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Lightspeed announces new $560 million fund for China

Posted by on Jan 3, 2019 in Airbnb, alibaba, alibaba group, Asia, China, consumer internet, E-Commerce, Finance, funding, Fundings & Exits, IDG Capital, India, lightspeed, lightspeed venture partners, Meituan, Meituan-Dianping, partner, pinduoduo, social networks, United States | 0 comments

Global investor Lightspeed is starting 2019 with its largest-ever fund for China, where it has backed a number of new internet challengers. The firm announced this week that its fourth China fund has closed with a total capital commitment of $560 million.

The firm had a massive 2018, with no fewer than five of its portfolio holding IPOs including two of China’s up-and-coming startups that are challenging the country’s internet establishment — they are Meituan, the super app firm that specializes in deliveries, and Pinduoduo, a group e-commerce company that is threatening Alibaba’s dominance.

Based on those successes, it is perhaps not a surprise that Lightspeed has pulled in a record new fund. TechCrunch previously reported that the new fund was aimed at $360 million based on filings, but it added more capital to give more options.

Lightspeed said it has $360 million for early-stage deals aimed at Series A and Series B stages, with an additional $200 million set aside for “growth investments.” The new fund dwarfs Lightspeed’s previous vehicles in China — the firm’s previous two China funds each closed at $260 million while it raised $168 million for its debut fund in the country in 2013.

Lightspeed Venture Partners is a well-known investor that is anchored in Silicon Valley with global funds in India, Israeli and — of course — China. Together, those funds manage around $6 billion in capital, according to the firm.

Led by partners Chris Schaepe, Herry Han and James Mi, the China operation has backed a range of unicorns, including the aforementioned Meituan, which raised over $4 billion via a Hong Kong IPO last year, and Pinduoduo, which raised $1.6 billion via a U.S. listing in 2018. Other Lightspeed China IPOs from last year were PPDai, Rong360 and InnoLight while the firm also counts $9 billion-valued Full Truck Alliance, real estate platform Fangdd and Airbnb-like Tujia, both of which are valued in the billions, among the more mature bets in its portfolio.

“We believe there are plenty of new opportunities in China consumer Internet given the depth of China’s mobile payment and social networks. Innovation and entrepreneurship in the next decade will bring more China-based startups to the world stage. This will be China’s first decade of truly global innovation. Chinese entrepreneurs are now developing business plans with global expansion in mind from day one,” said Han, one of the firm’s founding partners, in a statement.

Last year, Lightspeed Venture Partners — the U.S. entity — filed to raise a record $1.8 billion in new capital commitments. In December, it added five new partners to its consumer and enterprise investment teams, including Slack’s former head of growth and Twitter’s former vice president of global business development.


Source: The Tech Crunch

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Lightspeed is raising its largest China fund yet

Posted by on Dec 17, 2018 in Asia, Baidu, China, Google, lightspeed, lightspeed venture partners, Startups, U.S. Securities and Exchange Commission, Venture Capital | 0 comments

Lightspeed China Partners, the China-focused affiliate of Silicon Valley-based Lightspeed Venture Partners, has set a $360 million target for its fourth flagship venture fund, according to a document filed with the U.S. Securities and Exchange Commission today.

If the target is reached, the fund will be Lightspeed China’s largest yet, per PitchBook. Lightspeed China’s previous two funds each closed on $260 million. The VC raised $168 million for its debut fund in 2013.

Lightspeed China is led by David Mi (pictured). Mi, an investor in multiple billion-dollar Chinese companies, was previously the director of corporate development at Google, where he helped lead the search giant’s investment in Baidu. He joined Lightspeed in 2008 and established the firm’s China presence in 2011. Yan Han, a long-time Lightspeed investor and a founding partner of the firm’s Chinese branch, is also listed on the filing.

Lightspeed China has backed e-commerce platform Pingduoduo and loan provider Rong360, a pair of Chinese “unicorns” that both completed U.S. initial public offerings since 2017. Typically, the firm makes early-stage investments in the internet, mobile and enterprise spaces. 

Earlier this year, Lightspeed Venture Partners filed to raise a record $1.8 billion in new capital commitments. This month, it tacked five new partners onto its consumer and enterprise investment teams, including Slack’s former head of growth and Twitter’s former vice president of global business development.

Lightspeed didn’t immediately respond to a request for comment.


Source: The Tech Crunch

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India’s budget hotel startup OYO raises $1B for international growth

Posted by on Sep 25, 2018 in Asia, budget hotels, China, Fundings & Exits, Greenoaks Capital, India, lightspeed venture partners, oyo, Sequoia, Softbank, SoftBank Group, Softbank Vision Fund, Vision Fund | 0 comments

OYO, the India-based startup that operates a network of budget hotels, has pulled in $1 billion in new funding to grow its business in China and expand into other international markets.

The majority of the funding — $800 million, to be exact — was led by SoftBank’s Vision Fund with participation from Lightspeed, Sequoia and Greenoaks Capital. OYO said there is also an additional $200 million that has been committed from as-yet-unnamed investors. The deal values the five-year-old company at $5 billion.

Before today, OYO had raised $450 million from investors. Its previous financing was a $250 million round last September which was led by the Vision Fund and included a $10 million follow-on investment from China Lodging.

OYO was started in May 2013 by Thiel Fellow Ritesh Agarwal, who was then aged 19. The company aggregates budget hotels and hostels in India, ensuring that they include minimum standards such as clean sheets, hot showers and free WiFi. It has since branched out into other kinds of lodgings, and verticals that include wedding planning.

Today, OYO claims to have over 10,000 franchised or leased hotels in its network, which it says spans 350 cities across five countries. The company announced an expansion beyond India into China this summer and it is also present Nepal and Malaysia. More recently, it recently entered the UK market this month.

Its plan for China — which OYO interestingly today said is a dual “home market” alongside India — is particularly ambitious, but already the company claims to have reached 87,000 rooms in 171 cities.

China will account for $800 million of this newly-raised capital, OYO said. The remainder will be deployed to bolster its presence in India and supporting growth in its other overseas markets as well moving into other new territories. OYO isn’t saying right now what other overseas expansion plans it has up its sleeve.

“We will continue to explore newer businesses while remaining focused on both organic and inorganic growth. In the last 12 months, we have increased our international footprint to five countries… With this additional funding, we plan to rapidly scale our business in these countries, while continuing to invest further in technology and talent. We will also deploy fresh capital to take our unique model that enables small hotel owners to create quality living spaces, global,” Agarwal, the OYO CEO, said in a statement.


Source: The Tech Crunch

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Grab picks up $2 billion more to fuel growth in post-Uber Southeast Asia

Posted by on Aug 2, 2018 in alibaba, Asia, carsharing, China, Collaborative Consumption, Commuting, didi, Didi Chuxing, financial services, Fundings & Exits, Google, grab, Indonesia, KKR, lightspeed, lightspeed venture partners, offline to online, Philippines, Softbank, SoftBank Group, Southeast Asia, Tencent, Thailand, Toyota, transport, Uber, United States, vietnam, vulcan capital, warburg pincus | 0 comments

Grab, the ride-hailing service that struck a deal to take Uber out of Southeast Asia, has announced that it has pulled in $2 billion in new capital as it seeks to go beyond ride-hailing to offer more on-demand services.

The $2 billion figure includes a $1 billion investment from Toyota which was announced in June, and it sees a whole host of institutional investors join the Grab party. Some of those names include OppenheimerFunds, Ping An Capital, Mirae Asset — Naver Asia Growth Fund, Cinda Sino-Rock Investment Management Company, All-Stars Investment, Vulcan Capital, Lightspeed Venture Partners and Macquarie Capital.

Grab confirmed that the round is still open, so we can expect that it’ll add more investors and figures to this deal.

The deal values Grab at $11 billion post-money, which is the same as the $10 billion valuation it earned following the Toyota deal. The caliber of investors certainly suggests an IPO is on the cards soon — not that it ever hasn’t been — although the company didn’t comment directly on that when we asked.

This new financing takes Grab to $6 billion from investors. Some of its other notable backers include SoftBank and China’s Didi Chuxing, which both led a $2 billion round last year which gave Grab the gas to negotiate a deal with Uber that saw the U.S. ride-hailing giant exit Southeast Asia in exchange for a 27.5 percent stake in Grab. From that perspective, the deal was a win-win for both sides.

In this post-Uber world, Grab is transitioning to offer more services beyond just rides. It has long done so, with its own payment service and food deliveries, but it is rolling out a revamped “super app” design that no longer opens to a ride request page and that reflects the changing strategy of the Singapore-based company.

10 July 2018; Tan Hooi Ling, co-Founder, Grab, at a press conference during day one of RISE 2018 at the Hong Kong Convention and Exhibition Centre in Hong Kong. Photo by Stephen McCarthy / RISE via Sportsfile

Grab said in a statement today that this new money will go towards that “O2O” [offline-to-online] strategy that turns Grab’s app into a platform that allows traditional, offline services to tap the internet to reach new customers. The trend started out in China, with Alibaba and Tencent among those pushing O2O services, and Grab is determined to be that solution for Southeast Asia’s 650 million consumers.

Indonesia, Southeast Asia’s largest economy with a population of over 260 million, is a key focus for Grab, the company said. The company has been pushed out new financial services in the country, fueled by an acquisition last year, and it claims it is winning “significant market share” with GMV quadrupled in the first half of this year.

With Uber out of the picture, the company’s main rival for the ‘Southeast Asia Super App Crown’ is Go-Jek, the Indonesian on-demand service valued at $5 billion.

Go-Jek has long focused on its home market but this year it unveiled an ambitious plan to expand to three new markets. That kicked off yesterday with a launch in Vietnam, and the company has plans to arrive in Thailand and the Philippines before the end of the year.

Go-Jek has raised over $2 billion and it counts KKR, Warburg Pincus, Google and Chinese duo Tencent and Meituan among its backers.


Source: The Tech Crunch

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