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News: Frame streamlines finding a therapist and builds a one-stop shop for private practices

Therapy is rapidly becoming a standard part of many people’s lives, but 2020 interrupted that trend by nixing in-person sessions and forcing therapists to migrate their entire practice online — and it turns out that’s not so easy. Frame simplifies it with an all-in-one portal for clients and therapists, unifying the listings, tools and management

Therapy is rapidly becoming a standard part of many people’s lives, but 2020 interrupted that trend by nixing in-person sessions and forcing therapists to migrate their entire practice online — and it turns out that’s not so easy. Frame simplifies it with an all-in-one portal for clients and therapists, unifying the listings, tools and management software that run the countless small businesses making up the industry.

Kendall Bird and Sage Grazer are old friends who happened to be in the right place at the right time — a strange thing to say about anyone anywhere at the start of 2020, but it’s true. The startup’s pitch of bringing your practice entirely online and offering all-online sessions, bookkeeping, scheduling and everything turned out to be exactly what would soon be needed — though as they tell it, it has actually been needed for some time.

Grazer, a therapist herself, experienced firsthand the unexpected difficulties of getting up and running.

“When I started my practice in 2016, I was really passionate about the clinical work, but I was very overwhelmed by setting up a business, marketing, financial stuff,” she said. “So we wanted to help other therapists through that.”

She and Bird happened to reconnect around that time and the two saw an opportunity to improve things.

Kendall Bird (left) and Sage Grazer. Image Credits: Frame

“We think about therapists as being a one-on-one thing, but they’re really a small business,” said Bird, who formerly worked in marketing at Snapchat, Google and YouTube. “They’re underserved and undersupported as mental health professionals — they don’t have the back-office support that doctors do, and they’re not trained how to run businesses. It just made sense to build a scalable SaaS solution that lets these people work for themselves.”

The therapy industry, like other medical institutions, has two sides: client-facing and practitioner-facing. While there are a handful of services online that combine these, many essentially recruit therapists as contractors. If you want to run your own practice, you’ll likely be using a combination of specialty scheduling, telehealth, billing and other tools made with medical privacy considerations in mind.

“The therapy tools and services landscape is incredibly fragmented — the average therapist is using 5-7 tools, and most of those are not built for therapy,” said Bird.

And then of course there’s Psychology Today: a periodical that straddles the roles of pop psych and industry rag, but whose chief reason for existing for many is its voluminous therapist listings, which dominate search and provide an overwhelming first stop for anyone looking to find one in their area. But for such a personal and consequential decision these brief listings don’t give wary potential clients the impression they’re making an informed choice.

“We wanted an experience that was more approachable, uses language that doesn’t feel overwhelming or pathologizing,” said Grazer. “There are people going to therapy feeling alone and confused, who don’t identify with a disorder or checking a check box.”

The therapist's inbox showing conversations with clients and prospective clients.

Image Credits: Frame

Frame eschews the oversimplified “scroll through therapists near your area code” with a short quiz — not a diagnosis or personality test but just a few basic questions — that winnows down your choices to a handful of local and appropriate therapists, with whom you can instantly set up free introductory video calls. If you find someone you like, the rest of the professional relationship takes place on Frame, though of course soon in-person sessions may return.

For those not quite ready to take the plunge, the company organizes livestreamed sessions between volunteers and therapists to show what a full hour of work might look like. (Whatever courage it may take to confront one’s issues in therapy, it surely takes even more to do so with an audience.)

On the therapist’s side, Frame is meant to be a one-stop shop. Marketing and telehealth sessions are on there, as noted above, but so are things like scheduling, notes, billing, notifications, and so on, all tailored specifically to the needs of the industry. And while the shift to online services has been a long time coming, the company just happened to drop in just as the need went into overdrive.

A therapist's online dashboard showing billing, schedules, and links for appointments.

Image Credits: Frame

“We built it before COVID ever existed — launched in March 2020 and had telehealth as an option, thinking ‘oh, well maybe some people will do this.’ The majority of therapists in America weren’t doing sessions online at the time… but after COVID they all are,” Bird said. “And they’re looking for these tools now because they’re seeing the rewards of running a lot of their business through telehealth.”

Many therapists are finding that after resisting the transition for years, they are encountering all kinds of benefits, explained Grazer. Like other industries, the flexibility inherent to shifting in-person meetings to virtual ones has been freeing and in some cases profitable. The change is here to stay.

The site is in a closed beta limited to a part of California at present, since therapists are limited to operating in-state and there are other regulations to consider, not to mention all the usual struggles of putting together a sprawling professional service. But the $3 million funding round, led by Maven Ventures, will help fill out the product and move the company toward a larger audience. Sugar Capital, Struck Capital, Alpha Edison and January Ventures participated in the raise.

The money is “almost exclusively going to engineering.” The goal is to open up the beta, expand to the rest of California, then move out to other states once they have the infrastructure to do so and have responded to feedback from the initial rollout.

“Sage and I are really aligned in the belief that the best way to make therapy more accessible to America is to support therapists,” said Bird.

News: Dutch court will hear another Facebook privacy lawsuit

Privacy litigation that’s being brought against Facebook by two not-for-profits in the Netherlands can go ahead, an Amsterdam court has ruled. The case will be heard in October. Since 2019, the Amsterdam-based Data Privacy Foundation (DPS) has been seeking to bring a case against Facebook over its rampant collection of Internet users’ data — arguing

Privacy litigation that’s being brought against Facebook by two not-for-profits in the Netherlands can go ahead, an Amsterdam court has ruled. The case will be heard in October.

Since 2019, the Amsterdam-based Data Privacy Foundation (DPS) has been seeking to bring a case against Facebook over its rampant collection of Internet users’ data — arguing the company does not have a proper legal basis for the processing.

It has been joined in the action by the Dutch consumer protection not-for-profit, Consumentenbond.

The pair are seeking redress for Facebook users in the Netherlands for alleged violations of their privacy rights — both by suing for compensation for individuals; and calling for Facebook to end the privacy-hostile practices.

European Union law allows for collective redress across a number of areas, including data protection rights, enabling qualified entities to bring representative actions on behalf of rights holders. And the provision looks like an increasingly important tool for furthering privacy enforcement in the bloc, given how European data protection regulators’ have continued to lack uniform vigor in upholding rights set out in legislation such as the General Data Protection Regulation (which, despite coming into application in 2018, has yet to be seriously applied against platform giants like Facebook).

Returning to the Dutch litigation, Facebook denies any abuse and claims it respects user privacy and provides people with “meaningful control” over how their data gets exploited.

But it has fought the litigation by seeking to block it on procedural grounds — arguing for the suit to be tossed by claiming the DPS does not fit the criteria for bringing a privacy claim on behalf of others and that the Amsterdam court has no jurisdiction as its European business is subject to Irish, rather than Dutch, law.

However the Amsterdam District Court rejected its arguments, clearing the way for the litigation to proceed.

Contacted for comment on the ruling, a Facebook spokesperson told us:

We are currently reviewing the Court’s decision. The ruling was about the procedural part of the case, not a finding on the merits of the action, and we will continue to defend our position in court. We care about our users in the Netherlands and protecting their privacy is important to us. We build products to help people connect with people and content they care about while honoring their privacy choices. Users have meaningful control over the data that they share on Facebook and we provide transparency around how their data is used. We also offer people tools to access, download, and delete their information and we are committed to the principles of GDPR.

In a statement today, the Consumentenbond‘s director, Sandra Molenaar, described the ruling as “a big boost for the more than 10 million victims” of Facebook’s practices in the country.

“Facebook has tried to throw up all kinds of legal hurdles and to delay this case as much as possible but fortunately the company has not succeeded. Now we can really get to work and ensure that consumers get what they are entitled to,” she added in the written remarks (translated from Dutch with Google Translate).

In another supporting statement, Dick Bouma, chairman of DPS, added: “This is a nice and important first step for the court. The ruling shows that it pays to take a collective stand against tech giants that violate privacy rights.”

The two not-for-profits are urging Facebook users in the Netherlands to sign up to be part of the representative action (and potentially receive compensation) — saying more than 185,000 people have registered so far.

The suit argues that Facebook users are “paying” for the “free” service with their data — contending the tech giant does not have a valid legal basis to process people’s information because it has not provided users with comprehensive information about the data it is gathering from and on them, nor what it does with it.

So — in essence — the argument is that Facebook’s tracking and targeting is in breach of EU privacy law.

The legal challenge follows an earlier investigation (back in 2014) of Facebook’s business by the Dutch data protection authority that identified problems with its privacy policy and — in a 2017 report — found the company to be processing users’ data without their knowledge or consent.

However, since 2018, Europe’s GDPR has been in application and a “one-stop-shop” mechanism baked into the regulation — to streamline the handling of cross-border cases — has meant complaints against Facebook have been funnelled through Ireland’s Data Protection Commission. The Irish DPC has yet to issue a single decision against Facebook despite receiving scores of complaints. (And it’s notable that  “forced consent” complaints were filed against Facebook the day GDPR begun being applied — yet still remain undecided by Ireland.)

The GDPR’s enforcement bottleneck makes collective redress actions, such as this one in the Netherlands a potentially important route for Europeans to get rights relief against powerful platforms that seek to shrink the risk of regulatory enforcement via forum shopping.

Although national rules — and courts’ interpretations of them — can vary. So the chance of litigation succeeding is not uniform.

In this case, the Amsterdam court allowed the suit to proceed on the grounds that the Facebook data subjects in question reside in the Netherlands.

It also took the view that a local Facebook corporate entity in the Netherlands is an establishment of Facebook Ireland, among other reasons for rejecting Facebook’s arguments.

How Facebook will seek to press a case against the substance of the Dutch privacy litigation remains to be seen. It may well have other procedural strategies up its sleeve.

The tech giant has used similar stalling tactics against far longer-running privacy litigation in Austria, for example.

In that case, brought by privacy campaigner Max Schrems and his not-for-profit noyb, Facebook has sought to claim that the GDPR’s consent requirements do not apply to its advertising business because it now includes “personalized advertising” in its T&Cs — and therefore has a “duty” to provide privacy-hostile ads to users — seeking to bypass the GDPR by claiming it must process users’ data because it’s “necessary for the performance of a contract,” as noyb explains here.

A court in Vienna accepted this “GDPR consent bypass” sleight of hand, dealing a blow to European privacy campaigners.

But an appeal reached the Austrian Supreme Court in March — and a referral could be made to Europe’s top court.

If that happens it would then be up to the CJEU to weigh in whether such a massive loophole in the EU’s flagship data protection framework should really be allowed to stand. But that process could still take over a year or longer.

In the short term, the result is yet more delay for Europeans trying to exercise their rights against platform giants and their in-house armies of lawyers.

In a more positive development for privacy rights, a recent ruling by the CJEU bolstered the case for data protection agencies across the EU to bring actions against tech giants if they see an urgent threat to users — and believe a lead supervisor is failing to act.

That ruling could help unblock some GDPR enforcement against the most powerful tech companies at the regulatory level, potentially reducing the blockages created by bottlenecks such as Ireland.

Facebook’s EU to U.S. data flows are also now facing the possibility of a suspension order in a matter of months — related to another piece of litigation brought by Schrems that hinges on the conflict between EU fundamental rights and U.S. surveillance law.

The CJEU weighed in on that last summer with a judgment that requires regulators like Ireland to act when user data is at risk. (Germany’s federal data protection commissioner, for instance, has warned government bodies to shut their official Facebook pages ahead of planned enforcement action at the start of next year.)

So while Facebook has been spectacularly successful at kicking Europe’s privacy rights claims down the road, for well over a decade, its strategy of legal delay tactics to shield a privacy-hostile business model could finally hit a geopolitical brick wall.

The tech giant has sought to lobby against this threat to its business by suggesting it might switch off its service in Europe if the regulator follows through on a preliminary suspension order last year.

But it has also publicly denied it would actually follow through and close service in Europe.

How might Facebook actually comply if ordered to cut off EU data flows? Schrems has argued it may need to federate its service and store European users’ data inside the EU in order to comply with the eponymous Schrems II CJEU ruling.

Albeit, Facebook has certainly shown itself adept at exploiting the gaps between Europeans’ on-paper rights, national case law and the various EU and member state institutions involved in oversight and enforcement as a tactic to defend its commercial priorities — playing different players and pushing agendas to further its business interests. So whether any single piece of EU privacy litigation will prove to be the silver bullet that forces a reboot of its privacy-hostile business model very much remains to be seen.

A perhaps more likely scenario is that each of these cases further erodes user trust in Facebook’s services — reducing people’s appetite to use its apps and expanding opportunities for rights-respecting competitors to poach custom by offering something better. 

 

News: Don’t send VC a cold deck ever again: Start sending video pitches

More investors are embracing video pitches, and in the age of the Zoom-based pitch meeting, it’s quickly becoming the standard.

Evan Fisher
Contributor

Founder of Unicorn Capital and Minimal Capital, Evan Fisher‘s pitching and investor strategy has helped startups raise more than $2.5 billion.

Let’s play out this scenario. Your deck is ready and you’re just about to start reaching out. What does conventional wisdom say that you should send? A three-paragraph overview, four bullet points outlining the problem, and three bullet points on how you solve it and why you’re the best. You went through all that work … but who is going to read it? A junior person. Not even a senior VC.

Even if you do end up with a meeting, odds are that your deck didn’t even get read. The biggest lie in venture capital is: “Yes, I read through your deck.” Because those words are immediately followed by, “ … but why don’t you run us through it from the beginning?”

At that point, it’s safe to assume that no one has actually taken the time to read through what you sent, the junior guy thought it would be an interesting meeting considering the fund’s current themes of interest, and no one objected to taking the meeting. But no one has really taken the time to read through your deck.

Even if the only benefit was that other investment committee members heard the story direct from the founder, that alone would make your video pitch worth it.

According to DocSend, the average pitch deck review time over the last 20 weeks is less than three minutes. Let’s break down how much time you’ll be given for a 12-page deck (a very concise deck):

  • Cover — 5 seconds.
  • Back cover — 5 seconds.
  • All the rest — 2:50.

That also includes time for that critical-to-understand diagram that illustrates and distills your unique system or view of the world. Do you think 25 seconds is long enough to fully comprehend that diagram and connect the dots with your value prop? Not likely.

What should you do about it?

Don’t send cold decks, ever. Instead, you should be video pitching — this is a video walkthrough of your deck, with your face in a camera bubble talking through it and giving added color in a video no longer than six-and-a-half minutes. Your objective for this video: Get in, provide a basis of understanding, and get out with a punchy CTA. Nothing flashy, nothing fancy.

More investors are embracing video pitches (prime example: Ashton Kutcher’s Sound Ventures), and in the age of the Zoom-based pitch meeting, it’s quickly becoming the standard.

The rapid but notable shift is because in video pitching, founders get to showcase the preparedness, commitment and passion VCs are looking for, all while telling their story. None of that is effectively transmitted in a cold pitch deck. Further, it allows you to create a deeper connection even before a meeting ever takes place. In a sense, it allows you and the investor to skip a step in the relationship-building process.

Why you have to do video pitches

Cold decks get blown out of the water when compared with the benefits of the video pitch:

  1. You can connect the dots in an easy-to-digest manner. Instead of simply reading the slides, you’re adding context as you go through them. Basically, you’re doing investors a favor by doing the mental heavy lifting for them.
  2. You control the interaction. It’s a recorded video, so you get to pitch with the added benefit of not getting interrupted.
  3. People might not give three minutes to skim a PDF, but they will watch a six-and-a-half minute high-relevance video!

News: Jim Whitehurst steps down as president at IBM just 14 months after taking role

In a surprise announcement today, IBM announced that Jim Whitehurst, who came over in the Red deal, would be stepping down as company president just 14 months after taking over in that role. IBM didn’t give a lot of details as to why he was stepping away, but acknowledged his key role in helping bring

In a surprise announcement today, IBM announced that Jim Whitehurst, who came over in the Red deal, would be stepping down as company president just 14 months after taking over in that role.

IBM didn’t give a lot of details as to why he was stepping away, but acknowledged his key role in helping bring the 2018 $34 billion Red Hat deal to fruition and helping bring the two companies together after the deal closed. “Jim has been instrumental in articulating IBM’s strategy, but also, in ensuring that IBM and Red Hat work well together and that our technology platforms and innovations provide more value to our clients,” the company stated.

He will stay on as a senior advisor to Krishna, but it begs the question why he is leaving after such a short time in the role, and what he plans to do next. Oftentimes after a deal of this magnitude closes, there is an agreement as to how long key executives will stay. It could be simply that the period has expired and Whitehurst wants to move on, but some saw him as the heir apparent to Krishna and the move comes as a surprise when looked at in that context.

“I am surprised because I always thought Jim would be next in line as IBM CEO. I also liked the pairing between a lifer IBMer and an outsider,” Patrick Moorhead, founder and principal analyst at Moor Insight & Strategies told TechCrunch.

Regardless, it leaves a big hole in Krishna’s leadership team as he works to transform the company into one that is primarily focused on hybrid cloud.  Whitehurst was undoubtedly in a position to help drive that change through his depth of industry knowledge and his credibility with the open source community from his time at Red Hat. He is not someone who would be easily replaced and the announcement didn’t mention anyone filling his role.

When IBM bought Red Hat in 2018 for $34 billion, it led to a cascading set of changes at both companies. First Ginni Rometty stepped down as CEO at IBM and Arvind Krishna took over. At the same time, Jim Whitehurst, who had been Red Hat CEO moved to IBM as president and long-time employee Paul Cormier moved into his role.

At the same time, the company also announced some other changes including that long-time IBM executive Bridget van Kralingen announced she too was stepping away, leaving her role as senior vice president of global markets. Rob Thomas, who had been senior vice president of IBM cloud and data platform, will step in to replace Van Kraligen.

News: Chinese cybersecurity probe validates Didi’s pre-IPO warning to investors

To see Didi get taken to task mere days after its U.S. debut puts a bad taste in our mouths.

Shares of Chinese ride-hailing provider Didi are sharply lower this morning after news broke that its domestic regulators are investigating the newly public company. A loose translation of the probe’s official notice indicates that the cybersecurity review is “in order to prevent national data security risks, maintain national security, and protect the public interest.”

Yesterday, regulators ordered Didi to stop registering new users during the investigation.

The move comes amid a larger reset of relations between China’s burgeoning technology sector and its autocratic government. Other fallouts from the campaign included the effective silencing of Jack Ma, the embarrassing cancellation of the Ant IPO, and a crackdown on data collection from technology companies more broadly.


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China is not the only nation grappling with its technology sector; India has made consistent noise in recent months regarding tech firms inside its borders, for example. And there is effort inside the U.S. Congress to put some cap on Big Tech’s scale and power, though of the trio, the United States appears the least likely to take a real swipe at technology companies’ market influence.

That Didi has run afoul of China’s regulatory bodies is not a surprise; it’s a well-known tech company in the country with lots of consumer data. Similar data-rich tech shops in the country have come under increased scrutiny as well.

But to see Didi get taken to task mere days after its U.S. debut puts a bad taste in our mouths.

The way that this saga reads from the cynical perspective is that the Chinese Communist Party was willing to let the company go public in the United States, allowing it to raise billions of dollars from foreign sources. And that the ruling party was then content to leave them holding a mid-sized bag by announcing its cybersecurity probe.

Hanlon’s Razor is at play in this situation, naturally.

Didi has not published a new SEC filing since June 30, and, as of the time of writing, its investor relations page is devoid of any information regarding today’s news.

While going public, it’s worth noting that Didi did warn investors that it faces a host of risks relating to its status as a Chinese company, namely its government, and as a Chinese company going public in the United States. Observe the following risk factors that it shared while going public (emphasis added) that dealt with the company’s business operations:

  • Our business is subject to numerous legal and regulatory risks that could have an adverse impact on our business and future prospects.
  • Our business is subject to a variety of laws, regulations, rules, policies and other obligations regarding privacy, data protection and information security. Any losses, unauthorized access or releases of confidential information or personal data could subject us to significant reputational, financial, legal and operational consequences.

News: California has no water and lots of liquidity

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines. Danny, Natasha, and Alex were on-deck this week, with Grace on the recording and edit. But, if you want to hear more about Robinhood, this is not the episode for you. If you want to learn more about the consumer fintech company’s

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.

Danny, Natasha, and Alex were on-deck this week, with Grace on the recording and edit. But, if you want to hear more about Robinhood, this is not the episode for you. If you want to learn more about the consumer fintech company’s IPO filing this is the episode you want. Basically, Robinhood filed after we had wrapped taping, so we had to do a special pod for the news.

So, this is the everything-but-Robinhood episode. And here’s what’s inside of it:

A four-episode week! With only Grace handling production! She’s amazing.

Equity drops every Monday at 7:00 a.m. PST, Wednesday, and Friday morning at 7:00 a.m. PST, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts.

News: GM is investing in a California lithium extraction project

General Motors is investing in domestically sourced lithium. The company said Friday it became the first investor in an Australian company’s project to extract the mineral, a critical component of electric vehicle batteries, from the Salton Sea Geothermal Field near Los Angeles. The automaker will have first rights on lithium produced by Controlled Thermal Resources’

General Motors is investing in domestically sourced lithium. The company said Friday it became the first investor in an Australian company’s project to extract the mineral, a critical component of electric vehicle batteries, from the Salton Sea Geothermal Field near Los Angeles. The automaker will have first rights on lithium produced by Controlled Thermal Resources’ “Hell’s Kitchen” lithium extraction project.

The Hell’s Kitchen project is expected to begin producing lithium in 2024. That output would be used in GM’s Ultium battery cells, which are being manufactured as part of a joint venture with LG Energy Solution, after undergoing validation and testing. While Tim Grewe, GM’s general director of electrification strategy and cell engineering, declined to provide specifics on how much lithium GM will likely receive, he said the company expects “it’ll be a significant amount of [GM’s] North American lithium.”

GM and other automakers will need a lot of lithium if they want to meet their electrification targets. For GM, that includes transitioning away from internal combustion engines entirely by 2035. But that wide-scale transition will also likely mean greater competition – not only for customers’ dollars, but for the source minerals that compose essential parts like batteries.

In general, lithium is produced either via hard rock mining or by extracting the mineral from brine deposits. Both methods have been criticized for their impacts on the environment. What makes CTR’s project stand out is that it will use renewable geothermal energy – produced from the Salton Sea Geothermal Field, a huge area in the Imperial Valley that’s already home to eleven geothermal power stations – to process the lithium.

In addition to being powered by renewable energy, CTR says the project uses a closed-loop direct extraction process that returns spent brine to its underground source and leaves no production tailings, a kind of waste reside from mining.

Most of the world’s lithium is sourced from a small number of countries, predominately Chile, Australia, China and Argentina. There only one lithium production site in the United States, a brine operation in Nevada owned by chemical manufacturing giant Albemarle. But there’s been an increased focus on boosting domestic production in the mineral in recent years, driven largely by two trends: the anticipated demand for the mineral, which is expected to rapidly increase due in part to the transition to battery electric vehicles; and a bipartisan focus on keeping the US competitive in emerging technologies.

According to the California Energy Commission, as much as one third of the world’s current demand for lithium could be found in the state’s lithium deposits. The CTR project is one of many aimed at extracting lithium from the Salton Sea’s vast brine fields.

News: India’s Licious raises $192 million for international expansion

Licious, a Bangalore-based startup that sells fresh meat and seafood online, has raised $192 million in a new financing round as it looks to expand its footprint beyond the South Asian market. The new round — a Series F — was led by Singapore’s investment firm Temasek and Multiples Private Equity. The round, which brings

Licious, a Bangalore-based startup that sells fresh meat and seafood online, has raised $192 million in a new financing round as it looks to expand its footprint beyond the South Asian market.

The new round — a Series F — was led by Singapore’s investment firm Temasek and Multiples Private Equity. The round, which brings the six-year-old Indian firm’s to-date raise to over $285 million, values the startup at more than $650 million (according to a person with direct knowledge of the matter), up from $285 million in December 2019 Series E funding.

Existing investors 3one4 Capital, Bertelsmann India Investments, Vertex Growth Fund, and Vertex Ventures also participated in the new round, and some early investors sold some of their stakes.

Licious operates an eponymous e-commerce platform where it sells meat and seafood in over a dozen Indian cities. The startup has built a supply chain network across several Indian cities to be able to procure meat and seafood, keep them fresh, and deliver within hours of the order.

In recent months, the startup says it has accelerated its growth as people increase their protein consumption in a bid to improve their immunity.

It didn’t disclose exact figures, but said the startup has seen a 500% growth in the past 12 months and delivered to more than 2 million unique customers.

“This is just the beginning in our pursuit of building an exemplary and iconic tech-led D2C (direct-to-consumer) brand,” said Vivek Gupta and Abhay Hanjura in a joint statement Friday.

According to industry estimates, India’s online meat market is worth over $4.4 billion and has grown by over 2.5x since the pandemic hit last year.

Licious, which competes with FreshToHome, plans to deploy the fresh capital to expand to “multiple geographies,” it said, without identifying any market. The startup is also making investments to broaden its tech and supply chain networks, it said.

The startup’s co-founders have “revolutionised the purchase of poultry, seafood and meat in the country delighting customers with their promise of quality, freshness and timely delivery,” said Sridhar Sankararaman, MD, Multiples.

News: Swedish gaming giant acquires India’s PlaySimple for $360 million

Swedish gaming giant Modern Times Group (MTG) has acquired Indian startup PlaySimple for $360 million, the two firms said Friday. MTG said it will pay 77% of the acquisition sum to Indian game developer and publisher in cash and the rest in company shares. There’s also another $150 million reward put aside if certain undisclosed

Swedish gaming giant Modern Times Group (MTG) has acquired Indian startup PlaySimple for $360 million, the two firms said Friday.

MTG said it will pay 77% of the acquisition sum to Indian game developer and publisher in cash and the rest in company shares. There’s also another $150 million reward put aside if certain undisclosed performance metrics are hit, the two firms said.

Friday’s deal marks one of the largest exits in the Indian startup ecosystem. PlaySimple had raised $4 million Series A at a valuation of about $16 million from Elevation Capital and Chiratae Ventures in 2016. (The startup, which began its journey in Bangalore, raised just $4.5 million in total from external investors.)

And it’s clear why: the revenues of PlaySimple — which operates nine word games including “Daily Themed Crossword,” “Word Trip,” “Word Jam,” and “Word Wars” — grew by 144% y-o-y to $83 million last year and it was on track to hit over $60 million revenue in the first half of 2021.

“We’re very proud of the games we’ve developed over the years, and of the infrastructure and scale that we’ve achieved with our team. As we join the MTG family, we look forward to leveraging our proprietary technology across MTG’s gaming portfolio, expanding into the European market, investing in cutting-edge technology and building exciting new games,” PlaySimple co-founders and management team members — Siddhanth Jain, Suraj Nalin and Preeti Reddy — said in a joint statement.

PlaySimple, which says its free-to-play games have amassed over 75 million installs and maintain nearly 2 million daily active users, plans to launch a number of games later this year and also expand into the card games genre.

“PlaySimple is a rapidly growing and highly profitable games studio that quickly has established itself as one of the leading global developers of free-to-play word games, an exciting new genre for MTG,” said Maria Redin, MTG Group President and CEO, said in a statement.

The Stockholm-headquartered firm, which has also acquired Hutch and Ninja Kiwi in recent years, said PlaySimple will help it build a diversified gaming vertical. “Scaling and diversifying the GamingCo [an MTG subsidiary] helps to accelerate the operational performance while at the same time creating a more stable business,” the firm said.

News: TeamApt will use its new funding round to provide digital bank services for the unbanked

A great deal has changed since we last covered Nigerian fintech startup TeamApt two years ago. At the time, the company had just closed a $5.5 million Series A round from a single VC — Quantum Capital Partners, a firm owned by Zenith Bank billionaire Jim Ovia. TeamApt has quite the story. CEO Tosin Eniolorunda

A great deal has changed since we last covered Nigerian fintech startup TeamApt two years ago. At the time, the company had just closed a $5.5 million Series A round from a single VC — Quantum Capital Partners, a firm owned by Zenith Bank billionaire Jim Ovia.

TeamApt has quite the story. CEO Tosin Eniolorunda started the company in 2015 after leaving Interswitch. He was going head-to-head with the billion-dollar company when TeamApt received a license to operate as a payment switch providing enterprise solutions for banks in the country.

TeamApt bootstrapped with revenue made on a per-project basis. By 2017, the company, which optimized core bank back-office operations was servicing 26 financial institutions and processing $160 million in monthly transactions without raising a dime. A year later, TeamApt began releasing direct consumer and business-facing products targeted at driving financial inclusion in the country.

Moneytor was a digital banking service for financial institutions to track transactions with web and mobile interfaces; Monnify, an enterprise software suite for small business management and AptPay, a push payment infrastructure to centralize services used on banking mobile apps. These products had varying degrees of success; however, Moniepoint, an agency banking platform launched months after the Series A, became the instant hit.

In developed markets where banking networks are sophisticated and have an extensive reach, the concept of agency banking is foreign. But in developing markets like Nigeria, it’s necessary because the bank to population ratio in Nigeria is low. According to reports, there are 4.3 branches per 100,000 people compared to the global average of 11.7 branches.

Agency banking serves as an alternative distribution strategy for traditional retail banking by using authorized personnel who acts as agents to expand the reach of the branch network. For many Nigerians, agency banking represents a financial access lifeline and one of the most viable options for accessing the financial services they need.

Moniepoint agents use mobile apps and point-of-sale terminals to offer these customers access to financial services like cash withdrawal, cash deposit, funds transfer, airtime purchase and bill payments. In less than two years, Moniepoint claims to account for 74% of agency banking transactions in Nigeria. The platform also processes about 68 million transactions worth over $3.5 billion monthly through 100,000 agents and 14 million customers. When transactions from Monnify are added, TeamApt said it processed $17.5 billion in the past 12 months.

But despite the seeming success, TeamApt is poised to add digital banking services to Moniepoint’s dominant agency banking play. “What is the reason behind this? With multiple players, was the agency banking space becoming too crowded that Moniepoint couldn’t acquire more market share?” I ask Eniolorunda.

“There’s still room for growth in the agency space. We can actually grow more and take more share as more agents continue to enter the market and consumers embracing agency networks and point-of-sale networks. So the reason we’re trying to do this is for two reasons — a mission and commercial reason,” he answered.

Most well-known digital banks in Nigeria cater to the already banked, neglecting the unbanked or underbanked consumers that banks do not serve. Eniolorunda’s “mission reason” is to provide financial services for them via launching a digital bank. The commercial reason? “We want to be the middle ground between banks and digital approaches to actually serve the next billion Africans. The reason why we can do this is that we have demonstrated our traction in Nigeria to become the largest agency network just in the period of two years,” the CEO added

Judging by the transactions made on Moniepoint and since existing digital banks capture the same customers as big commercial banks, TeamApt sits on a big opportunity if it can convert a chunk of its offline users online. Of course, this strategy isn’t new in itself. It is currently being adopted by another digital bank targeted at the unbanked, Bankly. However, the good news is that should any of these platforms show significant success, other platforms might widely adopt the approach and go a long way in providing digital banking services to the unbanked.

To test out this strategy at scale, TeamApt has secured another round of investment. Two months ago, Dutch entrepreneurial development bank FMO announced its participation in TeamApt’s Series A extension round with $2 million. But while FMO is among the grand list investors in this tranche of investment, the venture round has changed to a Series B, TeamApt confirmed. 

The $200 million Pan-African fund Novastar Ventures led the round. Dubai-based Global Ventures, CDC Group, Soma Capital, and Pan-African VC firms Kepple Africa and Oui Capital participated alongside some local angel investors.

TeamApt, while continuing its switching business for enterprise, will be looking to extend its offerings directly to customers and micro-SMEs with Moniepoint. In addition, and subject to regulatory approval, both agency and digital banking platforms will exist under Moniepoint.

Brian Waswani Odhiambo, the head of West Africa at Novastar Ventures, said the VC firm backed TeamApt after seeing the speed at which its agency network became the leading operator in Nigeria. The firm, “by providing TeamApt with sufficient capital to pursue its new phase of growth,” has no doubt the company will do the same with its digital banking platform.

In the past month, TeamApt has announced to anyone who cared to listen that it’s currently in the process of closing another round. Eniolorunda confirmed this to TechCrunch that it would be a Series C round. While that is in progress, TeamApt will be making expansion plans to other African countries with strong economies in every region — Central, East, North and South. The company is also keen on performing a few acquisitions along the way to tap significant opportunities for leveraging technology and offline distribution to provide financial services to Africa’s mass market.

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