Deals

Y Combinator alum Meesho, one of several “social selling” startups gaining speed in India, will add more features to its e-commerce platform after closing a $11.5 million Series B led by Sequoia India. Existing investors SAIF Partners, Y Combinator and Venture Highway also returned for the round, which brings the Bangalore-based startup’s total funding so far to $15 million. Its last round of funding, a $3.4 million Series A, was announced last October.

Like social selling competitors including GlowRoad and Zepo, Meesho’s model combines dropshipping from its wholesale partners with a comprehensive suite of e-commerce tools and services. This reduces overhead while making it easy for sellers, who Meesho says includes many housewives, students and retirees, to set up an online business through WhatsApp, Facebook and other social media.

Meesho’s tools include an online platform that allows sellers to manage purchases and process payments, as well as a network of wholesale suppliers (its main categories are currently fashion and lifestyle items) and logistics providers. In other words, it offers almost everything its vendors need to start selling online. This leaves vendors responsible for customer acquisition, picking what items they want to include in their online shops and marketing them.

This reselling model appeals to small stores, as well as individuals, who want to make more money but don’t want the expense of setting up an e-commerce business from scratch and carrying inventory. Meesho’s rivals include e-commerce startups like GlowRoad, Shopmatic and Zepo, which have also recently raised large funding rounds. All of these companies attract sellers by offering a significant amount of help with order management, payment processing, fulfillment and logistics.

In order to differentiate, chief executive officer Vidit Aatrey, who co-founded Meesho in 2015 with Sanjeev Barnwal, its chief technology officer, tells TechCrunch it focuses on product quality, pricing and personalization to help resellers improve their sales and customer service. Meesho claims that more than 800,000 resellers have used its platform and that a “typical” reseller earns between 20,000 to 25,000 rupees per month (about $298 to $373).

In a press statement about the funding, Sequoia India managing director Mohit Bhatnagar said “Social commerce is the future of e-commerce in India. People buy from people they trust, and that’s what Meesho enables.  Entrepreneurs, many of them women, use the Meesho platform to recommend, customize and sell to their family and friends. Social selling is a huge trend and Sequoia India is excited to partner with Meesho, which is the early leader in this space.”

Aatrey says Meesho’s Series B capital will be used to hire more people for its tech and product teams in order to build a suite of new customer acquisition and selling tools. The startup also plans to add more personalization options for its resellers and product categories.

from TechCrunch

Switchee, an IoT startup based in London, has raised £1.3 million in “pre-Series A” funding for its smart thermostat and accompanying cloud-based service. However, unlike consumer offerings, such as Nest, Hive or Tado, the company’s product is targeting large landlords, initially within the social housing sector.

The idea is to help social landlords both tackle fuel poverty amongst their residents and as part of their social remit, and to provide a scalable technology solution for managing their properties. This includes something akin to an early warning system for common housing stock maintenance issues, such as mould, poor insulation, or a failing boiler.

Leading the round is Fair by Design Fund, a new £15 million fund managed by Ascension Ventures and backed by Big Society Capital and Joseph Rowntree Foundation. It specifically targets companies tackling the U.K.’s poverty premium.

Other backers of Switchee’s latest round include Contrarian Ventures, an early stage energy fund backed by Lietuvos Energija (the largest energy provider in the Baltics), and AU Capital Partners, a VC fund focused on the U.K.-India corridor and investing in technology companies in IOT, Smart Cities and fintech. Previously Mustard Seed, and ClearlySo invested.

“We solve two problems, one on the resident side the other on the landlord side,” Switchee co-founder Ian Napier tells TechCrunch. “For residents, fuel poverty and high energy costs, with 1 in 10 households in the U.K. having to make a choice between ‘heating’ or ‘eating’. For landlords, the poor or non-existent data about their housing stock and resultant maintenance and repair inefficiencies. To give an idea on cost, the average annual maintenance spend per property is £4,000. We have even seen examples of Housing Associations not knowing which houses they own”.

Interestingly, Switchee has decided to build its own hardware rather than, say, piecing together existing consumer smart home solutions or simply white labelling a competitor’s offering. This is something Napier says the startup has routinely debated internally but decided that to deliver a smart thermostat that truly fits the needs of social landlords, it was necessary to be fully vertically integrated, with bespoke hardware working in tandem with the Switchee cloud service and landlord analytics.

And that seems to be working out quite well so far. Following two years of commercial pilots, including successfully deploying Switchee on a national scale last winter, the company says it is now working with over 40 of the U.K.’s leading social landlords, including Flagship Group, The Guinness Partnership, and Peabody, in addition to a number of Local Authorities and Councils.

“We sell the hardware, which landlords give to their residents for free. We also sell access to our landlord SaaS dashboard which aggregates sensory data from Switchee thermostats and presents housing management and welfare alerts. These data insights allow landlords to better understand and manage their large housing portfolios, and the communities they house, more efficiently”.

The Switchee device itself has temperature, light, motion, humidity and air pressure sensors, which it uses to learn occupancy and a property’s “thermal profile” i.e. how quickly it heats and cools. Based on this data, it then optimizes heating settings remotely — meaning that the Switchee device can be used passively, which Napier says is crucial for a non-direct to consumer offering — and as a result claims to reduce resident energy bills by up to 15 percent. It connects via 2G phone networks (in addition to WiFi) so as not to have to rely on a resident’s own internet connection.

“We can be passive ‘fit and forget’,” says Napier. “Switchee will automatically calculate optimum heating settings and regulate heating to reduce wastage and cut bills. Residents who receive a free thermostat can be less engaged than a consumer who chooses to buy a Nest or Hive… so we can’t rely on engagement. But we hope residents will love our technology and use it. We just don’t need them to if they have other things going on”.

The data the device collects is also used to produce a landlord dashboard displaying a range of welfare and maintenance KPIs and alerts such as mould risk, poor insulation, fuel poverty risk and boiler performance. “This facilitates a shift from reactive to pre-emptive maintenance, saving money and delivering better outcomes,” he says.

On the topic of data privacy, Napier says the Switchee team believe in using “data for good”. In this instance, to combat fuel poverty and to help social landlords care for properties and communities more effectively. “The real key to data privacy, we believe, is transparency and communication: we explain to residents what information we are collecting and why. And we always obtain consent before installing,” he says.

Asked specifically about the occupancy data the device collects and how it can be used, Napier says the company is not interested in the occupancy profiles that drive residents’ energy bill savings, only the outcome, i.e. lower energy bills. “Similarly, we don’t share raw occupancy with landlords, but we do have a couple of features derived from that occupancy. We can suggest convenient times for engineer, repair or other house visits. And we can alert landlords if we think a property has been abandoned,” he adds.

from TechCrunch

MoloFinance, a London-based fintech that is developing a “fully digital” mortgage solution, has closed £3.7 million in seed funding. The round is led by Ubon Partners, a Nordic fund specialised in financial services, and will be used to launch the company’s first product release later this summer.

Initially targeting ‘Buy to Let’ mortgages — i.e. people looking to buy property as an investment — while the company works through its regulatory approval process with the FCA, MoloFinance wants to offer an end-to-end mortgage process that is entirely digital and with the ability to give a near-instant decision.

The idea, says the startup, is to provide a frictionless experience for the customer whilst helping to eliminate any unnecessary costs related to the current process. Once FCA approved, MoloFinance plans to begin offering residential mortgages, too.

“The problem is simple: getting a mortgage today is a terrible experience, a painful process, based on obsolete practices, outdated in any other consumer experience,” MoloFinance co-founder Francesca Carlesi tells me. “Just try to compare the 4-6 weeks paper-based process of getting a mortgage with the instant set up of a current account online now available in most challenger banks”.

Carlesi says the status quo is entirely unnecessary as the technology needed to offer something a lot better is already here. Furthermore, customers are more than ready and future generations will expect instant, digital mortgages. “At Molo we are simply making it happen now,” she says.

This has seen the MoloFinance team design a fully digital mortgage journey, where most decisions are automated, most of the information needed is sourced digitally, and where a transparent “robo-advisor” substitutes puts the interest of customers first. “The net result is that we give people what they deserve for the most important financial decision of their life: speed, ease and lower costs,” argues Carlesi.

Similar offerings are already up and running in the U.S. and Australia, but in the U.K. the most disruptive forces, in the form of Habito and Trussle, have taken aim at mortgage brokerage. Carlesi concedes that these companies “have done a great first step” that was hugely overdue and that they can be considered MoloFinance’s closest peers but that the business model is “radically different”.

“We are not a broker, we don’t intend to disrupt the broker market. We are instead focusing on the overall lending process, from beginning to the end, with the goal to make the overall process quick, easy and more convenient and ultimately provide fully digital instant mortgages online. So in short we tried to solve the full problem that customers face today. As solving only one part of it in our view doesn’t solve the problem at all”.

On how MoloFinance plans to generate revenue, Carlesi says the startup will take a small share of the money made from the interest that a customer pays on their mortgage, leaving the majority for its funding partners. It won’t charge customers any unnecessary additional fees (e.g. broker fees, arrangement fees).

from TechCrunch

For the longest time, chips were a little bit boring. But the revolution in deep learning has now opened the market for startups that build specialty chips to accelerate deep learning and model evaluation. Among those is Israel-based Hailo, which is building deep learning chips for embedded devices. The company today announced that it has raised a $12 million Series A round.

Investors include Israeli crowdfunding platform Ourcrowd, Maniv Mobility, Next Gear, and a number of angel investors, including Hailo’s own chairman Zohar Zisapel and Delek Motors’ Gil Agmon.

Hailo tells me that it will use the new round, which brings its total funding to $16 million, to further develop its deep learning processors. The company expects samples to rich the market in the first half of 2019. Those chips will be able to run embedded AI applications in a wide range of settings, including drones and cars, as well as smart home appliances and cameras.

The key market for Hailo is the car industry, though. In that respect, it’s following in the footstep of other Israeli startups like Mobileye, which Intel eventually acquired.

“The 70-year old architecture of existing processors is inadequate to meet today’s deep learning and AI processing needs,” says Orr Danon, Hailo CEO. “Hailo is revolutionizing the underlying architecture of the processor to boost deep learning processing by several orders of magnitude. We have completely redesigned the pillars of computer architecture – memory, control and compute – and the relations between them.”

from TechCrunch

Drag-and-drop app builder startup Thunkable has launched a cross-platform version of its product that lets users create apps that work across Android and iOS.

The app builder is targeted at non-coders and first time developers, with the bold claim that the platform lets “anyone create beautiful and powerful apps”.

Users can choose from a variety of features and integrations for their apps, including Google Maps, Microsoft Image Recognition, payments through Stripe, and other APIs — and its capabilities like these that underpin Thunkable’s claim their app builder platform is superior to rival builders which only let people create apps using templates with limited capabilities. 

We covered the YC-backed startup back in 2016 when it had just launched its Android app builder platform, after forking the original interface the team had helped developed at MIT .

The team went on to secure additional seed funding after graduating YC, and now say they’ve raised a total of $3.3M — from Lightspeed Venture Partners, NEA, SV Angel, Y Combinator, PJC, Mandra Capital, Joe Montana’s Liquid 2 Ventures and ZhenFund. 

An iOS beta platform was also subsequently launched, in September 2017 — mainly, according to co-founder and CEO Arun Saigal, to get feedback on what would become the new cross-platform version — which they’re calling Thunkable ✕. (To be clear, that’s not a ‘X’ but a special character intended to denote the cross platform element.) The prior Android app builder is still available — but now called Thunkable Classic Android.

“Traditionally, building an app requires hundreds of thousands of dollars and two teams of engineers — one team for Android and one team for iOS. But now, non-coders can easily build their own apps on one platform, and these apps will work on Android devices, iPhones and iPads,” says Saigal in a statement. 

When we spoke to Thunkable in 2016 their app builder had around 50,000 users. It’s now up to more than 500,000, with more than 1M apps built using its drag-and-drop blocks style interface — apps which have a combined total of 16M monthly active users, across 195 countries.

“Thunkable ✕ is very robust in terms of ecosystem compatibility,” Saigal tells us. “All apps built on Thunkable ✕ are packaged natively for both Android and iOS operating systems, and are compatible with all Android and iOS devices.

“Specifically, Thunkable is compatible with all Android devices that are running Android 4.1 and above and all iOS devices that are running iOS 8.0 and above.”

“Our users have always built a wide variety of apps,” he adds. “On iOS, both the usage and types of apps have been similar to what we have seen on Android.”

Examples of apps built using the DIY platform which the team flags up include a dice throwing app (called Dice), built by two teenagers from Oregon which has gained more than 500,000 downloads on the Google Play Store; an app built by a user in India to help people study for the Indian Railway Exams — which has more than 1M MAUs; and an app created by a teacher from Iraq to help students learn how to speak English, which they say has been downloaded “thousands” of times and is being used throughout Iraq. 

Saigal says they’re seeing “major opportunities for first-time app developers all over the world” — emphasizing what he describes as “tremendous growth” in both emerging and developed markets.

He also says the “vast majority” of developers who come to Thunkable are still looking to build native mobile apps — playing down the notion that interest might be shifting away from building native apps to developing apps for the big tech platforms that are increasingly boxing up mobile users’ attention.

from TechCrunch

If you thought price comparison type online marketplaces were a done deal, you’re clearly mistaken. Motorway, a new startup from the team behind Top10 — the mobile and broadband comparison site that exited to uSwitch in 2011 — are back again, and this time they want to make it infinitely easier to sell your used car online.

To help with that mission, the young company, which formally launched in July 2017 after it had tested an MVP, has raised £2.75 million in seed funding led by LocalGlobe, and Marchmont Ventures (the VC fund of Hugo Burge, former CEO of Momondo, which sold to Priceline last year). Zoopla founder Alex Chesterman also participated.

Motorway had previously raised an angel round of £500,000 in the autumn of 2017 after the product had launched and was showing traction. Angel investors in that round included Duncan Jennings (founder of VoucherCodes.co.uk), Shakil Khan (early Spotify investor) and Christian Woolfenden (CEO of Photobox).

Tom Leathes, Motorway co-founder and CEO, says there are more than 8 million used cars sold annually in the U..K — which is more than 3x the number of new cars sold, apparently — but that the process of selling a car has gone largely unchanged for decades. This sees motorists having to visit multiple car dealers to negotiate a sale, or list privately on websites like AutoTrader or eBay. The other option is to use one of a number of online car buyers, such as WeBuyAnyCar, that provide a quick disposal option but in return prices paid are typically low. The London-based startup wants to provide a fourth option.

Namely — in classic price comparison fashion — Motorway makes it simple to compare the market and find the best deal for your car. In return, dealers get connected with motivated sellers instantly. Always be closing, as they say.

“Motorway makes selling a car faster by bringing the options online and enabling easy price comparison,” says Leathes. “Consumers enter their car’s registration number and mileage to instantly see multiple offers from car buying services, specialist dealerships and even vehicle recycling firms. They can then compare headline offers, read buyer reviews, collection criteria, fees and payment methods before choosing their best deal. By comparing offers, consumers can get up to £1,000 more than going directly to one buyer, and sell their car in 24 hours”.

In terms of typical customer, so far Motorway seems to have run the whole gamut of car owner. I’m told customers using the site have sold lots of Fords, Audis, VWs and Vauxhalls of all ages as well as Aston Martin DB9s, Porsche 911s and various Ferraris. “We’re building Motorway to help anyone looking to sell a car they own – no matter how old, its mileage, what brand or where it’s located,” adds the Motorway CEO.

Leathes cites competitors as established brands such as Auto Trader, We Buy Any Car, eBay and Gumtree, which are popular websites in the U.K. to sell your car. He says there are also a couple of early-stage startups in the space, but that none of these services offers a transparent price comparison experience with instant offers to buy your vehicle.

The revenue model is simple, too. The startup is paid a commission by the buyer when a car is purchased from a seller that found their offer through Motorway. “This means we’re aligned squarely with both consumers and car buyers, as we only make money when we successfully connect sellers with buyers and a deal is completed,” Leathes says. “Motorway’s goal is to help everyone find great offers for their car instantly. There’s a real perception that you need to be a car expert to get a good deal, and we think that needs to change”.

With over 25,000 customer sales enquiries per month, Motorway says the new funding will enable the startup to further develop its software platform, expand the network of buyers, and to market the service more widely.

Adds ​Suzanne Ashman, Partner at LocalGlobe: “Creating a compelling experience for people selling their cars is hard. The potential buyers are fragmented with many different online and offline options. Information about the sale process is difficult to find and pricing is often unclear. Motorway’s technology is exceptional and will bring much-needed transparency for car owners”.

Despite having three successful (or at least, moderately successful) exits behind them, the Motorway founders are used to doing hard things. A fourth venture — a hotel comparison site launched after they successfully bought back the Top10 domain name and subsequently backed by Accel and Balderton — shut down in 2015.

“Having had three successful startups before Top10, it was obviously a tough outcome for all of us. We built an amazing product and had decent growth, but it wasn’t 10x better than the competition, which it had to be to win in such an established market,” Leathes tells me. “After that we took almost a year working on ideas before deciding on Motorway. And we were pretty ruthless about launching something ourselves, proving it works and scaling it before raising any funding”.

from TechCrunch

WeWork is setting its sights on Southeast Asia, but that isn’t stopping local rivals from building up there business. In Indonesia, EV Hive — a co-working brand first started by a VC firm — has pulled in $20 million for expansion as its U.S.-based rival increases its focus on Indonesia.

The company was founded in 2015, by seed-stage investment firm East Ventures and a few friends, and today it counts 21 locations across Indonesia with eight more in development right now. This Series A round was led by Softbank Ventures Korea with new investors H&CK Partners, Tigris Investment, Naver, LINE Ventures and STIC Investments taking part.

Added to those names, a range of existing backers also put into the round, including East Ventures, SMDV, Sinar Mas Land, Insignia Venture Partners, Intudo Ventures and angel investors Michael Widjaya and Chris Angkasa.

EV Hive CEO Carlson Lau told TechCrunch that the firm plans to add 20 more locations next year as it expands its focus from Jakarta and Medan to cover more of the country, which is the world’s fourth largest with a population of over 250 million people. Further down the line, it aims to reach 100 spaces by 2022 with moves into markets like Thailand and Vietnam. The company makes its mark with large spaces — typically over 7,000 square meters per location — and it sees vast untapped potential in Indonesia, where Lau said there are 10 cities with populations of two million or more.

Lau said the company is already fielding expansion requests from overseas but for now the focus is growing a presence in Indonesia. The startup is also looking to do more for its members, which number some 3,000 plus as of May.

Not unlike WeWork, it is building out a services play which includes a member-based marketplace that lets fellow members sell services to each other. Typically, Lau said, the focus is areas like accounting, branding and marketing but where there are gaps, EV Hive is stepping up to offer its own services, too. The goal there is to increase revenue and broaden the services on offer.

“A a lot of co-working spaces compete on the same plain, whether it is design or giving away freebies, but we feel we have strong execution,” Lau said. “We fill out at the fastest space and the lowest cost. The nearest competitor has four spaces and just one-tenth of our floor space.”

“We’re also in a good position with a lot of top VCs invested in us and we’ve built an ecosystem of different community partners,” he added.

Lau ruled out potential acquisition-led expansion — that’s a route WeWork took to enter Southeast Asia, and it has also done the same in China — but he did concede that the co-working market in the region is getting crowded, particularly as those who started out “thinking the business is cool” begin to realize it is tougher than it looks.

“There will be a wave of consolidation in the coming months,” the EV Hive CEO predicted.

from TechCrunch

Grab, the ride-hailing firm that acquired Uber’s Southeast Asia business, is aiming to catalyze the early-stage startup scene in Southeast Asia after it launched an accelerator and investment unit called Grab Ventures.

The six-year-old company has already made investments and acquisitions — backing startups like Drive.ai and buying Indonesia’s Kudo and India-based iKaaz — and Grab Ventures will build on that by making 8-10 investments over the coming 24 month period, but it is also offering different kind of support. The firm will offer an accelerator program for “growth-stage” companies and play a hand incubating new services inside Grab, according to Chris Yeo, Head of Grab Ventures.

That accelerator effort — called ‘Velocity’ — will launch its first intake before the end of the year with around four to six companies per batch.

“It’s time for us to reflect on the tremendous support we’ve seen over the years and give back to the community,” he told TechCrunch in an interview. “We have a responsibility to empower the next generation of startups in Southeast Asia. We have a strong belief in taking a partnership approach, we know we can’t do it alone.”

On the partner side, Grab has recruited Singapore government agencies Info-communications Media Development Authority of Singapore (IMDA) and Enterprise SG to aid its efforts.

Taken together, Grab said it is aiming to help build an ecosystem of companies in Southeast Asia, a region of over 600 million consumers where the internet economy is tipped to grow from $50 billion per year in 2017 to over $200 billion by 2025, according to a recent report authored by Google. Ride-hailing as a segment is forecast to rise to $20 billion by 2025 up from $5 billion last year.

Grab believes that now it has reached scale with over 100 million downloads and more than 200 cities, the firm can help other startups rise up.

“Our object is to build new startups inside Grab and scale existing promising growth-stage startups. “Our hope for them is to grow from local leaders to regional champions and maybe global challengers,” said Yeo.

Grab Cycle is one business that Grab Ventures has incubated

Unlike traditional accelerator programs, Velocity isn’t aimed at a particular type of company while it is fairly general in terms of the stages that they are at. Yeo said the idea is to be flexible and work with companies that can benefit from Grab’s regional business and its various business units, which beyond taxis include food delivery, mobile payment and financial services.

“[Selection] depends on the startup, sector and industry,” Yeo explained. “Ideally they’ve got funding and are looking to scale up their business — which means typically going into more countries or accessing a larger customer base.”

However, Velocity will not take equity/offer investment as part of the program, although there may be investment opportunities with Grab Ventures further now the line, according to Yeo.

On the investment side, the focus is also broad, too.

Yeo said that Grab ventures isn’t a dedicated VC arm. There’s no set check size per investment (nor a total fund size) but it is broadly looking to back 8-10 companies in areas that align with Grab’s business, although financial services looks like being a major focus since Grab has already built a strong business in taxis, logistics and (most recently) food delivery.

Yeo said Grab would back more startups than that target if it finds the right opportunities. He said the business will identify opportunities using its teams in the eight markets that Grab is present. While Singapore, where Grab is based, is a key focus for the business alongside Indonesia, Southeast Asia’s largest economy and the world’s fourth most-populous country, Yeo said Grab Ventures will look for investment opportunities across the Southeast Asian region.

from TechCrunch

Barcelona-based online travel agency Exoticca — which sells “affordable luxury” holidays to popular destinations such as India, Kenya, Brazil, Thailand and South Africa — has closed a €3.5 million (~$4.1 million) Series A to expand into more markets.

The lead investor is early-stage Madrid-based VC K Fund, with existing investors Sabadell Venture Capital and Grupo Palau also participating, along with new investors Nero Ventures, Palladium Corporate Venture and Smartech Capital.

Exoticca was founded in 2013 and currently operates in three European markets: Spain, France and the U.K. The new funding will be put toward expanding that tally — with the German market next in line, and a launch into the U.S. and Canada also on the horizon. Funds will also be funneled into further developing the platform.

“The company spent the first couple of years developing the technological platform and sales have grown very rapidly since then (€4.4 million in 2016, €10.5 million in 2017 and a budget of more than €20 million for 2018),” says CEO Pere Valles, a recent recruit to the business and previously CEO of Scytl.

Valles argues that Exoticca’s progress to date proves both the profitability of its business model — noting that Spain was “the first market which Exoticca launched is already profitable” — and its replicability. “Last year we launched the U.K. and France and the U.K. is already bigger than Spain,” he says, adding: “In July, we are launching in Germany and we have plans to open in the U.S. and Canada in 2019.”

Valles says the market Exoticca is operating in is one of the few travel market segments that has not yet been digitized — with people still purchasing these types of trips in traditional “offline” travel agencies, owing to relative complexity, with the holidays typically having multiple legs and components, perhaps including international and domestic flights, land transportation, hotels in different locations, tour guides and so on.

Exoticca’s platform allows users to buy such trips online in a single visit, thanks to a proprietary booking engine that integrates with all the various providers — enabling real-time pricing for each component (so no need to phone up for an actual price before being able to book, for example).

“There is nobody else who provides real-time pricing for these types of trips through an online platform,” argues Valles. “Our competition uses internet only to generate leads and then close the sale either on the phone or in a store while we allow our customers to do the entire purchase process online in a single visit.”

There are some differences versus traditional bricks-and-mortar travel agents, though. Exoticca customers can’t spec out a very bespoke holiday in discussion with an agent, for example.

Rather it offers an inventory of around 50 trip packages in its permanent portfolio, covering what are described as “the most popular destinations” for its target travel category. (Though Valles points out it does offer a degree of light personalization — such as being able to pick a hotel category and optional excursions, for example.)

If you’re content to choose from the selection, Exoticca claims the trips are 30 percent cheaper on average versus “traditional providers” — as a consequence of the disintermediation process (i.e. it acting as both wholesaler and retailer).

“Each one of these trip packages is our ‘own’ product in the sense that we are the ones who ‘build’ it by engaging directly with the provider of each component,” says Valles, adding: “We also give our own personal touch to the tours in each one of these destinations.”

There’s a pretty striking branding style on show too — which features 1950s-esque graphics illustrating elements of the holiday packages and service…

Presumably the hope is the retro styling will resonate with the older adults who are the demographic most likely to be in the market for long-haul, luxury trips.

“We have customers in all age groups but those between 45 and 65 tend to be ‘overrepresented,’ ” agrees Valles.

He says the company is generally targeting a similar customer profile to that of GV-backed members-only travel club Secret Escapes.

Though they are not like-for-like competitors, with Exoticca’s product certainly having more of a focus on, well, exotic holidays — versus Secret Escapes offering hotel getaways to almost anywhere (so long as the hotel is up to snuff).

Other European online travel agency startups include the likes of Dreamlines, which is focused exclusively on cruise holidays to address a distinct market segment; and Evaneos, a marketplace for tailored travel experiences that connects travelers directly with a community of local travel agents — so is doing the lead generation Exoticca’s approach avoids.

Valles says the packages it sells are with “high-quality providers” (4- and 5-star hotels) but offered at “discounted prices” intended to appeal to a mass market of middle- and upper-class travelers.

The overall aim is to “democratize” this segment of the travel market. (“A great experience at a reasonable cost” is the pitch.) Though if they really succeed in widening the funnel they may end up undermining their luxury promise. But clearly that’s not something they have to worry about yet.

Funding wise, Valles says Exoticca previously raised €1 million in two seed rounds, one with F&F and another with Sabadell Venture Capital. The business is not breaking out any user or usage metrics at this stage, five years in.

from TechCrunch

French startup Lendix has raised a new funding round of $37 million (€32 million). With this new influx of cash, the startup has one goal in mind. It wants to become the leading lending marketplace of Continental Europe.

Idinvest and Allianz are leading the round, with CIR SpA (De Benedetti’s holding firm) also participating. Existing investors Partech, CNP Assurances, Decaux Frères Investissements and Matmut are also participating once again.

As of today, people living in France, Spain and Italy can sign up to lend money to companies established in those three countries. But the startup is already working hard to expand to the Netherlands and Germany before the end of the year. Next year, Lendix plans to operate in 7 countries.

And it seems like it’s becoming easier to launch new markets. There are now quite a few users and institutional investors on the platform. Lendix doesn’t need to attract Dutch users to start lending to Dutch companies. French, Italian and Spanish users are already willing to put some money in Dutch companies. It’s a true European user base because everybody uses the same currency.

With today’s funding round, it’s going to be easier to launch in Germany. “When you want to open in Germany — and that is our current plan — it’s harder to recruit if you don’t have a German brand name behind you,” co-founder and CEO Olivier Goy told me.

That’s why Allianz is going to be more than just a financial backer. For instance, the insurance company is going to promote Lendix to its corporate clients so that they think about Lendix if they need to borrow some money.

It’s another proof that Lendix doesn’t want to be a French company that operates in other countries. The company also has opened an office in Madrid and another one in Milan with local teams.

Lendix is still a drop in the bucket compared to traditional bank loans. But the company wants to differentiate its product offering from regular banks as much as possible.

Right now, when a company requests a loan, the company’s algorithms are going to work on a basic credit scoring. After that, somebody calls the company to ask a few questions. The Lendix team can focus on more specific information.

“We also have developed a tool called Iris,” CTO Benjamin Netter told me. “It is going to become the biggest intelligence database for European companies.”

France is leading the way when it comes to open data. You can now access the registry of commerce, the identification number database and important incorporation events. But it’s a mess if you want to access this data. There are different file formats, and the same database uses different fields depending on the region of France.

Lendix has been parsing all this data to turn it into an actionable database. This way, Lendix can get a clear overview of companies that apply for a loan.

The company doesn’t plan to stop there. You could use Iris to detect some fraud patterns. For instance, a person could keep incorporating new companies and shutting them down quickly.

Eventually, you could reach out to companies before they need to apply for a loan. Netter mentioned a restaurant called Street Bangkok. They’ve opened three restaurants over the past six months. It’s clear that they might need some money at some point to invest in new restaurants. Lendix Iris could spot those patterns.

Lendix is still nowhere near as big as Funding Circle. But the company thinks there’s enough room for multiple players in this space. Both can grow at the same time by competing with traditional banks.

And it starts by being faster than a traditional bank. Companies get a rate within 48 hours. “Our goal is that you should be able to get a rate within half a day,” Goy said. Banks will have a hard time giving you an answer so quickly.

Disclosure: I share a personal connection with an executive at CNP Assurances.

from TechCrunch