e-commerce
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If Instagram’s photo tagging feature was spun out into its own app, you’d have the viral sensation Poparazzi, now the No. 1 app on the App Store. The new social networking app, from the same folks behind TTYL and others, lets you create a social profile that only your friends can post photos to — in other words, making your friends your own “paparazzi.” To its credit, the new app has perfectly executed on a series of choices designed to fuel day-one growth — from its prelaunch TikTok hype cycle to drive App Store preorders to its postlaunch social buzz, including favorable tweets by its backers. But the app has also traded user privacy in some cases to amplify network effects in its bid for the Top Charts, which is a risky move in terms of its long-term staying power.
The company positions Poparazzi as a sort of anti-Instagram, rebelling against today’s social feeds filled with edited photos, too many selfies and “seemingly effortless perfection.” People’s real lives are made up of many unperfect moments that are worthy of being captured and shared, too, a company blog post explains.
This manifesto hits the right notes at the right time. User demand for less performative social media has been steadily growing for years — particularly as younger, Gen Z users wake up to the manipulations by tech giants. We’ve already seen a number of startups try to siphon users away from Instagram using similar rallying cries, including Minutiae, Vero, Dayflash, Oggl and, more recently, the once-buzzy Dispo and the under-the-radar Herd.
Even Facebook has woken up to consumer demand on this front, with its plan to roll out new features that allow Facebook and Instagram users to remove the Like counts from their posts and their feeds.
Poparazzi hasn’t necessarily innovated in terms of its core idea — after all, tagging users in photos has existed for years. In fact, it was one of the first viral effects introduced by Facebook in its earlier days.
Instead, Poparazzi hit the top of the charts by carefully executing on growth strategies that ensured a rocket ship-style launch.
@poparazziappcomment it! ##greenscreen ##poparazziapp ##positivity ##foryoupage♬ Milkshake – BBY Kodie
The company began gathering prelaunch buzz by driving demand via TikTok — a platform that’s already helped mint App Store hits like the mobile game High Heels. TikTok’s powers are still often underestimated, even though its potential to send apps up the Top Charts have successfully boosted downloads for a number of mobile businesses, including TikTok sister app CapCut and e-commerce app Shein, for example.
And Poparazzi didn’t just build demand on TikTok — it actually captured it by pointing users to its App Store preorders page via the link in its bio. By the time launch day rolled around, it had a gaggle of Gen Z users ready and willing to give Poparazzi a try.
The app launches with a clever onboarding screen that uses haptics to buzz and vibrate your phone while the intro video plays. This is unusual enough that users will talk and post about how cool it was — another potential means of generating organic growth through word-of-mouth.
After getting you riled up with excitement, Poparazzi eases you into its bigger data grab.
First, it signs up and authenticates users through a phone number. Despite Apple’s App Store policy, which requires it, there is no privacy-focused option to use “Sign In with Apple,” which allows users to protect their identity. That would have limited Poparazzi’s growth potential versus its phone number and address book access approach.
It then presents you with a screen where it asks for permission to access your Camera (an obvious necessity) and Contacts (wait, all of them?), and permission to send you Notifications. This is where things start to get more dicey. The app, like Clubhouse once did, demands a full address book upload. This is unnecessary in terms of an app’s usability, as there are plenty of other ways to add friends on social media — like by scanning each other’s QR code, typing in a username directly or performing a search.
But gaining access to someone’s full Contacts database lets Poparazzi skip having to build out features for the privacy-minded. It can simply match your stored phone numbers with those it has on file from user signups and create an instant friend graph.
As you complete each permission, Poparazzi rewards you with green checkmarks. In fact, even if you deny the permission being asked, the green check appears. This may confuse users as to whether they’ve accidently given the app access.
While you can “deny” the Address Book upload — a request met with a tsk tsk of a pop-up message — Poparazzi literally only works with friends, it warns you — you can’t avoid being found by other Poparazzi users who have your phone number stored in their phone.
When users sign up, the app matches their address book to the phone number it has on file and then — boom! — new users are instantly following the existing users. And if any other friends have signed up before you, they’ll be following you as soon as you log in the first time.
In other words, there’s no manual curation of a “friend graph” here. The expectation is that your address book is your friend graph, and Poparazzi is just duplicating it.
Of course, this isn’t always an accurate presentation of reality.
Many younger people, and particularly women, have the phone numbers of abusers, stalkers and exes stored in their phone’s Contacts. By doing so, they can leverage the phone’s built-in tools to block the unwanted calls and texts from that person. But because Poparazzi automatically matches people by phone number, abusers could gain immediate access to the user profiles of the people they’re trying to harass or hurt.
Sure, this is an edge case. But it’s a nontrivial one.
It’s a well-documented problem, too — and one that had plagued Clubhouse, which similarly required full address book uploads during its early growth phase. It’s a terrible strategy to become the norm, and one that does not appear to have created a lasting near-term lock-in for Clubhouse. It’s also not a new tactic. Mobile social network Path tried address book uploads nearly a decade ago and almost everyone at the time agreed this was not a good idea.
As carefully designed as Poparazzi is — (it’s even got a blue icon — a color that denotes trustworthiness!) — it’s likely the company intentionally chose the trade-off. It’s forgoing some aspects of user privacy and safety in favor of the network effects that come from having an instant friend graph.
The rest of the app then pushes you to grow that friend graph further and engage with other users. Your profile will remain bare unless you can convince someone to upload photos of you. A SnapKit integration lets you beg for photo tags over on Snapchat. And if you can’t get enough of your friends to tag you in photos, then you may find yourself drawn to the setting “Allow Pops from Everyone,” instead of just “People You Approve.”
There’s no world in which letting “everyone” upload photos to a social media profile doesn’t invite abuse at some point, but Poparazzi is clearly hedging its bets here. It likely knows it won’t have to deal with the fallout of these choices until further down the road — after it’s filled out its network with millions of disgruntled Instagram users, that is.
Dozens of other growth hacks are spread throughout the app, too, from multiple pushes to invite friends scattered throughout the app to a very Snapchatt-y “Top Poparazzi” section that will incentivize best friends to keep up their posting streaks.
It’s a clever bag of tricks. And though the app does not offer comments or followers counts, it isn’t being much of an “anti-Instagram” when it comes to chasing clout. The posts — which can turn into looping GIFs if you snap a few in a row — may be more “authentic” and unedited than those on Instagram; but Poparazzi users react to posts with a range of emojis and how many reactions a post receives is shown publicly.
For beta testers featured on the explore page, reactions can be in the hundreds or thousands — effectively establishing a bar for Pop influence.
Finally, users you follow have permission to post photos, but if you unfollow them — a sure sign that you no longer want them to be in your poparazzi squad — they can still post to your profile. As it turns out, your squad is managed under a separate setting under “Allow Pops From.” That could lead to trouble. At the very least, it would be nice to see the app asking users if they also want to remove the unfollowed account’s permission to post to your profile at the time of the unfollow.
Overall, the app can be fun — especially if you’re in the young, carefree demographic it caters to. Its friend-centric and ironically anti-glam stance is promising as well. But additional privacy controls and the ability to join the service in a way that offers far more granular control of your friend graph in order to boost anti-abuse protections would be welcome additions.
TechCrunch tried to reach Poparazzi’s team to gain their perspective on the app’s design and growth strategy, but did not hear back. (We understand they’re heads down for the time being.) We understand, per SignalFire’s Josh Constine and our own confirmation, that Floodgate has invested in the startup, as has former TechCrunch co-editor Alexia Bonatsos’ Dream Machine and Weekend Fund.
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Lordstown Motors released its Q1 earnings yesterday, and the electric vehicle manufacturer is facing a few challenges.
Expenses were higher than expected, it plans to slash production by about 50%, and the company reported zero revenue and a net loss of $125 million. Oh, it also needs more capital.
“But there’s more to the Lordstown mess than merely a single bad quarter,” writes Alex Wilhelm. “Lordstown’s earnings mess and the resulting dissonance with its own predictions are notable on their own, but they also point to what could be shifting sentiment regarding SPAC combinations.”
In light of the company’s lackluster earnings report (and a pending SEC investigation), Alex unpacks the company’s Q1, “but don’t think that we’re only singling out one company; others fit the bill, and more will in time.”
Image Credits: TechCrunch
Join TechCrunch reporter Ron Miller and Patrik Liu Tran, co-founder and CEO of automated real-time data validation and quality monitoring platform Validio, on Thursday, May 27 at 9 a.m. PDT/noon EDT for a Clubhouse chat about ensuring data quality in the era of Big Data.
The world produces 2.5 quintillion bytes of data daily, but modern data infrastructure still lacks solutions for monitoring data quality and data validation.
Among other topics, they’ll discuss the build versus buy debate, how to better understand data failures, and why traditional methods for identifying data failures are no longer operational.
Click here to join the conversation.
Thanks very much for reading Extra Crunch; have a great week!
Walter Thompson
Senior Editor, TechCrunch
@yourprotagonist
Full Extra Crunch articles are only available to members.
Use discount code ECFriday to save 20% off a one- or two-year subscription.
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Expensify may be the most ambitious software company ever to mostly abandon the Bay Area as the center of its operations.
The startup’s history is tied to places representative of San Francisco: The founding team worked out of Peet’s Coffee on Mission Street for a few months, then crashed at a penthouse lounge near the 4th and King Caltrain station, followed by a tiny office and then a slightly bigger one in the Flatiron building near Market Street.
Thirteen years later, Expensify still has an office a few blocks away on Kearny Street, but it’s no longer a San Francisco company or even a Silicon Valley firm. The company is truly global with employees across the world — and it did that before COVID-19 made remote working cool.
It makes sense that a company founded by internet pirates would let its workforce live anywhere they please and however they want to. Yet, how does it manage to make it all work well enough to reach $100 million in annual revenue with just a tad more than 100 employees?
As I described in Part 2 of this EC-1, that staffing efficiency is partly due to its culture and who it hires. It’s also because it has attracted top talent from across the world by giving them benefits like the option to work remotely all year as well as paying SF-level salaries even to those not based in the tech hub. It’s also got annual fully paid month-long “workcations” for every employee, their partner and kids.
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Managing Editor Jordan Crook interviewed Airbnb co-founder and CEO Brian Chesky to discuss the future of travel and what it was like leading the world’s biggest hospitality startup during a global pandemic.
“Our business initially dropped 80% in eight weeks. I say it’s like driving a car. You can’t go 80 miles an hour, slam on the brakes, and expect nothing really bad to happen.
Now imagine you’re going 80 miles an hour, slam on the brakes, then rebuild the car kind of while still moving, and then try to accelerate into an IPO, all on Zoom.”
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There’s latent demand for life insurance currently unaddressed by much of the financial services industry, and embedded finance can be the solution.
It’s imperative for companies to consider product lines and partnerships to expand markets, create new revenue streams and provide added value to their customers.
Connecting consumers with products they need through channels they already know and trust is both a massive revenue opportunity and a social good, providing financial resilience to families at a time when they need it most.
Image Credits: Nigel Sussman (opens in a new window)
Zeta Global raised north of $600 million in private capital in the form of both equity financing and debt, making it a unicorn worth understanding.
The gist is that Zeta ingests and crunches lots of data, helping its users market to their customers on a targeted basis throughout their individual buying lifecycles. In simpler terms, Zeta helps companies pitch customers in varied manners depending on their own characteristics.
You can imagine that, as the digital economy has grown, the sort of work Zeta Global supports has only expanded. So, has Zeta itself grown quickly? And does it have an attractive business profile? We want to know.
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In 2016, more than 20 years after Amazon’s founding and 10 years since Shopify launched, it would have been easy to assume e-commerce penetration (the percentage of total retail spend where the goods were bought and sold online) would be over 50%.
But what we found was shocking: The U.S. was only approximately 8% penetrated — only 8% for arguably the most advanced economy in the world!
Despite e-commerce growth skyrocketing over the past year, the reality is the U.S. has still only reached an e-commerce penetration rate of around 17%. During the last 18 months, we’ve closed the gap to South Korea and China’s e-commerce penetration of more than 25%, but there is still much progress to be made.
Here are five key predictions for what this road to further penetration will hold.
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Every company wants to be innovative, but innovation comes with its share of difficulties. One key challenge for early-stage companies that are disrupting a particular space or creating a new category is figuring out how to sell a unique product to customers who have never bought such a solution.
This is especially the case when a solution doesn’t have many reference points and its significance may not be obvious.
Some buyers could use a walkthrough of the buying process. If you are building a singular product in a nascent market that necessitates forward-looking customers and want to drastically shorten sales cycles, create a buyer’s guide.
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Pay attention to red flags when meeting with VCs: If they cancel late or leave you waiting, it’s a sign, just like being asked generic questions that demonstrate little or no understanding of the proposition. If they critique you or your business, that’s fine (obviously), but make sure you find out what’s behind their assertions to judge how well informed they are.
If you’re going to face these people each month and debate the direction of your business, the least you can expect is a robust argument outlining precisely why you may not have all the right answers.
If you fail to spot the warning signs, you’ll live to regret it. But do your due diligence and work constructively with them and, together, you might actually build a sustainable future.
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This column aims to collect some of the most relevant recent discoveries and papers — particularly in, but not limited to, artificial intelligence — and explain why they matter.
In this edition, we have a lot of items concerned with the interface between AI or robotics and the real world. Of course, most applications of this type of technology have real-world applications, but specifically, this research is about the inevitable difficulties that occur due to limitations on either side of the real-virtual divide.
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Netflix has two CEOs: Co-founder Reed Hastings oversees the streaming side of the company, while Ted Sarandos guides Netflix’s content.
Warby Parker has co-CEOs as well — its co-founders went to college together. Other companies like the tech giant Oracle and luggage maker Away have shifted from having co-CEOs in recent years, sparking a wave of headlines suggesting that the model is broken.
While there isn’t a lot of research on companies with multiple CEOs, the data is more promising than the headlines would suggest. One study on public companies with co-CEOs revealed that the average tenure for co-CEOs, about 4.5 years, was comparable to solitary CEOs, “suggesting that this arrangement is more stable than previously believed.”
Furthermore, it’s impossible to be in two places at once or clone yourself. With co-CEOs, you can effectively do just that.
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Commonwealth Bank group executive Angus Sullivan and Jon Beros, co-founder and CEO of Little Birdie. Image Credits: Little Birdie
Melbourne-based Little Birdie, an e-commerce startup that wants to become the “new homepage of online shopping,” won’t launch until next month, but it’s already scored a major investor. Commonwealth Bank of Australia (CBA), the largest of Australia’s “Big Four” banks, has poured $30 million AUD (about $23.2 million USD) in prelaunch funding into Little Birdie, and will also integrate its shopping content, including exclusive offers, into its consumer banking app, which reaches 11 million retail customers in Australia.
Little Birdie says this brings its valuation to $130 million AUD (about $100 million USD). Compared to the United States, where Amazon is the largest e-commerce retailer by far, Australian shoppers spend more time choosing between several platforms, including large marketplaces like eBay, Gumtree, Amazon, Woolworths and a host of smaller players.
Set to launch in mid-June, Little Birdie will aggregate more than 70 million products from different online brands and stores, with the goal of being the first place shoppers look when they want to buy something. Users can use Little Birdie to track and compare products, and look for price drops, sales and offers. The SKUs come from a combination of brand partnerships and scraping e-commerce sites, with the majority from retailers’ product feeds.
Co-founder and chief executive officer Jon Beros told TechCrunch that “Australia’s e-commerce market is very competitive and quite fragmented with a lot of retailers fighting for market share. The pandemic accelerated online adoption and saw many retailers switch on an online presence, or shift their focus online. With so many players fighting for the attention of shoppers and driving up the cost of acquisition, Little Birdie can genuinely help retailers by providing a new marketing channel that delivers qualified customers leads.”
Commonwealth Bank will be able to access Little Birdie’s catalog of shopping content to create targeted offers for customers, including features that link savings goals to specific items through its money management tools. Beros said that Little Birdie will also seek two different types of brand partnerships: “Firstly with retailers who come on board to promote their exclusive offers and products on Little Birdie and secondly with major brands and media companies that look to integrate our shopping content into their apps or websites. These integration partners ultimately deepen the value Little Birdie offers its retail partners by helping to amplify the reach of their offers to a wider audience.”
The company is looking at expansion into Southeast Asia and the United States, but Beros said there is not a firm timeline for its international growth yet, since it depends on the COVID-19 pandemic situation and when borders start to reopen.
In a press statement, Commonwealth Bank group executive Angus Sullivan said, “We believe customers should have access to the world’s best digital experience and our partnership with Little Birdie will give customers access to exclusive industry leading deals via the CommBank app.”
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Steve Sy, CEO of Great Deals, and William Chiongbian II, CEO of Fast Group, sign the contract for the companies’ strategic partnership. Image Credits: Great Deals
Founded in 2014, Great Deals is an e-commerce enabler that helps brands like Abbot, L’Oréal and Unilever build their online retail operations in the Philippines. The startup announced today that it has raised $30 million in Series B funding led by Fast Group, one of the Philippines’ biggest logistics firms, with support from CVC Capital Partners. Navegar, which led Great Deals’ Series A, also returned for this round.
The transaction was advised by Rocket Equities. The investment by Fast Group, which has a fleet of more than 2,500 vehicles and 90,000 stores in its distribution network, marks the beginning of a strategic partnership. Great Deals will use part of the new capital to build an automated fulfillment center, and the deal will help it increase its penetration outside the Greater Manila Area and offer more Instant Commerce, or deliveries under one hour.
Great Deals currently operates only in the Philippines, but plans to expand regionally next year, founder and chief executive officer Steve Sy told TechCrunch.
In a statement, Fast Group president and chief executive officer William Chiongbian II said, “The Fast Group sees a lot of synergies with Great Deals in building capacity. We are privileged to contribute to the growth of Philippine e-commerce, as it relies heavily on a strong supply chain backbone.”
Some of Great Deals’ other clients include Nestlé, Samsonite, GSK, Bayer and Fila. In addition to serving as an e-commerce distributor, it offers an end-to-end services for brands, including digital content production, marketing campaign coordination and management of marketplace listings (Great Deals’ partners include Lazada, Shopee, Zalora, Zilingo, Shopify and Magento).
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Facebook wants to whet consumers’ appetite for live streamed shopping with this week’s launch of “Live Shopping Fridays” event series, which will see larger brands live streaming beauty, skincare, and fashion content on a weekly basis. The event begins Friday, May 22nd and runs through mid-July, with streams from brands like Abercrombie and Fitch, Bobbi Brown, Clinique, Sephora, Dermalogica, Alleyoop, and Zox.
The events are meant to encourage larger brands to try out live shopping as a medium, as well as generally raise awareness about live shopping on Facebook among consumers.
The brands will use their live shopping events in a number of ways. They may give a behind-the-scenes look at their business or they may partner with creators to showcase their products in “how-to” style videos, for example.
During the live streams, viewers can comment and ask questions which brands can read and respond to. Shoppers can also tap on the products displayed in the stream to learn more without having to leave the video. If they want to buy, they can add them to the cart and check out at any time — during or even after the event has wrapped. The brands receive the customer’s shipping information, and if the consumer opts in, they can gain access to other details as well, like email and phone number.
Live stream video shopping became publicly available on Facebook last summer, following a series of smaller trials and beta tests, where the format initially found traction with smaller to medium-sized businesses and digital-first brands, Facebook says.
The Covid pandemic also pushed adoption of the format, in some cases, as creative business owners turned to live shopping to reach their customers when lockdowns closed non-essential businesses.
Image Credits: Facebook
More recently, larger brands like Petco and Bobbi Brown have run live shopping events — the former as part of a charity effort, and the latter with a live stream featuring tips from makeup artist Michele Shakeshaft. (Pictured)
“The way that we’re thinking about this is that e-commerce has made buying incredibly convenient. So when you have a need, you pull out your phone, purchase, and your order is on its way,” explains Yulie Kwon Kim, who leads product for Facebook App Commerce.
“But buying is not shopping. And so, a lot of what people do is window shop to see what’s new, for entertainment. You discover something cool that you didn’t know about. When you’re shopping, people often want to hear from a live person, get suggestions, and see the product and context,” she says. “And increasingly, people are discovering and deciding what to buy through social media,” Yulie adds.
She also notes that almost three-quarters of consumers globally are getting shopping ideas through Facebook, Instagram, Messenger, and WhatsApp, and almost two-thirds agree that social media has now become as important as other information sources when making purchase decisions.

Facebook says the live events will be presented to consumers in a number of ways during the summer. If you follow a brand, you’ll be notified of their participation. You’ll also see News Feed announcements where you’ll be notified when events are starting (see above). And the Facebook Shop tab will offer a schedule of upcoming live shopping streams taking place across the platform.
Facebook, of course, is not the only one to realize the potential in live shopping.
Startups like NTWRK, Popshop Live, Talkshoplive, Dote, Bambuser, and others brought the live shopping model already popular in China to the U.S. and other markets, many months before the pandemic. TikTok has been testing live shopping, including with Walmart in the U.S., as well.
Amazon, meanwhile, live streams to its website, and YouTube announced earlier this year its beta tests of an integrated e-commerce experience.
As for Facebook, a live shopping platform could ultimately serve as a significant revenue stream, thanks to selling fees applied at checkout. While Facebook did waive those selling fees through June 2021 — a decision it claims was to help support small businesses during the Covid-19 pandemic — that move also conveniently helps Facebook stake its place in the live stream shopping market land grab now underway. Facebook also needs to diversify its revenue, given that Apple’s privacy push around third-party tracking will hurt Facebook’s ad business.
Facebook’s Live Shopping Fridays series will roll out across both mobile and desktop in the U.S. this week, and will also pop on Facebook’s Shop Tab for easy access.
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Per a recent report by Bain & Co., e-commerce is expected to grow to $28.5 billion in MENA by 2022 from a 2019 value of $8.3 billion. Egypt, one of the most active e-commerce countries in the region, is anticipated to grow 33% annually to reach $3 billion by 2022.
But for any e-commerce business to thrive, its last-mile delivery arm has to be well figured out. Bosta is one such company in Egypt helping small businesses with logistics and last-mile delivery. Today, the company is announcing it has closed a Series A investment of $6.7 million. U.S. and Middle East VC firm Silicon Badia led the round, with participation from 4DX Ventures, Plug and Play Ventures, Wealth Well VC, Khwarizmi VC, as well as other regional and global investors.
This investment comes a year after the company raised a $2.5 million round, which takes its total investment raised to $9.2 million.
Bosta was launched in 2017 by Mohamed Ezzat and Ahmed Gaber. The company offers next-day delivery to customers and handles exchange shipments, customer returns and cash collection.
The idea for Bosta came during Ezzat’s time at Lynks, his previous consumer goods startup. Lynks, the first YC-backed company from Egypt, allows people in Egypt to buy brands from the U.S., China and the U.K.
As co-founder and COO at Lynks, Ezzat was responsible for logistics, international clearance and last-mile delivery. In 2016, Egypt experienced an economic downturn coupled with the Egyptian pound devaluation and government restriction on imports. For Lynks it meant slow growth, but Ezzat was concerned about fixing the last-mile delivery bit, which, according to him, was a huge pain point.
“My nightmare was always the last mile. And at that time, you know that e-commerce is still very, very small. So it’s only 1% of the whole retail value,” he told TechCrunch. “So I was always thinking, how come if we want the e-commerce to grow, and we don’t have any strong company when it comes to last-mile because, in the end, every transaction on an e-commerce platform is a transaction on a courier platform.”
E-commerce is a fragmented sector where 80% of transactions come from small businesses selling on Facebook, Instagram and social media in general. Most of these businesses lack a strong delivery experience, and Ezzat left Lynks the following year to start Bosta.
Being in the parcel delivery industry, Bosta wants to help these companies to grow profitably. It also tries to simplify logistics and allow its customers to have full control over the delivery process.
“You can use Bosta to get anything to your doorstep. You buy in our local currency, and we buy everything, handle the shipping, customs, clearance and bring it to your doorstep,” the CEO added.
The company doesn’t own fleets of vehicles to carry out operations. Instead, it operates an Uber-like model where drivers sign up, are made contractors and make money when a delivery is completed.
Since 2017, the company has delivered more than 4 million packages to businesses, more than half since the pandemic outbreak last year. Bosta completes more than 300,000 deliveries per month, which is a 3.5x increase from when it raised its previous round, Ezzat stated. He also claims that more than 2,200 businesses use its platform daily and achieve a 95% delivery success rate.
Asides from small businesses, Bosta works with major e-commerce platforms like Souq (an Amazon company) and Jumia. Depending on the volume of goods transported, Bosta charges small businesses about 35-40 Egyptian pounds, while the big players are charged less, at 20-25 Egyptian pounds.
Speaking on the investment, Fawaz H Zu’bi said in a statement: “E-commerce has always had amazing potential in our region but was always being held back by something whether payments, logistics, market fragmentation, or customer adoption. We are excited to finally see companies like Bosta emerge to tackle some of these issues and help e-commerce realize its full promise and potential in a region that has now ‘turned on’ digitally.”
In the next two years, Bosta plans to deliver more than 15 million parcels in Egypt and serve over 20,000 businesses. The funds will be used for those causes, as well as expanding operations across Africa, MENA and the GCC.
“The investment is to dominate Egypt,” said Ezzat. “We want to make sure that we deliver the next day across Egypt, not just in Cairo, where we currently do. And to be a market leader when it comes to e-commerce on the continent and be profitable. This is the main target for us now and also to start operations in Saudi Arabia.”
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Amount, a company that provides technology to banks and financial institutions, has raised $99 million in a Series D funding round at a valuation of just over $1 billion.
WestCap, a growth equity firm founded by ex-Airbnb and Blackstone CFO Laurence Tosi, led the round. Hanaco Ventures, Goldman Sachs, Invus Opportunities and Barclays Principal Investments also participated.
Notably, the investment comes just over five months after Amount raised $86 million in a Series C round led by Goldman Sachs Growth at a valuation of $686 million. (The original raise was $81 million, but Barclays Principal Investments invested $5 million as part of a second close of the Series C round). And that round came just three months after the Chicago-based startup quietly raised $58 million in a Series B round in March. The latest funding brings Amount’s total capital raised to $243 million since it spun off from Avant — an online lender that has raised over $600 million in equity — in January of 2020.
So, what kind of technology does Amount provide?
In simple terms, Amount’s mission is to help financial institutions “go digital in months — not years” and thus, better compete with fintech rivals. The company formed just before the pandemic hit. But as we have all seen, demand for the type of technology Amount has developed has only increased exponentially this year and last.
CEO Adam Hughes says Amount was spun out of Avant to provide enterprise software built specifically for the banking industry. It partners with banks and financial institutions to “rapidly digitize their financial infrastructure and compete in the retail lending and buy now, pay later sectors,” Hughes told TechCrunch.
Specifically, the 400-person company has built what it describes as “battle-tested” retail banking and point-of-sale technology that it claims accelerates digital transformation for financial institutions. The goal is to give those institutions a way to offer “a secure and seamless digital customer and merchant experience” that leverages Amount’s verification and analytics capabilities.
Image Credits: Amount
HSBC, TD Bank, Regions, Banco Popular and Avant (of course) are among the 10 banks that use Amount’s technology in an effort to simplify their transition to digital financial services. Recently, Barclays US Consumer Bank became one of the first major banks to offer installment point-of-sale options, giving merchants the ability to “white label” POS payments under their own brand (using Amount’s technology).
“The pandemic dramatically accelerated banks’ interest in further digitizing the retail lending experience and offering additional buy now, pay later financing options with the rise of e-commerce,” Hughes, former president and COO at Avant, told TechCrunch. “Banks are facing significant disruption risk from fintech competitors, so an Amount partnership can deliver a world-class digital experience with significant go-to-market advantages.”
Also, he points out, consumers’ digital expectations have changed as a result of the forced digital adoption during the pandemic, with bank branches and stores closing and more banking done and more goods and services being purchased online.
Amount delivers retail banking experiences via a variety of channels and a point-of-sale financing product suite, as well as features such as fraud prevention, verification, decisioning engines and account management.
Overall, Amount clients include financial institutions collectively managing nearly $2 trillion in U.S. assets and servicing more than 50 million U.S. customers, according to the company.
Hughes declined to provide any details regarding the company’s financials, saying only that Amount “performed well” as a standalone company in 2020 and that the company is expecting “significant” year-over-year revenue growth in 2021.
Amount plans to use its new capital to further accelerate R&D by investing in its technology and products. It also will be eyeing some acquisitions.
“We see a lot of interesting technology we could layer onto our platform to unlock new asset classes, and acquisition opportunities that would allow us to bring additional features to our platform,” Hughes told TechCrunch.
Avant itself made its first acquisition earlier this year when it picked up Zero Financial, news that TechCrunch covered here.
Kevin Marcus, partner at WestCap, said his firm invested in Amount based on the belief that banks and other financial institutions have “a point-in-time opportunity to democratize access to traditional financial products by accelerating modernization efforts.”
“Amount is the market leader in powering that change,” he said. “Through its best-in-class products, Amount enables financial institutions to enhance and elevate the banking experience for their end customers and maintain a key competitive advantage in the marketplace.”
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French startup Ankorstore has raised a $102 million Series B funding round (€84 million). Tiger Global and Bain Capital Ventures are leading today’s funding round with existing investors Index Ventures, GFC, Alven and Aglaé also participating. This is a significant funding round, as it comes just a few months after the company raised €25 million.
If you’re not familiar with Ankorstore, the company is building a wholesale marketplace for independent shop owners. You may have noticed some highly Instagrammable shops with a selection of random items, such as household supplies, maple syrup, candles, headbands, bath salts and stationery items.
Essentially, Ankorstore helps you source those items for shop owners. It lets you buy a ton of cutesy stuff and act as a curator for your customers. Even if you’re already working with brands directly, the startup offers some advantageous terms. In addition to buying from several brands at once, Ankorstore withdraws the money from your bank account 60 days after placing an order.
On the other side of the marketplace, brands get paid upon delivery. Even if you’re just getting started, the minimum first order is €100 per brand.
And metrics have been going up and to the right. There are now 5,000 brands on Ankorstore, and 50,000 shops are buying stuff through the platform. And the best is likely ahead, as stores begin to re-open across Europe and tourism picks up again.
Ankorstore is now live across 14 different markets. The majority of the company’s revenue comes from international markets — not its home market France. The company’s co-founder Nicolas Cohen mentions the U.K., Germany, the Netherlands and Sweden as growth markets.
The total addressable market is huge, as the company has identified 800,000 independent shops across Europe that could potentially work with Ankorstore. And the success of other wholesale marketplaces, such as Faire, proves that this relatively new market is still largely untapped.
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Your clients might not demand 24/7 customer service yet, but they’re certainly hoping for it. But how can a startup with a lean staff provide round-the-clock customer care? There are several options available, but more than ever, outsourcing is one of them.
When should your startup consider outsourcing its customer care? And what should you look for in a provider? Here are some insights on what customer care as a service (CCaaS) can do for you, and how fast-growing startups have been leveraging this new class of partners to boost customer satisfaction.
Customer care as a service can address several pain points, such as the need to provide support outside of business hours.
If you find the right partner, outsourcing customer service can help you save time over options such as finding and managing your own freelancers, or hiring in-house, which might burden you with fixed costs.
Since online shoppers didn’t have to wait for stores to open during lockdowns, they have increasingly been making purchases on evenings and weekends, and often tend to abandon their carts if nobody is around to answer their doubts. New clients aside, existing customers also hope to get responses outside of typical business hours.
The COVID-19 crisis has significantly increased the share of e-commerce in total retail in recent months, and these new purchasing habits are likely to stick, the OECD pointed out in a report last year. This led many small retailers to discover a reality that e-commerce startups already know well: When you are an online business, working hours aren’t really a thing.
And it’s not just e-commerce — from SaaS to mobility services, there is a growing range of startups for which always-on customer service no longer a luxury. French CCaaS provider Onepilot learned this firsthand: During its beta program, its “support heroes” were available from 7 a.m. to 1 a.m., but it is now moving to 24/7 coverage due to greater demand from clients, co-founder Pierre Latscha told TechCrunch.
French micromobility startup Pony, one of Onepilot’s clients, needed reliable customer care for its dockless bike and scooter fleets in several cities, but couldn’t justify the expense of an in-house hire: “We didn’t have enough demand to have someone take care of customer service full time,” Pony explained to French newspaper Les Échos (translation ours).
In such situations, outsourcing to a partner like Onepilot can save costs when demand isn’t high enough or constant, which is often the case when the business is seasonal or growing faster than the startup can address it.
The latter was the case for SPRiNG, a French subscription service for eco-friendly laundry detergent and cleaning products that has partnered with Onepilot. The startup launched in the summer of 2020, and thanks to €2.1 million in seed funding, its team tripled, but with “tens of thousands of clients,” it soon felt the need for more support to handle the growing volume of requests, co-founder Ben Guerville told us via email.
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Brazilian mobile payments app PicPay filed on Wednesday an F-1 with the Securities and Exchange Commission (SEC) for an IPO valued at up to $100 million. The company plans to list on the Nasdaq under the ticker symbol PICS.
PicPay operates largely as a financial services platform that includes a credit card, a digital wallet similar to that of Apple Pay, a Venmo-style P2P payments element, e-commerce and social networking features.
“We want to transform the way people and companies interact, make transactions, and communicate in an intelligent, connected, and simple experience,” said José Antonio Batista, CEO of PicPay, in a statement.
While the company is based in São Paulo now and operates across Brazil, PicPay originally launched in Vitoria in 2012, a coastal city north of Rio. In 2015 the company was acquired by the group J&F Investimentos SA, a holding company owned by Brazilian billionaire brothers Wesley and Joesley Batista, which also own the gigantic meatpacker JBS SA.
According to the company’s registration statement, J&F was involved in the biggest corruption scandal in Brazil’s history, known as The Car Wash, and in 2017 entered into a plea deal with the Brazilian Federal Prosecutor. In December 2020 the company agreed to pay a fine of $1.5 billion and contribute an extra $442.6 million to social projects in Brazil. That being said, J&F continues to be a powerful conglomerate in the country, positioning itself as a strong backer for PicPay.
2020 was an explosive year for PicPay as the company saw its active userbase grow from 28.4 million to 36 million as of March 2021. According to the company’s 2020 financial report, which PicPay shared with TechCrunch, the company’s revenues also grew drastically from $15.5 million in 2019, to $71 million in 2020. The company is not yet profitable, however, and PicPay shelled out $146 million in 2020 to fuel its growth.
“We believe that the growth of our base and user engagement in our ecosystem demonstrates the scalability of our business model and reveals a great opportunity to generate more value for these customers,” Batista added.
Fintech is one of the most popular sectors in Brazil today, because there’s a lot of room for improvement in the region. The country has traditionally been controlled by four major banks, which have been slow to adapt to technology and also charge very high fees.
PicPay’s IPO is being led by Banco Bradesco BBI, Banco BTG Pactual, Santander Investment Securities Inc., and Barclays Capital Inc.
*The Brazilian Real was valued at 5.50 to $1 USD on the date of publication.
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