developing world

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Coinbase poaches Google Shopping VP as CPO for cryptocommerce

“We’re trying to shift cryptocurrency from this speculative asset class to driving real-world utility,” Coinbase CEO Brian Armstrong tells me. How? Through commerce and micropayments. But now Coinbase has the who to build it. Today the startup announced it has hired away former head of Product for Indian e-commerce giant Flipkart and Google Shopping VP of Product Surojit Chatterjee to become Coinbase’s chief product officer.

“I’ve always enjoyed being associated with technology that is on the brink of changing how we live” writes Chatterjee. “Google ads has helped democratize commerce, Flipkart and ecommerce has revolutionized life in India, and I believe Coinbase is going to turn conventional finance on its head.”

Chatterjee spent more than 11 years at Google over two stints, the first as a founding member of Google’s mobile search Ads product that’s grown to tens of billions in revenue per year. When he starts at Coinbase next week, Armstrong tells me he’ll help Coinbase organize its complex array of products, including its cryptocurrency exchange, wallet, stablecoin, incentivized crypto education platform Earn and Coinbase Commerce that lets businesses take payments in Bitcoin, Ethereum and more. Chatterjee replaces Jeremy Henrickson, the former Coinbase CPO who departed in December 2018.

“Surojit is a huge asset here because we’re a product-led company,” Armstrong says. “We have different leaders and they increasingly have responsibilities around P&L. Having one really experienced chief product officer that can mentor them and teach them to own revenues and budgets — really in the model of Google — that will professionalize Coinbase.”

One opportunity Armstrong hopes Chatterjee can help Coinbase seize on is building products for emerging markets where financial infrastructure is weak. “E-commerce is not equally distributed around the world. Micropayments don’t work that well … Him spending time living in India, a developing market, he deeply understands mobile money.” Given the explosion of phone-based payments, the demonetization and the prevalence of cash on delivery methods in India that Flipkart dealt with, “his background is kind of ideal from that worldly perspective,” Armstrong explains.

Chatterjee cites his upbringing as inspiration to deliver “economic freedom for everyone,” as Armstrong says is Coinbase’s mission. “Growing up in India in a poor middle-class household, I saw very closely what a lack of liquid cash does to a family’s lifestyle,” Chatterjee recalls. 

“As a kid I would go with my mom to a local bank to withdraw money. And believe me when I tell you that the process was epic!” It included withdrawal slips, tokens and anxiously trying to match current signatures to versions decades old. When India demonetized and made everyone exchange their cash, “My dad, who was almost 80 at that time, stood in a queue for five hours to get 2000 Rs, which was the per-day limit for the first week. That’s less than $30!” Digital money could ensure people always have access to everything they own.

Surojit Chatterjee (far right) rides along for a Flipkart delivery to understand the consumer commerce experience

In developed countries, Armstrong sees a chance for Chatterjee to enable digital content creators to turn their passion into their profession. “There’s lots of people who lurk on Reddit or Stack Overflow and answer questions … If there was real money on these things, these could be their full time jobs — contributing content on user-generated social sites,” Armstrong predicts. “I think you’d see a lot more contributions, as well.”

Now might be the perfect time to hire Chatterjee since we’re in a lull period for cryptocurrency in the wake of the rush at the end of 2018. “Crypto is always challenging to navigate. In these periods when it’s relatively quiet, we tend to do really well,” Armstrong says. The company grew market share, volume and app installs versus competitors between 50% and 100%, according to the CEO. Referencing ancient war strategy, Armstrong concludes that, “There’s years where you just want to train the soldiers and stockpile resources and you’re basically just preparing. We’re building the company, not just responding to crazy hype.”

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Instagram Lite quietly launches to find a billion more users abroad

Instagram’s future growth depends on the developing world, so it’s built a version of its app just for them. “Instagram Lite” for Android appeared today in the Google Play App Store without any announcement from the company. “The Instagram Lite app is small, allowing you to save space on your phone and download it quickly” the description reads.

At just 573 kilobytes, Instagram Lite is 1/55th the size of Instagram’s 32 megabyte main app. It lets you filter and post photos to the feed or Stories, watch Stories, and browse the Explore page, but currently lacks the options to share videos or Direct message friends.

Instagram Lite addresses many problems common amongst mobile users in the developing world who are often on older phones with less storage space, slower network connections, or who can’t afford big data packages. Users might not have to delete photos or other apps to install Instagram Lite, or wait a long time and pay more for it to download.

Screenshots of Instagram Lite

The release follows Instagram’s revamped mobile website that launched last month, also designed for the developing world. At the time I wrote, “The launch begs the question of whether Instagram will release an Instagram Lite version of its native app.” The answer is yes. Mobile analytics service Sensor Tower tipped TechCrunch off to the release.

When asked for comment, an Instagram spokesperson confirmed that Instagram Lite began testing in Mexico this week, and provided this statement: “We are testing a new version of Instagram for Android that takes up less space on your device, uses less data, and starts faster.”

The “Lite” trend has picked up steam recently. Facebook launched Facebook Lite in 2015, and it had 200 million users by 2017. That paved the way for the launch of Messenger Lite in April 2018, and Uber glommed on to the strategy with the release of its own Lite app earlier this month. Users have clearly been craving Instagram Lite, since a fake/unofficial Facebook Page with that has racked up over 2000 Likes.

Instagram announced last week at the IGTV unveiling that it had hit 1 billion monthly active users. It’s been growing at roughly 100 million users every four months, with much of that coming from the developing world. Snapchat neglected international markets to focus on US teens, leaving the door open for Instagram and WhatsApp’s clones of Snapchat Stories to grab big user bases in countries like India and Brazil.

With this new growth tool in its belt, Instagram may see even swifter adoption in emerging markets. It could score ad revenue straight from Lite, then as phones and networks improve, hope to shift users onto the full-fidelity version. Now, eyes will be on Snapchat to see if it builds its own Lite app. Otherwise it risks continuing to slip further behind the Instagram juggernaut.

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Element wants to give identity to the whole world, raising $12M Series A

Who are you? That’s both an existential question, and also a very practical administrative concern. Today, identity is often exchanged through the use of government ID cards and official paperwork, but what happens when someone loses that paperwork or it is destroyed? Or, as is often the case in many countries around the world, a citizen never received the paperwork to begin with?

Element wants to completely change the way banks, hospitals, and other service providers work with their customers by providing a platform for decentralized biometric identity. The company’s software runs on any mobile device, and using the device’s camera, it can identify a user’s face, palm, and fingerprints to create a verified match. Users have options on which modality they want to use.

Biometric identification is a tough machine learning application, so it shouldn’t be surprising that Element, which was formed in 2012, was co-founded by Adam Perold, a Stanford-educated product designer, and Yann LeCun, a famed machine learning researcher. LeCun was the progenitor of convolution neural nets, which today form one of the foundational theories for deep learning AI. He is now chief science advisor for the company, having taken a role as Director of AI Research at Facebook in New York while continuing his professorship at NYU.

Element is announcing a $12 million Series A round, led by PTB Ventures and GDP Ventures, with David Fields of PTB and On Lee of GDP joining the company’s board of directors. Earlier investors of the company included Pandu Sjahrir, Scott Belsky, Box Group, and Recruit Strategic Partners.

While technologies like Apple’s Touch ID and Face ID systems have popularized biometric identity, neither of these were around when Element got started. The early years of the company were devoted to solving critical technical challenges. Wireless connectivity can be limited in many developing countries, which meant that identities had to be local to the device in order to be useful. That also meant that the platform couldn’t be a cloud infrastructure solution, since identity information had to be processed on the device.

Furthermore, given the quality of hardware available, data had to be extremely compressed to be useful, and the machine learning algorithms couldn’t use too much compute power since a low-powered Android device wouldn’t be able to execute an identity match quickly enough to provide a good user experience.

That’s where LeCun’s deep expertise in neural nets, and particularly in areas like optical character recognition, came in handy. The Element team managed to reduce the amount of data required to store the identity of a single person down to about two kilobytes, according to the company.

The next challenge the company faced in building out its platform was security. Identity data, particularly biometrics, is a major security challenge, but it was exacerbated by the fact that devices would often be shared between users. A single device at a bank, for instance, might service thousands of users, all of which need independent, secured data. The company said that these security challenges have been designed into the core of the system.

Ultimately, the company’s platform lives as an SDK behind the mobile apps of its partners. It provides not only the identity layer itself, but also a secure data infrastructure that allows records such as bank accounts and medical files to be connected to the underlying identity.

Element is targeting the developing world, and Perold tole me he spends more than half of his time traveling to Southeast Asia and Africa building partnerships and doing research on how the company’s technology can improve critical social services. Among the company’s signed partnerships is Telekom Indonesia, which as the service provider for 180 million subscribers, is one of the key connections between people and their identity in that fast-growing economy.

Another partnership formed by the company is with the Global Good Fund, a joint venture between Bill Gates and Intellectual Ventures. That project works to create better biometric identities for newborns and infants, which is critical for health outcomes. The company is working with icddr,b and the Angkor Hospital for Children in Cambodia to build out the program.

In addition to the lead investors, the company received strategic venture capital investments from Bank BCA (via Central Capital Ventura), Bank BRI, Telkom Indonesia (via MDI Ventures), and Maloekoe Ventures.

Correction: The Global Good Fund is a joint venture with Bill Gates, not the Gates Foundation.

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Instagram Stories adds no-frills photo-only posting from mobile web

 Instagram really wants the developing world on Stories. They won’t be able to use Instagram’s augmented reality masks or share videos, but starting today mobile web users can post to Instagram Stories. Previously, mobile web users could only view Stories, which have to be created in Instagram’s native apps. But now users can snap photos, overlay text captions, and share them… Read More

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Facebook will test video downloads for offline viewing

facebook-video-world1 The developing world can’t join the age of social video since streaming sucks up too much costly data and is sluggish on slow connections. But Facebook wants to change that with a new video download option it will start testing on July 11th with a small percentage of users in India. While on WiFi, people can sync videos to their device for offline viewing within Facebook’s… Read More

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