Tag: Udaan

11 January 2021 – Online Tutoring Platform Zuoyebang Raises $1.6bn Series E

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The Big Ones

One of the big shifts in 2020 was the surge in educational technology providers, with China leading the way. That was before a flurry of large rounds in the space right before the end of the year, the biggest being a $1.6bn series E round for online tutoring platform developer Zuoyebang that included Alibaba and SoftBank Vision Fund 1. Zuoyebang’s overall funding now stands at roughly $2.9bn, some 80% of which has come in the past seven months.

Andre Maciel, former managing partner at Japan-headquartered telecommunications and internet group SoftBank’s $5bn Latin America-focused fund, has raised $50m for the first close of an independent venture capital firm. Maciel set up Volpe Capital in 2019 with SoftBank’s backing, and its first fund also has investment bank BTG Pactual as a cornerstone limited partner. Marcelo Claure, head of SoftBank LatAm, and the $5bn fund’s managing partners, Paulo Passoni and Shu Nyattta, have also invested in the fund. Volpe Capital plans to invest in up to 20 early stage companies at series A stage, with a primary focus on the Brazilian market, according to regional trade body Lavca.

SoFi has come a long way since it started as a student loan refinancing specialist, having expanded into a multi-pronged financial services platform that offers lending, investment and insurance products. The company, which has raised some $2.4bn from investors including SoftBank and Renren, has also agreed a reverse merger with a SPAC called Social Capital Hedosophia Holdings Corp V and will be listed on the New York Stock Exchange. The deal will be boosted by $1.2bn in PIPE financing and the merged company will be valued at $8.65bn once the deal closes, double the valuation at which SoFi last raised money.

On GUV, the biggest deal was Hinge Health, a US-based digital therapeutics company backed by commercialisation firm IP Group, which closed a $300m series D round co-led by Coatue Management and Tiger Global. The round valued Hinge at $3bn. Founded in 2014, Hinge Health has built a digital healthcare platform for people living with chronic musculoskeletal conditions, such as back and joint pain. The offering consists of an app, wearable sensors and access to remote health coaching to deliver physical and behavioural health therapy. Hinge Health was co-founded by chief executive Daniel Perez, who gained a PhD in medical sciences from University of Oxford in 2013, and president Gabriel Mecklenburg, who obtained an MPhil in bioengineering from Imperial College London in 2014. But the company was only founded after both had graduated and worked together at Oxbridge Biotech Roundtable, an organisation looking to connect academia with industry since 2011.

Deals

B2B e-commerce marketplace Udaan has pulled in $280m from investors including Tencent for the second tranche of a series D round now standing at $865m. Tencent also took part in the round’s 2019 first close, as did Citi Ventures, and the extra funding came at a $3.1bn post-money valuation. Its overall funding has been increased to $1.15bn.

Online food delivery and restaurant listings platform developer Zomato has pulled in $660m through a series J round valuing it at $3.9bn post-money. Info Edge and Ant Financial, the two corporates that have historically been its two key investors, do not however appear to have participated in the round, the funding coming from Fidelity, Tiger Global Management, Luxor Capital, Kora Management, D1 Capital Partners, Baillie Gifford, Mirae Asset and Steadview Capital.

Cloud cybersecurity platform developer Lacework has closed $525m in funding from investors including Snowflake Ventures, which provided $20m, and existing backer Liberty Global Ventures. The company had previously raised less than $75m but said it increased revenue 300% in 2020, and that big jump in funding is indicative of how the ongoing public markets tech boom is having an impact further down the pyramid.

As 2020 drew to a close, game creation platform developer Roblox had put its initial public offering on hold, citing erratic post-IPO share movement of other tech companies. Now we can see what the results are. Roblox has secured $520m in a series H round featuring Warner Music Group valuing it at $29.5bn – a more than sevenfold increase on the $4bn valuation in its series G round under a year ago. The company has also revealed it’s eschewing an IPO in favour of a direct listing, which suggests it really wasn’t happy with its underwriters for the offering.

DXY, the Chinese operator of an online medical community, has completed a $500m round featuring Tencent Investment, at the end of a year when it established a real-time information service covering covid-19 that aimed to combat harmful rumours. Tencent had originally invested $70m in DXTY through a 2014 round that preceded a $100m series D round four years later.

Chinese AI chipmaker Horizon Robotics secured $150m in series C funding just last month but has already added $400m in a series C2 round co-led by lithium-ion battery maker Contemporary Amperex Technology. Recent reports suggested the company was targeting a total of $700m across multiple tranches, its earlier backers including Intel Capital and SK Global subsidiaries SK China and SK Hynix.

Grab is one of two big players in Southeast Asia’s on-demand ride market, and it has also been arguably the quickest in the sector worldwide to expand into other areas. It has reportedly raised $300m for Grab Financial Group, a spinoff that encompasses a range of financial services including digital payment technology, lending, insurance and investment management. Conglomerate Hanwha is leading the round through its Hanwha Asset Management subsidiary.

Chinese AI chipmaker Enflame Technology has raised $279m in the biggest round announced so far this year. Enflame produces artificial intelligence chips for data centres and has now secured a total of over $470m since it was founded in 2018. Tencent, which participated in the $279m series C round, has backed it in all four rounds it has disclosed.

Aeva develops lidar sensor technology for use in autonomous driving systems, and two months ago it agreed a reverse merger with a SPAC called InterPrivate Acquisition Corp set to value it at about $2.1bn once the deal closed. Now the company, which is backed by Porsche and Lockheed Martin, has agreed a $200m investment by one of InterPrivate’s shareholders, technology investment firm Sylebra Capital, that will close when the other deal does. It’s an interesting symptom of the ongoing public markets boom.

Divvy is the developer of an offering that combines business expense management software with smart credit cards, helping companies track and manage their expenses and spending. It has secured $165m in a series D round featuring Hanaco and PayPal Ventures at a $1.6bn valuation. The round increased Divvy’s overall funding to $410m, $200m of which came in a 2019 series C round.

Dremio, developer of a data management platform for data lake storage, has received $135m in series D funding from backers including Cisco Investments at a $1bn valuation. The corporate also took part in Dremio’s $70m series C round 10 months ago, and the latest round boosted its total funding to $250m. We’ve had a host of big enterprise software IPOs over the past year or two, but it looks as if the next wave of unicorns in the space is emerging.

Antibody therapy developer Boan Biotech has raised $106m from investors including Bank of China’s BOCG investment vehicle at a pre-money valuation a touch over $750m. The company was founded in 2013 and acquired by Luye Pharma Group six years later, the latest round representing the first it has closed since then.

Funds

US-based sports franchises the Green Bay Packers, Milwaukee Bucks and Milwaukee Brewers have backed an impact investment fund for minority-run startups. The franchises committed to Equity League as “a new impact investment division of venture capital fund TitletownTech,” alongside software producer Microsoft.

Exits

Arvelle Therapeutics was spun off in 2019 by drug developer Axovant to commercialise an epilepsy drug licensed from pharmaceutical company SK Biopharmaceuticals. The company bagged $208m in series A and project funding last year but its investors will exit after Angelini Pharma agreed to acquire it in a deal that could hit $960m. SK Bio will also get a nice return from its 12% stake in Arvelle.

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

07 October 2019 – We Co Pulls IPO

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We Co, otherwise known as WeWork, formally pulled its initial public offering last week, putting a cap on what will go down as one of the most disastrous attempts to go public in recent memory. So what does that mean for corporate venturers? Is the co-working space still viable? Is it still worth betting on visionary founders? And what about SoftBank? If those are questions you’d like answers to, do check out GCV news editor Robert Lavine’s analysis on GlobalCorporateVenturing.com

Big Ones

Udaan, the Indian operator of an e-commerce platform that links small businesses to large traders and wholesalers, has raised $585m in series D funding from investors including Tencent and Citi Ventures to take its total equity financing to $870m in under three years.

Online content and advertising platforms Taboola and Outbrain operate in a relatively similar space and have elected to join forces, with Taboola buying the latter for $250m in cash, and $600m in stock equating to a 30% stake in what will be a $2bn company.

Oxford Sciences Innovation (OSI), the university venture fund for University of Oxford, has added China-based telecommunications equipment and services provider Huawei as a limited partner. Huawei is believed to have bought 4.1 million shares over the past year through a Netherlands-based subsidiary called Huawei Technologies Cooeperatief, taking its stake in OSI to about 0.7%. Huawei has never been listed on OSI’s website as a backer. The deal was concluded in late 2018 before University of Oxford blocked the firm’s philanthropic donations due to fears over its influence in the UK technology space.

Deals

IronSource has confirmed a $400m+ investment by private equity firm CVC Capital Partners at a 10-figure valuation. The content monetisation and engagement platform developer raised $105m in a 2015 series A round featuring Access Industries at an apparently similar valuation, though Calcalist reported earlier this week that its shareholders regularly receive sizeable dividends, which would largely offset any flatlining in company value.

Electric scooter and bike rental service Bird has raised $275m at a $2.75bn post-money valuation, in a series D round co-led by Sequoia Capital and pension fund manager CDPQ.

Rapyd has already raised $100m, through a series C round featuring Stripe that valued the digital payment software producer at almost $1bn.

Tenaya Therapeutics, a US-based developer of treatments for heart disease, completed a $92m series B round on Thursday featuring GV, a corporate venturing subsidiary of internet and technology group Alphabet. The round was led by healthcare investment firm Casdin Capital and included Column Group and a range of undisclosed new and existing shareholders.

Adicet Bio is meanwhile working on cancer treatments that will utilise gamma delta T cells, and has completed an $80m series B round that took its total funding to $131m.

US-based vaccine developer Icosavax emerged from stealth on Thursday with $51m of series A funding from investors including Sanofi Ventures, the corporate venturing arm of pharmaceutical firm Sanofi. Qiming Venture Partners USA led the round, which was also backed by NanoDimension, Adams Street Partners and undisclosed existing investors.

Funds

Non-profit health system Advocate Aurora Health and Wisconsin Alumni Research Foundation (Warf), the commercialisation arm of University of Wisconsin-Madison, have become a limited partner in a $75m healthcare-focused fund raised by venture capital firm Venture Investors.

Exits

It’s been a rough ride recently for companies trying to go public: Peloton’s shares have crashed every day since going public and that’s before we get to the disaster that’s been We Company’s struggles. But that isn’t stopping others from chasing the dream and Progyny has filed for a $100m offering on Nasdaq that would provide exits to SR One and Merck Group

36Kr will be hoping its own IPO goes better. The China-based startup media and services company has filed to go public in the US and has set an initial target of $100m. Its investors include Alibaba affiliate Ant Financial and media group Nikkei, and it will be hoping it doesn’t fall foul of reported plans by Nasdaq – the operator of the market on which it intends to float – to tighten regulations for smaller IPOs by Chinese companies which have sometimes chiefly sold shares to investors linked to their executives. With only two named underwriters in the 36Kr IPO, that could be a factor.

Harvard University spinout Beam Therapeutics has filed for its own $100m IPO, which will follow roughly $225m in funding raised across two rounds. The genomic medicine developer’s shareholders include GV and Editas Medicine, the latter having acquired a stake through a licensing agreement last year.

4D Molecular Therapeutics has filed for a $100m initial public offering that will fund the progress of gene therapies for conditions such as Fabry disease and cystic fibrosis. It has raised at least $108m, $90m of which came in a 2018 series B round that included Pfizer Ventures and Chiesi Ventures.

MIT and Harvard spinout Frequency Therapeutics has gone public in an $84m initial public offering that represents a bit of a downgrade on its expectations, the company floating at the bottom of its range and cutting the number of shares in the IPO.

Live streaming software and tools provider Streamlabs has also achieved its own exit, agreeing to an acquisition by Logitech International for up to $118m. The total’s split between an $89m upfront cash payment – slightly more than Streamlabs’ most recent post-money valuation of $80m – and $29m worth of stock dependent on it reaching significant revenue growth.

Aprea Therapeutics, a US-based cancer drug developer spun out of Karolinska Institute and backed by its investment Karolinska Development as well as healthcare provider Praktikertjänst, has raised $85m in an initial public offering on the Nasdaq Global Select Market.

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