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Uber reportedly raising $1B in deal that values self-driving car unit at up to $10B

Posted by on Mar 13, 2019 in AV, economy, funding, General Motors, Google, Lyft, Softbank, Softbank Vision Fund, t.rowe price, TC, the wall street journal, Toyota, TPG Growth, transport, Transportation, Uber, United States, Venture Capital, waymo | 0 comments

Uber is in negotiations with investors, including the SoftBank Vision Fund, to secure an investment as large as $1 billion for its autonomous vehicles unit. The deal would value the business at between $5 billion and $10 billion, according to a Tuesday report from The Wall Street Journal.

Uber declined to comment.

The news comes shortly after TechCrunch’s Mark Harris revealed the ridehailing firm was burning through $20 million a month on developing self-driving technologies, which means, according to our calculations, that Uber could have spent more than $900 million on automated vehicle research since early 2015.

According to the WSJ, the deal could close as soon as next month, shortly before Uber is expected to complete a highly-anticipated initial public offering. Uber, in December, filed the necessary paperwork with the US Securities and Exchange Commission to go public in 2019. The documents were submitted only hours after its competitor Lyft did the same; Lyft, for its part, unveiled its S-1 earlier this month and will debut on the Nasdaq shortly.

Uber, to date, has raised nearly $20 billion in a combination of debt and equity funding, reaching a valuation north of $70 billion. The business is said to be seeking funding for its self-driving business in order to tout the unit’s growth and valuation. After all, a $10 billion sticker price on its AV efforts may bandage its reputation, damaged by continued reports questioning its progress.

Alphabet-owned Waymo, meanwhile, is reportedly looking to raise capital, too. This would be the first infusion of outside funding for the autonomous vehicle business, rolled out of Alphabet’s Google X. According to The Information, which broke this news on Monday, Waymo would raise capital at a valuation “several times” that of Cruise, the AV company owned by General Motors.

Raising capital from outside investors would help limit costs and would allow Alphabet the opportunity to display Waymo’s valuation for the first time in several years. Alphabet, however, does not want to relinquish too much equity in the business, justifiably. Waymo, years ago, was valued at $4.5 billion, though analysts claim it could surpass a valuation as high as $175 billion based on future revenue estimates.

Waymo didn’t respond to a request for comment.

Other investors in Uber’s purported round include an “unnamed automaker,” per the WSJ. Uber’s existing backers include Toyota, SoftBank, T. Rowe Price, Fidelity and TPG Growth.

Uber’s net losses were up 32 percent quarter-over-quarter as of late last year to $939 million on a pro forma basis. On an EBITDA basis, Uber’s losses were $527 million, up about 21 percent. The company said revenue was up five percent QoQ sitting at $2.95 billion and up 38 percent year-over-year.

Partech is doubling the size of its African venture fund to $143 million

Posted by on Jan 31, 2019 in africa, berlin, Business, Column, east africa, economy, entrepreneurship, Finance, kenya, Nairobi, paris, partech ventures, Private Equity, San Francisco, Startup company, TPG Growth | 0 comments

Partech has doubled its Africa VC fund to $143 million and opened a Nairobi office to complement its Dakar practice.

The Partech Africa Fund plans to make 20 to 25 investments across roughly 10 countries over the next several years, according to General Partner Tidjane Deme. The fund has added Ceasar Nyagha as Investment Officer for the Kenya office to expand its East Africa reach.

Partech Africa will primarily target Series A and B investments and some pre-series rounds at higher dollar amounts. “We will consider seed-funding—what we call seed-plus—tickets in the $500,000 range,” Deme told TechCrunch on a call from Dakar.

“In terms of sectors, we’re agnostic. We’ve been looking at all…sectors. We’re open to all plays; we have a strong appetite for people who are tapping into Africa’s informal economies,” he said.

African startups who want to pitch to the new fund should seek a referral. “My usual recommendation is to find someone who can introduce you to any member of the team. We receive a lot of requests…but an intro and recommendation…shortcuts one through all that,” Deme said.

Headquartered in Paris, Partech has offices in Berlin, San Francisco, Dakar, and now Nairobi. To bring the Arica fund to $143 million the VC firm tapped a number of other funds, several undisclosed corporate venture arms, and development finance institutions.

They include Averroes Finance III, the IFC, the EBRD, and African Development Bank. Deme would not list figures, but confirmed “the IFC and European Bank for Reconstruction committed the largest amounts.”

On why players like the IFC, which has its own VC shop for African startups, would place capital with Partech, Deme explained, “many have existing mandates to co-invest…others may not know this territory as well and would rather invest in another fund” with regional experience.

Partech used that experience in 2018 to make 4 investments in African startups (2 undisclosed). They led the $16 million round in South African fintech firm Yoco (covered here at TechCrunch) and a $3 million round in Nigerian B2B e-commerce platform TradeDepot.

Partech Africa joined several Africa focused funds over the last few years to mark a surge in VC for the continent’s startups. Partech announced its first raise of $70 million in early 2018 next to TLcom Capital’s $40 million, and TPG Growth’s $2 billion.

Africa focused VC firms, including those locally run and managed, have grown to 51 globally, according to recent Crunchbase research.

As for a bead on total VC spending for African tech, figures can vary widely.

By Partech’s numbers, compiled from an annual survey it does on Africa, 2017 funding for African startups reached $560 million.

Partech hasn’t released its 2018 Africa VC estimate but it will now be up  some $70 million more from its own recent raise.


Source: The Tech Crunch

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Uber files confidentially for IPO

Posted by on Dec 8, 2018 in First Round Capital, Fundings & Exits, Goldman Sachs, TC, TPG Growth, U.S. Securities and Exchange Commission | 0 comments

Two days after Lyft submitted paperwork to the U.S. Securities and Exchange Commission for an early 2019 initial public offering, Uber has done the same, per The Wall Street Journal.

The company filed confidentially for an IPO on Friday, marking the beginning of a race for the two ride-hailing giants to the stock markets.

Uber’s most recent private market valuation was a whopping $72 billion, though the nearly 10-year-old business reportedly expects Wall Street to value it at as much as $120 billion in what will easily be one of the most highly-anticipated IPOs of the decade.

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

Founded in 2009 by Travis Kalanick, Uber has raised a total of nearly $20 billion in a combination of debt and equity funding, according to PitchBook. SoftBank alone has invested billions in the company to become its largest shareholder. Uber’s other key backers are Toyota, which invested $500 million just a few months ago, as well as late-stage investors T. Rowe Price, Fidelity and TPG Growth.

First Round Capital, Lowercase Capital and others stand to earn big from Uber’s exit — all were participants in some of the company’s earliest venture capital rounds.

The filing comes slightly earlier than expected. Uber’s current chief executive officer Dara Khosrowshahi previously said he expected the company to complete an IPO in mid-2019 but today’s news puts Uber on pace to debut in the first quarter of next year.

“[Uber] has all the disadvantage of being a public company, with the spotlight on us, with none of the advantages,” Khosrowshahi said on stage at the New York Times’ Dealbook conference in 2017.

Uber shared its third quarter financial results recently, with net losses up 32 percent quarter-over-quarter to $939 million on a pro forma basis. On an earnings before interest, taxes, depreciation and amortization (EBITDA) basis, Uber’s losses were $527 million, up about 21 percent QoQ. The company said revenue was up five percent QoQ at $2.95 billion and up 38 percent increase year-over-year.

It appears Uber’s IPO timeline was pushed forward following reports of Lyft’s confidential IPO paperwork. Lyft, Uber’s largest competitor in the U.S., will likely take the plunge in the first quarter of 2019, too. The company was most recently valued at about $15 billion. Its IPO will be underwritten by JPMorgan Chase and Credit Suisse Jeffries.

2019 will be a fascinating year for unicorn exits with a separate report out today that Slack is also prepping its IPO and has hired Goldman Sachs to underwrite its offering. Lyft, Uber and Slack alone are worth an aggregate valuation of $94 billion, which means 2019 will undoubtedly bring some much-needed liquidity to a slew of tech investors.


Source: The Tech Crunch

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Offering a white-labeled lending service in emerging markets, Mines raises $13 million

Posted by on Aug 10, 2018 in Airtel, Asia, Column, E-Commerce, Finance, mines, mobile phones, Nigeria, Rise Fund, South America, Southeast Asia, TC, TPG Growth | 0 comments

Emerging markets credit startup Mines.io has closed a $13 million Series A round led by The Rise Fund, the global impact fund formed by private equity giant TPG, and 10 others, including Velocity Capital.

Mines provides business to consumer (B2C) “credit-as-a-service” products to large firms.

“We’re a technology company that facilitates local institutions — banks, mobile operators, retailers — to offer credit to their customers,” Mines CEO and co-founder Ekechi Nwokah told TechCrunch.

Most of Mines’ partnerships entail white-label lending products offered on mobile phones, including non-smart USSD devices.

With offices in San Mateo and Lagos, Mines uses big-data (extracted primarily from mobile users) and proprietary risk algorithms “to enable lending decisions,” Nwokah explained.

“We combine a strong AI technology with full…deployment services — disbursement…collections, payments, loan management, and regulatory — wrap it up in a box, give it to our partners and then help them run it,” he said.

Mines’ typical client is a company “that has a large customer base and wants to avail credit to that customer base,” according to Nwokah. The startup generates revenue from fees and revenue share with partners.

Mines started operations in Nigeria and counts payment processor Interswitch and mobile operator Airtel as current partners. In addition to talent acquisition, the startup plans to use the Series A to expand its credit-as-a-service products into new markets in South America and Southeast Asia “in the next few months,” according to its CEO.

Mines sees itself as a “hardcore technology company based in Silicon Valley with a global view,” according to Nwokah. “At the same time, we’re very African,” he said.

The startup’s leadership team is led by three Nigerians — Nwokah, Chief Scientist Kunle Olukotun and MD Adia Sowho. The company came together after Olukotun (then and still a Stanford professor) and Nwokah (a then-AWS big data specialist) met in Palo Alto in 2014.

Looking through the lens of their home country Nigeria, the two identified two problems in emerging markets: low access to credit across large swaths of the population and insufficient tools for big institutions to put together viable consumer lending programs.

Due to a number of structural factors in these markets, such as low regulatory support, lack of credit data and tech support, “there’s no incentive for many banks and institutions to take risk on a retail lending business,” according to Nwokah.

Nwokah sees Mines’ end user market as “the more than 3 billion adults globally without access to credit,” and its direct client market as big “banks, retailers and mobile operators…who want to power digital credit tailored to these markets.”

Mines views itself as different from the U.S.’s controversial payday lenders by serving different consumer needs. “If you live in a country where your salary is not guaranteed every month, where you don’t have a credit card…where you have to pay upfront cash for almost everything you do, you need cash,” he said

The most common loan profile for one of Mines’ partners is $30 at 15 percent flat for a couple of weeks.

Nwokah wouldn’t name specific countries for the startup’s pending South America and Southeast Asia expansion, but believes “this technology is scalable across geographies.”

As part of the Series A, Yemi Lalude from TPG Growth (founder of The Rise Fund) will join Mines’ board of directors.

On a call with TechCrunch, Lalude named the company’s ability to “drive financial inclusion within a matter of seconds from mobiles devices,” their “local execution on the ground” and model of “partnering with many large organizations with their own balance sheets” as reasons for the investment commitment.

With Mines’ pending Asia and South America move they join Nigerian tech companies MallforAfrica.com and data analytics firm Terragon Group, who have expanded or stated plans to expand internationally this year.

 


Source: The Tech Crunch

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India’s BookMyShow pulls in $100M to grow its online ticketing business

Posted by on Jul 19, 2018 in Asia, Bookmyshow, ceo, Cirque du Soleil, Fundings & Exits, India, Indonesia, Mumbai, Spotify, sri lanka, stripes group, TPG Capital, TPG Growth, Vice Media | 0 comments

BookMyShow, an online ticketing service for cinemas, theatres and sports in India, has pulled in $100 million in new capital for growth.

The Series D round was led by private investment firm TPG Growth and it included participation from undisclosed existing investors. BookMyShow, which is headquartered in Mumbai, has now raised a total of $225 million from a range of backers that include Accel, SAIF and New York’s Stripes Group.

When reached by TechCrunch via investors, the company declined to discuss details of the funding or the plans to utilize it.

“[TPG Growth] brings with them extensive wealth of experience across the global media and entertainment sector which would be instrumental as we look to accelerate our growth plans in this space. The strategic value that all our investors continue to provide us will also be of immense importance as we begin a new chapter of our standout story,” said BookMyShow CEO and founder Ashish Hemrajani in a prepared statement.

On that experience, TPG’s investments in the entertainment industry include Cirque du Soleil, Spotify, STX Entertainment, Vice Media and MoreTickets so you can imagine that the startup will find value from both that network and the experience that the firm has accrued working with its portfolio.

BookMyShow was in expansion mode in 2017 when it made four acquisitions, which included rival ticketing startups Townscript and MastiTickets. The case of Townscript, which is a self-serve platform, post-acquisition the business is said to have tripled the number of events on its platform and doubled revenue, too.

The firm has already ventured overseas with operations launched in Indonesia and Sri Lanka, so the capital may go towards more verticals expansions and other international market launches.


Source: The Tech Crunch

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