Wednesday 14 October 2020

Nuvemshop, a Latin American answer to Shopify, raises $30 million

After several failed startup attempts and nine years spent building Nuvemshop into Latin America’s answer to Shopify, the four co-founders of the company have managed to raise $30 million in venture capital funding as they look to expand their business.

The new funding came from previous investor Kaszek Ventures and new lead investor Qualcomm, with participation from FJ Labs, IGNIA, Elevar Equity and Kevin Efrusy, from the longtime Accel Partners investor’s personal wealth.

It’s been a long road since Santiago Sosa, Alejandro Vazquez, Martin Palombo and Alejandro Alfonso first began working together in Buenos Aires. The quartet started on their entrepreneurial journey trying to develop a marketplace software product for Latin America, but when that didn’t take off, they turned their attention to a more basic problem — how to get small and medium-sized businesses selling online.

Now the company boasts 65,000 businesses that use its platform providing everything from billing and payment processing to logistics and shipping solutions transacting over $100 million per month in sales. Operating as Nuvemshop in Brazil and Tiendanube in the rest of the region, the company has offices in São Paulo, Buenos Aires and Mexico City, with plans to expand into Colombia and Peru in 2021.

Nuvemshop began as more of a consulting business and evolved into the suite of software tools that have managed to attract attention from investors like Qualcomm Ventures.

“Nuvemshop’s platform accelerates a company’s digital transformation and has enabled thousands of SMBs across Latin America to go digital by tapping into the company’s one-stop shop of seamlessly integrated solutions,” said Alexandre Villela, senior director of Qualcomm Technologies Inc. and managing director at Qualcomm Ventures Latin America. “We share their strong engineering focus and look forward to helping them scale their business with our investment.” 

Nuvemshop raised its first money in 2015 from Kaszek Ventures (a $5 million investment), and, as the business picked up steam, raised $7 million more from local investors.

It makes money by charging a subscription fee that begins at $3 per month and a transaction fee that decreases as customers buy more expensive subscription packages.

Now that the company has an established footprint in the region, it’s going to focus on three new areas of growth, according to chief executive, Santiago Sosa.

Nuvemshop chief executive, Santiago Sosa. Image credit: Nuvemshop

The company plans to launch a payment processing and logistics gateway of its own. That marketplace will give customers access to more robust shipping solutions thanks to the power of bundling lower demand into a single delivery and ordering system. Nuvemshop also pitches its customers an app store for connecting them to new developer tools.

Finally, the company intends to offer a broader array of financial services. It already offers payment processing, but will look to develop additional services around lending based on revenue.

Like Shopify, Nuvemshop provides a necessary ballast to the big e-commerce aggregation sites like MercadoLibre and Amazon. “Everything they do they try to optimize for the buyer,” Sosa said. That places incredible pricing pressure on retailers and Nuvemshop offers a direct sales alternative, with lower fees, according to Sosa.

The pent-up demand that Sosa sees, is fairly astonishing.

“People are talking about e-commerce penetration going from [roughly] 10% over total retail sales to [roughly] 20%, as it has happened in other countries. We see it differently, as we envision a massive disruption around commerce in the next 15 years, and are pretty confident that [roughly] 90% of retail will be somehow tech-enabled,” said Sosa, in a statement. 

 



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Kegg, a connected fertility tracker and Kegel trainer for women, launches out of beta

Fertility tracking has seen an explosion of startup activity in recent years. Femtech startup Lady Technologies is adding to this rich mix with the full U.S. launch of a dual-purpose device, called kegg, that’s designed to measure hormonal changes in a woman’s cervical fluid to help her determine the chance of conception on a given day.

The egg-shaped gizmo, which features a gold-plated steel cap and band ringing its tip, as well as a silicone tail to house its Bluetooth radio (so it can chat to the companion app), doubles as a connected pelvic floor trainer (the “k” in kegg is for “Kegels”) — taking a leaf out of U.K. femtech pioneer Elvie’s playbook. Though the two-in-one function is a new twist.

Kegg relies on a technology called impedance to sense electrolyte levels in a woman’s cervical fluid in order to detect the hormonal switch from estrogen to progesterone dominance that accompanies ovulation — via a daily test that’s touted as taking just two minutes. (If you’re also using it for the optional Kegal exercises that would take a bit longer.)

“A minute electrical impulse at a specific frequency is emitted from the gold-plated electrodes on the kegg and received by the other (this process is then reversed). By sensing the changing trends in the impedance, we’re able to detect the hormonal change and make a prediction to the user,” explains CEO and founder Kristina Cahojova. “Since every woman’s fluids are slightly different, kegg needs to record at least one fertile window to provide personalized predictions.”

“We have numerous patents on the underlying design of kegg and key aspects of how it operates,” she adds.

Kegg was unveiled on the TechCrunch Disrupt SF stage, back in 2018, as part of our startup battlefield competition (though it didn’t go on to win). Fast-forward two years and it’s now officially launching out of beta to offer the FDA-registered gizmo to the U.S. market — priced at $275.

It’s announcing a $1.5 million seed round too, with investors including Crescent Ridge Partners, SOSV, Texas Halo Fund, Fermata Fund and MegaForce, as well as some unnamed angel investors.

Commenting in a statement, Samina Hydery, kegg advisor and women’s health investor, said: “Investor interest in femtech and fertility has accelerated over the last few years. While I’ve seen an influx of ovulation prediction kits, at-home blood tests, menstrual tracking apps, and temperature monitors in the consumer market, kegg’s value proposition became clear once I spoke with women about their experiences trying to conceive and medical researchers in the field. It’s hard not to get excited by the various growth vectors that can expand kegg’s market in the future — from being used as a tool for natural family planning to helping monitor postpartum/perimenopausal health.”

“We pride ourselves in having almost half of our investors women,” notes Cahojova — whose inspiration for building kegg was personal, having suffered from irregular menstrual cycles herself.

“I didn’t want to be treated with hormones. When I talked to fertility instructors or a specialized fertility doctor, all they wanted to know about was my patterns of cervical fluid. Why? Because the fertile window is defined only by the presence of fertile cervical fluid, having a positive LH [luteinizing hormone] test is nice but it won’t help you get information to fix your cycles. That’s why so many fertility doctors are interested in cervical fluid and that is why so many women are told to track it with their fingers,” she explains.

“How on earth are you supposed to be able to track objectively something so important, yet private, without the help of technology? I was frustrated and angry that every company that I talked to didn’t have a solution and didn’t want to make this so-needed product because it ‘would have to go into the vagina’. So I set out to make a product that would help me and women like me.”

Thus far kegg has been hitting a chord with U.S. women of reproductive age who are trying for a baby, according to Cahojova — who says her startup has built a 2,000-strong community of fertility-tracking women over kegg’s beta period.

“Our typical user is a woman in her reproductive age,” she says. “Our users are in long-term relationships or married and they likely have been actively trying to conceive for more than three months. Fifty percent are trying to conceive their first child, while the remaining are already mothers.

“Our customers have experience with BBT (body basal temperature charting) or LH tests (ovulation tests) and they are overall interested in holistic fertility and wellness, not in medication. They also prefer the convenience of kegg over other methods that either need to be worn throughout the night or used more frequently.”

Image credit: Lady Technologies

“Each woman is unique and so are her cycles,” she adds. “Unlike ovulation trackers, kegg helps women understand their fertile window and cyclical fertility and follow their own patterns. Usually women take up to six months to learn how to read cervical fluid patterns. Our customers report that kegg gives them confidence and they feel empowered. Many keggsters conceived with kegg after years of trying because kegg gave them trends beyond ovulation. Nothing makes me more happy than an email from a customer whose life changed thanks to my work and kegg.” (On that it says “several” women have reported successful pregnancies using kegg since the beta launch in 2018.)

The startup also has its eye on international expansion, including to Asia (with the support of its Japanese market-focused investor Fermata) — with a plan to launch kegg in Singapore in late October, and in Japan and Canada next year.

While the kegg has a core focus on fertility tracking (and a secondary feature as a connected pelvic floor trainer), Cahojova is excited about wider possibilities for women’s health that she hopes will be opened up as they’re able to take in and crunch more data.

Kegg users’ impedance readings are uploaded to the startup’s cloud for analysis, so its algorithms can make a personalized fertility prediction. But its website also notes it uses “anonymized/pseudonymized” data for research into women’s health. (Cahojova specifies users’ personal data is never shared outside the company. “Any data we offer to researchers we work with is completed anonymized,” is her privacy promise.)

Asked what areas of research she’s hoping kegg will help advance, she tells us: “Researchers have noted that health issues can affect typical electrolyte cycles. In many of our internal studies we’ve seen examples where readings were ‘out of norm’ for the user. In case after case we found evidence of underlying health issues (for example infections) were the cause. In the future our goal is to understand how kegg can help monitor overall cervical health.”

Cahojova also says the device is being used by fertility instructors and doctors to help with monitoring their patients. “The beauty of kegg is that by having a user-friendly and modern device that women like to use we can get data on changes of vaginal fluids on a large scale. With kegg data we also hope to help doctors finally answer their billion-dollar question — how can they improve the quality of cervical fluid.”

“We are supportive of science and are open for research collaborations,” she adds. “We provided kegg for independent peer-reviewed clinical study under Dr. Gabriela López Armas, MD, PhD, for her research on kegg and other fertility trackers. All the participants finished the protocols in summer of 2020 and the study is to be published independently in the near future.”

While the business model for kegg is currently fixed-price hardware sales, Cahojova says the startup is looking at offering subscription packages in the future. “In the future, we want to offer more to our users, e.g.: connecting them to specialists to review their cycles or view of additional layers of information. Once we have enhanced services ready, we’ll look at switching to a subscription model,” she adds.



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Tuesday 13 October 2020

Spendesk raises another $18 million for its corporate card and expense service

French startup Spendesk has added $18 million to its Series B round. The company already raised $38.4 million as part of its Series B last year, which means that it raised $56.4 million as part of this round. Eight Roads Ventures is investing in today’s extension round.

Spendesk, as the name suggests, focuses on all things related to spend management. The company issues virtual and physical cards for employees, lets you set up an approval workflow and manages expense reimbursements. It can also centralize all your invoices and receipts on the platform.

By centralizing everything on the same platform, it lets you control your spending in real time and save time on accounting tasks. Reconciliation is easier if you combine transactions and receipts on Spendesk. Clients can also export data to Xero, Datev, Netsuite or Sage.

Image Credits: Spendesk

For big expenses, you can send a request to your manager. If they approve your request, you receive a single-use virtual card for that expense.

Similarly, if your company gives you a physical debit card, you get a pre-defined budget. Your manager can top up your card for big expenses, block ATM withdrawals, block weekend transactions and more. Employees can check their payments from the mobile app, see their card balance and add receipts.

Spendesk is a software-as-a-service product with a monthly subscription fee. While transactions have probably slowed down due to the economic crisis, the company says that its subscription revenue has doubled year-over-year. In just a year, the company grew from 100 to 200 people.

It remains focused on small and medium companies across Europe. There are 40,000 people using Spendesk through their companies. Clients include Algolia, Curve, Doctolib, Raisin and Wefox. The company has hired Joseph Smith as Chief Revenue Officer, pictured left above with the company’s CEO Rodolphe Ardant (pictured right).

Image Credits: Spendesk



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Join Yext’s Howard Lerman for a live Q&A today at 2 pm EDT/11 am PDT

Today’s the day! This afternoon at 2 p.m. EDT/11 a.m. PDT, Yext CEO Howard Lerman will join TechCrunch for a live chat.

The conversation is part of our continuing Extra Crunch Live series, now in its second season. What are we up to in the second installment of the conversations? The same as before, bringing the most interesting founders and investors ’round for a chat that you can contribute to by bringing your own questions. (Make sure you’re signed up so you can jump right in.)

As we wrote last week, Lerman is not just another public company CEO: His company, Yext, has some old-fashioned history with TechCrunch, having pitched at one of our events back in 2009. It went well, with Yext quickly raising money afterward.

We’ll spend a little bit of time in the past talking about Yext’s history as a startup. I want to know at what stage did Howard begin to consciously prep Yext for an IPO — the company went public in 2017 — and how long until he felt the company was ready? Given that we just came off one of the most active quarters in recent history for technology companies going public, it’s a good time to dig into the matter.

We’ll also get Howard’s take on the public markets in 2020 and whether he was happy with Yext’s IPO timing.

For the early-stage founders in the crowd, we have stuff prepped for you as well. Yext has moved from a business best-known for building a system that helps companies keep their diverse online listings up to date with their most pertinent information, to a search-first company that is leading its customer acquisition cycles with its “Answers” product.

How did the company manage to build the latter while eating off the former, and how has the company balanced its continued development since? What can startups learn from the choices that Yext has made?

And, TechCrunch recently reviewed Howard’s social media posts regarding Black Lives Matter: “As CEO, I will see to it that our company continues to be advocates for equality and justice.” So, how does he view the role of politics inside of tech companies, and what advice does he have for founders who are looking to build a lasting culture?

It’s going to be a great chat. Make sure you’ve signed up for Extra Crunch and I’ll see you in a few hours.

Bring your best questions. Howard is a good chat, so he’ll have something to say if you ask something great. Details after the jump.

Details

Below are links to add the event to your calendar and to save the Zoom link. We’ll share the YouTube link shortly before the discussion:



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Caliber, with $2.2 million in seed funding, launches a fitness coaching platform

The coronavirus pandemic has thrown the fitness space for a loop. Caliber, a startup that focuses on one-to-one personal training, is today launching a brand new digital coaching platform on the heels of a $2.2 million seed round led by Trinity Ventures.

Caliber launched in 2018 with a content model, offering an email newsletter and a library of instructional fitness content.

“My cofounders started testing the idea of coaching people individually and that’s where the light bulb really went off,” said cofounder and CEO Jared Cluff. “They saw that more than anything, people need expert guidance and a really genuinely personalized plan for their fitness routine.”

That was the origin of Caliber as it is known today.

When users join the platform they are matched with a Caliber coach. The company says that it brings on about five of every 100 applications for coaches on the platform, accepting only the very best trainers.

These coaches then take into account the goals of users and build out a personalized fitness plan in conjunction with the user, which begins with a video or phone consultation. Once the plan, which is comprised of strength training, cardio and nutrition, is finalized, the coach loads it into the app.

Users then follow the instructions from their instructor via the app and log their progress. Interestingly, these aren’t live video appointments with a trainer, but rather an asynchronous ongoing conversation with a coach that is facilitated by the app.

Users can also integrate their Apple Health app with Caliber to track nutrition and cardio, giving the coach a full 360-degree view of their progress.

Alongside providing feedback and encouragement, the coach ultimately provides a layer of accountability.

[gallery ids="2059748,2059750,2059751,2059752"]

This combination of real human coaching in a less synchronous, time intensive manner has allowed for Caliber to charge at a higher price than your standard workout generator apps but come in much lower than the average cost of an actual, in-person personal trainer.

Most Caliber users will pay between $200 and $400 per month to use the platform. Coaches, which are 1099 workers on Caliber, take home 60 percent of the revenue generated from users.

Pre-launch, Caliber has more than tripled its membership across the last six months and increased the number of workouts per member by 150 percent, according to the company. Cluff says the startup is doing north of $1 million in annual recurring revenue.

Of the 41 trainers on the platform, 37 percent are female and about a quarter are non-white. On the HQ team, which totals seven people, one is female and two-thirds of the founding team are LGBTQ.

“The biggest challenge is not dissimilar to the challenge we faced at Blue Apron, where I was most recently, in that we wanted to create the category around mealkits,” said Cluff. “We want to build a category around fitness training in a space that is super fragmented with no branded leader.”



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India’s Razorpay becomes unicorn after new $100 million funding round

Bangalore-headquartered Razorpay, one of a handful of Indian fintech startups that has demonstrated accelerated growth in recent years, has joined the coveted unicorn club after raising $100 million in a new financing round, the payments processing startup said on Monday.

The new financing round, a Series D, was co-led by Singapore’s sovereign wealth fund GIC and Sequoia India, the six-year-old Indian startup said. The new round valued the startup at “a little more than $1 billion,” co-founder and chief executive Harshil Mathur told TechCrunch in an interview.

Existing investors Ribbit Capital, Tiger Global, Y Combinator and Matrix Partners also participated in the round, which brings Razorpay’s total to-date raise to $206.5 million.

Razorpay accepts, processes and disburses money online for small businesses and enterprises. In recent years, the startup has expanded its offerings to provide loans to businesses and also launched a neo-banking platform to issue corporate credit cards, among other products.

Mathur and Shashank Kumar (pictured above), who met each other at IIT Roorkee, started Razorpay in 2014. They began to explore opportunities around a payments processing business after realizing just how difficult it was for small businesses such as young startups to accept money online less than a decade ago. There were very few payment processing firms in India then, and startups needed to produce a long list of documents.

The early team of about 11 people at Razorpay shared a single apartment as the co-founders rushed to meet with over 100 bankers to convince banks to work with them. The conversations were slow and remained in a deadlock for so long that the co-founders felt helpless explaining the same challenge to investors numerous times, they recalled in an interview last year.

To say things have changed for Razorpay would be an understatement. It’s become the largest payments provider for business in India, said Mathur. Razorpay, which competes with Prosus Ventures’ PayU, accepts a wide-range of payment options, including credit cards, debit cards, mobile wallets and UPI.

“Razorpay has established itself as a clear leader, with its strong focus on customer experience and product innovation,” said Choo Yong Cheen, chief investment officer for Private Equity at GIC, in a statement. “GIC has a long track record of partnering with leading fintech companies globally and is delighted to partner with Razorpay in its journey to transform payments and banking.”

Some of Razorpay’s clients include budget lodging decacorn Oyo, fintech firm Cred, social giant Facebook, e-commerce Flipkart, top food delivery startups Zomato and Swiggy, online learning platform Byju’s, supply chain platform Zilingo, travel ticketing firms Yatra and Goibibo, and telecom giant Airtel.

The startup expects to process about $25 billion in transactions — up five times from last year — for nearly 10 million of its customers this year, said Mathur.

He attributed some of the growth to the coronavirus pandemic, which he said has accelerated the digital adoption among many businesses.

On the neo-banking and capital side, Mathur said, Razorpay expects RazorpayX and Razorpay Capital to account for about 35% of the startup’s revenue by the end of March next year.

Mathur said the startup’s payment processing service continues to be its fastest-growing business and does not need much capital to grow, so the startup will be deploying the fresh funds to expand its neo-banking offerings to include vendor payment, and expense and tax management and other features.

The startup, which aims to work with more than 50 million businesses by 2025, may also acquire a few firms as it explores opportunities around inorganic expansion in the neo-banking category, said Mathur.

“We will continue to make an impactful contribution to the growth of the industry, aid adoption in the under-served markets and drive new practices and a new thinking for the industry to follow. And this investment fits perfectly with our growth strategy,” he said.

While the coronavirus pandemic has slowed down deal-makings in India, about half a dozen startups in the country, including online learning platform Unacademy, and Pine Labs, have secured the unicorn status.



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With thousands of subscribers, The Juggernaut raises $2 million for a South Asian-focused news outlet

As paid newsletters grow in popularity, Snigdha Sur, the founder of South Asian-focused media company The Juggernaut, has no qualms about avoiding the approach entirely. In October 2017, Sur started The Juggernaut as a free newsletter, called InkMango. As she searched for news on the South Asian diaspora, she found that articles lacked original reporting, aggregation was becoming repetitive and mainstream news organizations weren’t answering big questions.

Then InkMango crossed 700 free readers, and Sur saw an opportunity for a full-bodied media company, not just a newsletter.

One year and a Y Combinator graduation later, The Juggernaut has worked with more than 100 contributors (both journalists and illustrators) to provide analysis on South Asian news. Recent headlines on The Juggernaut include: The Evolution of Padma Lakshmi; How Ancestry Test Results Became Browner; and How the Death of a Bollywood Actor Became a Political Proxy War. The network approach, instead of a single newesletter approach,aggreff is working so far: Sur says that The Juggernaut has garnered “thousands of subscribers.” During COVID-19, The Juggernaut’s net subscribers have grown 20% to 30% month over month, she said.

On the heels of this growth, The Juggernaut announced today that it has raised a $2 million seed round led by Precursor Ventures to hire editors and a full-time growth engineer, and expand new editorial projects. Other investors in the round include Unpopular Ventures, Backstage Capital, New Media Ventures and Old Town Media. Angels include former Andreessen Horowitz general partner Balaji Srinivasan; co-founder of Kabam, Holly Liu; and co-founder of sports-focused publication The Athletic, Adam Hansmann.

Currently, The Juggernaut charges $3.99 a month for an annual subscription, $9.99 a month for a monthly subscription and $249.99 for a lifetime subscription to the news outlet. It also offers a seven-day free trial (with a conversation rate to paid at over 80%) and has a free newsletter, which Sur says will remain free to bring in top-of-the-funnel customers.

The Juggernaut is part of a growing number of media companies trying to directly monetize off of subscriptions instead of advertisements, such as The Information, The Athletic, and even our very own Extra Crunch. If successful, the hope is that paid subscriptions will prove more sustainable and lucrative than advertising, which still dominates in media.

But Sur is purposely pacing herself when it comes to expenses in the early days. The team currently has only three full-time staff, including Sur, culture editor Imaan Sheikh and one full-time writer, Michaela Stone Cross.

Snigdha Sur, the founder of The Juggernaut.

“Sometimes at media companies people over-hire and over-promise, and then don’t deliver on the profitability or return,” she said. For this reason, The Juggernaut largely works with “freelancers who would probably never join any specific publication,” Sur said. While The Juggernaut hopes to have full-time staff writers eventually, the contributor approach helps temper spending.

Beyond pace, The Juggernaut is looking to build up its subscriber base by writing stories that require deep, creative thinking. The publication intentionally does not cover commoditized breaking news, which could have the potential to bring in more inbound traffic, or anything that doesn’t have a South Asian connection.

Sur is living the stories that she is working to tell. Born in Chhattisgarh, India, she grew up in the Bronx and Queens in New York City, and spent time living and working in Mumbai, India. Since founding The Juggernaut, her goal for the publication has been to be a place for not just South Asians, but for “anyone who has a form of curiosity and appreciation” for South Asian culture.

“We try not to translate words we don’t have to do, we’re not trying to dumb this down, we’re not trying to write for the white teen,” she said. “We’re trying to write for the smart, curious person. And we’re going to assume you know stuff.”



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