Yearly Archives: 2021

News: Plentific cements $100M to expand its property management SaaS

London based Plentific, which operates a marketplace SaaS platform targeting the property management space, has closed a $100 million Series C. The funding round is led by new investors Highland Europe and Brookfield Technology Partners — the VC arm of the eponymous real estate giant — along with Mubadala Investment Company and RXR Digital Ventures,

London based Plentific, which operates a marketplace SaaS platform targeting the property management space, has closed a $100 million Series C. The funding round is led by new investors Highland Europe and Brookfield Technology Partners — the VC arm of the eponymous real estate giant — along with Mubadala Investment Company and RXR Digital Ventures, as well as existing investors A/O PropTech and Target Global.

The 2013-founded startup provides a cloud platform for landlords, property and facilities managers, and service providers — taking aim at legacy software with a joined up digital marketplace for locating tradespeople, managing repairs, keeping tenants informed and generating analytics to support data-driven property service delivery. 

Live in the UK, Germany and the US, it says the new financing will go on significantly growing its presence in the US as well as further global expansion. Its total equity raised to date with this latest round is $140M.

Plentific says it intends to spend on accelerating its engineering and product development to further fire up digitalisation across the property and facilities management space — with a plan to integrate Internet of Things (IoT) into its platform and also build out asset management solutions.

It’s also eying baking in machine learning and AI to help commercial and residential landlords increase returns and “make smarter decisions”, per its pitch.

Series C funds will also go on beefing up its offer for service provider — such as by increasing its CRM (Customer Relationship Management) functionality so it can better position itself to pull in contractors of all sizes.

The home improvement trend that boomed during the pandemic lockdown certainly seems to have been very positive for Plentific’s business: Per its website, 350,000+ properties are now managed by the platform across its three (current) markets.

The startup also told TechCrunch it has 100+ “large clients”, at this stage, and more than 16,000 contractors on its marketplace. While the number of properties Plentific has under management has grown 17-fold in the last three years, per a spokeswoman.

Plentific targets its property management tools broadly, at a range of customers and sectors, from private landlords and those running short term lets; to those responsible for managing social housing or student accommodation; and to property managers in sectors like education, hospitality, sport/fitness and social care. (So — unlike startups like Mashroom, which are trying to disrupt the traditional managed service letting agency model — it doesn’t play in the lettings side of the market and would instead be hoping to win such agencies as customers for its tools.)

Commenting on the Series C in a statement, Cem Savas, CEO and co-founder of Plentific, said: “We had a phenomenal year of growth, more than doubling headcount to almost 200 employees, opening an office in the United States and cementing our position in the UK and German markets. Our next step is to rapidly expand in the US, as well as look to begin operating in new geographies. We have only just scratched the surface of a $2.5 trillion potential market opportunity. We will now be rapidly expanding both our global footprint and the solutions we offer to become the de facto digital partner for landlords and service providers across the world.”

In another supporting statement, Josh Raffaelli, managing partner at Brookfield, added: “We are thrilled to partner with Plentific as it seeks to fully digitize the repairs and maintenance process. As one of the world’s largest real estate owner, operator and investor we have first-hand knowledge of how lowering operating costs can help drive efficiencies. We look forward to leveraging that knowledge and experience to help fuel Plentific’s growth and expand its global footprint.”

Another growing area of focus Plentific flags is supporting customers to expand their Environment, Social and Governance (ESG) credentials — saying it will expand capabilities in this “critical area”. Here it works with clients through its PropertyLab accelerator program which it says aims to develop solutions to strengthen ESG initiatives and make reporting more robust through enhanced analytics, in addition to trying to tackle the carbon footprint of properties.

 

News: A new NSO zero-click attack evades Apple’s iPhone security protections, says Citizen Lab

A Bahraini human rights activist’s iPhone was silently hacked earlier this year by a powerful spyware sold to nation-states, defeating new security protections that Apple designed to withstand covert compromises, say researchers at Citizen Lab. The activist, who remains in Bahrain and asked not to be named, is a member of the Bahrain Center for

A Bahraini human rights activist’s iPhone was silently hacked earlier this year by a powerful spyware sold to nation-states, defeating new security protections that Apple designed to withstand covert compromises, say researchers at Citizen Lab.

The activist, who remains in Bahrain and asked not to be named, is a member of the Bahrain Center for Human Rights, an award-winning nonprofit organization that promotes human rights in the Gulf state. The group continues to operate despite a ban imposed by the kingdom in 2004 following the arrest of its director for criticizing the country’s then-prime minister.

Citizen Lab, the internet watchdog based at the University of Toronto, analyzed the activist’s iPhone 12 Pro and found evidence that it was hacked starting in February using a so-called “zero-click” attack, since it does not require any user interaction to infect a victim’s device. The zero-click attack took advantage of a previously unknown security vulnerability in Apple’s iMessage, which was exploited to push the Pegasus spyware, developed by Israeli firm NSO Group, to the activist’s phone.

The hack is significant, not least because Citizen Lab researchers said it found evidence that the zero-click attack successfully exploited the latest iPhone software at the time, both iOS 14.4 and later iOS 14.6, which Apple released in May. But the hacks also circumvent a new software security feature built into all versions of iOS 14, dubbed BlastDoor, which is supposed to prevent these kinds of device hacks by filtering malicious data sent over iMessage.

Because of its ability to circumvent BlastDoor, the researchers called this latest exploit ForcedEntry.

Citizen Lab’s Bill Marczak told TechCrunch that the researchers made Apple aware of the efforts to target and exploit up-to-date iPhones. When reached by TechCrunch, Apple would not explicitly say if it had found and fixed the vulnerability that NSO is exploiting.

In a boilerplate statement re-released Tuesday, Apple’s head of security engineering and architecture Ivan Krstic said: “Apple unequivocally condemns cyberattacks against journalists, human rights activists, and others seeking to make the world a better place … Attacks like the ones described are highly sophisticated, cost millions of dollars to develop, often have a short shelf life, and are used to target specific individuals. While that means they are not a threat to the overwhelming majority of our users, we continue to work tirelessly to defend all our customers, and we are constantly adding new protections for their devices and data.”

A spokesperson for Apple said BlastDoor was not the end of its efforts to secure iMessage and that it has strengthened its defenses in iOS 15, which is slated for release in the next month or so.

Citizen Lab said the Bahraini government was likely behind the targeting of the Bahraini human rights activist, as well as eight other Bahraini activists between June 2020 and February 2021.

Bahrain is one of several authoritarian states known to be government customers of Pegasus, including Saudi Arabia, Rwanda, the United Arab Emirates and Mexico; though, NSO has repeatedly declined to name or confirm its dozens of customers, citing nondisclosure agreements.

Five of the targeted Bahrainis’ phone numbers were found on the Pegasus Project list of 50,000 phone numbers of potential surveillance targets of the Pegasus spyware, which gives its government customers near-complete access to a target’s device, including their personal data, photos, messages and location.

One of those listed phone numbers belongs to another member of the Bahrain Center for Human Rights, which Citizen Lab said was targeted months earlier and with a different zero-click exploit, called Kismet, which predates ForcedEntry. Citizen Lab says Kismet no longer works on iOS 14 and later since BlastDoor was introduced, but still poses a risk to devices running older iPhone versions.

Two other Bahrainis, who now live in exile in London and consented to be named, also had their iPhones hacked.

Moosa Abd-Ali, a photojournalist who was previously targeted by FinFisher spyware sold to the Bahraini government, had his iPhone hacked while living in London. Citizen Lab said it has only seen the Bahraini government spy in Bahrain and in neighboring Qatar, and said it suspects that another foreign government with access to Pegasus may have been responsible for the hack. Recent reporting found the United Arab Emirates, a close ally of Bahrain, is the “principal government” for selecting phone numbers in the U.K. Abd-Ali’s phone number was also on the list of 50,000 phone numbers.

Bahraini activist Yusuf Al-Jamri also had his iPhone hacked, believed by the Bahraini government, some time before September 2019, though it is not known if Al-Jamri’s iPhone was hacked while in Bahrain or the UAE, before he was granted asylum in the U.K. in 2017.

The seven unnamed Bahrainis continue to work in the kingdom despite a long history of human rights violations, internet censorship and widespread oppression. Reporters Without Borders ranks Bahrain’s human rights record as one of the most restrictive in the world, ranked only behind Iran, China and North Korea. A 2020 report by the U.S. State Department on Bahrain’s human rights said the country cited considerable violations and abuses, and noted that the government “used computer programs to surveil political activists and members of the opposition inside and outside the country.”

When reached, NSO Group did not answer specific questions nor would it say if the Bahraini government was a customer. In a statement attributed only as an NSO spokesperson sent via its external public relations firm Mercury, NSO said that it had not seen Citizen Lab’s findings and that it would “vigorously investigate the claims and act accordingly based on the findings.”

NSO recently claimed it cut off five government customers’ access to Pegasus for human rights abuses.

Zainab Al-Nasheet, a spokesperson for the Bahraini government, told TechCrunch in a statement: “These claims are based on unfounded allegations and misguided conclusions. The government of Bahrain is committed to safeguarding the individuals’ rights and freedoms.”

Abd-Ali, who said he was arrested and tortured in Bahrain, said that he thought he would find safety in the U.K. but that he still encounters digital surveillance but also physical attacks, as many victims of spyware experience.

“Instead of protecting me, the U.K. government has stayed silent while three of their close allies — Israel, Bahrain and the UAE — conspired to invade the privacy of myself and dozens of other activists,” he said.


You can send tips securely over Signal and WhatsApp to +1 646-755-8849. You can also send files or documents using our SecureDrop.

News: India’s KhataBook raises $100 million for its bookkeeping platform for merchants

Khatabook, a startup that is helping merchants in India digitize their bookkeeping and accept online payments, said on Tuesday it has raised $100 million in a new financing round as it prepares to launch financial services. The startup’s new financing round — a Series C — was led by Tribe Capital and Moore Strategic Ventures

Khatabook, a startup that is helping merchants in India digitize their bookkeeping and accept online payments, said on Tuesday it has raised $100 million in a new financing round as it prepares to launch financial services.

The startup’s new financing round — a Series C — was led by Tribe Capital and Moore Strategic Ventures and valued the two-and-a-half-year-old Bangalore-headquartered startup at “close to $600 million,” its co-founder and chief executive Ravish Naresh told TechCrunch in an interview.

As part of the new round — which was oversubscribed and also saw participation of Balaji Srinivasan and Alkeon Capital as well as many other existing investors including Sriram Krishnan, B Capital Group, Sequoia Capital, Tencent, RTP Ventures, Unilever Ventures, and Better Capital — KhataBook said it is also buying back shares worth $10 million to reward its current and former employees and early investors. The startup said it is also expanding its stock options pool for employees to $50 million

Even as hundreds of millions of Indians came online in the past decade, most merchants in the South Asian nation are still offline. These merchants, who run neighborhood stores, rely on traditional ways for bookkeeping — maintaining ledgers on paper — that are both time-consuming and prone to errors.

KhataBook is attempting to change that by providing these merchants with a suite of products to digitize their bookkeeping and manage their expenses and staff. The startup, which employs over 200 people, said it has amassed over 10 million monthly active users who are spread across nearly every zip code in the country.

“At Tribe, we believe strongly in the power of the network effect and how it can create moats for businesses. Khatabook has successfully built such a network by empowering this seismic shift among MSME businesses to move from paper to digital, literally,” said Arjun Sethi, co-founder and partner at Tribe Capital, in a statement. “Despite its large early success and fast adoption to date, the company is early in its path to power the segment. We’re thrilled to be a part of its growth as it leverages its network to build additional scale.”

KhataBook, which also counts Emphasis Ventures (EMVC) among its backers, has expanded its product offerings in recent years to try to solve a lot of other challenges merchants face. Later this year, Naresh said, the startup will provide lending to merchants. “We are currently testing the product with both retailers and distributors,” he said.

Online lending has boomed in India in recent years, but very few companies are today attempting to cater to small- and medium-sized businesses. “The unaddressed SME credit demand in India is ~$300-$350 billion, with more than 90% of current demand being met by banks. A typical digital SME lender focusses on 1-5 million Indian rupees ($13,575 to $67,875) ticket size with no collateral, average tenure ~12-18 months, and with some ecosystem anchor,” analysts at Bank of America wrote in a report.

As with scores of other firms, the pandemic was not good news for KhataBook, which lost a significant portion of the business last year after Indian states enforced lockdown to restrict mobility. But the startup has since bounced back. The month of July, said Naresh, was its all-time high. “MSMEs have come back very strongly and businesses were not as impacted by the second wave this year as they were by last year’s,” he said.

This is a developing story. More to follow…

News: Pakistan’s B2B marketplace and digital ledger platform Bazaar raises $30 million

A one-year-old startup that is building a business-to-business marketplace for merchants in Pakistan and also helping them digitize their bookkeeping is the latest to secure a mega round in the South Asian market. Bazaar said on Tuesday it has raised $30 million in a Series A round. The new financing round — the largest Series

A one-year-old startup that is building a business-to-business marketplace for merchants in Pakistan and also helping them digitize their bookkeeping is the latest to secure a mega round in the South Asian market.

Bazaar said on Tuesday it has raised $30 million in a Series A round. The new financing round — the largest Series A in Pakistan — was led by Silicon Valley-based early stage VC Defy Partners and Singapore-based Wavemaker Partners.

Scores of other investors including current and former leaders of Antler, Careem, Endeavor, Gumroad, LinkedIn and Notion as well as new investors Acrew Capital, Japan’s Saison Capital, UAE’s Zayn Capital and B&Y Venture Partners and existing investors Indus Valley Capital, Global Founders Capital, Next Billion Ventures, and Alter Global also participated in the new round.

One way to think about Bazaar is — especially if you have been following the Indian startup ecosystem — that it’s sort of a blend between Udaan and KhataBook. “That’s a good way to describe us,” said Hamza Jawaid, co-founder of Bazaar in an interview. “We had this benefit of hindsight to not just look at India but other emerging markets,” he said.

“We saw lots of synergies between these two. If you look at commerce, you have to acquire every single merchant in every single category differently. Whereas with Khata, merchants in any city and category can download it. So effectively, it’s a great customer acquisition tool for you,” he said on a WhatsApp call, adding that this also provides greater insight into businesses.

Bazaar’s business-to-business marketplace, which provides merchants with the ability to procure inventories at a standard price and choose from a much larger catalog, is currently available in Karachi and Lahore, the nation’s largest cities, while Easy Khata is live across the country.

At stake is a booming market that is yet to see much deployment of technology, said Saad Jangda, Bazaar’s other co-founder. Both of them have known each other since childhood and reconnected in Dubai a few years ago. At the time, Jawaid was at McKinsey & Company while Jangda was working with Careem as a product manager for ride-hailing and food delivery products.

There are about 5 million micro, small, and medium-sized businesses in Pakistan. Like India, even as a significant portion of the population has come online, most merchants remain unconnected.

“We’ve been investing in FMCG B2B marketplaces across the region since 2017. After working with Hamza and Saad over the past year, we’ve been impressed by their customer-centric approach to product development and the speed of their learning and execution,” said Paul Santos, Managing Partner at Wavemaker Partners, in a statement.

“It’s no surprise that they’ve received glowing reviews from their customers and partners. We’re excited to support Bazaar as they solidify their market leadership and digitize Pakistan’s retail ecosystem,” he added.

The startup said it has amassed over 750,000 merchants since launch last year. And it appears to have solved a problem that many of its South Asian peers are still grappling with: Retention. Bazaar said it has a 90% retention rate.

I asked Jangda if he plans to expand to the ‘dukaan’ category. Several startups in Asia are currently building tools to help merchants set up online presence and accept digital orders. He said the market is currently not ready for a dukaan product just yet. “The B2C market is still developing, so there is not so much demand from the consumer side yet,” he added.

Instead the current new focus is financial services. In recent months, the startup said it has tested a buy now pay later product and early results have shown a 100% repayment.

“Bazaar is going after a massive opportunity with the ultimate aim of creating a generational story in and from Pakistan. In a country with incredible talent and huge market opportunity, it’s about time we create an inspirational story that brings together the country’s best talent who can go on to create many such stories in the future,” said the founders.

The startup eventually wants to become a super app, or a broader operating system for retail in Pakistan. It plans to deploy the fresh funds to expand its services to more cities across Pakistan and build and scale more products.

“What Bazaar has managed to accomplish in the last year is incredible. We are extremely impressed by the speed and robustness with which they build and deploy. As Defy’s first investment into Pakistan’s burgeoning tech ecosystem, we feel Bazaar is on its way to create a category defining company for the country” said Kamil Saeid – Partner at Defy Partners.

Tuesday’s announcement comes a week after Airlift, another Pakistan’s startup, announced a big round.

News: SoBanHang gets $1.5M to help small Vietnamese stores sell online for the first time

A few months ago, brothers Hai Nam Bui and Hai Long Bui were developing a bookkeeping app for small retailers in Vietnam. Called SoBanHang (or “sales book”), it would help businesses that usually rely on paper ledgers digitize their operations, similar to Khatabook in India and BukuKas and BukuWarung in Indonesia. Then a new COVID-19

A few months ago, brothers Hai Nam Bui and Hai Long Bui were developing a bookkeeping app for small retailers in Vietnam. Called SoBanHang (or “sales book”), it would help businesses that usually rely on paper ledgers digitize their operations, similar to Khatabook in India and BukuKas and BukuWarung in Indonesia. Then a new COVID-19 outbreak hit Vietnam. The businesses SoBanHang had been working with, which are often family owned and have less than five employees, struggled to cope. The team held a hackathon and came up with a new product for retailers to create online stores and manage orders. Since launching three months ago, SoBanHang’s “hyper local e-commerce enabler” has signed up almost 20,000 merchants, many selling online for the first time.

The company announced today that it has raised $1.5 million in seed funding, with participation from investors including FEBE Ventures, Class 5 and Kevin P. Ryan, founder of businesses like Gilt Groupe, Business Insider and MongoDB.

Before launching SoBanHang, Hai Nam Bui founded Datamart Solutions, a data analytics and automation platform, and served leadership roles at Lazada. Hai Long Bui also spent several years in management at Lazada, before holding the chief analytics and chief technology officer positions at Landers Superstore, a Philippines supermarket chain.

The idea for SoBanHang was planted when Hai Nam Bui visited a grocery store while wearing a Lazada T-shirt. The store’s owners saw the shirt and asked him how they could start selling online. So he helped them register an account on Shoppe and start uploading product photos and descriptions.

“After I had everything set up, they got their first order and asked, ‘how can I ship the product?’” Hai told TechCrunch. “I said that a third-party logistics provider will come and pick up the goods. And then they asked about the money. They didn’t understand the process and they didn’t feel comfortable giving goods to a third-party logistics providers.”

A photo of a merchant in Vietnam looking at a smartphone

One of SoBanHang’s clients

Since the majority of e-commerce orders in Vietnam are paid through cash on deliveries, the store’s owners also had questions about payment. Hai explained that the customer would hand cash to the rider, who would then give it to Shoppe and, in turn, Shopee would deposit it into the store owner’s digital wallet.

“And they asked ‘where is the wallet? How can I withdraw money to a bank account if I don’t have a bank account?’ That was an a-ha moment, when I realized that a lot of e-commerce platforms are still not touchable to about 90% of retailers in Vietnam,” said Hai. “The systems are still way too complex for them.”

Hai and his brothers started working on a digital bookkeeping app to help businesses digitize their operations, but when the outbreak and lockdowns hit, it became imperative to help them start selling online immediately. Based on SoBanHang’s research, there are about 16 million “nano” to micro-sized businesses in Vietnam. Many are very local, serving customers within a couple kilometers. In fact, businesses on SoBanHang often perform their own deliveries on foot.

“That was our second a-ha moment about the retailers, which is that they are selling to customers in their neighborhoods. The buyers and sellers are actually within walking distance. When they connect with buyers, they can make that order transaction, and then retailers deliver the good themselves and collect the money at the customer’s doorstep,” said Hai. This eliminates the need for SoBanHang to have complex logistics or payment systems, or for merchants to use third-party delivery apps that charge high commission fees.

Many of SoBanHang’s clients previously managed most of their transactions on paper and didn’t have a point-of-sale system or laptop, so the app is the first time they have digitized their operations. SoBanHang can be used for all kinds of retailers, but during the COVID-19 outbreak, it’s seen the most adoption from food and convenience stores.

The retailers are small enough that their customers can just message them orders, but SoBanHang makes the process smoother and enables them to sell more. Having an online storefront also helps prepare retailers for other COVID-19 outbreaks and maintain relationships with their customers.

For example, SoBanHang has a strategic partnership with Viettel, the largest telecommunications company in Vietnam. This lets them offer discounted SMS to businesses so customers can see special offers even if they haven’t installed SoBanHang’s app and don’t get its push notifications. For example, if a grocery store wants to sell out their inventory of fresh fish, they can send out a text blast to shoppers.

After lockdown restrictions are lifted, Hai said SoBanHang can help small retailers continue competing against larger players like supermarket and convenience store chains. Their advantage is that “they have a very good relationship with their customers, they know them well and they sit and wait for their customers to come. We want to turn that relationship into a new sales strategy for them.”

In the future, SoBanHang plans to continue working on its original plans for bookkeeping app. Like other bookkeeping apps, it plans to add financial services, like working capital loans that can be disbursed even without a digital wallet or bank account. But in the near-future, the startup will continue helping small retailer sell online for the first time.

News: GM says it will seek reimbursement from LG Chem for $1B Chevy Bolt recall losses

American automaker General Motors expanded its recall of Chevrolet Bolt electric vehicles on Friday due to fire risks from battery manufacturing defects. The automaker said it would seek reimbursement from LG Chem, its battery cell manufacturing partner, for what it expects to be $1 billion worth of losses. Following the news of the recall, the

American automaker General Motors expanded its recall of Chevrolet Bolt electric vehicles on Friday due to fire risks from battery manufacturing defects. The automaker said it would seek reimbursement from LG Chem, its battery cell manufacturing partner, for what it expects to be $1 billion worth of losses.

Following the news of the recall, the third one GM has issued for this vehicle, LG Chem shares fell by 11% on Monday, and its stock price lost $6 billion in market value. GM’s shares were down 1.27% at market close.

This isn’t the first time LG Chem’s batteries have resulted in a recall from automakers. Earlier this year, Hyundai recalled 82,000 EVs due to a similar battery fire risk at an estimated cost of about $851.9 million. Hyundai’s joint battery venture was with LG Energy Solution, the specific battery unit of LG Chem, which is preparing for its initial public offering in September, but experts say the IPO could be delayed due to the recall cost.

GM’s investigation into the problems with its batteries found battery cell defects like a torn anode tab and folded separator. The recall comes a week after a fire involving a Volkswagen AG ID.3 EV with an LG Energy Solution battery. Earlier this year Volkswagen, as well as Tesla, began making moves to shift from LG Chem’s brand of pouch-type lithium-ion battery cells and towards more prismatic-type cells, like those made by CATL and Samsung SDI.

The recall leaves GM without any fully electric vehicles for sale in North America, which means it can’t compete with Tesla and other automakers as EV sales are on the rise. The loss in sales, the safety risks and the possibility of better tech on the horizon might cause GM to take its business elsewhere.

For now, there’s still work to be done together. GM said it will replace defective battery modules with new modules in the Chevy Bolt EVs and EUVs, which it says accounts for the $1 billion in losses. This is on top of the $800 million GM already is spending for the original Bolt recall last November. Battery packs are the most expensive components of the electric vehicle, on average costing about $186 per kWh, according to data from energy storage research firm Cairn ERA. GM pays about $169 per kWh, and the Bolt has a 66 kWh battery pack.

LG Chem and GM did not respond to requests for comment, so it’s not clear whether the two plan to move forward on plans announced in April to build a second U.S. battery cell factory in Tennessee. The joint venture, dubbed Ultium Cells, would aim to produce more than 70 GWh of energy.

News: Japan’s B2B ordering and supply platform CADDi raises $73 million Series B funding

With COVID-19 disrupting the entire manufacturing supply chain including semiconductor shortages, companies across multiple industries have been struggling to seek a procurement solution that can rebalance the gap between supply and demand. CADDi, a Tokyo-based B2B ordering and supply platform in the manufacturing and procurement industry, helps both procurement (demand side) and manufacturing facilities (supply

With COVID-19 disrupting the entire manufacturing supply chain including semiconductor shortages, companies across multiple industries have been struggling to seek a procurement solution that can rebalance the gap between supply and demand.

CADDi, a Tokyo-based B2B ordering and supply platform in the manufacturing and procurement industry, helps both procurement (demand side) and manufacturing facilities (supply side) by aggregating and rebalancing supply and demand via its automated calculation system for manufacturing costs and databases of fabrication facilities across Japan.

The company announced this morning a $73 million Series B round co-led by Globis Capital Partners and World Innovation Lab (WiL), with participation from existing investors DCM and Global Brain. Six new investors also have joined the round including Arena Holdings, DST Global, Minerva Growth Partners, Tybourne Capital Management, JAFCO Group and SBI Investment.

CADDi was founded by CEO Yushiro Kato and CTO Aki Kobashi in November 2017.

The post-money valuation is estimated at $450 million, according to sources close to the deal.

The new funding brings CADDi’s total raised so far to $90.5 million. In December 2018, the company closed a $9 million Series A round led by DCM and followed by Globis Capital Partners and WiL and Global Brain.

The funding proceeds will be used for accelerating digital transformation of the platform, hiring and expanding to global markets.

“We enable integrated production of complete sets of equipment consisting of custom-made parts such as sheet metal, machined parts and structural frames. Using an automatic quotation system based on a proprietary cost calculation algorithm, we select the processing company that best matches the quality, delivery date and price of the order and build an optimal supply chain,” CEO and co-founder Yushiro Kato said.

The goal of CADDi’s ordering platform is to transform the manufacturing industry from a multiple subcontractor pyramid structure to a flat, connected structure based on each manufacturers’ individual strengths, thus creating a world where those on the front lines of manufacturing can spend more time on essential and creative work, Kato said.

CADDi’s ordering platform, backed by its unique technology including automatic cost calculation system, optimal ordering and production management system, and drawing management system, offers a 10%-15% cost reduction, stable capacity and balanced order placement to its more than 600 Japanese supply partners spanning a multitude of industries.

“The demand for CADDi’s services has seen significant acceleration. Our business has been growing very fast, and our latest orders have grown more than six times compared to the previous year, leading to the company’s expanded presence into both eastern and western Japan in order to meet this increase in demand,” Kato said.

“Going forward, in addition to continuously expanding our ordering platform, we will also start to provide purchases (manufacturers) and supply partners with our technology directly to promote digital transformation of their operations, for example, the production management system and drawing management system,” Kato continued.

“As a start point, in the near future, we are thinking about selling ‘Drawing Management SaaS,’” which has been used internally for CADDi’s ordering operation, to help customers solve operational pains in handling piles of drawings. “Our ‘Drawing Management SaaS’ technology will not only help manage drawings as documents properly but also allow utilization of data of drawings in a practical way for future decision-making and action in their procurement process.”

CADDi’s next axis of growth will be other growing markets, especially in Southeast Asia, Kato pointed out. “Many of our Japanese customers have subsidiaries and branches in these countries, so it’s a natural expansion opportunity for us to strengthen our value proposition and provide more continuity and seamless service to our customers,” Kato added.

Kato also said it wants to continue investing in hiring, especially engineers, to further the development of its platform CADDi and new business. It plans to hire 1,000 employees in the next three years. CADDi had 102 employees as of March 2021.

The company aims to become a global platform with sales of USD 9.1 billion (that is 1 trillion YEN) by 2030, Kato said.

COVID-19 had a different impact on different industries in the procurement and manufacturing sector, with “the automobile and machine tool industries were negatively affected by the pandemic and experienced an up to 90% temporary drop in sales, while other industries such as the medical and semiconductor industries have experienced explosive growth in demand. The overall result of COVID-19 is that the company has captured more demand because CADDi’s system rebalances receipts across multiple industries,” according to Kato.

Masaya Kubota, partner at World Innovation Lab, told TechCrunch, “CADDi’s solution of aggregating and rebalancing supply and demand has once again proven to be indispensable to both purchasers and manufacturers, with the pandemic disrupting the entire supply chain in manufacturing. We first invested in CADDi in 2018, because we strongly believed in their mission of digitally transforming one of the most analog industries, the $1 trillion procurement market.”

Another investor principal at DCM, Kenichiro Hara, also said in an email interview with TechCrunch, “The pandemic made the manufacturing industry’s supply chain vulnerabilities quite clear early on. For example, if a country is on lockdown or a factory stalls the operations, their customers cannot procure necessary parts to produce their products. This impact amplifies, and the entire supply chain is affected. Therefore, the demand for finding new, available and accessible suppliers in a timely manner increased in importance, which is CADDi’s primary value-add.”

News: Back to the suture: The future of healthcare is in the home

In-home care is nothing new. In the 1930s, over 40% of physician-patient encounters took place in the home, but by the 1980s, that figure dropped to under 1%.

Sumi Das
Contributor

Sumi Das is a partner at CapitalG, Alphabet’s independent growth fund, where he leads healthcare tech and consumer fintech investments. Prior investments include Robinhood, Stripe, Convoy, Albert, Aye Finance, Next Insurance and Strive Health.

Nina Gerson
Contributor

Nina Gerson is a vice president at CapitalG, Alphabet’s independent growth fund, where she co-leads healthcare tech investments. Prior investments include Strive Health and Next Insurance.

The pandemic has highlighted some of the brightest spots — and greatest areas of need — in America’s healthcare system. On one hand, we’ve witnessed the vibrancy of America’s innovation engine, with notable contributions by U.S.-based scientists and companies for vaccines and treatments.

On the other hand, the pandemic has highlighted both the distribution challenges and cost inefficiencies of the healthcare system, which now accounts for nearly a fifth of our GDP — far more than any other country — yet lags many other developed nations in clinical outcomes.

Many of these challenges stem from a lack of alignment between payment and incentive models, as well as an overreliance on hospitals as centers for care delivery. A third of healthcare costs are incurred at hospitals, though at-home models can be more effective and affordable. Furthermore, most providers rely on fee for service instead of preventive care arrangements.

These factors combine to make care in this country reactive, transactional and inefficient. We can improve both outcomes and costs by moving care from the hospital back to the place it started — at home.

Right now in-home care accounts for only 3% of the healthcare market. We predict that it will grow to 10% or more within the next decade.

In-home care is nothing new. In the 1930s, over 40% of physician-patient encounters took place in the home, but by the 1980s, that figure dropped to under 1%, driven by changes in health economics and technologies that led to today’s hospital-dominant model of care.

That 50-year shift consolidated costs, centralized access to specialized diagnostics and treatments, and created centers of excellence. It also created a transition from proactive to reactive care, eliminating the longitudinal relationship between patient and provider. In today’s system, patients are often diagnosed by and receive treatment from individual doctors who do not consult one another. These highly siloed treatments often take place only after the patient needs emergency care. This creates higher costs — and worse outcomes.

That’s where in-home care can help. Right now in-home care accounts for only 3% of the healthcare market. We predict that it will grow to 10% or more within the next decade. This growth will improve the patient experience, achieve better clinical outcomes and reduce healthcare costs.

To make these improvements, in-home healthcare strategies will need to leverage next-generation technology and value-based care strategies. Fortunately, the window of opportunity for change is open right now.

Five factors driving the opportunity for change

Over the last few years, five significant innovations have created new incentives to drive dramatic changes in the way care is delivered.

  1. Technologies like remote patient monitoring (RPM) and telemedicine have matured to a point that can be deployed at scale. These technologies enable providers to remotely manage patients in a proactive, long-term relationship from the comfort of their homes and at a reduced cost.

News: Daily Crunch: Virgin Orbit rockets to $3.2B valuation in SPAC merger

Hello friends and welcome to Daily Crunch, bringing you the most important startup, tech and venture capital news in a single package.

To get a roundup of TechCrunch’s biggest and most important stories delivered to your inbox every day at 3 p.m. PDT, subscribe here.

Hello and welcome to Daily Crunch for August 23, 2021. We’ve got a simply lovely bunch of news items for you below, but before we get into the mix, do note that Pfizer’s vaccine has been fully approved. Which is great news! And in other great news, the agenda is out for our October SaaS event. Which is going to kick maximum backside. See you there! — Alex

The TechCrunch Top 3

  • Would you like to go to space? Well, if you are a small satellite heading for low-Earth orbit, good news! Virgin Orbit is raising a bunch of money in a SPAC-led combination that will at once take it public and provide it with a huge grip of cash. You are familiar with Virgin Galactic, its sister company that takes humans for a joyride. Orbit uses a similar launch technique to put more hardware in space.
  • The global crypto race is on: U.S. fintech companies are working to provide domestic users with the option of buying crypto using their service. And now PayPal is taking its efforts international, with plans to allow U.K. folks to buy cryptocurrency through its service. There is going to be a rush for local providers of crypto services to expand to new shores to both avoid ceding potential global market share and stay relevant.
  • Is this why investors are falling out of love with insurtech? TechCrunch has been on the insurtech beat for a while now, trying to figure out why a bunch of formerly hot insurtech startups that went public in the last year have seen their valuations decline once they began to float. We may have figured it out.

Startups/VC

  • Do you want to turn that coupon into a donation? Givz hopes so. The startup provides an API that allows companies to offer coupons that are, in fact, donations to charity. As Mary Ann Azevedo wrote, an “example of a company using Givz can be found in Tervis, which offered customers” a $15 charity donation if they spent $50 at its store. The startup just closed $3 million.
  • Shelf.io raises huge $52M Series B: Even in 2021, a $50 million Series B stands out. But what makes Shelf interesting isn’t really its new round’s size, but the fact that it posted 4x ARR growth from July 2020 to July 2021. That’s quick. The company sells software that ingests a company’s knowledge base, offering suggestions to workers like customer support reps about what to say and when.
  • How are customers really using your API? That’s the question that Moesif wants to answer, and it just raised $12 million to keep up its efforts. We’ve noted at TechCrunch that many startups are swapping from SaaS to API-delivered software services. Which is well and good, but doesn’t always supply the most limpid way of monitoring customer usage and usage patterns. Perhaps Moesif will make it easier to bill for overages?
  • SoftBank looks to Africa: After flying into the Latin American startup market and making noise, SoftBank’s Vision Fund franchise just made a huge bet in Africa, leading a $400 million round into fintech company OPay. Our own Tage Kene-Okafor writes that “the company’s mobile money and payment arm” is its most successful effort to date.
  • From the latest YC batch, Revery: This startup — Revery.ai, formally — wants to apply computer vision and artificial intelligence to e-commerce to provide a better online dressing room experience, TechCrunch reports. We’ve heard of similar efforts in the past, but that doesn’t mean that there isn’t room in the world of online shopping for a few players.
  • Expect to hear more from YC companies as demo day looms in our calendars.

Zūm CEO Ritu Narayan explains why equity and accessibility works for mobility services

Ritu Narayan founded Zūm with her two brothers in 2016 to disrupt student transportation, a space that hasn’t seen much innovation since pupils began finding their way to and from little red schoolhouses.

Since then, Zūm has inked partnerships with school districts around the country to create more efficient routes and reduce vehicle emissions.

By 2025, Narayan says her company will have 10,000 electric school buses and plans to put the fleet into service to generate power and feed it back to the grid.

To learn more about the company’s development, its immediate plans for the future and how the pandemic impacted operations, read on.

(Extra Crunch is our membership program, which helps founders and startup teams get ahead. You can sign up here.)

Big Tech Inc.

  • TikTok invests in AR: Social phenom TikTok wants to follow Snap and Facebook into the AR studio game. The company just “launched a new creative toolset called TikTok Effect Studio, currently in private beta testing, which will allow its own developer community to build AR effects for TikTok’s short-form video app,” TechCrunch reports. “How do you do, fellow kids?” but in AR? Brands are going to love this.
  • Because our Big Tech section was smaller than usual today, here’s one more from the startup beat: Future tech exits have a lot to live up to.

TechCrunch Experts: Growth Marketing

Illustration montage based on education and knowledge in blue

Image Credits: SEAN GLADWELL (opens in a new window) / Getty Images

Are you all caught up on last week’s coverage of growth marketing? If not, read it here.

TechCrunch wants you to recommend growth marketers who have expertise in SEO, social, content writing and more! If you’re a growth marketer, pass this survey along to your clients; we’d like to hear about why they loved working with you.

Community

The cover of "After Cooling On Freon, Global Warming, and the Terrible Cost of Comfort"

Image Credits: Simon and Schuster

Join Danny Crichton tomorrow Tuesday August 24, at 3 p.m. PDT/6 p.m. EDT for a Twitter Spaces interview with Eric Dean Wilson, author of, “After Cooling: On Freon, Global Warming, and the Terrible Cost of Comfort.”

TechCrunch Disrupt 2021

It’s almost that time when startup followers from around the world gather at our annual conference, Disrupt, which will be held virtually again this year. Join the community September 21-23 to expand your horizons and your network with founders and CEOs of Coinbase, Dapper Labs, GitLab, Canva and more. Attend for less than $100, or you can get a free Innovator Pass if you are one of the first 10 people to register with promo code DAILYCRUNCHFREE. But you’ll want to hurry — it’s first-come, first-served, and once they’re gone, they’re gone!

News: Samsung’s Galaxy Z Flip 3 is the foldable to beat

I took a long walk on Saturday. It’s become a routine during the pandemic, a chance to unwind after too many hours indoors, while seeing parts of the city that would otherwise be lost to subway rides in normal years. Saturday was more purpose-driven, heading to a newly opened Trader Joe’s before Henri unleashed itself

I took a long walk on Saturday. It’s become a routine during the pandemic, a chance to unwind after too many hours indoors, while seeing parts of the city that would otherwise be lost to subway rides in normal years. Saturday was more purpose-driven, heading to a newly opened Trader Joe’s before Henri unleashed itself on the Eastern Seaboard.

Taking respite from the early rain, I found a food court in Long Island City, ordered a shawarma and pulled the Galaxy Z Flip from my pocket. I unfolded the phone, popped the new Galaxy Buds in my ears and watched a baseball game on the MLB.TV app. The Flip really made sense in that moment, open in landscape mode at a 135-degree angle to keep the 6.7-inch screen upright. When the game ended (spoiler, it didn’t end well), I snapped the phone shut, stuck it in my pocket and went on my way.

It doesn’t always come with a piece of new technology, but sometimes you get lucky and have an experience where it just clicks. There were plenty of jokes about the long-ago death of the clamshell when the first Flip arrived. Those won’t be going away anytime soon, of course, but the phone also offered the first sense for many that maybe Samsung was heading in the right direction with its foldable ambitions.

Image Credits: Brian Heater

Setting aside the early flaws with the first Galaxy Fold (we’ve covered them ad nauseum elsewhere), the device is also unwieldy. While it’s true the foldable screen affords you the ability to carry around a screen that might otherwise be impossible, it’s a large device when folded, and the opportunities to unfold don’t readily present themselves. The Flip splits the difference nicely between screen size and portability. In terms of display size, it’s effectively a Galaxy Note that snaps in two and fits nicely in your pocket.

Most of the talk of Samsung mainstreaming foldables has centered on the Galaxy Z Fold — mostly from the company itself. Samsung has made a big to-do about positioning the Fold as its latest flagship — augmenting or, perhaps replacing, the Note in its lineup. The Fold 3 certainly blurs the lines with the addition of S Pen functionality, but the Flip is the much clearer bridge between Samsung’s existing flagships and the foldable future it envisions.

Mainstreaming foldables was always going to be a tricky proposition. Right out of the gate, they were hit with negative coverage over production issues and prices; $2,000 is a lot to pay for a product you essentially have to handle with kid gloves. You shouldn’t have to worry about accidentally damaging your daily driver through normal use. The Flip benefits from the mistakes of earlier fold generations, getting a more robust design and water resistance as a result.

Perhaps even more importantly, however, is pricing. The Galaxy Z Flip is Samsung’s first foldable under $1,000. Now, granted, it’s literally one penny under that threshold — a price point that puts it in line with expensive premium phones from the likes of Samsung and Apple. But in the world of foldables, that’s a really big win. The first couple of generations could — to some degree — survive on novelty alone.

Image Credits: Brian Heater

As more of these devices make their way into the world, utility supersedes novelty. But growing popularity also means scale — and, as a result, price drops. For the first time, buying a Samsung foldable is not the financial equivalent of buying two phones. That’s a much more significant threshold than the Galaxy Fold dropping $200 over its previous generation.

The company noted this week, that “in just 10 days since announcement pre-orders for the Galaxy Z Fold3 and Galaxy Z Flip3 have already surpassed total global Samsung foldables sales in all of 2021, also making it the strongest pre-order for Samsung foldables ever.” There are a lot of factors here, including a lower price, more robust design, the absence of a new Note and an aggressive push to get consumers to preorder. But it’s safe to say the line is, at the very least, trending the right way.

Expectedly, the company’s numbers don’t break down sales in terms of Fold versus Flip. Admittedly, the Fold is more fully featured, and 7.6 inches of screen is better than 6.7 inches of screen, when it comes, to, say, watching a full movie. But for most people in most instances, the Galaxy Flip is a better choice. I can say with no hesitation: The Samsung Galaxy Z Flip is the most mainstream foldable on the market.

If you’re not sold on the importance of foldables, such a statement understandably doesn’t mean much. But for a vast majority of people looking to make the leap to what is increasingly looking like a key part of the mobile future, the Flip is an obvious choice. And while it’s easy to make fun of the clamshell design as a relic of a bygone era, there’s a reason phones went that way in the first place. One assumes a big part of the reason they largely went away is that — until now — smartphones weren’t foldable.

Image Credits: Brian Heater

Samsung gets the design language right here. The Flip 3 is easily the company’s best-looking foldable to date. The dual-color shell is striking. The company sent along a cream color, which I’m not particularly fond of, but the green, lavender and even plain black or white are quite striking. It pairs well with the strip of black that houses the exterior display, which has been bumped from 1.1 to 1.9 inches. It doesn’t sound like a lot, sure, but that’s a healthy increase on a screen this size.

Of course, you’re losing the full exterior screen functionality you get on the Fold. The Flip’s display is effectively a quick-glance secondary screen for notifications. Pull it out, and it shows you the time, date and how much battery you’ve got left. Swipe right and you’ll see your notifications.

Swipe left and you get an alarm or timer, with the option of adding more widgets to the screen, including weather, media playback (effectively audio play/pause) and Samsung Health Metrics. It’s a small list, but one that will no doubt increase if more people pick up the Flip. Swipe down for some quick settings and Swipe up for Samsung Pause.

In a time when many of us are trying to make a concerted effort to minimize our phone use, I appreciate the dichotomy between the two screens. It’s a much clearer line in the sand than the one separating the Fold’s 6.2- and 7.6-inch screens. Phone closed = checking my notifications. Phone open = engagement. When the time comes to open the phone, the Flip is a much easier proposition than the phones. I haven’t quite mastered the art of the one-handed open just yet, but it’s much easier to execute on the fly than the Fold, which is effectively like opening a book. The biggest downside to the form factor in terms of speed is there’s no quick way to fire off a photo.

Image Credits: Brian Heater

Taking photos is far more deliberate, requiring one to open the phone to see the internal view finder. You can, however, snap off some selfies by double-pressing the power button, with the small front-facing screen doubling as a small viewfinder. Swiping to the left toggles between still, while swiping up and down changes the level of zoom. It’s a bit awkward and clunky, but the pair of 12-megapixel cameras (wide and ultra-wide) will get you a much better selfie than most pinhole cameras (including the Flip’s 10 megapixel lens).

Like the Fold, the rear cameras (which are also the front-facing cameras, depending on how you look at it) are largely unchanged since the Flip 2. A dual-camera system can feel almost antiquated in 2021, but for most intents and purposes, they do the trick, coupled with Samsung’s many years of camera software experience. The 22:9 aspect ratio means more than a quarter of the screen is occupied by the controls out of necessity.

The aspect ratio in general merits comment. It’s, like, really, really tall when open. It’s a nice amount of real estate to have when, say, scrolling through Gmail or Twitter. But when watching video, you’ll often encounter pillarboxing — letterboxing on the sides of the screen. The video world simply isn’t ready for 22:9, and quite frankly, it probably won’t ever be.

And then, of course, there’s the seam. It’s right there in the center of the lovely 2640 x 1080, 425 ppi screen. And barring some unforeseen breakthrough in foldable tech, I frankly don’t see it disappearing any time soon. I understand why that might be a deal breaker, though I’ve largely gotten used to it after spending time with these devices.

Like the Fold, the Flip runs on the Snapdragon 888 processor. Predictably, the lower cost comes with less in the way of RAM and storage, at 8 and 128GB on the Flip, to the Fold’s 12 and 256GB. Another $150 will upgrade the storage 256GB here. While Samsung mostly hasn’t skimped much on the internals, the 3,300 mAh battery does fall short.

Battery life is an issue with the Fold and an even bigger problem on the Flip — in fact, it’s the biggest complaint here. Moderate to heavy use is going to require getting near a charging cable before the day is over. Maybe not a huge deal in these pandemic days, but something to consider as we re-enter the world. Certainly long, unplugged plane rides are out of the question.

Image Credits: Brian Heater

Again, I can totally sympathize with that being a deal breaker. You pay $1,000 for a phone, you want a battery that’s going to get you through a day of use, worry-free. And certainly it’s something for Samsung to focus on in gen four.

As it stands, the Galaxy Z Flip 3 has the benefit of previous generations, with a stronger aluminum frame, improved screen protector and IPX8 water resistance (no dust resistance rating, for reasons outlined in the Fold review). It’s not a perfect phone, but it’s a strong sign of how far Samsung’s foldables have come in three generations, coupled with a sub-$1,000 price point.

The device is likely to be second fiddle as the company continues to push the Fold as its flagship foldable. But for most people looking to enter the world of foldable phones, the Flip is the easy choice.

WordPress Image Lightbox Plugin