12 April 2021 – Food Delivery Service Swiggy Raises $800m

The Big Ones

India-based food delivery service Swiggy has raised $800m from Prosus Ventures, Falcon Edge, Goldman Sachs, Amansa Capital, Think Capital, Carmignac and Accel. The round is said to have boosted the company’s post-money valuation to $5bn. Swiggy runs an app where users can order food for delivery from local restaurants, and is one of two large players in the Indian market, along with Zomato, which raised $250m at a $5.4bn valuation in February this year. Swiggy had raised a total of $1.62bn as of a series I round featuring Prosus Ventures, Tencent, Samsung and Meituan Dianping in April 2020. Swiggy’s earlier backers include Naspers,Tencent, Meituan Dianping and Wellington Management as well as DST Global, Coatue Management, Hillhouse Capital, Accel, Harmony Partners, Norwest Venture Partners, RB Investments and SAIF Partners.

Japan-listed spark plug producer NGK has partnered US-based venture capital firm Pegasus Tech Ventures to form a $100m corporate venture capital fund. The vehicle will target developers of smart health, decentralised utility and mobility technologies in the United States, Europe, Israel and Asia. NGK has also entered into a strategic agreement with Pegasus in areas including business creation and mergers and acquisitions. Pegasus already has multiple investment initiatives in place with 35 corporations including Aisin, Sega Sammy, Sojitz, SunnyHealth, CAC Holdings, Teijin, Infocom and Innotech from Japan, as well as Taiwan-headquartered Asus and Acer.

Sarcos Robotics, a US-based industrial robotics technology manufacturer backed by Microsoft, Caterpillar, Delta and Schlumberger, agreed to list through a reverse merger with SPAC Rotor Acquisition Corp in a transaction that will value them at a combined $1.3bn. Sarcos produces robotic exoskeletons that help users lift heavy objects while preventing injuries. The merged business, Sarcos Technology, will take the spot on the New York Stock Exchange secured by Rotor in a $240m initial public offering in January. Caterpillar Venture Capital, Schlumberger and Palantir are backing a $220m PIPE financing for the deal with Millennium Management, Jaws Estates Capital, Michael Price and funds and accounts managed by BlackRock.

Crossover

Icosavax, a US-based vaccine developer exploiting research from University of Washington (UW) completed a $100m series B round led by RA Capital Management. Sanofi’s strategic investment arm, Sanofi Ventures, also took part, as did Janus Henderson Investors, Perceptive Advisors, Viking Global Investors, Cormorant Asset Management, Omega Funds, Open Philanthropy and Surveyor Capital. Qiming Venture Partners USA, Adams Street Partners and ND Capital (formerly known as NanoDimension) filled out the round, having joined Sanofi Ventures in the company’s $51m series A round in 2019. Icosavax will put the series B funds towards advancing vaccines for bivalent respiratory syncytial virus and human metapneumovirus through their first clinical studies. The capital will also support ongoing evaluation of a potential vaccine for covid-19 and the growth of a pipeline of vaccine candidates utilising its computationally designed virus-like particle technology, which stems from research conducted at UW’s Institute for Protein Design.

Deals

Dingdong Maicai, a China-based online grocer backed by Red Star Macalline and Bertelsmann, has raised $700m in series D funding co-led by DST Global and Coatue, while Sequoia Capital China, Tiger Global Management, General Atlantic, CMC Capital, Ocean Link, Capital Today and Hony Capital participated as existing backers. The round was filled out by new investors Aspex Management, 3W Fund Management, APlus Partners, Mass Ave Global and Cygnus Equity. No word on a current valuation, but Dingdong Macai was reportedly worth $2bn following its previous round in May 2020.

SoftBank’s Vision Fund 2 has co-led a $640m series E round for Singapore-headquartered intelligent retail technology provider Trax with BlackRock. The round included Sony Innovation Fund by IGV2, a corporate venture capital vehicle for consumer electronics producer Sony, in addition to pension fund manager Omers, and it valued the company at $2bn, according to Globes. Trax provides computer vision and artificial intelligence-equipped technology that tracks in-store conditions and stock levels to help grocery retailers and consumer packaged goods producers make more effective decisions in real time. It has now raised $975m in total.

SoftBank’s Vision Fund 2 led a $210m second tranche for US-based security and governance software provider OneTrust that took its series C round to $510m. Franklin Templeton also took part in the second close, which followed a $300m tranche featuring TCV and existing investors including Insight Partners and Coatue in December 2020. The final close came at a $5.3bn post-money valuation. The round’s close increased the company’s overall funding to $920m, including $200m raised in a series A round led by Insight Partners at a $1.3bn post-money valuation. Coatue and Insight Partners then co-led a $210m series B round in February 2020 valuing it at $2.7bn.

India-based multilingual social networking service ShareChat secured $502m in series E funding from investors including social media operator Snap and microblogging platform Twitter. Tiger Global Management led the round, which included venture capital firm Lightspeed Venture Partners and undisclosed additional backers. It valued the company at $2.1bn and increased its funding to $765m since it was founded in 2015.

Kavak, a Mexico-based used car marketplace platform backed by SoftBank, has raised $485m of series D funding at a $4bn valuation. D1 Capital Partners led the round, which also featured Founders Fund, Ribbit Capital and Bond. Kavak has built an online platform that lets users buy and sell used cars in Mexico, Argentina and Brazil. It also offers financing through subsidiary Kavak Capital and carries out reconditioning and vehicle delivery. The round increased the company’s total funding to $900m and followed a round of undisclosed size co-led by SoftBank, DST Global and Greenoaks Capital in September 2020 at a $1.15bn valuation.

Prosus Ventures, the investment arm of Prosus, is co-leading a $350m funding round for India-based online pharmacy PharmEasy. The round consists of primary and secondary funding and is being co-led by TPG Growth. It included Eight Roads Ventures – part of investment and financial services group Fidelity – as well as Temasek, Caisse de dépôt et placement du Québec, LGT Lightrock and Think Investments. The latest round reportedly valued API Holdings, the holding company for PharmEasy, at $1.5bn post-money. It said it has closed $323m of the capital, with the remaining $27m set to be closed soon.

SoftBank’s Vision Fund 2 has led a $300m funding round for India-based online reselling platform developer Meesho at a $2.1bn valuation. Facebook and Prosus Ventures also took part, as did Shunwei Capital, Venture Highway and Knollwood Investment. Meesho operates an online platform through which users can connect and sell to customers on social media. Its core group of sellers are female small business owners, and it manages payment, order management and logistics on their behalf. The round took Meesho’s total funding to $490m.

CloudMinds, a China-based robotic technology developer backed by SoftBank and Foxconn, has raised over $153m in series B-plus funding co-led by Shanghai Chengtou Group and Guosheng Group, investment vehicles for the city of Shanghai’s municipal government. CloudMinds filed for a $500m initial public offering on the New York Stock Exchange in July 2019, but the SEC ruled in February this year that it be declared abandoned after the company failed to respond to requests for clarification on its status.

Funds

Egypt-headquartered venture capital firm Algebra Ventures launched its $90m second fund on Tuesday with backing from limited partners including Cisco. The European Commission, European Bank for Reconstruction and Development, Egyptian-American Enterprise Fund and International Finance Corporation are also among the LPs, as are undisclosed private family offices. Algebra Ventures has not disclosed how much it has so far raised for the fund but it expects to reach a first close in the third quarter of 2021. It closed its first fund at $54m.

Exits

Compass, the US-based real estate software provider backed by SoftBank and Advance Publications, has gone public in a $450m initial public offering on the NYSE. The offering consisted of 25 million shares priced at $18 each, at the foot of an $18 to $19 range cut from $23 to $26 at the same time the size of the offering was reduced from 36 million shares. As of the time of recording, on Friday afternoon UK time, shares are down by more than 17.5% and trading at $16.60. Compass has built an online platform that provides extensive listings of homes for sales. It made a $270m net loss in 2020 from $3.72bn in revenue. It had raised about $1.5bn in funding and was reportedly valued at $6.4bn as of a series G in January 2020.

Krafton, a South Korea-based video game publisher backed by Tencent, has filed for an IPO. The company was valued at $18bn in off-exchange trading yesterday, while the IPO is set to be one of the largest in the country this year, unnamed local sources told Reuters. Founded by computer game studio Bluehole as a holding group in 2018, Krafton owns multiple brands including Bluehole Studio, PUBG Studio and Striking Distance Studios. Its lead product, PlayerUnknown’s Battlegrounds, has about 55 million daily users in countries outside China and has sold 70 million copies. Tencent invested $61.5m in Bluehole in 2017 and later returned to make a $468m secondary investment the following year to increase its stake in the company to a reported 11.5%.


“Funky Chunk” Kevin MacLeod (incompetech.com)
Licensed under Creative Commons: By Attribution 3.0

01 April 2019 – Uber to Acquire Careem for $1.4bn

The Big Three

Uber has confirmed it will acquire Careem, its biggest rival in the Middle Eastern market, for $1.4bn in cash and $1.7bn in convertible notes. The price will mark a significant uptick on the reported $2bn valuation at which Careem last raised money, and a lot more than that for Saudi Telecom, which supplied the company’s $1.7m seed funding back in 2013 through its STC fund managed by Iris Capital, which fortuitously hosted its corporate day at the Eiffel Tower on the day it was announced (and which helped make the after-party go with a swing).

But it’s notable to see five large deals involving Tencent in the week after its financial results: Ke.com, Yipinshengxian, MiningLamp, Airwallex and Shuidi.

JD.com for its annual results for last year noted an “increase in investment in equity investees and investment securities of RMB22bn [$3.3bn]”.

Exits

McDonald’s is also making a sizeable acquisition, having agreed to pay more than $300m to buy Dynamic Yield, a developer of machine learning technology that will make its drive-thru kiosks more intelligent.

Kyriba to score $160m in acquisition deal

Lyft has raised a huge $2.34bn in its initial public offering, floating at the top of its range having extended that range upwards on Wednesday. The IPO valued the company at more than $24bn and should prove somewhat of a vindication for those who invested big money in the ride hailing space when some onlookers suggested it was overvalued.

The year’s biggest IPO will almost certainly be Lyft peer Uber’s, but Pinterest has finally filed for an initial public offering expected to value it at some $12bn. T

Zoom comes face to face with $100m IPO

Hookipa looks to public markets

Turning Point to face IPO moment of truth

Deals

Reports earlier this week revealed mattress producer Casper is getting ready to begin prepping its IPO, but in the meantime it’s raised $100m at a reported $1.1bn valuation.

Paytm owner One97 Communications is reportedly in discussions to raise as much as $2bn in funding from a consortium that will include existing backers SoftBank Vision Fund and Ant Financial, at a valuation of $16bn to $18bn.

Elsewhere in the transport sector, Leap Motor, one of several China-based electric car developers to emerge in the past five years in the wake of Tesla’s success, is reportedly looking to raise approximately $372m in what would be its series B round.

Connected robot developer CloudMinds is in the process of raising $300m in funding and has so far secured SoftBank Vision Fund as an investor in the round.

Delhivery picks up another $413m

Lidar technology developer Innoviz Technologies is a bit further along in the fundraising process, having nailed down $132m in a series C round that includes Phoenix Insurance and Harel Insurance Investments and Financial Services.

Mobvoi looks to mobilise $100m

SoftBank feels out PharmEasy for $100m round

University

Hyalex extricates $33m in series A

Inivata invites investors to series B

Volta charges up $180m fund with corporate help


“Funky Chunk” Kevin MacLeod (incompetech.com)
Licensed under Creative Commons: By Attribution 3.0

06 March 2017 – British Business Bank’s $500m fund and Much More

Funds

Foxconn, the contract manufacturer that’s already backed the $100bn SoftBank Vision Fund, has now also dropped $600m on a majority stake in the telecoms group’s Asia-based tech-focused investment arm SoftBank Asia Capital.

Baloise has committed $50m to an investment vehicle operated by Anthemis to identify opportunities in insurance technology startups based in Europe and the US.

Symantec, which previously backed Appthority via its subsidiary Blue Coat Systems, has decided to join the corporate venturing world and launched Symantec Ventures.

MFEC sets aside $20m to invest in startups and will move some of its human resources staff to manage the new corporate venturing subsidiary.

Kore, which provides business management software for entertainment companies and sports franchises, has formed a strategic investment arm and closed its first deal.

The Mobile World Congress might be making headlines because Nokia’s iconic 3310 handset is being resurrected, but Facebook is certain to also draw attention with the launch of a $170m investment collaboration through its Telecoms Infrastructure Project that will target startups operating in that very telecoms sector.

University Corner

University venturing: the view from Cornell – an interview with Alice Li

Virginia Tech and Carilion launch $15m fund

Government Department

Big deal: British Business Bank launches $500m fund

Mercia is allocated Northern Powerhouse money

Vanedge points at $122m fund

Hatteras to manage $60m NC fund

Exits

Snap’s long-awaited initial public offering is upon us today, as the company priced 200 million shares at $17 a piece last night, resulting in a $3.4bn windfall.

As the news flow shows no intention of slowing down, today’s lead story is an initial public offering by Alteryx, a data analytics provider that counts Thomson Reuters and Sapphire Ventures among its shareholders. The company, which last raised $85m in a series C round in 2015, is targeting $75m in proceeds with a flotation on the New York Stock Exchange but is yet to decide on a price range for its shares.

In Finland, Next Games stands to be the country’s first games developer to complete an initial public offering if it goes ahead with plans to list on the Nasdaq First North Finland.

Another IPO: the week stays busy with Ecovacs Robotics, a China-based vacuum and household robotics producer, filing for a flotation on the Shanghai Stock Exchange.

Mozilla acquires Pocket and provides an exit to shareholders including Axel Springer, Digital Garage and Alphabet.

Yelp has acquired its portfolio company Nowait, a restaurant booking app that it backed last August.

Deals

Our lead story last Monday is a Big Deal piece by reporter Kaloyan Andonov, in which he looks at what Ant Financial’s decision to provide $200m to Kakao Pay the previous week means.

Satellite operator OneWeb is making headlines with a $13bn all-stock merger with its peer Intelsat to produce a new entity that is set to attract $1.7bn in funding from SoftBank, the same investor that previously led a $1.2bn round with a $1bn cash injection in late December.

Oyo Rooms books up to $500m

Ola moves forward with $330m

Back in January, Grail, the oncology diagnostics company spun out of Illumina, was reported to be seeking $1bn for its series B round. Fast-forward to today and the startup has revealed that it has secured $900m – which may seem like it’s missed its target, but in fact that’s a first tranche and Grail is seeking up to an additional $900m to take the round all the way to $1.8bn.

Ride sharing might be in the news for all the wrong reasons these days as Uber is faced with scandal after scandal, but Didi Chuxing, the China-based ride hailing service that swallowed up Uber China, remains in good spirits: the company just backed a $450m series D round for Ofo, a bike sharing app provider.

A month ago, we reported on Paytm E-Commerce reportedly seeking a round of $180m to $200m and it appears the company has now secured the upper amount, getting $177m from Alibaba and another $23m from Saif Partners.

CloudMinds, an AI technology developer that previously obtained a stunning $31m in angel and seed capital from investors such as SoftBank, has received a similarly impressive $100m series A round from unnamed backers.

Delhivery coordinates $100m round

ChargePoint, which operates a network of independently managed charging stations for electric vehicles, has added $82m to its coffers thanks to a funding round led by Daimler.

University Corner

PMV diagnoses $74m series B

Urjanet raises $20m series C

Government Department:

Omeicos is treated to $8.7m


“Funky Chunk” Kevin MacLeod (incompetech.com)
Licensed under Creative Commons: By Attribution 3.0