European banking license, which would enable it to begin balance sheet lending, too.
To that end, Revolut says the Series C funding will be used to go beyond Europe and expand worldwide, starting with the U.S., Canada, Singapore, Hong Kong, and Australia this year. The company also expects to increase its workforce from 350 to around 800 employees in 2018.
NSI Ventures, the Singapore-based VC firm affiliated with PE firm Northstar Group that invested early in ride-sharing unicorn Go-Jek, is going independent after it announced it has rebranded to Openspace Ventures.
NSI Ventures was started by Hian Goh, an entrepreneur who sold his startup Asia Food Channel in 2013, and finance exec Shane Chesson in 2014. The firm was initially conceived as the venture capital arm of Northstar, which manages some $2 billion in assets with a focus on Indonesia.
In a statement, Goh paid tribute to Northstar’s support but said that “the moment has come for us to bring Openspace Ventures to the next stage, as an independent, Southeast Asia-focused venture fund manager.”
Following its spin-out, Northstar Group co-founder and managing partner Patrick Walujo will become a senior advisor to the firm, providing “strategic advice” on investments in Indonesia.
Openspace is best known in Southeast Asia for its early investment in Go-Jek, the Indonesian ride-sharing company that is valued at over $4 billion and in the process of expanding across Southeast Asia. To date it has invested in 19 companies, including online fashion brand Love Bonito, roti bread maker Zimplistic, restaurant discovery service Chope, and digital insurance startup Axinan. It announced its second $125 million fund last December, a final close for which is expected this year.
The firm said that 12 of its 15 investment deals have since secured follow-on funding, with a total of $2.2 billion poured in. Much of that comes from Go-Jek, but even removing two recent rounds that total around $2 billion, leaves good numbers for the rest of its portfolio.
In fact, a recent report from investment tracker Prequin listed the firm as the third highest performing investment fund worldwide for those created between 2003-2015. That shows progress but the proof is in the pudding, and for VCs that means LP returns. Opensauce, like others in exit-starved Southeast Asia, is yet to have a liquidation event despite making promising progress.
PayPal reported its first-quarter results after the bell on Wednesday, sending shares up about 3% in after-hours trading, due to better-than-expected numbers.
Adjusted earnings per share were 57 cents, above analyst estimates of 54 cents. Revenue for the quarter was $3.69 billion, up 24% from last year. Analysts surveyed by Yahoo Finance had been expecting $3.59 billion.
This comes from $132 billion in total payment volume, with $49 billion coming from mobile transactions. The company touted four consecutive quarters of accelerating revenue growth.
PayPal also raised guidance, expecting revenue for the year to between $3.78 and $3.83 billion.
PayPal broke out results for Venmo, its popular peer-to-peer payments app. It processed $40 billion in payments over the last year and $12 billion in the first quarter.
PayPal added 8.1 million active accounts. Its average customer makes 34.7 transactions per year, an 8% increase from prior years.
PayPal repurchased 23.6 million shares of common stock last quarter, returning $1.83 billion to shareholders.
PayPal shares have doubled in the past year, but at $74, shares are beneath the high of $85 we saw last quarter. The company dipped following its last earnings report on news that eBay is looking to partner with competitor Adyen.
PayPal and eBay were previously the same company, but the two separated in 2015. PayPal is the larger of the two businesses, with a market cap of nearly $88 billion. eBay is worth under $42 billion.
Fresh off a massive cascading series of fiascos that has thrown the future of Qualcomm into doubt, the company managed to report a mostly positive first quarter and keep the stock from going into a further tailspin.
Qualcomm has been under considerable pressure for a wide variety of reasons, the most obvious one of which is a massive takeover attempt by Broadcom falling apart. But beyond that, Qualcomm is facing issues trying to close its acquisition of NXP, faces a continued public spat with Apple, and is looking to cut costs as it tries to appeal to Wall Street amid tension over its future as next-generation wireless technology begins to roll out. The company’s operating income fell 40% year-over-year amid its continued sparring with Apple over royalties.
The company ended up finishing with an earnings beat, reporting earnings of 80 cents per share compared to 70 cents per share expected by analysts. The company said it generated $5.23 billion in revenue, compared to $5.19 billion expected by analysts. Qualcomm, beyond just its own specific issues, is heavily dependent on the health of the smartphone supply chain. Apple missed targets expected by Wall Street when it came to iPhone sales, as one potential signal for example.
Following the BroadQualm collapse, the company said it would work to reduce its annual costs and cut around 1,500 jobs. This, too, comes at a time when its former chair Paul Jacobs stepped down after he said he would be exploring the possibility of a proposal to acquire Qualcomm and take it private. This, beyond just its fighting with Apple and its attempts to finish off its acquisition of NXP, has ended up shedding a ton of uncertainty as to what will happen to the chip designer.
Broadcom acquiring Qualcomm, in a very tense deal that came down to the White House eventually putting the brakes on the deal, would have consolidated two of the largest fabless chip firms into a single unit — but it’s not clear what Broadcom CEO Hock Tan would have done with Qualcomm, which is currently embroiled in a series of quarrels with Apple over royalty payments. The Trump administration proposed tariffs on Chinese products, adding another layer of uncertainty to the situation.
Kubernetes has gained in popularity quickly over the last 18 months, but like many highly technical solutions it requires a level of expertise many companies are lacking. A Bangalore/San Francisco startup called Hasura hopes to simplify all of that with a managed Kubernetes solution built with developers in mind.
Today, the company announced a $1.6 million seed round led by Nexus Venture Partners with participation from GREE Ventures.
Kubernetes is a tool that helps companies running containers juggle or orchestrate them. This level of organization is required because the number of containers can grow quickly. If you think of a conductor telling the musicians when to come in and when to leave, Kubernetes plays a similar role for the container system. (For a more complete explanation of containers, see this article.)
The company has focused on getting developers up to speed with the latest technologies quickly. “Our focus from the beginning has been making the application development super fast. How we do that is placing our APIs on top of a PostGres database to deploy any kind of code,” Tanmai Gopal, Hasura CEO and co-founder explained.
Gopal says the idea is to be more than a managed Kubernetes provider by giving developers the tooling they need to get going without having to build the underlying code for every application. “We are going to be the last mile. We’re not just managing the Kubernetes cluster for you. You should have Kubernetes to have control [over your containerized applications], but you also need developer tooling to build on top of it faster,” he said. “We want to automate the unnecessary code writing kind of grunt work. We started off by saying, ‘let’s automate this piece so you don’t have to write this code again’,” he added.
Once they wrote that piece, they realized that this is relevant because this approach enables cloud native in way that wasn’t possible before. “We suddenly realized we were in the right place at the right time, and part of it was luck,” Gopal admitted. It was also skill in providing a set of tools developers could use to build on top of Kubernetes.
Sameer Brij Verma, managing director at lead investor Nexus Venture Partners sees Kubernetes quickly becoming a foundational technology for developers and Hasura is providing a way to get up and running with little expertise. “Using Hasura’s platform, developers can now create cloud-native, portable and “elastic” applications within a few minutes without knowing anything about Kubernetes in the beginning,” Verma said in a statement.
The company launched last year and is split between Bangalore, India and San Francisco.
Riding high on the growing consumer demand for podcasts, a startup called Castbox this morning announced the close of $13.5 million in Series B funding for its technology-fueled podcast app. The round was led by SIG China, and includes participation from existing investors IDG Capital, Qiming Venture Partners, and GSR Ventures.
To date, Castbox has raised $29.5 million.
While there are a number of podcast applications on the market today, what makes Castbox interesting is the proprietary technology it has under the hood. The platform uses natural language processing and machine learning techniques to power some of its unique features, like personalized recommendations and in-audio search.
The app is capable of making suggestions of what to listen to next, based on user’s prior listening behavior, which can help to improve discovery of podcasts people may like. Meanwhile, the in-audio search feature takes advantage of the recent leaps the industry has seen with voice recognition technology, and actually transcribes the audio content inside podcasts, indexes it, and makes it available for search within the Castbox app.
That means users no longer have to rely on things like episode titles, descriptions and show notes to find a podcast related to a topic they want to listen to – they can just search the Castbox app for any podcasts where the term was mentioned.
These differentiating features, so far, appear to be attracting users. Castbox’s app has been installed 15 million times, and today sees 1.8 million daily users, with a retention rate of 50 percent. While the company doesn’t have a way to directly correlate its features’ usage to these figures, its user ratings and reviews including a number of comments referencing them, along with compliments about the app’s overall clean user interface and experience, notes Castbox founder Renee Wang.
Wang, who previously worked at Google in Japan and Dublin, had originally created Castbox because of her own troubles in finding a player that supported different languages or gave personalized recommendations. Castbox was then further developed in response to user feedback and with a focus on improved podcast discovery.
Today, Castbox has a global user base, with only 45 percent from the U.S. But those users are most engaged. Americans spend the most time in the app, listening to an average of 113 minutes per day, says Wang. Chinese users, meanwhile, subscribe the most, with an average of 12 subscriptions per user.
With the additional funding, Castbox is adding another big differentiator to its app: original programming.
The company kicked off its efforts with “Castbox Originals,” as it original shows are called, with its first series, “Off Track with Hinch and Rossi.” The show stars Indy car drivers James Hinchcliffe and Alexander Rossi, and was made in partnership with INDYCAR. That was followed by “Heard Well Now,” an influencer-driven music podcast series in partnership with influencer music label Heard Well.
Both were designed to be niche series that would drive new audiences – specifically race car fans and teens – to podcasts.
The titles aren’t exclusive to Castbox, though – they’re also distributed through major platforms like Apple and Spotify. The shows, however, will include advertising which is how Castbox now aims to make money.
The upcoming slate of shows will also include a scripted series called “Be.Scared,” where listeners can hear tales of horror from contemporary writers, as well as a full-length true crime mockumentary for fans of “Serial,” a wrestling podcast, and a series of women-hosted podcasts.
“We’re investing a chunk of the new capital into original programming and strategic partnerships with creators,” says Wang. “Over the next two months, we’ve committed to launching more than a dozen Castbox Originals in addition to the ones we’ve already released in the past 30 days. On this front, we’ll continue identifying the right partners to work with as we expand our content strategy, which will allow us to strengthen our brand in the podcasting space,” she adds.
While the cost of launching a new show will vary based on a number of factors – like voice talent, writing, editing, music, marketing, promotion, etc. – the full process can range anywhere from a few hundred dollars to thousands.
The new funding will also be used to improve Castbox’s technology platform, including improvements to usability, content discovery, and personalization.
SIG China’s involvement speaks to Castbox’s roots – the startup initially launched in the Chinese market, but since relocated its headquarters to San Francisco, while maintaining an engineering office in Beijing. The team is now 52 full-time employees, and will continue to grow throughout the year.
“Castbox has shown consistent growth across all metrics, but more importantly, Renee and her team share great vision for the company,” said Andy Gao of SIG China, in a statement. :They’re extremely passionate about the podcasting space and their decision to share their content openly shows just how invested they are. As this new medium takes off and goes mass-market, we’re excited to see what’s next to come for Castbox.”
Castbox, of course, has fierce competition in the U.S., where there are dozens of alternative podcast players available across platforms, in addition to those from major players like Apple, and streaming services like Spotify or TuneIn. But users are always looking for the “best” app to serve their needs, and Castbox’s focus on discovery, and now, Originals, could give it the extra edge as it grows.
Sinovation Ventures, one of China’s prominent funds which is helmed by former Google China head Kaifu Lee, has announced a new investment fund that’s targeted at a total raise of $900 million.
This newest fund is the firm’s fourth, and it promises to be its largest to date. Sinovation is a little different from other firms in that it raises its fund using one U.S. dollar vehicle and another in Chinese RMB to give founders currency options, one of its competitive advantages.
The firm confirmed today that it has closed the $500 million USD fund, and it has kicked off the process to raise an additional 2.5 billion yuan, or around $400 million, in Chinese currency to round out this new vehicle.
The addition of that U.S. capital means it now has $1.7 billion under management across six funds, four of which are in U.S. dollars and two are Chinese RMB.
The firm has invested in over 300 companies, some of which include Meitu (Hong Kong IPO), bike sharing startup Mobike (which sold to Meituan this month), AI firm Face++, English language learning service VIPKid and crypto mining giant Bitmain.
Lee has made his mark in many ways, but in recent years he’s become recognized as an authority on artificial intelligence, both on tracking promising companies in the space and looking into the future at where the tech is headed. So it isn’t a huge surprise that this new fund is heavily focused on what the firm sees as the huge opportunity for AI, as well education and robotics.
The focus on deals is at seed and Series A stage, and, while Sinovation operates in the U.S., it is strongest in the Chinese market.
“The investment ratio is probably 90 percent China,” Lee — Sinovation’s chairman and a managing partner — told TechCrunch in an interview. “We think we have a unique offering in the U.S. because we can help our companies into China to combine the best of the U.S. and China, but to be frank we are a long way from being considered a tier-one investor in the U.S. We have a ways to go.”
Lee previously spoke of his firm’s then-new fund at TechCrunch’s Beijing event in 2016
Investing in AI
One major factor that does separate Sinovation from other VCs is that Lee and co aren’t just putting money into AI, they are walking the walk, too. The firm created its own AI ‘institute’ last year, and today Lee said it counts around 60 employees of which half are engineers and a quarter are Ph.D. graduates.
It is becoming increasingly common for VC firms to have technical teams in-house, but I’ve not heard of a firm with such a large team. Lee explained that the institute is deployed directly to help portfolio companies and perform due diligence as you’d expect, but it also offers consulting work that brings in revenue for the firm and, by developing IP and experience, it could be used to spin-out future companies.
“We have worked on 15 implementation deals so far, with portfolio companies, potential investments, strategic relationships and purely commercial partners,” Lee explained.
“Nobody knows what the AI product of the future quite looks like, so our approach is to learn more about the needs, partner closely to build domain expertise and develop solution packages that can become products,” he added. “We want to be both a student and a teacher.”
The Sinovation head revealed that a first spin-out company is likely to be announced within the next month, but he declined to give further details at this point.
Lee is more forthcoming on where he sees AI headed, and where the fund is looking to make its mark.
While some major AI startups have blossomed in China — including SenseTime, which recently landed investment led by Alibaba at a valuation of over $4.5 billion, and Sinovation’s own investment Face++ — Lee said that “the AI monoliths haven’t come out yet” even though the early leaders have shown promise in areas like facial recognition.
Enabling education and e-commerce
In particular, he sees a future in which AI solutions are customized and tailored to a longer tail of real-life uses. In China, Lee believes that education and offline retail are two very key areas where AI is poised to have a transformation impact, all of which means there’s vast potential for new companies.
“Autonomous stores and schools aren’t the core strengths [of existing AI companies.] You look at other cases where you need AI and there will be customized solutions, it’s not all about facial recognition, there’s intent, estimation and more. Then you have sensor networks being upgraded and cameras will capture things involving 3D construction,” he said.
“AI will have another decade of application opportunities as the technology matures, while more data is collected and more application areas become feasible over time. We see, for example, autonomous vehicles going from L2 to L4, the use of camera-based tech developing from face recognition to very intelligent autonomous stores, speech recognition developing from speech-to-text to speech-to-meaning, and more.”
Kaifu Lee on stage at TechCrunch Beijing 2016
Lee suggested that, with this new fund, Sinovation could invest in unconventional areas such as retail stores, or educational centers and then “inject” AI into the businesses, as well as capital, to scale their reach.
China’s offline retail push is very real, and a key focus for e-commerce giants like Alibaba and JD.com, which have set up staff-less kiosk projects and made moves to integrate their online services with offline shopping. Alibaba itself has paid out billions to buy pieces of established offline retailers with AI a key component, but Lee sees a gap for enabling smaller players to take advantage of the trend, too.
Education is another area he is bullish on in China, simply because “Chinese parents will pay whatever is needed to advance their child and most only have one child.”
That’s also down to the growth of mobile payment services like Tencent’s WeChat Pay and Alibaba’s Alipay has made buying services easier than ever before but, beyond enabling parents to spend on shopping or educational services, Lee sees wider implications when looking at the rush of “largely middle-aged women (and also men) coming online in smaller cities with the family purse strings.”
“The fact that 700 million people in China can pay each other with no commission, will enable so many business opportunities, essentially it’s a new kind of entrepreneur,” he said.
“Businesses used to require getting a lot of users, making them active and then figuring how to make money later, but now payment is just two buttons away. We’ll see companies profitable in their first year with substantial revenue in their first six months.”
Listening to Lee talk about the future demonstrates why his opinion is so highly respected and it also goes some way to explaining how the firm was able to close the US dollar segment of its largest fund to date at rapid speed.
The firm said that it reached its target commitment from investors within just one month of fundraising. Aside from returning backers, which include a sovereign fund, family offices and a global manufacturer, Sinovation snagged capital from Spanish bank BBVA and an unnamed “leading global automobile corporation” both of which are making their first investments in China through the deal.
Fat Lama, the startup that offers a fully insured peer-to-peer rental marketplace for almost anything, is getting a little fatter. The London-based company has raised $10 million in Series A funding in a round led by Ophelia Brown’s recently outed Blossom Capital, with participation from Niklas Zennström’s Atomico and existing backer Y Combinator.
Aiming to do for rentals what eBay did for buying and selling used items, Fat Lama was conceived in early 2016 after the experience its founders had renovating an office space in London. They found themselves spending almost a third of their budget on what co-founder and CEO Chaz Englander describes as “single-use” items that were difficult to rent, such as power tools, tile-cutters, and industrial vacuums.
“The probability was that the majority of those items were lying around unused in the same block we were working in,” he says, “but our only option to hire was to go to a rental shop on the other side of town, during working hours, to pay a premium for commercial hire. That was when we had the first conversations about creating a rental marketplace”.
To enable Fat Lama to have chance of succeeding where older rental startups had failed, the team figured out that a number of problems beyond simply matching supply with demand would need to be solved. Traditional rental companies typically require the borrower to leave quite a large cash deposit in case an item is broken, lost or stolen. Like-wise, equipment-sharing websites that don’t require a deposit can be perceived as too risky for the lender.
Fat Lama’s solution is to fully insure each item rented for an amount up to $30,000, something Englander tells me took nine months to secure and is a major differentiator from competitors. Borrowers are still liable for the full value of an item if they break or lose it, but the insurance will reimburse the lender if there’s a dispute between the borrower and Fat Lama, or if the borrower simply refuses (or can’t) pay. To further manage this risk, Fat Lama requires users to pass identity checks, in addition to employing risk-profiling technology.
“Put simply, we don’t think it makes sense for people to have to buy the things they only use occasionally. And what we’re seeing, whether it’s environmentally or financially driven, is that globally, people are less and less interested in owning things,” says the Fat Lama CEO. “Fat Lama is connecting people with spare stuff to those that need it. By using a combination of risk-profiling technology and insurance, we’re making it not just possible, but safe and seamless, for anyone to have access to almost any item, potentially within minutes”.
There is a community aspect to Fat Lama, too, which is something Englander is keen to protect even as the company scales. Currently lenders and borrowers hand over and collect items in person, where they often share expertise on how to get the most out of an item.
“The breadth of rental categories obviously means that we have an incredibly broad user base in terms of demographics,” he adds.
One obvious demographic is creative professionals, such as DJs, music producers, filmmakers, photographers and art directors, all of whom have “project-driven, often last-minute demands” for niche equipment. “Many are also sitting on big inventories of gear which they rarely use, from which they’re now generating an income in the thousands,” notes Englander.
Meanwhile, after a successful launch in New York earlier this year, including seeing over 6,000 items listed on the site (supply in New York is said to be growing more than three times as fast as it originally did in London), Fat Lama is planning to use the new Series A funding to further grow across the pond. As part of this effort, the U.K. startup is hiring U.S. city managers, as well as investing in its product, engineering and operations teams back in London.
Pusher, the London startup that provides tools and cloud infrastructure for developers to add real-time functionality to their apps, such as push notifications and messages, has pulled in $8 million in Series A funding. The round was led by London VC firm Balderton Capital, with participation from Heavybit, the San Francisco-based investor that specialises in helping developer product companies scale.
Founded in 2011 — off the back of a modest $1 million in seed funding — Pusher aims to significantly lower the barriers for developers who want to build real-time features into their websites and apps. This was originally delivered via a general purpose realtime API and supporting cloud infrastructure, enabling app developers to more easily build things like rich push notifications, live content updates, and various real-time collaboration and communication features.
However, more recently the company has began rolling out additional offerings dedicated to specific real-time functionality. The first of those is Chatkit, an API and SDK intended to do a lot of the heavy lifting required to add chat functionality to an app or service.
In a call, Pusher co-founder Max Williams told me the startup’s Series A will be used to continue building new developer products and to establish a bigger presence in the U.S. so that it can be closer to customers.
Pusher already has a small team working out of Heavybit’s San Francisco office, but in line with growth it plans to eventually set up a bigger office on the West Coast and aims to have up to 30 people working in the U.S. by the end of the year. These will be in sales, marketing and customer support.
In addition, a significant amount will be invested in R&D, too, with Pusher’s own London-based engineering team being bolstered accordingly. Pusher currently employs 60 people.
To that end, Williams says that the new capital will enable Pusher to move a lot faster, in recognition that the real-time developer tool space has not only grown exponentially in the last few years but is also becoming more competitive. He feels that for Pusher to fully take advantage of the opportunity ahead, organic growth — and in turn the company growing at the same pace as revenue — wasn’t going to cut it. Prior to this round of funding the startup had only raised $2.5 million in debt in addition to its original $1 million seed round.
Meanwhile, Pusher says that more than 200,000 developers worldwide are using Pusher’s products and more than 40 billion messages per day are now sent using APIs provided by the company, “connecting more than eight billion devices per month”. Customers include The New York Times, which uses Pusher for updating its realtime news feeds; Mailchimp, which uses it for internal collaboration tools; and DraftKings, which uses Pusher for updating its realtime leaderboards.
Clark, one of a plethora of so-called ‘insurtech’ startups offering something akin to a digital insurance brokerage all delivered through a convenient mobile app, has closed a hefty $29 million in Series B funding.
The round was led by fintech investor Portag3 Ventures, and VC fund White Star Capital, with participation from a number of existing investors including Coparion, Kulczyk Investments, and Yabeo Capital. It brings Clark’s total funding to $45 million.
Founded in July 2015 — and originally out of fintech company builder Finleap — Frankfurt and Berlin-based Clark has built what it describes as an “insurance robo-advisor”. Once you’ve given the startup a mandate to act as your insurance broker, the Clark iOS, Android and web apps let you manage and purchase various insurance products, spanning the full gamut of life, health, and property insurance.
Specifically, its algorithms analyze your current insurance situation and automatically propose ways to improve your coverage or get a better deal than the one you are currently on. It makes the majority of its revenue from management and admin fees paid by insurance companies on its platform, but also via commission on any new policy taken out.
To date, Clark says it has acquired close to 100,000 customers for its digital insurance services, making it one of the largest digital insurance players in Europe. This, we’re told, translates to $310 million in contract volume, which the insurtech startup says is a ten-fold increase from the contract volume it managed in 2016 at the time of its Series A.
Some of that growth appears to have come from partnerships with a number of banks in Germany, including challenger N26, and incumbents ING-DiBa, and DKB. I’m also told Clark has started working on a B2B line, offering Clark technology to banks and other insurance companies as a white-label product. Four deals with leading companies have been signed and are “in development”.
“Over the next few years, we will continue to focus on growth to cement our digital insurance management as the standard in Europe,” says Dr. Christopher Oster, CEO and co-founder of Clark, in a statement. “To drive Clark’s development, we will invest in our team in both Frankfurt and Berlin, especially in technology and marketing”.
Today, Castbox has a global user base, with only 45 percent from the U.S. But those users are most engaged. Americans spend the most time in the app, listening to an average of 113 minutes per day, says Wang. Chinese users, meanwhile, subscribe the most, with an average of 12 subscriptions per user.
