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It’s hard enough to talk about your feelings to a person; Jo Aggarwal, the founder and CEO of Wysa, is hoping you’ll find it easier to confide in a robot. Or, put more specifically, “emotionally intelligent” artificial intelligence.
Wysa is an AI-powered mental health app designed by Touchkin eServices, Aggarwal’s company that currently maintains headquarters in Bangalore, Boston and London. Wysa is something like a chatbot that can respond with words of affirmation, or guide a user through one of 150 different therapeutic techniques.
Wysa is Aggarwal’s second venture. The first was an elder care company that failed to find market fit, she says. Aggarwal found herself falling into a deep depression, from which, she says, the idea of Wysa was born in 2016.
In March, Wysa became one of 17 apps in the Google Assistant Investment Program, and in May, closed a Series A funding round of $5.5 million led by Boston’s W Health Ventures, the Google Assistant Investment Program, pi Ventures and Kae Capital.
Wysa has raised a total of $9 million in funding, says Aggarwal, and the company has 60 full-time employees and about three million users.
The ultimate goal, she says, is not to diagnose mental health conditions. Wysa is largely aimed at people who just want to vent. Most Wysa users are there to improve their sleep, anxiety or relationships, she says.
“Out of the 3 million people that use Wysa, we find that only about 10% actually need a medical diagnosis,” says Aggarwal. If a user’s conversations with Wysa equate with high scores on traditional depression questionnaires like the PHQ-9 or the anxiety disorder questionnaire GAD-7, Wysa will suggest talking to a human therapist.
Naturally, you don’t need to have a clinical mental health diagnosis to benefit from therapy.
Wysa isn’t intended to be a replacement, says Aggarwal (whether users view it as a replacement remains to be seen), but an additional tool that a user can interact with on a daily basis.
“Sixty percent of the people who come and talk to Wysa need to feel heard and validated, but if they’re given techniques of self help, they can actually work on it themselves and feel better,” Aggarwal continues.
Wysa’s approach has been refined through conversations with users and through input from therapists, says Aggarwal.
For instance, while having a conversation with a user, Wysa will first categorize their statements and then assign a type of therapy, like cognitive behavioral therapy or acceptance and commitment therapy, based on those responses. It would then select a line of questioning or therapeutic technique written ahead of time by a therapist and begin to converse with the user.
Wysa, says Aggarwal, has been gleaning its own insights from more than 100 million conversations that have unfolded this way.
“Take for instance a situation where you’re angry at somebody else. Originally our therapists would come up with a technique called the empty chair technique where you’re trying to look at it from the other person’s perspective. We found that when a person felt powerless or there were trust issues, like teens and parents, the techniques the therapists were giving weren’t actually working,” she says.
“There are 10,000 people facing trust issues who are actually refusing to do the empty chair exercise. So we have to find another way of helping them. These insights have built Wysa.”
Although Wysa has been refined in the field, research institutions have played a role in Wysa’s ongoing development. Pediatricians at the University of Cincinnati helped develop a module specifically targeted toward COVID-19 anxiety. There are also ongoing studies of Wysa’s ability to help people cope with mental health consequences from chronic pain, arthritis and diabetes at The Washington University in St. Louis and The University of New Brunswick.
Still, Wysa has had several tests in the real world. In 2020, the government of Singapore licensed Wysa, and provided the service for free to help cope with the emotional fallout of the coronavirus pandemic. Wysa is also offered through the health insurance company Aetna as a supplement to Aetna’s Employee Assistance Program.
The biggest concern about mental health apps, naturally, is that they might accidentally trigger an incident, or mistake signs of self harm. To address this, the U.K.’s National Health Service (NHS) offers specific compliance standards. Wysa is compliant with the NHS’ DCB0129 standard for clinical safety, the first AI-based mental health app to earn the distinction.
To meet those guidelines, Wysa appointed a clinical safety officer, and was required to create “escalation paths” for people who show signs of self harm.
Wysa, says Aggarwal, is also designed to flag responses to self-harm, abuse, suicidal thoughts or trauma. If a user’s responses fall into those categories Wysa will prompt the user to call a crisis line.
In the U.S., the Wysa app that anyone can download, says Aggarwal, fits the FDA’s definition of a general wellness app or a “low risk device.” That’s relevant because, during the pandemic, the FDA has created guidance to accelerate distribution of these apps.
Still, Wysa may not perfectly categorize each person’s response. A 2018 BBC investigation, for instance, noted that the app didn’t appear to appreciate the severity of a proposed underage sexual encounter. Wysa responded by updating the app to handle more instances of coercive sex.
Aggarwal also notes that Wysa contains a manual list of sentences, often containing slang, that they know the AI won’t catch or accurately categorize as harmful on its own. Those are manually updated to ensure that Wysa responds appropriately. “Our rule is that [the response] can be 80%, appropriate, but 0% triggering,” she says.
In the immediate future, Aggarwal says the goal is to become a full-stack service. Rather than having to refer patients who do receive a diagnosis to Employee Assistant Programs (as the Aetna partnership might) or outside therapists, Wysa aims to build out its own network of mental health suppliers.
On the tech side they’re planning expansion into Spanish, and will start investigating a voice-based system based on guidance from the Google Assistant Investment Fund.
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When you want to buy a refrigerator or a television, you can walk to the nearby electronics store or visit an e-commerce website like Amazon. But where do you go when you’re looking for parts of a crane, a door or chassis of different machines?
For several businesses globally, the answer to that question is increasingly Zetwerk, a Bangalore-based startup.
The three-year-old startup runs a business-to-business marketplace for manufacturing items that connects OEMs (original equipment manufacturers) and EPC (engineering procurement construction) customers with manufacturing small-businesses and enterprises.
All the products it sells today are custom-made. “Nobody has a stock of such inventories. You get the order, you find manufacturers and workshops that make them,” explained Amrit Acharya, co-founder and chief executive of Zetwerk, in an interview with TechCrunch.
Its customers — there are over 250 of them, up from 100 a year ago — operate across two-dozen industries (including process plants, oil & gas, steel, aerospace, medical devices, apparel and luxury goods) in the infrastructure space, and approach Zetwerk with digital designs they wish to be translated into physical products.
Customers aren’t alone in seeing value in Zetwerk. On Wednesday, the Indian startup said it has raised $120 million in a Series D financing round led by existing investors Greenoaks Capital and Lightspeed Venture Partners. Existing investors Sequoia Capital and Kae Capital also participated in the Series D round.
The new round, which brings Zetwerk’s to-date raise to $193 million, gives the firm a post-money valuation of somewhere between $600 million to $700 million, a person familiar with the matter told TechCrunch. (A quick side note: Zetwerk announced a $21 million Series C round last year, but ended up raising $31 million in that round.)
Zetwerk was co-founded by Acharya, Srinath Ramakkrushnan, Rahul Sharma and Vishal Chaudhary. Long before Acharya and Ramakkrushnan joined forces to tackle this space, they had been contemplating this idea.
Both of them studied at IIT Madras, went to the same exchange program in Singapore, and were colleagues at Kolkata-headquartered conglomerate ITC. While working there, they realized that part of a product manager’s job at the firm was dealing with gazillions of suppliers and the manufacturing items they offered.
The process was archaic: There were no databases, and people couldn’t track shipments.
The early version of Zetwerk, which was a database of suppliers, was a direct response to this. But after listening to requests from customers, the startup saw a bigger opportunity and transformed itself into a full-fledged marketplace with integrations with third-party vendors. Once a firm has placed an order, Zetwerk allows them to keep tabs on the progress of manufacturing and then the shipping. There are also quality checks in place.
Zetwerk website
Zetwerk operates in such a unique space today — Shailesh Lakhani, managing director at Sequoia India, says the startup has defined a new category of marketplace — that by and large it’s not competing with any other firm in India — or South Asia. (The startup competes with domain project consultants in the offline world.)
The opportunity in India itself is gigantic. According to industry reports, manufacturing today accounts for 14% of India’s GDP. Vaibhav Agarwal, a partner at Lightspeed, estimates that the market is as large as $40 billion to $60 billion in India and global trade-tailwinds that creates opportunity to serve international demand.
As more and more companies expand or shift their manufacturing to India — in part due to import duties imposed by India and geo-political tension with China, the global hub for manufacturing — this opportunity has only grown bigger in recent years.
“India has a lot of depth in manufacturing, but much of it has not been tapped well,” said Acharya.
Zetwerk — which grew 3X last year and reported revenue of $43.9 million in the financial year that ended in March, a 20X growth from the year prior — plans to deploy the new capital to expand to more areas of categories, and broaden its technology stack. Consumer goods (which covers items such as mixer grinders and TVs) is an area Zetwerk expanded to last year, and said it accounts for 15% of the revenue it generated in the last six months.
Currently 25 of its customers are in the U.S., Canada, Europe and other international markets. Acharya said the startup plans to open offices overseas this year as it scouts for more international customers.
“We are excited to partner with Zetwerk on the next leg of their journey, as they expand their value proposition globally. Zetwerk’s operating system for manufacturing has digitized multiple supply chains end-to-end, ensuring on-time delivery and high quality standards. This has led to rapid growth in India and internationally, with the potential to quickly become one of the most important manufacturing platforms globally,” said Neil Shah, partner at Greenoaks Capital, in a statement.
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Zetwerk, an Indian business-to-business marketplace for manufacturing items, has closed a significantly large financing round as it scales its operations in the nation and also helps local businesses find customers overseas.
The 18-month-old startup said on Wednesday it has raised $32 million in a Series B financing round led by Lightspeed and Greenoaks Capital. Zetwerk co-founder and chief executive Amrit Acharya told TechCrunch in an interview that the startup has also raised about $14.2 million in debt from a consortium of banks, and others.
Existing investors Accel, Sequoia India and Kae Capital also participated in the round, which pushes the Bangalore-based startup’s total raise to date to about $41 million. Vaibhav Gupta, co-founder of business-to-business marketplace Udaan, and Maninder Gulati, one of the top executives at budget lodging startup Oyo also participated.
Zetwerk was founded by Acharya, Srinath Ramakkrushnan, Rahul Sharma and Vishal Chaudhary last year. The startup connects OEMs (original equipment manufacturers) and EPC (engineering procurement construction) customers with manufacturing small-businesses and enterprises.
Unlike the more common e-commerce firms we come across every day, Zetwerk sells goods such as parts of a crane, doors, chassis of different machines and ladders. The startup operates to serve customers in fabrication, machining, casting and forging businesses. Currently, Zetwerk works with more than 100 enterprises and 1,500 small and medium-sized businesses. It delivers more than 15,000 parts each month.
“These are all custom-made products,” explained Acharya. “Nobody has a stock of such inventories. You get the order, you find manufacturers and workshops that make them. Our customers are companies that are in the business of building infrastructure.”
“We index these small workshops and understand the kinds of products they have built before. These indexes help bigger companies discover and work with them,” he added.
Once a firm has placed an order, Zetwerk allows them to keep a tab on the progress of manufacturing and then the shipping. This “hand-holding” is crucial, as in this line of business, manufacturing and shipping typically take more than two to three months.
Zetwerk has also enabled manufacturers in India to discover and find clients overseas. Today, manufacturers on the platform export their goods to North America and Southeast Asia, Acharya said. “India has a lot of depth in manufacturing, but much of it has not been tapped well,” he said.
Helping these manufacturing workshops find clients online is still a new phenomenon in the nation. Acharya said Zetwerk largely competes with domain project consultants in the offline work. “They specialize in certain products and geographies. So let’s say someone wanted to buy a machine XYZ in Orissa, they reach out to consultants who help them find workshops and estimate how much time it would take to get the project done.”
According to industry reports, manufacturing today accounts for 14% of India’s GDP. But the nation lacks a supporting ecosystem to execute projects in an efficient manner.
Vaibhav Agarwal, a partner at Lightspeed, said it was unusual to come across a market that is as large as $40 billion to $60 billion in India and global trade-tailwinds that creates opportunity to serve international demand.
The startup plans to infuse portions of the fresh capital into expanding its international operations. Acharya did not share exactly how many clients it has outside of India but said exports currently account for less than 5% of the startup’s GMV, or gross merchandize value.
He said the startup will continue to focus on helping Indian manufacturers find clients outside, as it is better suited to address this, as opposed to helping Indian companies find manufacturers overseas.
The startup will also explore helping its manufacturing workshops access working capital, though Acharya cautioned that it is not something that would happen anytime soon.
In a statement, Prayank Swaroop, a partner at Accel, said, “the use of technology in project planning, procurement, audits, and supply chain transparency is the core offering of Zetwerk which is completely original. Accel is very fortunate to be part of Zetwerk journey since the startup’s inception.”
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