Every Monday, I sit with my team to review the funding activity of the last week and pick my favorites. This week, I picked GoldenPi, Biomoneta, and Jimmy’s CocktailsContinue reading
Every Monday, I sit with my team to review the funding activity of the previous week. From that list, I pick out three companies that I would have loved to invest in or find founders that are doing similar things. Click here to know about my rationale behind this weekly exercise.
As most of India reopened, so did the funding lords! There was a marked increase in the number of startups that raised capital with 19 startups raising $92 million. Out of the 19 deals, 13 were in the early-stage rounds, which made the cut for my weekly analysis.
Name: Cube Wealth
Amount Raised: $500k from Beenext and Asuka Holding
What does Cube Wealth do?
Edited from Traxcn: Cube Wealth is an automated investment management app which, offers personalized recommendations from financial advisors. Users get provided with an option of goal-oriented financial management. Users can set their financial goals, and Cube Wealth saves for the same via EMIs. It invests the money in diversified asset classes, including liquid, MFs, equities, P2P lending, and gold. The app is available for iOS and Android platforms.
Why do I like Cube Wealth?
The Indian wealth & investment management space is broken. A user must struggle through a multitude of apps to gain a full understanding of their exact financial positions. The decentralized information works against the middle class as they cannot seek better deals for their investments. Besides, the power of wealth aggregation that the larger family offices platforms utilize to get access to closet deals or better negotiation terms aren’t available to a middle-class family. Platforms like Cube seek to address this imbalance by using technology & scale to provide premium services at an affordable cost. With 500 million people set to enter the Indian middle Cube has a bright future ahead of them!
Amount Raised: Undisclosed from Titan Capital
What does Credgenics do?
Edited from Traxcn: Credgenics offers cloud-based debt recovery solutions to banks and lenders. Its features include collection strategy, analytics for profiling & collection, automated communication for customer engagement, and more. It provides solutions for alternative dispute resolution, insolvency & bankruptcy, fintech laws, and more.
Why do I like Credgenics?
Collections are an art, and while it is easy to lend money, not every fintech company can build a strong collections team. Therefore I am excited that there are startups like Credgenics that we can get our fintech companies to outsource their collections operations too. And it isn’t a surprise that bad debts make excellent business sense!
Name: IVF Access
Amount Raised: $5M from Vertex Ventures SEA & India
What does IVF Access do?
Edited from YourStory: IVF Access is a Bengaluru-based healthcare startup focused on providing In Vitro Fertilisation (IVF) treatments in India. Led by an experienced management team, IVF Access is setting up a chain of IVF centers in India, providing Assisted Reproductive treatments such as IVF and IUI. They offer nationwide access to IVF treatments with an innovative technology platform and state-of-the-art labs.
Why do I like IVF Access?
Babies are a multi-billion business opportunity. Therefore, it is not a surprise that the business of making babies is massive. Due to lifestyle-related issues & an increase in the age at which couples have babies, there is a marked increase in IVF clinics. While the market IVF market size is small, it’s going to grow to $1.50 billion by 2026.
IVF Access is an early player in providing a single brand for IVF clinics and could capitalize on a deeply fragmented space!
There is a slow recovery in the funding of early-stage startups. We are still a long way away from the heydays of 2018-19, but the growing pace of activity in angel networks & early-stage funds are promising signs.
Amount Raised: USD 5.1 mn led by Exfinity Ventures and Kalaari Capital
What does Vernacular.ai do?
Edited from Traxcn: Vernacular.ai is an AI platform to manage customer engagement and call center automation solutions. It provides multi-lingual chatbots for automating customer service operations of enterprises using natural language processing and deep learning. Natural language processing helps the bots to extract meaning, context, and entities of incoming messages, thereby enabling companies to interact and engage in any language with customers.
Deep learning helps in pre-training the bot with domain corpus and augmenting with enterprise-specific data to achieve maximum accuracy for the same. The bots developed using the platform can be deployed to multiple omnichannel platforms, including Facebook Messenger, Twitter, Website, Mobile, among others. Some of the supported languages include Hindi, Gujarati, English, to name a few. Clients include Vistaar, Shriram General Insurance, Exide Life Insurance, and Barbeque Nation.
Why do I like Vernacular.ai?
Voice AI has enormous applications in a world where customer service standards aren’t keeping up with the expectations of customers. Customers want to get personalized treatment and in a language that they are comfortable conversing in. As an early investor in vPhrase, I have seen the vast revenue potential of applying artificial intelligence for customer communication.
Amount Raised: USD 2 mn led by Pravega Ventures
What does Mintoak do?
Edited from Traxcn: Mintoak offers a POS solution called DOV that enables merchants to accept digital payments. The solution involves a POS hardware device along with software solutions. Merchants can accept various types of card payments, such as magstripe, EMV, NFC, and secure PIN. It also enables the acceptance of UPI payments. Merchants can also accept payments without internet connectivity through their patent-pending technology that allows a POS to the transaction to be completed using the voice channel, thereby improving transaction completion rates. It also offers a consolidated view of all transactions handled by the device.
Why do I like Mintoak?
Except-Jio, most mobile operators operate on seriously inadequate infrastructure to handle the bandwidth demands of India fintech companies in urban centers. I shudder to imagine how vendors in Bharat, where the network infrastructure is weaker, would cope up. Mintoak attempts to use a data-light technology to process transactions, thereby decreasing costs and improving efficiency – an actual Bharat-focussed tech play.
Amount Raised: Undisclosed amount led by Good Capital
What does MetaMorphoSys do?
Edited from Traxcn: MetaMorphoSys Technologies provides a software suite for the insurance industry. It offers solutions for product development, claims management, risk management, and more. It also features software for insurance quoting, sales & marketing, underwriting, and more.
Why do I like MetaMorphoSys?
Insure-tech will be one of the biggest beneficiaries of the post-COVID environment. A CRM focussed on increasing the sales & marketing ability of insurance agents will be a need-to-have utility. Hitting a ₹50 lakh monthly SaaS revenue will be the first port-of-validation for MetaMorphoSys!
Fundraising activity continues to slow down; therefore, my team and I had a tough time shortlisting our favorite picks with just a handful of deals to choose from. After shortlisting all early-stage deals activity for week 18 from Traxcn, Inc42, and YourStory, we jointly picked out the following as the best funding picks for the last week:
Amount Raised: $4 Mn in a round led by GSV Ventures and Sierra Ventures
What does QuillBot do?
Edited from Traxcn: Millions trust QuillBot’s full-sentence thesaurus to get creative suggestions, rewrite content, and get over writer’s block. QuillBot uses state-of-the-art AI to rewrite any sentence or article you give it.
Why do I like QuillBot?
My team and I are Grammarly power users processing tens of thousands of words for our investment notes, meeting minutes, emails, blogs, private chats, and more. I believe that there is space for a Grammarly competitor, especially one that understands the Indianized English – also, can Quillbot (or Grammarly) build a plugin for PowerPoint, please!
Amount Raised: $4.5 Mn led by BEENEXT
What does YAP do?
Edited from Traxcn: YAP offers a white label program management platform. They also issue a Yap Tatkal wallet, which allows their clients to provide their customers physical or virtual prepaid cards linked to their products. They also offer a QR payment solution in the mobile wallet.
Why do I like YAP?
The lockdown caught the banks with their pants down due to unpreparedness to go digital. The post-lockdown scenario is bleak for physical banking, and banks must prepare themselves to fully service their customers from the palm of their hands. YAP is building APIs to bridge that gap hence one to look out for.
What does Mindhouse do?
Edited from Traxcn: Standalone mental fitness and wellness center brand
Why do I like Mindhouse?
The COVID19 virus reserves it’s worst for those with weakened immune systems. Therefore I expect that fitness (physical or mental) will be on the priority list of most in the post-virus era. Mindhouse attempts to enter the space that mind.fit is operating in. Will it succeed?
After a lull in funding to gauge the impact of the Covid19 pandemic, the fundraising activity is starting to pick up. Most of the rounds are investors topping up their investments into their investee companies to ensure survival through this period. However, a marked drop in valuations has also encouraged investors to return with the cheque books.
Amount Raised: $7 million from LGT Lightstone Aspada
What does AknaMed do?
Edited from Traxcn: Technology-enabled supply chain platform, which increases transparency and optimizes costs for both hospitals and manufacturers.
Why do I like AknaMed?
I expect a significant shift in supply chain logistics in the post-COVID19 world with platforms like Zilingo, Coutloot, and Aknamed acting as the tech bridge to reduce cost and increase transparency for retailers or service providers. A significant impediment for the B2B supply chain space would be providing credit for the last mile. Whether Aknamed intends to solve that inhouse or through a financial institution tie-up will be interesting to track.
Amount Raised: Undisclosed from SOSV’s MOX accelerator
What does Joynt do?
Edited from Traxcn: Joynt is a social selling platform. It provides a platform that allows users to create content and connect with the audience and make money through sell subscriptions, digital products & more. It also provides an Android app.
Why do I like Joynt?
Joynt is the excellent cross between an artist discovery, artist booking platform with additional features like booking video lessons & video calls with your favorite performers. They rely on short videos instead of text to help buyers to discover artists, which is a step above the text-heavy platforms today.
What does Plop do?
Edited from Traxcn: Plop now is a platform for fiction stories. It provides stories under various categories, including horror, romance, mystery, drama, and steamy. The stories are told in the form of messages or text, and Plop monetizes its platform through subscription.
Why do I like Plop?
Content platforms are making hay in the COVID19 lockdown, which explains the 400% rise in Plop’s traffic. However, I choose Plop over other content platforms for their unique delivery style over reading a book. I will keenly follow whether Plop can maintain this engagement in the post-COVID19 period.
There were a lot of excellent deals last week for me to choose my picks. After shortlisting 15 deals from Traxcn, Inc42, and YourStory, I sat with our funding team, and after a lot of enlighting discussions, I have shortlisted my picks to:
Name: Numocity Technologies
Amount Raised: undisclosed
Investors: Ideaspring Capital, Rebright Partners, and ABB Technology Ventures
What does Numocity do?
Edited from Traxcn: Numocity Technologies is an early-age tech enterprise focused on providing digital solutions for electric mobility infrastructure. The company offers products for EV fleets like fleet chargers, central management systems, and battery swap programs.
Why do I like Numocity?
EVs are the future. I have a sizeable exposure to mobility tech through Everest Fleet, Rapido, and Oneway Cabs. I want us to grow our portfolio in EV, especially in the charging infrastructure space, which should do exceptionally well in the times to come – especially for large EV fleets like the one Numocity is targeting.
Amount Raised: Undisclosed
What does Instoried do?
Edited from Traxcn: Instoried is an AI-based content optimization tool that evaluates writing standards. The platform analyses your written content provides a scorecard and feedback on how you can improve their written communication. The platform aims to monetize this through paid subscriptions.
Why do I like Instoried?
I am a Grammarly power-user, and I will refuse to write an email, blog post, or media article until Grammarly will approve it. Grammary offers a contextual scanner telling me whether my written post is information, official, negative, positive, or casual. What I like about Instoried (from its explainer video) is that it goes one step ahead and points out which words the scanner is getting its context from and how that can be improved. It is an intelligent tool but will have to see if it can be an intelligent company too!
Name: GoFloat Technologies
Amount Raised: 9 lakhs
Investors: Jito Angel Network
What does GoFloat do?
Edited from Traxcn: Manufactures and exports flotation and other water safety devices for emergency rescue situations. Their tools are compact, portable, and cost-efficient in comparison to life jackets.
Why do I like GoFloat?
Since there isn’t a demo product or video available on their website, the idea could be pre-product, and with the small funding round, I should have kept this deal out of this week’s list. But I can see a market for a GoFloat due to my love for water sports, liveaboards, and cruises as an avid scuba diver.
Most funds are winding down their operations in December; therefore, there wasn’t enough funding news from which I could shortlist. Yourstory reports that there were 17 deals in total with less than 50% meeting the criteria of the early-stage deals for this section of this blog.
The launch of the first cohort of Sanjay’s 100x.vc should change that this week, and I should have a tougher job to choose my top picks next week!
What does Sarva do?
Sarva is a wellness start-up that offers a wholistic ecosystem for mental, physical, and emotional wellbeing that utilize the ancient practices of Yoga. Sarva’s website claims to provide 25 forms of yoga taught through studios in 14 cities and has membership plans similar to Cure.fits memberships.
Why do I like Sarva?
The success of offline plays like Cure.fit and Bombay Shirts have brought back confidence in the augmented real estate brand plays.
Yoga has a mass appeal, and while Cure.fit does offer Yoga classes, I like the specific niche that Sarva’s is pursuing. Several Yoga schools in various cities provide personal trainers, but very few (maybe none) have tried launching a national brand like Sarva. The rest of the ecosystem is fragmented and regionalized.
I am a frequent user of Cure.fit (when I am in town) I love the flexibility of choosing classes that work with my schedule at a location closest to me on a given day. I suspect that with their war chest full of money, Cure.fit could quickly launch a Yoga studio vertical too. However, I suspect that the difference could be in the execution.
I found a Sarva studio in Nariman Point, and I will take a trial class to compare the two before I say any further.
What does Indyfint do?
IndyFint offers a plethora of bank-like services for businesses (as per their website) as well as a marketplace to provide loans to merchants, employees, and students (as per the YourStory article.)
Why do I like Indyfint?
I am a big believer that the Indian banking system is ripe for disruption. Banks use IT systems, policies, and operating procedures that are decades behind the business requirements of today. Previously (and in frustration), I had written a wish list for what I would like for a bank to do for me (as a corporate customer). Therefore I have a soft spot for those attempting to take on the big banks!
I am not 100% sure that IndyFint is attempting to become an alternative-banking platform but I like the services they offer on their website. Just like them, several other start-ups are trying to break the stranglehold created by Indian banks. I support the disruption, and I forward to helping one of these disrupters with our money as well!
What does Dhruva do?
Dhruva builds nano-satellites that work with ground sensors (also produced by them) for applications in agriculture, weather monitoring, infrastructure, etc.
Why do I like Dhruva?
Space is the unclaimed territory. Nano-satellites flattens the playing field that was previously occupied by big corporations or large governments. With billions of dollars at their disposal to send up massive satellites, their money power acted as a moat to fully exploit real estate a few hundred kilometers above our heads.
Nano-satellites and alternative delivery mechanisms democratize access to space. They provide access to applications that were (until now) were outside the reach of most of the world.
I believe that the market for nano-satellites will be worth tens of billions soon and add to that this is an Indian company that is attempting to compete in this space (pun intended). It is difficult not to love that!
Artha India Ventures invested in Kratikal’s Pre-Series A round. The announcement took place last week, but I chose not to review that investment in this section.
I am back with my favorite funding news of last week! I had shared my purpose in starting this weekly post, and I have received much positive feedback. Therefore, I was eager to dig into the top news from last week to share with you today.
Last week was a stellar week for fundraising, with over $1 billion raised. There is some deviation in that number as YourStory claims that the total was $1.18 billion, while Inc42* claims that the total was $1.08 billion. However, both agree that over 90% of the money comes from the $1 billion round for Paytm announced through VSS’ twitter handle.
However, Paytm does not fall under the parameters of an early-stage start-up; therefore, within the early-stage funding news for the week, these were my favorite:
Tripeur.com – $1 million from SenseAI, Better Capital, Patni Wealth Advisors, Incubate and Rajul Garg and Alacrity India
What is Tripeur?
Tripeur is a cloud-based corporate travel expense management solution. They utilize AI/ML technology to reduce corporate travel expenditure by 30% (as claimed) with better reporting and productivity gains for the travel admin. They claim to have served over 50,000 business travelers and booked 1.4 lakh trips for them through their online platform.
What do I like Tripeur?
I have slowed down investing in travel over the past few years, but it still makes up almost 25% of my overall investment portfolio. We evaluate travel start-ups as it continues to be a significant investment theme for AVF.
Within travel, I have found corporate travel to be the ripe space for disruption. I had identified corporate travel as the number 1 pain point to solve in my October 2017 post on the travel space.
While I haven’t utilized the Tripeur platform yet (I sent them a demo request over the weekend). However, I can speak from experience that a decent corporate booking platform can expect a very sticky customer base. They must provide access to the best prices with easy booking and cancellation options along with accurate reporting for the finance team.
These pain points are widely prevalent across all corporations, big or small. Therefore, people would readily refer customers to Tripeur if they can do what they promise, providing significant savings on CAC.
Tripeur could find much value in associating with many of my portfolio companies – Confirmtkt, Repup, OYO, VistaRooms, and others.
FirstU.in – undisclosed round from India Quotient, FirstCheque and Farooq Adam
What is FirstU?
FirstU is an online platform that provides subscription-based periodic services for automobiles. Users buy monthly subscription plans and avail regular services such as vehicle inspection, repairs, washes, accident assistance, etc.
Why do I like FirstU?
Several start-ups attempted to solve the problems of the fractionalized vehicular maintenance space. Most of them tried to upgrade your neighborhood mechanic, but the cost of retraining and retaining them far outweighed the benefits provided to the revenue accounts. The few that have been attempting setting up a company or franchise-owned multi-brand workshops have done better, but even then, they continue to burn money. Their LTV / CAC ratios are quite unfavorable as there is a long time gap between repeat services. Therefore, the start-up must resort to deep discounting to attract new or repeat customers.
I have written about my love for subscription start-ups as they develop the habit of their customers paying them. Once they form this habit, it takes a massive effort for a newcomer to “break” the psychological pattern of paying the same company. It creates the ideal “sticky” customer relationship. It is precisely the spending relationship that I love to see my start-up get into with their customers.
Once FirstU expands outside of Bangalore, I’d love to explore a B2B association between Everest Fleet and OneWay.Cab and them.
GreyAtom.com – $1.2 million from Montane Ventures, Pravega and Ritesh Arora
What does GreyAtom do?
GreyAtom provides a boot camp for learning data science and web development. The “students” work on real-world problems, get reviewed by their peers, which accelerates their learning curve. The claim to have upskilled over 35,000 learners with 87 percent making a career pivot of their choice.
Why do I like GreyAtom?
That working knowledge trumps the knowledge learned at a prestigious school is a known phenomenon. Therebefore the GreyAtom platform providing the workers of today the opportunity to upgrade and update their skills, but alongside their current roles is the need of the hour.
GreyAtom creates a win-win for the individual and the corporate. For the upskilled individual, it means better prospects at their current employer or the ability to switch over to a new role for which they were previously unqualified. For a corporate, incentivizing their existing team members to upgrade their skills would reduce attrition, improve job satisfaction, and reducing hiring and training costs. There is a lot to like about GreyAtom!
All I could wish for is that someone would come up with a similar platform to improve the skills for finance and marketing people. I’d be their first investor and a corporate customer for life!
*I am an investor in Inc42 through Artha India Ventures