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Student sues JD.com’s billionaire CEO Richard Liu for alleged rape

Posted by on Apr 17, 2019 in Asia, China, Companies, JD.com, Lawsuit, Minnesota, Richard Liu, University of Minnesota, Weibo | 0 comments

A Chinese student has filed a lawsuit against JD.com founder and chief executive Richard Liu, alleging the billionaire businessman raped her in Minnesota back in August, four months after local prosecutors decided not to press charges.

The lawsuit, which was filed in Hennepin County on Tuesday, is seeking damages of more than $50,000. It identifies the student as Jingyao Liu (not related to Richard Liu), an undergraduate student at the University of Minnesota.

JD did not immediately respond to a request for comment on the lawsuit.

Peter Walsh, an attorney for JD.com at Hogan Lovells, says the company is “not in position to comment at this time” but “will vigorously defend these meritless claims against the company.”

Liu has maintained his innocence through his lawyers throughout the investigation. The executive said on social media in December that he had “broken no laws” but felt “extreme self-admonishment and regret” for the pain that his behavior “on that day” brought to his family and wife, who is an internet celebrity known as Sister Milk Tea.

In December, Hennepin County Attorney Michael Freeman said he was not charging Liu because “there were profound evidentiary problems which would have made it highly unlikely that any criminal charge could be proven beyond a reasonable doubt.” He further emphasized his decision “had nothing to do with Liu’s status as a wealthy, foreign businessman.”

Liu’s case has drawn widespread interest in China where the tale of Liu’s rags-to-riches has inspired many. If charged and convicted, Liu could face up to 30 years in prison.

JD’s stock immediately tumbled after the student first accused Liu in August over concerns that the case will hamper his ability to run the company, which is the arch-rival to Jack Ma’s Alibaba and faces growing competition from ecommerce upstart Pinduoduo.

The company’s shares have slowly crawled back since December after the Hennepin County Attorney decided not to charge the founder. Nonetheless, JD is coping with sagging morale as large-scale layoffs hit executives and a new pay scheme threatens to depress income among its armies of couriers.

Updated with JD.com’s statement


Source: The Tech Crunch

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Moka raises $27M led by Hillhouse to make hiring more data-driven in China

Posted by on Mar 4, 2019 in Artificial Intelligence, Burger King, California, China, ggv capital, GSR Ventures, Hillhouse Capital, Hiring, JD.com, moka, recruitment, SaaS, Stanford University, TC, Tencent, turo, University of California, University of Michigan, Xiaomi | 0 comments

Moka, a startup that wants to make talent acquisition a little more data-driven for China-based companies that range from smartphone giant Xiaomi to Burger King’s local business, announced Monday that it has raised a 180 million yuan ($27 million) Series B round of funding.

The deal was led by Hillhouse Capital, an investor in top Chinese technology companies such as Tencent, Baidu, JD.com, Pinduoduo — just to name a few. Other investors who took part include Xianghe Capital, an investment firm founded by two former Baidu executives, Chinese private equity firm GSR Ventures and GGV Capital.

Moka claims more than 500 enterprise customers were paying for its services by the end of 2018. Other notable clients are McDonalds and one of China’s top livestreaming services YY. It plans to use its new capital to hire staff, build new products and expand the scope of its business.

Founded in 2015, Moka compares itself to Workday and Salesforce in the U.S. It has created a suite of software aiming to make recruiting easier and cheaper for companies with upwards of 500 employees. Its solutions take care of the full cycle of hiring. To start with, Moka allows recruiters to post job listings across multiple platforms with one click, saving them the hassle of hopping between portals. Its AI-enabled screening program then automatically filters candidates and make recommendations for companies. What comes next is the interview, which Moka helps streamline with automatic email and message reminders for job applicants and optimized plans for interviewers on when and where to meet their candidates.

That’s not the end, as Moka also wants to capture what happens after the talent is onboard. The startup helps companies maintain a talent database consist of existing employees and potential hires. The services allow companies to keep a close tap on their staff, whose resume update will trigger a warning to the employer, and alerts the recruiter once the system detects suitable candidates.

Moka is among a wave of startups founded by Chinese entrepreneurs with foreign education and work experiences. Zhao Oulun, whose English nickname is Orion, graduated from the University of California, Berkley and worked at San Francisco-based peer-to-peer car sharing company Turo before founding Moka with Li Guoxing. Li himself is also a “sea turtle,” a colloquial term in Chinese that describes overseas-educated graduates who return home to work. Li graduated from the University of Michigan and Stanford University, and had worked at Facebook as an engineer.

When the founders re-entered China, they saw something was missing in the booming domestic business environment: effective talent management.

“Businesses are flourishing, but at the same time many of them fall short in internal organization and operation. To a large extent, the issue pertains to the lack of digital and meticulous operation for human resources, which slows down decision-making and leads to mistakes around talents and company organization,” says chief executive Zhao in a statement.

Moka’s mission has caught the attention of investors. Jixun Foo, a partner at Moka backer GGV Capital, also believes China’s businesses can benefit from a data-driven approach to people management: “We are positive about Moka becoming a comprehensive HR service provider in the future through its unique data-powered and intelligent solutions.”


Source: The Tech Crunch

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NetEase is the latest Chinese tech giant to lay off a big chunk of its staff

Posted by on Feb 28, 2019 in alibaba, Amazon, Asia, Business, China, Didi Chuxing, E-Commerce, eCommerce, Gaming, JD.com, layoff, netease, public relations, Southeast Asia, Tencent | 0 comments

NetEase, China’s second-biggest online games publisher with a growing ecommerce segment, is laying off a significant number of its employees, adding to a list of Chinese tech giants that have shed staff following the Lunar New Year.

A NetEase employee who was recently let go confirmed with TechCrunch that the company had fired a large number of people spanning multiple departments, including ecommerce, education, agriculture (yes, founder and executive officer Ding Lei has a thing for organic farming) and public relations, although downsizing at Yanxuan, its ecommerce brand that sells private-label goods online and offline, had started before the Lunar New Year holiday.

Multiple Chinese media outlets covered the layoff on Wednesday. According to a report from Caijing Magazine, Yanxuan fired 30-40 percent of its staff; the agricultural brand Weiyang got a 50 percent cut; the education unit downsized from 300 to 200 employees; and 40 percent of NetEase’s public relations staff was gone.

A spokesperson from NetEase evaded TechCrunch’s questions about the layoff but said the company is “indeed undergoing a structural optimization to narrow its focus.” The goal, according to the person, is to “boost innovation and organizational efficiency so NetEase can fully play to its own strengths and adapt to market competition in the longer term.”

NetEase CEO Ding Lei pictured picking Longjing tea leaves in Hangzhou. Photo: NetEase Yanxuan via Weibo

Oddly, ecommerce and education appear to be some of NetEase’s brighter spots. The company singled them out alongside music streaming during its latest earnings call as the three sectors that saw “strong profit growth potential” and “will be the focus of [the company’s] next phase of strategic growth.” The staff cuts, then, may represent an urgency to tighten the purse strings for even NetEase’s rosiest businesses.

The shakeup fits into market speculation about company staff cuts to save costs as China copes with a weakening domestic economy. JD.com, a rival to Alibaba, is firing 10 percent of its senior management to cut costs, Caixin reported last week. Ride-hailing giant Didi Chuxing plans to let go 15 percent of its staff this year as part of a reorganization to boost internal efficiency, though it’s adding new members to focus on more promising segments.

Alibaba took an unexpected turn, announcing last week that it will continue to hire new talent in 2019. “We are poised to provide more resources to our platforms to help businesses navigate current environment and create more job opportunities overall,” the firm said in a statement.

2018 was a tough year for China’s games companies of all sorts. The industry took a hit after regulators froze all licensing approvals to go through a reshuffle, dragging down stock prices of big players like Tencent and NetEase. These companies continue to feel the chill even after approvals resumed, as the newly minted regulatory body imposes stricter checks on games, slowing down the application process altogether and delaying companies’ plans to monetize lucrative new titles.

That bleak domestic outlook compelled NetEase to take what Ding dubs a “two-legged” approach to game publishing, with one foot set in China and the other extending abroad. Tencent, too, has been finding new channels for its games through regional partners like Sea’s Garena in Southeast Asia.

NetEase started in 1997 and earned its name by making PC games and providing email services in the early years of the Chinese internet. More recently the company has intended to diversify its business by incubating projects across the board. It has so far enjoyed growth in segments like music streaming and ecommerce (which is reportedly swallowing up Amazon China’s import-led service) while stepping back from others such as comics publishing, an asset it is selling to youth-focused video streaming site Bilibili.


Source: The Tech Crunch

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Alibaba challenger Pinduoduo is bringing imported goods to rural homes

Posted by on Feb 26, 2019 in alibaba, alibaba group, Amazon, Asia, China, E-Commerce, eCommerce, game publisher, Hangzhou, JD.com, netease, online marketplaces, pinduoduo, taobao, TechCrunch, Tencent, viral marketing, WeChat | 0 comments

Pinduoduo, the latest challenger to China’s ecommerce dominators Alibaba and JD.com, wants to bring affordable, imported items to shoppers in China’s smaller cities and rural areas.

The three-year-old Tencent-backed ecommerce upstart is recruiting importers to set up shop on its marketplace, shows a message on its website. The business is known for offering cheap, sometimes counterfeit goods that initially appealed to users from the less prosperous parts of China but have gradually garnered more price-sensitive urbanites. Its rise is closely linked to Tencent’s popular WeChat messenger, which lets it toy with viral marketing schemes like group deals, a level of access that’s unavailable to, say, Tencent rival Alibaba. Furthermore, the app’s focus on direct sales between manufacturers and consumers helps to keep costs down.

Pinduoduo’s social group-buying model works so well that it’s rapidly closing in on its larger rivals. It claimed 232 million monthly active users by the end of September. That represents only a fraction of Alibaba’s 700 million user base but the newcomer is growing at over 200 percent year-over-year. Pinduoduo already eclipsed JD.com in terms of market penetration according to data analytics company Jiguang. Over the past year, Pinduoduo was installed on 27.4 percent of all mobile devices in China, placing it ahead of JD.com which stood at 23.9 percent and behind Alibaba’s Taobao at 52.5 percent.

And now Pinduoduo becomes attuned to China’s booming cross-border business. People’s cravings for imported, higher-quality goods are surging along with their increasing disposable income. That new demand gives rise to a bountiful supply of “daigou”, or purchasing agents who send overseas goods to Chinese shoppers, and inspires ecommerce operators like Alibaba and JD.com to start their own cross-border businesses. The lucrative sector, estimated by market researcher iiMedia to have generated 9 trillion yuan ($1.34 trillion) in transactions last year, has even drawn unexpected players like NetEase. The Hangzhou-based firm is best known as one of China’s top game publisher but it’s made a dent in cross-border shopping in recent years with its Kaola service, which is reportedly buying Amazon China’s import unit.

TechCrunch has reached out to Pinduoduo for more information on its overseas shopping scheme and will update the story if we hear back. What we know for sure is that the ecommerce site plans to take on 500,000 small and medium-sized merchants for its overseas channel within the next three years, the company’s vice president Li Yuan announced at a November event. Pinduoduo was already delivering imported goods to customers, a business that it said had seen surging transactions last year. Consumers in the countryside have never been more ready to shop online, as Beijing is making a big push to grow digital payments in these regions.

Pinduoduo has yet to make a profit, and the cost of battling Alibaba and JD.com became more evident after it recently announced to raise more than $1 billion just six months after a $1.63 billion initial public offering in the U.S. Time will tell whether cross-border ecommerce — where it plans to replicate its direct sales model — will help it gain an upper hand over the industry giants.


Source: The Tech Crunch

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First China, now Starbucks gets an ambitious VC-funded rival in Indonesia

Posted by on Feb 1, 2019 in alibaba, alibaba group, android, Apps, army, Asia, carsharing, China, Companies, East Ventures, economy, funding, Fundings & Exits, go-jek, Google, grab, Indonesia, Insignia Ventures Partners, internet access, Jakarta, JD.com, managing partner, mcdonalds, online food ordering, online marketplaces, Pizza Hut, Singapore, Southeast Asia, starbucks, temasek, Tencent, United States, WeWork | 0 comments

Asia’s venture capital-backed startups are gunning for Starbucks .

In China, the U.S. coffee giant is being pushed by Luckin Coffee, a $2.2 billion challenger surfing China’s on-demand wave, and on the real estate side, where WeWork China has just unveiled an on-demand product that could tempt people who go to Starbucks to kill time or work.

That trend is picking up in Indonesia, the world’s fourth largest country and Southeast Asia’s largest economy, where an on-demand challenger named Fore Coffee has fuelled up for a fight after it raised $8.5 million.

Fore was started in August 2018 when associates at East Ventures, a prolific early-stage investor in Indonesia, decided to test how robust the country’s new digital infrastructure can be. That means it taps into unicorn companies like Grab, Go-Jek and Traveloka and their army of scooter-based delivery people to get a hot brew out to customers. Incidentally, the name ‘Fore’ comes from ‘forest’ — “we aim to grow fast, strong, tall and bring life to our surrounding” — rather than in front of… or a shout heard on the golf course.

The company has adopted a similar hybrid approach to Luckin, and Starbucks thanks to its alliance with Alibaba. Fore operates 15 outlets in Jakarta, which range from ‘grab and go’ kiosks for workers in a hurry, to shops with space to sit and delivery-only locations, Fore co-founder Elisa Suteja told TechCrunch. On the digital side, it offers its own app (delivery is handled via Go-Jek’s Go-Send service) and is available via Go-Jek and Grab’s apps.

So far, Fore has jumped to 100,000 deliveries per month and its app is top of the F&B category for iOS and Android in Indonesia — ahead of Starbucks, McDonald’s and Pizza Hut .

It’s early times for the venture — which is not a touch on Starbuck’s $85 billion business; it does break out figures for Indonesia — but it is a sign of where consumption is moving to Indonesia, which has become a coveted beachhead for global companies, and especially Chinese, moving into Southeast Asia. Chinese trio Tencent, Alibaba and JD.com and Singapore’s Grab are among the outsiders who have each spent hundreds of millions to build or invest in services that tap growing internet access among Indonesia’s population of over 260 million.

There’s a lot at stake. A recent Google-Temasek report forecast that Indonesia alone will account for over 40 percent of Southeast Asia’s digital economy by 2025, which is predicted to triple to reach $240 billion.

As one founder recently told TechCrunch anonymously: “There is no such thing as winning Southeast Asia but losing Indonesia. The number one priority for any Southeast Asian business must be to win Indonesia.”

Forecasts from a recent Google-Temasek report suggest that Indonesia is the key market in Southeast Asia

This new money comes from East Ventures — which incubated the project — SMDV, Pavilion Capital, Agaeti Venture Capital and Insignia Ventures Partners with participation from undisclosed angel backers. The plan is to continue to invest in growing the business.

“Fore is our model for ‘super-SME’ — SME done right in leveraging technology and digital ecosystem,” Willson Cuaca, a managing partner at East Ventures, said in a statement.

There’s clearly a long way to go before Fore reaches the size of Luckin, which has said it lost 850 million yuan, or $124 million, inside the first nine months in 2018.

The Chinese coffee challenger recently declared that money is no object for its strategy to dethrone Starbucks. The U.S. firm is currently the largest player in China’s coffee market, with 3,300 stores as of last May and a goal of topping 6,000 outlets by 2022, but Luckin said it will more than double its locations to more than 4,500 by the end of this year.

By comparison, Indonesia’s coffee battle is only just getting started.


Source: The Tech Crunch

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Go-Jek makes first close of Series F round at $9.5B valuation

Posted by on Feb 1, 2019 in Asia, carsharing, Collaborative Consumption, Companies, financial services, food delivery, funding, Fundings & Exits, go-jek, Google, grab, Indonesia, JD.com, online food ordering, Philippines, series f, Singapore, Southeast Asia, Tencent, Thailand, transport, Uber, vietnam | 0 comments

Go-Jek, the Indonesia-based ride-hailing company that is challenging Grab in Southeast Asia, has announced the first close of its Series F round, as TechCrunch reported last week. The company isn’t revealing numbers. Sources told us last week that it has closed around $920 million, but we understand that today that the round is at over $1 billion. Go-Jek is planning to raise $2 billion for the round, as reported last year.

Go-Jek said that the first close is led by existing backers Google, JD.com, and Tencent, with participation from Mitsubishi Corporation and Provident Capital. It didn’t provide a valuation but sources told us that week that it is around $9.5 billion.

Starting out with motorbike taxis in 2015, Go-Jek has since expanded to taxis, private car and more. The company said it plans to spend the money deepening its business in Indonesia, its home market, and growing its presence in new market expansions Vietnam, Singapore and Thailand. It is also working to enter the Philippines, where it had a request for an operating license rejected although it did complete a local acquisition after buying fintech startup Coins.ph.

The Go-Jek business in Indonesia includes transportation, food delivery, services on demand, payments and financial services. That’s very much the blueprint for its expansion markets, all of which are in different stages. Go-Viet, its Vietnamese service, offers food delivery and motorbike taxis, Get in Thailand operates motorbike taxis and in Singapore Go-Jek provides four-wheeled car options.

Combined those efforts cover 204 cities, two million drivers and 400,000 merchants, the company said, but the majority of that is in Indonesia.

Grab, meanwhile, became the top dog after buying Uber’s local business, and it operates in eight countries. It recently crossed three billion rides to date and claims 130 million downloads. Grab said revenue for 2018 was $1 billion, it expects that to double this year. It has raised $6.8 billion from investors, according to Crunchbase, and its current Series H round could reach $5 billion.

Go-Jek claims it has 130 million downloads — despite just being in three markets — while it said it reached an annualized transaction volume of two billion in 2018 and $6.7 billion in annualized GMV. Those figures require some explaining as Go-Jek is being a little creative with its efforts to compete with Grab on paper.

Transactions don’t mean revenue — a transaction could be a $1 motorbike ride or a payment via QR code — and GMV is not revenue either, while both are ‘annualized’ which means they are scaled up after measuring a short period. In other words, don’t take these figures too literally, they aren’t comparable to Grab.


Source: The Tech Crunch

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Grab raises $200M from Thailand-based retail conglomerate Central Group

Posted by on Jan 31, 2019 in Asia, booking holdings, carsharing, central group, E-Commerce, funding, Fundings & Exits, go-jek, grab, Indonesia, JD.com, Microsoft, on-demand services, Philippines, Rocket Internet, Singapore, Softbank, Software, Southeast Asia, Thailand, Toyota, transport, vietnam, Vision Fund, yamaha motors, Zalora | 0 comments

Grab’s fundraising push continues unabated after the Southeast Asian ride-hailing firm announced that it has raised $200 million from Central Group, a retail conglomerate based in Thailand.

Central’s business covers restaurants, hotels and more than 30 malls in Thailand, while it has operations in markets that include Vietnam and Indonesia. Its public-listed holding companies alone are worth more than $15 billion.

Singapore-based Grab confirmed that this deal is not part of its ongoing Series H fundraising, but is instead an investment into its Thailand-based business. Rumors of the deal were first reported by Reuters last year.

Following this investment, Central said it will work with Grab in a number of areas in Thailand, including bringing its restaurants into the Grab Food service, adding Grab transportation to its physical outlets and bringing Grab’s logistics service into its businesses.

The investment represents the first time an investor has bought into a local Grab country unit, and the goal is to strengthen Grab’s position in Thailand — a market with 70 million consumers and Southeast Asia’s second-largest economy. Grab is under threat from Go-Jek, which expanded to Thailand at the end of 2018. While Go-Jek’s ‘Get’ service is currently limited to motorbikes on-demand in Thailand, its ambition is to recreate its Indonesia-based business that covers four-wheeled cars, mobile payments, on-demand services and more.

Central is a huge presence in the country, and in recent years it has raised its efforts to translate that offline retail presence into the digital space. Past deals have included the acquisition of Rocket Internet’s Zalora fashion business in 2016, and — more recently — a $500 million joint venture with Chinese e-commerce firm JD.com to create online retail and fintech businesses in Thailand.

Grab, meanwhile, is pushing on with its $3 billion Series H funding round. That deal is anchored by a $1 billion investment from Toyota but it also includes contributions from the likes of Microsoft, Booking Holdings and Yamaha Motors. More capital is waiting in the wings, however, with existing investor SoftBank in the process of transferring its investment to its Vision Fund with a view to investing a further $1.5 billion. The total fundraising effort is targeted at a lofty goal of $5 billion, sources told TechCrunch.

To date, Grab has raised $6.8 billion from investors, according to data from Crunchbase. That makes it Southeast Asia’s most capitalized tech startup and it was most recently valued at $11 billion. The company recently announced it has completed three billion rides; it claims 130 million downloads across its eight markets.

Go-Jek, meanwhile, closed the first portion of a $2 billion funding round last week, sources told TechCrunch. The new financing is aimed at growing out its presence in new market expansions which, beyond Thailand, include Singapore, Vietnam and the Philippines.


Source: The Tech Crunch

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Go-Jek makes first close of $2 billion round at $9.5 billion valuation

Posted by on Jan 25, 2019 in alibaba group, alipay, Asia, China, Co-founder, Collaborative Consumption, Companies, funding, Fundings & Exits, go-jek, Google, grab, Indonesia, JD.com, Philippines, Singapore, Softbank, Southeast Asia, TC, Tencent, Thailand, Uber, vietnam | 0 comments

Southeast Asia-based ride-sharing firm Go-Jek is making progress with its plan to raise up to $2 billion in fresh capital to fund its battle with close rival Grab .

Indonesia-headquartered Go-Jek has closed an initial chunk of that round after a collection of existing investors, including Google, Tencent and JD.com, agreed to invest around $920 million towards it, three sources with knowledge of the investment told TechCrunch.

The deal, which we understand could be announced as soon as next week, will value Go-Jek’s business at around $9.5 billion, one source told TechCrunch. With existing investors on board, the company is now actively soliciting checks from other backers to take it to its target. The capital is likely to go towards deepening its presence in new markets and furthering its fintech push.

A Go-Jek representative declined to respond when contacted by TechCrunch for comment on its fundraising efforts.

This incoming round excluded, Go-Jek has raised more than $2 billion from investors to date, including a $1.4 billion round that closed last year and valued its business at $5 billion.

Founded in 2015, Go-Jek began in motorbike taxis before expanding to four-wheels, service on demand and fintech. It decided to go after a $2 billion raise last year — having seen Grab gobble up Uber’s local business in Southeast Asia — but it has taken some time to make progress. That’s partially down to an effort to ‘clean the cap table’ by buying out some early investors and longer-serving or former staff with equity, two sources told TechCrunch.

Likewise, there has also been discussion around including the acquisition of JD.com’s local JD.id business, valued at over $1 billion, in the deal. As far as we know, a resolution hasn’t been found despite lengthy talks.

An acquisition of JD.id would not only see JD.com’s influence deepen with Go-Jek, but it would give the ride-hailing startup a strong position in Indonesia’s e-commerce space, which includes three other unicorns: Alibaba-owned Lazada, Tokopedia — which is backed by Alibaba and SoftBank’s Vision Fund — and Bukalapak, which also recently raised money for growth.

There is some doubt, however. Speaking to Reuters this week, co-founder Kevin Aluwi denied Go-Jek has plans to enter e-commerce.

Fundraising for Southeast Asia’s ride-sharing companies went up a few notches last year after Uber decided to exit the region through a deal with Grab, which saw the U.S. firm pick up a potentially-lucrative 27.5 percent stake in Singapore-based Grab.

Grab raised a $3 billion Series H round, anchored by a $1 billion injection from Toyota, but the company plans to increase that fundraising effort to as much as $5 billion, as we reported at the tail end of last year.

Why all the huge checks? At stake is a dominant position within a fast-growing online market.

Ride-hailing in Southeast Asia is poised to grow from an $8 billion annual business in 2018 to $31 billion by 2025, according to a report from Google and Temasek. Indonesia alone is tipped to account for nearly half of that figure.

The report from Google and Temasek forecasts major growth for ride-hailing in Southeast Asia

With a cumulative population of more than 620 million people and increasing internet access, Southeast Asia has emerged from the shadows of China and India to become an attractive market for startups and tech companies. Chinese giants like Tencent and Alibaba have stepped up investment areas in recent years, with e-commerce, fintech and other ‘ground zero’ infrastructure services among their targets as the region begins to turn digital in the same way China has.

That’s where Grab and Go-Jek get interesting because, beyond simply catering to transportation, both companies have expanded to offer services on-demand, like e-groceries, as well as payments and financial services such as loans, remittance and insurance. The goal is to become the region’s one-stop ‘super app’ like WeChat, Alipay and Meituan in China.

So far, Go-Jek has fanned out beyond ride-hailing to offer fintech and other services in Indonesia, but it is still getting to grips with the regional play. It expanded to Vietnam, Thailand and Singapore last year while the Philippines is a work in progress following a setback after it was denied an operating permit earlier this month.

Already, though, it is making plans for the Philippines after it acquired Coins.ph, a fintech startup that is likely to be the base for a local push into payments and financial services. The deal was officially undisclosed, but sources told TechCrunch that Go-Jek has paid around $72 million — that potentially makes it the company’s largest acquisition to date. That shows how serious Go-Jek is both about its expansion efforts and its fintech business.

Go-Jek CEO Nadiem Makarim worked at McKinsey for three years before starting the companyn[Photographer: Wei Leng Tay/Bloomberg]

In the here and now, Go-Jek claims more than 125 million downloads in Indonesia, over a million drivers and some 300,000 food merchants. It claims to process 100 million transactions per month, while Aluwi told Reuters that total transactions on its platforms crossed $12.5 billion last year. That doesn’t mean net income, however, since the company takes only a slice of customer’s ride-sharing fares and payment volumes.

Grab, meanwhile, operates in eight markets in Southeast Asia. It claims over 130 million downloads and more than 2.5 billion completed rides to date. Grab is assumed to not yet be profitable but it has said that it made $1 billion in revenue in 2018. It projects that the figure will double this year.

The company has raised around $6.8 billion from investors, according to data from Crunchbase, and Grab was last valued at $11 billion.


Source: The Tech Crunch

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How a Chinese anti-virus software maker builds a fintech firm to wrestle with giants

Posted by on Dec 18, 2018 in 360 Finance, 360 group, 360 Security, alibaba, alibaba group, Ant Financial, Asia, Baidu, ceo, China, Finance, financial services, funding, jack ma, JD Finance, JD.com, Oliver Wyman, online auction, Tencent, WeBank, WeChat | 0 comments

360 Finance, an online consumer loan platform that spun off from China’s anti-virus service giant 360 Group, has joined a raft of Chinese fintech companies to go public in the U.S. over the last two years.

The company priced its initial public offering at $16.50 per share last Friday, raising $51 million by selling 3.1 million American depositary shares. The stock ended its first day unchanged when escalating trade tensions have threatened to beat down shares of U.S.-listed Chinese firms.

360 Finance’s net loss widened to 572 million yuan, or $86.4 million, for the six months ended June 30 compared to 67 million yuan for the same period of 2017. The company notes in a regulatory filing that the jump was partly due to increased expenses from share-based compensation.

Meanwhile, the net income climbed from 60 million yuan in 2016 to 309 million yuan in 2017. 360 Finance drove most of its revenues from loan facilitation and post-origination services for consumers, although microcredit lending targeted at small enterprises will be a future focus, chief executive officer Xu Jun told TechCrunch.

360-finance360 Group, of which founder and CEO Zhou Hongyi owns a 14.1 percent stake in 360 Finance, marks the first in a clutch of Chinese internet-focused companies — including Alibaba, Tencent, Baidu and JD.com — to see their consumer finance affiliates go public. Some of these services have mulled a flotation while others are pulling in fresh capital to fuel growth.

Ant Financial, the payments juggernaut controlled by Alibaba founder Jack Ma, reportedly postponed its U.S. IPO plans amid regulatory pressure and growing rivalry in China. Market watchers put its valuation at a whopping $150 billion after it snagged $14 billion from a Series C round in June.

WeBank, an online-only bank that counts Tencent as a major shareholder, has kept its valuation in the dark but an auction in November revealed that it was worth about $21.3 billion.

JD Finance, the financial affiliate of Alibaba’s main rival, said in June that it didn’t have an IPO plan as it raised $1.96 billion at a valuation of nearly $20 billion.

In April, search titan Baidu sold the majority of its financial services — which it rebranded to Du Xiaoman — to a consortium of investors in a deal worth $1.9 billion.

Despite its IPO milestone, 360 Finance faces intense rivalry at home. A report by management consulting firm Oliver Wyman shows that 360 Finance ranked fifth among China’s fintech platforms in terms of loan origination volume in the second quarter. Ant Financial took the top spot while WeBank, JD Finance and Baidu’s financial arm followed behind.

360 Finance is vying for consumer attention in an online world dominated by larger peers who are capitalizing on the enormous user base of their allies. Ecommerce behemoth Alibaba, for instance, had 666 million monthly active users on mobile devices as of September and Tencent’s WeChat messenger reached over 1 billion MAUs.

By comparison, 360 Group has about 500 mobile MAUs, which its financial partner believes could lead to an edge in marketing and risk management.

“As the largest cybersecurity company in China, 360 Security has an unfair advantage in fighting frauds,” said Xu.

That’s because 360 Security gleans reams of user behavioral data from its security browsers to determine borrowers’ “willingness” to repay loans.

“For instance, we flag those who often visit gambling sites or have installed a lot of personal lending apps,” said Xu. “On the other hand, companies such as ecommerce services only have insights into whether users are ‘able’ to repay by looking at their shopping history. The willingness to repay becomes very relevant when you are giving out smaller loans. People are usually able to repay 4,000 yuan [$580], but not everyone is willing to do so.”

The executive added that the 360 Security partnership also helps lower user acquisition costs, though he doesn’t want to rely on one marketing channel in the long run. 40 percent of the proceeds raised in the IPO will go towards promotion.

360 Group currently contributes over 22.7 percent of the lending firm’s borrowers. App stores bring about two-thirds of the traffic while the remaining comes from news feed ads in popular apps like TikTok and user engagement on social media, according to the CEO.


Source: The Tech Crunch

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JD.com’s CEO was arrested, then released, by Minneapolis police this weekend on suspicion of alleged sexual misconduct

Posted by on Sep 2, 2018 in arrested, JD.com, TC | 0 comments

JD.com’s billionaire CEO Richard Liu was arrested by Minneapolis police late Friday night on suspicion of alleged sexual misconduct. He was released yesterday afternoon around 4 p.m.

Today, JD.com, one of China’s largest online retailers, issued the following statement: “During a business trip to the United States, Mr. Liu was questioned by police in Minnesota in relation to an unsubstantiated accusation. The local police quickly determined there was no substance to the claim against Mr. Liu, and he was subsequently able to resume his business activities as originally planned.”

John Elder, public information officer for the Minneapolis Police Department, tells us the investigation remains active but he wasn’t able to share many further details, telling us he isn’t aware of when Liu arrived into the Minneapolis metropolitan area and that he isn’t authorized to say when the complaint against Liu was received. As for why Liu was detained for 16 hours instead of the 36 hours the local police department is authorized to hold a person before charging them or releasing them and continuing an investigation, Elder said the investigator “decided it wasn’t necessary to hold onto him, that we can conduct a fair and thorough investigation” without having Liu in custody. Elder added that more people are typically held the duration than released, but that it’s “not uncommon.”

According Minnesota’s state statute,  sexual misconduct is defined as a range of things that can lead to anything from a felony charge to a gross misdemeanor charge. Among these is a sexual act with a person under 13 years of age, if the actor is more than three years older than the complainant; a sexual act between someone who is under 16 years of age with an actor who is more than four years older; circumstances at the time of a sexual act that cause the complainant to have a reasonable fear of imminent great bodily harm; an accomplice who uses force or coercion to induce an act with the complainant; and if the actor knows or has reason to know that the complainant is mentally impaired, mentally incapacitated, or physically helpless.

Asked if JD’s statement in any way interferes with the police department’s investigation, Elder says it does not. “People can say whatever they’d like. As with any investigation, this is a case and we’ll bring it through to fruition just like we do every other case.” This means deciding whether or not, based on the police department’s investigation, to refer the case for charge to either the city attorney’s office or the Hennepin County attorney’s office, which would then file paperwork through a district court.

JD.com’s rise in China has largely been unstoppable, though its newest quarterly earnings report fell short of Wall Street expectations, owing in part to heightened competition from rival Alibaba. The company, which claims to have more than 300 million customers, is regularly profiled by local and international media outlets, with the love life of Liu a particular point of fascination.

Not all of that attention has been desirable. Liu, who was married in  2015 and has two children, reportedly tried to distance himself from a sexual assault that was alleged to have taken place the same year at his penthouse in Australia. According to the New York Times, one of his guests, a property development professional, was found guilty of seven charges, including having sex with his accuser without her consent. Though Liu wasn’t accused of any wrongdoing, the Times reports that he asked an Australian court to prevent the release of his name by citing damage to his marriage and business. Last month, a judge rejected that request.

Like many of China’s new titans, Liu grew up poor. In a sit-down last fall with the Financial Times, he said he’d only tasted meat once or twice a year before going to college at age 18, instead eating corn-based products for months at a time, including “cornmeal porridge for breakfast, corn pancakes for lunch and dry cornbread for dinner — cornbread so tough it made your throat bleed.” The rest of the year they ate sweet potatoes. Today, the 45-year-old is reportedly worth nearly $8 billion.

In talking with the FT, Liu acknowledged JD.com’s fierce battle for customers with Alibaba without referring to the company by name. “Within five years I’m 100 percent sure we will be the largest B2C [business to consumer] platform in China — we will surpass any competitor.”


Source: The Tech Crunch

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