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Julio Vasconcellos
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		Julio Vasconcellos is the managing partner of <a href="https://www.flyingeze.com/category/" target="_blank">Atlantico</a>, a venture capital fund focused on Latin America. He was previously the founder of Canary and Peixe Urbano, and was Facebook’s first employee in Brazil.	
	
		
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						<li><a href="https://techcrunch.com/2020/10/01/latin-americas-digital-transformation-is-making-up-for-lost-time/" target="_blank">Latin America&#8217;s digital transformation is making up for lost time</a></li>
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Over the past year, Latin America has been covered heavily in the international news as the COVID-19 pandemic led many to question our endurance in the face of a crisis. But the region’s mega-fundraising rounds and shiny new unicorns have countered with optimism around its budding tech ecosystem.
When we first shared LatAm&#8217;s digital acceleration story in last year’s <a href="https://www.flyingeze.com/category/latin-america-digital-transformation-report" target="_blank">Latin America Digital Transformation Report</a>, we believed we were at the peak of digital growth catalyzed by the pandemic. E-commerce penetration was at an all-time high and the market cap of public technology companies was growing much faster than the region’s GDP. But with 2021 came all the second- and third-order effects of the crisis, further accelerating a continentwide tech expansion to a pace beyond any projections.
<a href="https://www.flyingeze.com/category/latin-america-digital-transformation-report-2021" target="_blank">In this year&#8217;s report</a>, we dedicate 200 slides of data-rich analysis, primary research, private company data and case studies to tell the story of this “second wave” of change we are witnessing. Ranging from the rapid adoption of sustainable technologies to the welcoming of a new local creator economy, we detail the surprising changes the pandemic has brought to consumer preferences, workplace dynamics, business models and the geopolitical influence on the fast-changing tech sector.
An initial top-down view paints a clear picture of a region at an inflection point. The Atlantico Digital Transformation Index, which measures tech penetration by tracking the value of public technology companies as a percentage of GDP, rose to 3.4% in 2021 from 2.3% in 2020 for LatAm as of August.
<img aria-describedby="caption-attachment-2205686" loading="lazy" class="breakout size-full wp-image-2205686" src="https://techcrunch.com/wp-content/uploads/2021/09/TC-AtlanticoIndex.jpg" alt="Atlantico Digital Transformation Index 2021 LatAm." width="1024" srcset="https://techcrunch.com/wp-content/uploads/2021/09/TC-AtlanticoIndex.jpg 1294w, https://techcrunch.com/wp-content/uploads/2021/09/TC-AtlanticoIndex.jpg?resize=150,112 150w, https://techcrunch.com/wp-content/uploads/2021/09/TC-AtlanticoIndex.jpg?resize=300,225 300w, https://techcrunch.com/wp-content/uploads/2021/09/TC-AtlanticoIndex.jpg?resize=768,576 768w, https://techcrunch.com/wp-content/uploads/2021/09/TC-AtlanticoIndex.jpg?resize=680,510 680w, https://techcrunch.com/wp-content/uploads/2021/09/TC-AtlanticoIndex.jpg?resize=50,37 50w" sizes="(max-width: 1024px) 100vw, 1024px" />Atlantico Digital Transformation Index 2021 LatAm. Image Credits: Atlantico
Similarly, based on an internal analysis of private company data, we estimate that the value of regional unicorns reached $105 billion, more than double last year’s figure of $46 billion. Eight new unicorns have already been minted this year, nearly reaching 2020’s rate by midyear.
<img aria-describedby="caption-attachment-2205688" loading="lazy" class="breakout size-full wp-image-2205688" src="https://techcrunch.com/wp-content/uploads/2021/09/TC-TotalUnicornMarketCap.jpg" alt="" width="1024" srcset="https://techcrunch.com/wp-content/uploads/2021/09/TC-TotalUnicornMarketCap.jpg 1650w, https://techcrunch.com/wp-content/uploads/2021/09/TC-TotalUnicornMarketCap.jpg?resize=150,113 150w, https://techcrunch.com/wp-content/uploads/2021/09/TC-TotalUnicornMarketCap.jpg?resize=300,225 300w, https://techcrunch.com/wp-content/uploads/2021/09/TC-TotalUnicornMarketCap.jpg?resize=768,577 768w, https://techcrunch.com/wp-content/uploads/2021/09/TC-TotalUnicornMarketCap.jpg?resize=680,511 680w, https://techcrunch.com/wp-content/uploads/2021/09/TC-TotalUnicornMarketCap.jpg?resize=1536,1154 1536w, https://techcrunch.com/wp-content/uploads/2021/09/TC-TotalUnicornMarketCap.jpg?resize=50,38 50w" sizes="(max-width: 1024px) 100vw, 1024px" />Total unicorn market cap 2021 LatAm. Image Credits: Atlantico
Much has been written about Latin American fintechs, which last year drew 40% of the region’s venture capital investment. The revolution witnessed over the last five years, which produced the likes of Nubank (the world’s largest digital bank), was sparked by a mix of changing consumer demands, a concentrated banking sector and a pro-innovation regulatory environment. We are now seeing the second-order effects of the fintech boom, as the same set of conditions arise in other soon-to-be disrupted sectors.
In the insurance space, similar changes are giving way to innovative models like <a href="https://www.flyingeze.com/category/" target="_blank">180o</a> in Brazil and <a href="https://www.flyingeze.com/tag/en" target="_blank">Betterfly</a> in Chile. The former, founded by prior Nubankers, takes embedded insurance to the max, pioneering an insurance-as-a-service model that enables any company to create bespoke insurance products for its customers and seamlessly integrate them into their core experience. In the case of Betterfly, we see the rise of a novel benefits platform that lets companies offer a life insurance product that rewards healthy habits and charitable donations.

Over the past year, Latin America has been covered heavily in the international news as the COVID-19 pandemic led many to question our endurance in the face of a crisis.

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Latin America’s second wave of digital transformation

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<a href="https://www.flyingeze.com/category/" target="_blank">Kavak</a>, a Mexico City-based startup that operates a pre-owned car marketplace in Latin America, announced today that it has raised a massive $700 million in a Series E round that more than doubles the company’s valuation to $8.7 billion.
This news is notable for a few reasons. For one, it’s a staggering sum for any startup, much less one based in Latin America. Also, news of this raise comes just five months after Kavak <a href="https://www.flyingeze.com/news/mexican-unicorn-kavak-raises-a-485m-series-d-at-a-4b-valuation" target="_blank">raised $485 million in a Series D at a $4 billion valuation</a>. The investment also marks the second time this year that Kavak has doubled its valuation. (The company only achieved unicorn status last October.) And lastly, the round makes Kavak the second most valuable startup in all of Latin America &#8212; the first being Brazilian fintech Nubank, which <a href="https://www.flyingeze.com/news/fintech-all-star-nubank-raises-a-750m-mega-round" target="_blank">earlier this year</a> was valued at $30 billion.
Cambridge, Massachusetts-based General Catalyst led Kavak’s Series E, which brings the company’s total raised to over $1.5 billion since its 2016 inception. Tiger Global, Spruce House, D1, SEA, Founders Fund, Ribbit Capital, SoftBank and others also participated in the latest financing.

<blockquote class="wp-embedded-content" data-secret="yOqjjWzKBJ"><a href="https://techcrunch.com/2021/08/24/why-global-investors-are-flocking-to-back-latin-american-startups/" target="_blank">Why global investors are flocking to back Latin American startups</a></blockquote>

Put simply, Kavak is an online marketplace that aims to bring transparency, security and access to financing to the used car market. It promises to ensure “reliable” transactions that mitigate fraud and aims to raise used car standards from a mechanical and safety point of view by using artificial intelligence and data technology. 
The company also offers its own financing through its fintech arm, Kavak Capital, which it launched about 18 months ago. 
“I like to describe it as if Spotify, Amazon, Toyota and Citibank had a kid, then something like Kavak would be born,” said Kavak co-founder and CEO Carlos García Ottati in an interview with TechCrunch.
Clearly, the company&#8217;s business model seems to be working. Kavak has been doubling its revenue every three to five months, according to García Ottati. And over the last 14 months, it’s no surprise &#8212; considering the increase in its valuation and all the capital it has raised &#8212; that Kavak has grown exponentially &#8212; from 300 to more than 5,000 employees in Latin America, to meet what García Ottati describes as strong demand. The startup currently has 40 logistic and reconditioning hubs in Mexico, Brazil and Argentina. That compares to more than 2,500 employees and 20 logistics and reconditioning hubs in Mexico and Argentina at the time of its last raise in April. Over the years, it has served &#8220;hundreds of thousands&#8221; of customers.
“What excites me about this raise is a reflection of Kavak’s ambition we have and what we want to build, and less so about need,” he said. “Most importantly, it’s going to allow us to think long term and build a true generational company.”
Financial inclusion is a big part of Kavak’s mission in addition to wanting to make it easier for people to own cars, and thus improve their professional and personal lives, added García Ottati, who was inspired to start the company after his own challenges selling a car in Colombia and trying to buy one in Mexico.
“If we do our job well, in the next 20 years, the middle class should grow up by 30% in emerging markets just by granting financing products to a huge amount of people that are excluded today, giving them a tool that can definitely enhance their lives,” he said. &#8220;We want to be a super app, or an ecosystem of services, that empowers mobility and financial health and do more than just help people buy and sell cars.&#8221;
Looking ahead, Kavak plans to use its new capital in part to expand across Latin America, with plans to begin operating in several other markets over the next 12 months. Longer term, it is eyeing an expansion into “other emerging markets” globally. It also plans to continue hiring &#8212; particularly engineers and product folks &#8212; as well double down on product development.
García Ottati is also excited about the impact Kavak&#8217;s raise has on the Latin American startup scene as a whole.
&#8220;It&#8217;s wonderful bringing in new funds who had not previously invested in the region to see how LatAm looks and works,&#8221; he said. &#8220;They can see that we are addressing deep and big issues.&#8221;
General Catalyst Managing Director Adam Valkin believes the startup has established itself as “the clear leader” in Latin America&#8217;s pre-owned car market. 
“The company has developed a playbook for providing a transformational customer experience with a compelling and efficient economic model,” he said in a written statement. “We are excited for Kavak to expand into other emerging markets where a similar opportunity exists to drive financial inclusion and empower the middle class through access to car ownership.”

<blockquote class="wp-embedded-content" data-secret="vnbDw1A9QO"><a href="https://www.flyingeze.com/news/why-latin-american-venture-capital-is-breaking-records-this-year" target="_blank">Why Latin American venture capital is breaking records this year</a></blockquote>

Kavak, a Mexico City-based startup that operates a pre-owned car marketplace in Latin America, announced today that it has raised a massive $700 million in a Series E round that more than doubles the company’s valuation to $8.7 billion. This news is notable for a few reasons. For one, it’s a staggering sum for any […]

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Mexico’s Kavak drives away with $700M in new funding, doubling its valuation to $8.7B

After years of working in marketing for a number of financial services companies, Solape Akinpelu came to a conclusion: There was an “alarmingly low adoption” by women for financial services in her home country of Nigeria and all of Africa as a whole.
“I could see women living the reality around me,” Akinpelu recalls. “These women could not make sound financial decisions. Some of these women that do not even know that they could do better with their money.”
She found that the problem is particularly acute for women living in rural areas, especially those working on farms.
<img aria-describedby="caption-attachment-2201183" loading="lazy" class="vertical wp-image-2201183 size-full" src="https://techcrunch.com/wp-content/uploads/2021/09/24.jpg" alt="Nigerian fintech Hervest wants to bring financial inclusion to more African women. Founder Solape Akinpelu" width="375" srcset="https://techcrunch.com/wp-content/uploads/2021/09/24.jpg 375w, https://techcrunch.com/wp-content/uploads/2021/09/24.jpg?resize=69,150 69w, https://techcrunch.com/wp-content/uploads/2021/09/24.jpg?resize=139,300 139w, https://techcrunch.com/wp-content/uploads/2021/09/24.jpg?resize=314,680 314w, https://techcrunch.com/wp-content/uploads/2021/09/24.jpg?resize=23,50 23w" sizes="(max-width: 375px) 100vw, 375px" />Image Credits: Hervest
So in August 2020, she teamed up with Yomi Ogunleye to found Lagos, Nigeria-based <a href="https://www.flyingeze.com/category/ target="_blank">Hervest</a>, a startup that describes itself as “an inclusive fintech company” serving underserved and excluded women in Africa through a gender lens. The company presented today at the Startup Battlefield.
Broadly speaking, Hervest aims to bridge the $42 billion gender finance gap for urban and last-mile women in the country with an emphasis on women in agriculture. 
The startup, she said, provides familiar access to savings, fund transfers, impact investment, financial insights and tools to underserved women while offering blended finance to smallholder female farmers in underserved African communities. Put simply, it offers a way to invest in female farmers while seeing a return on that investment, and giving the farmers the financial literacy, education and opportunities they might not have otherwise had access to.
“We want to address the gender gap in Africa by giving access to savings, impact investment and credit to women, regardless of who they are and where they live,” she said.
Today, just over one year after Akinpelu started the company, over 4,000 women are on the Hervest platform.
Earlier this year, Hervest raised a friends and family funding round of $100,000. The company plans to use the capital to add to its nine-person team, strengthen its digital infrastructure and accelerate marketing efforts. It started operations as a distributed company and still mostly operates as one.
Before becoming CEO at Hervest, Akinpelu’s last role was head of marketing for capital market conglomerate Mersitem, and prior to that, she worked in marketing for various financial brands.
The experiences gave her insight into the need to provide more access to financial services for women. And the COVID-19 pandemic and resulting economic crisis, Akinpelu believes, have only emphasized the vulnerability of low-income women.
“This makes financial inclusion ever more critical as a means for women to recover from the global crisis and build resilience in the long term,” she told TechCrunch.
While starting with Nigeria, where Akinpelu says is home to over 57 million working women, Hervest has plans to roll out its platform into other West and East African countries in 2022.
“The problem we’re solving is an African finance gender gap, not just Nigerian,” Akinpelu said.
To get the word out, Hervest has relied on referrals and partnerships with co-operatives and social media. The company has a live app on iOS and Android and recently launched a desktop application.
According to its website, Hervest says that its cooperative members “can earn as high as 25% annualized returns while strengthening the financial capacity of female farmers” through access to capital, trainings and markets. What this means, Akinpelu said, women with disposable income pool funds together as credit (impact investment) for small holder women farmers  as a cooperative.
&#8220;In addition, women also get to create automatic savings plan towards their personal goals. Picture an ‘inclusive neobank for women,&#8221; she told TechCrunch. &#8220;To assure our stakeholders, our funds are held in trust by a trustee firm, FBNQuest Trustees Limited. This is an added layer of accountability and transparency of our funds management.&#8221;
By investing in these women, Hervest aims to provide growth opportunities towards specific crops, grain banking, livestock and provision of digitized e-extension services to female small-scale farmers in rural areas.
<a href="https://www.flyingeze.com/tag/startup-battlefield-2021" target="_blank"><img src="https://techcrunch.com/wp-content/uploads/2021/09/disrupt-startup-battlefield-2021-footer1.jpg" /></a>
&nbsp;

After years of working in marketing for a number of financial services companies, Solape Akinpelu came to a conclusion: There was an “alarmingly low adoption” by women for financial services in her home country of Nigeria and all of Africa as a whole. “I could see women living the reality around me,” Akinpelu recalls. “These […]

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Nigerian fintech Hervest wants to bring financial inclusion to more African women

Major gains in online advertising have boosted valuations for adtech startups since the pandemic began, but <a href="https://techcrunch.com/2021/09/14/creative-ad-tech-is-on-the-cusp-of-a-revolution-and-vcs-should-take-note/" target="_blank">one insider says investors are missing the party</a>.
“Adtech is having a moment,&#8221; writes industry veteran Casey Saran.
&#8220;And while much of the oxygen has been soaked up by large legacy companies hitting the public market, there have been smaller deals that indicate a hunger for better creative adtech.&#8221;
Saran shares five reasons &#8220;why VCs should consider ratcheting up their investment into adtech startups building the next generation of creative tools.&#8221;

<blockquote class="wp-embedded-content" data-secret="K7ZE1uj26A"><a href="https://techcrunch.com/2021/09/14/creative-ad-tech-is-on-the-cusp-of-a-revolution-and-vcs-should-take-note/" target="_blank">Creative adtech is on the cusp of a revolution, and VCs should take note</a></blockquote>


Full Extra Crunch articles are only available to members 
<a href="https://www.flyingeze.com/tag/subscribe" target="_blank">Use discount code ECFriday</a> to save 20% off a one- or two-year subscription

On Wednesday, September 22 at 9:05 a.m PT, I&#8217;m moderating &#8220;The Path for Underrepresented Entrepreneurs,&#8221; <a href="https://www.flyingeze.com/tag/tc-disrupt-2021" target="_blank">a panel discussion at Disrupt 2021</a>.
Our conversation will examine some of the unique challenges facing founders from historically marginalized groups, the strategies they used along the way, and the disruptive changes we need to consider if we want to see fundamental change.
I&#8217;ll be speaking with:
<ul>
<li>Hana Mohan, founder &amp; CEO, MagicBell</li>
<li>Leslie Feinzaig, founder &amp; CEO, Female Founders Alliance</li>
<li>Stephen Bailey, co-founder &amp; CEO, ExecOnline</li>
</ul>
I hope you&#8217;ll attend; we&#8217;ll take audience questions after our discussion concludes. Thanks very much for reading Extra Crunch this week, and have a great weekend.
Walter Thompson 
Senior Editor, TechCrunch 
<a href="https://www.twitter.com/yourprotagonist" target="_blank">@yourprotagonist</a>
<h2>5 things you need to win your first customer</h2>
<img aria-describedby="caption-attachment-2203199" loading="lazy" class="size-full wp-image-2203199" src="https://techcrunch.com/wp-content/uploads/2021/09/GettyImages-471238233.jpg" alt="Putting the final building block onto the top of a rising pile signifying success and achievement" width="1024" srcset="https://techcrunch.com/wp-content/uploads/2021/09/GettyImages-471238233.jpg 2030w, https://techcrunch.com/wp-content/uploads/2021/09/GettyImages-471238233.jpg?resize=150,109 150w, https://techcrunch.com/wp-content/uploads/2021/09/GettyImages-471238233.jpg?resize=300,218 300w, https://techcrunch.com/wp-content/uploads/2021/09/GettyImages-471238233.jpg?resize=768,559 768w, https://techcrunch.com/wp-content/uploads/2021/09/GettyImages-471238233.jpg?resize=680,495 680w, https://techcrunch.com/wp-content/uploads/2021/09/GettyImages-471238233.jpg?resize=1536,1118 1536w, https://techcrunch.com/wp-content/uploads/2021/09/GettyImages-471238233.jpg?resize=50,36 50w" sizes="(max-width: 1024px) 100vw, 1024px" />Image Credits: <a href="https://www.flyingeze.com/tag/photographer target="_blank" rel="noopener" target="_blank">AndrewLilley (opens in a new window)</a> / Getty Images
Congratulations on shipping your product, but how much do you know about your target customers?
Companies that haven&#8217;t created an ideal customer profile and performed a SWOT analysis are making big bets on guesswork and intuition. Sometimes that works out, but more frequently, it leads to tears.
In a guest post that walks readers through the fundamentals of creating customer personas that map to your company&#8217;s goals, Grammarly product marketing lead Bryan Dsouza shares five basic requirements for customer acquisition.
&#8220;Understanding and executing on these things can guarantee you that first customer win, provided you do them well and with sincerity,&#8221; he says.
&#8220;Your investors will also see the fruits of your labor and be comforted knowing their dollars are at good work.”

<blockquote class="wp-embedded-content" data-secret="cf8pdgS55u"><a href="https://techcrunch.com/2021/09/15/5-things-you-need-to-win-your-first-customer/" target="_blank">5 things you need to win your first customer</a></blockquote>

<h2>4 ways to leverage ROAS to triple lead generation</h2>
<img aria-describedby="caption-attachment-2204020" loading="lazy" class="size-full wp-image-2204020" src="https://techcrunch.com/wp-content/uploads/2021/09/GettyImages-157165635.jpg" alt="Someone pops the tab on a soda can, releasing a mist/spray" width="1024" srcset="https://techcrunch.com/wp-content/uploads/2021/09/GettyImages-157165635.jpg 1200w, https://techcrunch.com/wp-content/uploads/2021/09/GettyImages-157165635.jpg?resize=150,100 150w, https://techcrunch.com/wp-content/uploads/2021/09/GettyImages-157165635.jpg?resize=300,200 300w, https://techcrunch.com/wp-content/uploads/2021/09/GettyImages-157165635.jpg?resize=768,511 768w, https://techcrunch.com/wp-content/uploads/2021/09/GettyImages-157165635.jpg?resize=680,452 680w, https://techcrunch.com/wp-content/uploads/2021/09/GettyImages-157165635.jpg?resize=50,33 50w" sizes="(max-width: 1024px) 100vw, 1024px" />Image Credits: <a href="https://www.flyingeze.com/tag/photographer target="_blank" rel="noopener" target="_blank">joshblake (opens in a new window)</a> / Getty Images
In school, it&#8217;s highly unethical to copy someone else&#8217;s work and pass it off as your own. In business, however, it is expected.
Xiaoyun TU, global director of demand generation at Brightpearl, wrote a comprehensive guide for how to use the key metric of return on advertising spend (ROAS) to triple your company&#8217;s lead generation.
&#8220;A &#8216;good&#8217; ROAS score is different for each company and campaign,&#8221; she says. &#8220;If your figure isn’t where you’d like it to be, you can leverage ROAS data to create targeted campaigns and personalized experiences.&#8221;

<blockquote class="wp-embedded-content" data-secret="YQijZYRHEj"><a href="https://techcrunch.com/2021/09/16/4-ways-to-leverage-roas-to-triple-lead-generation/" target="_blank">4 ways to leverage ROAS to triple lead generation</a></blockquote>

<h2>3 strategies to make adopting new HR tech easier for hiring managers</h2>
<img aria-describedby="caption-attachment-2202143" loading="lazy" class="size-full wp-image-2202143" src="https://techcrunch.com/wp-content/uploads/2021/09/GettyImages-1216554980.jpg" alt="Steps with Check Mark on Chalkboard" width="1024" srcset="https://techcrunch.com/wp-content/uploads/2021/09/GettyImages-1216554980.jpg 2000w, https://techcrunch.com/wp-content/uploads/2021/09/GettyImages-1216554980.jpg?resize=150,113 150w, https://techcrunch.com/wp-content/uploads/2021/09/GettyImages-1216554980.jpg?resize=300,225 300w, https://techcrunch.com/wp-content/uploads/2021/09/GettyImages-1216554980.jpg?resize=768,576 768w, https://techcrunch.com/wp-content/uploads/2021/09/GettyImages-1216554980.jpg?resize=680,510 680w, https://techcrunch.com/wp-content/uploads/2021/09/GettyImages-1216554980.jpg?resize=1536,1152 1536w, https://techcrunch.com/wp-content/uploads/2021/09/GettyImages-1216554980.jpg?resize=50,38 50w" sizes="(max-width: 1024px) 100vw, 1024px" />Image Credits: <a href="https://www.flyingeze.com/tag/photographer target="_blank" rel="noopener" target="_blank">porcorex (opens in a new window)</a> / Getty Images
Most of us prefer to trust our instincts instead of letting automated tools help us make decisions, particularly when it comes to hiring. But that&#8217;s not smart.
If your startup relies on an ad hoc hiring process, you&#8217;re probably not tracking candidates properly, there&#8217;s likely little consistency regarding how they&#8217;re treated, and bias can play a major role in who gets hired.
It&#8217;s fine to be skeptical of automated hiring tools — but not ignorant.

<blockquote class="wp-embedded-content" data-secret="XeB0Uj8cYa"><a href="https://techcrunch.com/2021/09/16/3-strategies-to-make-adopting-new-hr-tech-easier-for-hiring-managers/" target="_blank">3 strategies to make adopting new HR tech easier for hiring managers</a></blockquote>

<h2>What could stop the startup boom?</h2>
<img aria-describedby="caption-attachment-1996006" loading="lazy" class="size-full wp-image-1996006" src="https://techcrunch.com/wp-content/uploads/2020/05/NSussman_Techcrunch_Exchange_v3_GRY.jpg" alt="" width="1024" srcset="https://techcrunch.com/wp-content/uploads/2020/05/NSussman_Techcrunch_Exchange_v3_GRY.jpg 2880w, https://techcrunch.com/wp-content/uploads/2020/05/NSussman_Techcrunch_Exchange_v3_GRY.jpg?resize=150,113 150w, https://techcrunch.com/wp-content/uploads/2020/05/NSussman_Techcrunch_Exchange_v3_GRY.jpg?resize=300,225 300w, https://techcrunch.com/wp-content/uploads/2020/05/NSussman_Techcrunch_Exchange_v3_GRY.jpg?resize=768,576 768w, https://techcrunch.com/wp-content/uploads/2020/05/NSussman_Techcrunch_Exchange_v3_GRY.jpg?resize=680,510 680w, https://techcrunch.com/wp-content/uploads/2020/05/NSussman_Techcrunch_Exchange_v3_GRY.jpg?resize=1536,1152 1536w, https://techcrunch.com/wp-content/uploads/2020/05/NSussman_Techcrunch_Exchange_v3_GRY.jpg?resize=2048,1536 2048w, https://techcrunch.com/wp-content/uploads/2020/05/NSussman_Techcrunch_Exchange_v3_GRY.jpg?resize=50,38 50w" sizes="(max-width: 1024px) 100vw, 1024px" />Image Credits: <a href="https://www.flyingeze.com/category/" target="_blank" rel="noopener" target="_blank">Nigel Sussman (opens in a new window)</a>
In yesterday&#8217;s edition of The Exchange, Anna Heim and Alex Wilhelm speculated about the conditions that could combine to cool off a hot startup market currently fueled by low interest rates and a sweeping digital transformation.
&#8220;From where we stand, the factors underpinning the startup fundraising boom appear solid and unlikely to unwind overnight. Still, no golden period shines forever, and even today’s luster will eventually tarnish.&#8221;

<blockquote class="wp-embedded-content" data-secret="FAZXexAacY"><a href="https://www.flyingeze.com/news/what-could-stop-the-startup-boom" target="_blank">What could stop the startup boom?</a></blockquote>

<h2>Intuit’s $12B Mailchimp acquisition is about expanding its small business focus</h2>
<img aria-describedby="caption-attachment-2202670" loading="lazy" class="size-full wp-image-2202670" src="https://techcrunch.com/wp-content/uploads/2021/09/GettyImages-597456522.jpg" alt="Signage for financial software company Intuit at the company's headquarters in the Silicon Valley town of Mountain View, California, August 24, 2016. (Photo by Smith Collection/Gado/Getty Images)." width="1024" srcset="https://techcrunch.com/wp-content/uploads/2021/09/GettyImages-597456522.jpg 1024w, https://techcrunch.com/wp-content/uploads/2021/09/GettyImages-597456522.jpg?resize=150,100 150w, https://techcrunch.com/wp-content/uploads/2021/09/GettyImages-597456522.jpg?resize=300,200 300w, https://techcrunch.com/wp-content/uploads/2021/09/GettyImages-597456522.jpg?resize=768,512 768w, https://techcrunch.com/wp-content/uploads/2021/09/GettyImages-597456522.jpg?resize=680,454 680w, https://techcrunch.com/wp-content/uploads/2021/09/GettyImages-597456522.jpg?resize=50,33 50w" sizes="(max-width: 1024px) 100vw, 1024px" />Image Credits: Smith Collection/Gado / Getty Images
Before news broke this week that Intuit was acquiring Mailchimp for $12 billion, the &#8217;80s-born fintech giant&#8217;s biggest buy was spending $7.1 billion last year for Credit Karma.
In the last few years, Mailchimp &#8220;has been expanding upon its core email marketing functionality&#8221; with offerings like web design and CRM, writes enterprise reporter Ron Miller.
The industry watchers he interviewed said the move signals Intuit&#8217;s interest in acquiring and serving more SMB customers with a variety of tools:
<ul>
<li>Laurie McCabe, co-founder and partner, SMB Group</li>
<li>Brent Leary, founder and principal analyst, CRM Essentials</li>
<li>Holger Mueller, analyst, Constellation Research</li>
</ul>

<blockquote class="wp-embedded-content" data-secret="VXW0nBCbwD"><a href="https://techcrunch.com/2021/09/14/intuits-12b-mailchimp-acquisition-is-about-expanding-its-small-business-focus/" target="_blank">Intuit&#8217;s $12B Mailchimp acquisition is about expanding its small business focus</a></blockquote>

<h2>Forge’s SPAC deal is a bet on unicorn illiquidity</h2>
<img aria-describedby="caption-attachment-1996007" loading="lazy" class="size-full wp-image-1996007" src="https://techcrunch.com/wp-content/uploads/2020/05/NSussman_Techcrunch_Exchange_v3_RD.jpg" alt="" width="1024" srcset="https://techcrunch.com/wp-content/uploads/2020/05/NSussman_Techcrunch_Exchange_v3_RD.jpg 2880w, https://techcrunch.com/wp-content/uploads/2020/05/NSussman_Techcrunch_Exchange_v3_RD.jpg?resize=150,113 150w, https://techcrunch.com/wp-content/uploads/2020/05/NSussman_Techcrunch_Exchange_v3_RD.jpg?resize=300,225 300w, https://techcrunch.com/wp-content/uploads/2020/05/NSussman_Techcrunch_Exchange_v3_RD.jpg?resize=768,576 768w, https://techcrunch.com/wp-content/uploads/2020/05/NSussman_Techcrunch_Exchange_v3_RD.jpg?resize=680,510 680w, https://techcrunch.com/wp-content/uploads/2020/05/NSussman_Techcrunch_Exchange_v3_RD.jpg?resize=1536,1152 1536w, https://techcrunch.com/wp-content/uploads/2020/05/NSussman_Techcrunch_Exchange_v3_RD.jpg?resize=2048,1536 2048w, https://techcrunch.com/wp-content/uploads/2020/05/NSussman_Techcrunch_Exchange_v3_RD.jpg?resize=50,38 50w" sizes="(max-width: 1024px) 100vw, 1024px" />Image Credits: <a href="https://www.flyingeze.com/category/" target="_blank" rel="noopener" target="_blank">Nigel Sussman (opens in a new window)</a>
“One of my favorite long-term issues with the late-stage startup market is that it is far better at creating value than it is at finding an exit point for that accreted value,” Alex Wilhelm writes for The Exchange. “More simply, the startup market is excellent at creating unicorns but somewhat poor at taking them public.”
That’s good news for Forge Global, a technology startup that operates a market for secondary transactions in private companies, with Alex dubbing its plans to go public via a SPAC combination “perfectly reasonable.”

<blockquote class="wp-embedded-content" data-secret="hZEMwl7ipi"><a href="https://www.flyingeze.com/news/forges-spac-deal-is-a-bet-on-unicorn-illiquidity" target="_blank">Forge&#8217;s SPAC deal is a bet on unicorn illiquidity</a></blockquote>

<h2>Dear Sophie: Should I apply for citizenship if I have a conviction?</h2>
<img aria-describedby="caption-attachment-2099516" loading="lazy" class="size-full wp-image-2099516" src="https://techcrunch.com/wp-content/uploads/2021/01/dear-sophie-immigration-maze-3.jpg" alt="lone figure at entrance to maze hedge that has an American flag at the center" width="1024" srcset="https://techcrunch.com/wp-content/uploads/2021/01/dear-sophie-immigration-maze-3.jpg 3200w, https://techcrunch.com/wp-content/uploads/2021/01/dear-sophie-immigration-maze-3.jpg?resize=150,84 150w, https://techcrunch.com/wp-content/uploads/2021/01/dear-sophie-immigration-maze-3.jpg?resize=300,169 300w, https://techcrunch.com/wp-content/uploads/2021/01/dear-sophie-immigration-maze-3.jpg?resize=768,432 768w, https://techcrunch.com/wp-content/uploads/2021/01/dear-sophie-immigration-maze-3.jpg?resize=680,383 680w, https://techcrunch.com/wp-content/uploads/2021/01/dear-sophie-immigration-maze-3.jpg?resize=1536,864 1536w, https://techcrunch.com/wp-content/uploads/2021/01/dear-sophie-immigration-maze-3.jpg?resize=2048,1152 2048w, https://techcrunch.com/wp-content/uploads/2021/01/dear-sophie-immigration-maze-3.jpg?resize=50,28 50w" sizes="(max-width: 1024px) 100vw, 1024px" />Image Credits: Bryce Durbin/TechCrunch
Dear Sophie,
At Burning Man a few years ago, I was arrested and charged with a misdemeanor for smoking marijuana in public (in my car) and driving under the influence.
I currently have a green card and want to apply for U.S. citizenship next year.
Can I? If so, how should I handle my criminal record?
— Remorseful About the Reefer

<blockquote class="wp-embedded-content" data-secret="EwbnimvlUG"><a href="https://www.flyingeze.com/news/dear-sophie-should-i-apply-for-citizenship-if-i-have-a-conviction" target="_blank">Dear Sophie: Should I apply for citizenship if I have a conviction?</a></blockquote>

<h2>Atlanta’s sundry startups join in global VC funding boom</h2>
<img aria-describedby="caption-attachment-1996008" loading="lazy" class="size-full wp-image-1996008" src="https://techcrunch.com/wp-content/uploads/2020/05/NSussman_Techcrunch_Exchange_v3-BLU.jpg" alt="" width="1024" srcset="https://techcrunch.com/wp-content/uploads/2020/05/NSussman_Techcrunch_Exchange_v3-BLU.jpg 2880w, https://techcrunch.com/wp-content/uploads/2020/05/NSussman_Techcrunch_Exchange_v3-BLU.jpg?resize=150,113 150w, https://techcrunch.com/wp-content/uploads/2020/05/NSussman_Techcrunch_Exchange_v3-BLU.jpg?resize=300,225 300w, https://techcrunch.com/wp-content/uploads/2020/05/NSussman_Techcrunch_Exchange_v3-BLU.jpg?resize=768,576 768w, https://techcrunch.com/wp-content/uploads/2020/05/NSussman_Techcrunch_Exchange_v3-BLU.jpg?resize=680,510 680w, https://techcrunch.com/wp-content/uploads/2020/05/NSussman_Techcrunch_Exchange_v3-BLU.jpg?resize=1536,1152 1536w, https://techcrunch.com/wp-content/uploads/2020/05/NSussman_Techcrunch_Exchange_v3-BLU.jpg?resize=2048,1536 2048w, https://techcrunch.com/wp-content/uploads/2020/05/NSussman_Techcrunch_Exchange_v3-BLU.jpg?resize=50,38 50w" sizes="(max-width: 1024px) 100vw, 1024px" />Image Credits: <a href="https://www.flyingeze.com/category/" target="_blank" rel="noopener" target="_blank">Nigel Sussman (opens in a new window)</a>
Alex Wilhelm and Anna Heim continued their tour of U.S. cities after hitting up Chicago and Boston in recent weeks.
This time, they dug into Atlanta’s booming startup scene, which is seeing record capital inflows.
“The picture that forms is one of a city enjoying a rising tide of venture activity, boosted by some local dynamics that may have helped some of its earlier-stage companies scale for cheaper than they might have in other markets,” they write.

<blockquote class="wp-embedded-content" data-secret="3HNiRddrwo"><a href="https://www.flyingeze.com/news/atlantas-sundry-startups-join-in-global-vc-funding-boom" target="_blank">Atlanta&#8217;s sundry startups join in global VC funding boom</a></blockquote>

In school, it’s highly unethical to copy someone else’s work and pass it off as your own. In business, however, it is expected.

Advertising Tech

Growth Marketing

Lawyers

Verified Experts

Adtech

Business

Ec Roundup

Entrepreneurship

Extra Crunch Roundup

Intuit

Mailchimp

Private Equity

Sophie Alcorn

Extra Crunch roundup: Adtech investing, Intuit buys Mailchimp, ideal customer profiles

Building credit history can be difficult if you are a consumer that is having trouble getting access to credit in the first place.
Enter <a href="https://www.flyingeze.com/category/" target="_blank">TomoCredit</a>, which has developed a credit card focused on building credit history for first-time borrowers. The San Francisco-based startup is announcing today that it has raised $10 million in a Series A funding round co-led by Kapor Capital and KB Investment Inc. (KBIC), a subsidiary of South Korea’s leading consumer bank. Lewis &amp; Clark Ventures, AME Cloud Ventures, Knollwood Investment Advisory, WTI, Bronze and Square co-founder Sam Wen also participated in the Series A financing.
The new capital comes just over seven months after TomoCredit raised $7 million in seed funding, and brings its total raised this year to $17 million. The company also announced today it has appointed Ash Gupta, former CRO at American Express, to its board.

<blockquote class="wp-embedded-content" data-secret="p00tAmiXWp"><a href="https://techcrunch.com/2021/09/02/all-the-reasons-why-you-should-launch-a-credit-or-debit-card/" target="_blank">All the reasons why you should launch a credit or debit card</a></blockquote>

TomoCredit co-founder and CEO Kristy Kim came up with the concept for the company after being rejected multiple times for an auto loan while in her early 20s.
Kim, who immigrated to the U.S. from South Korea with her family as a child, was disappointed that her lack of credit history proved to be such an obstacle despite the fact she had a job “and positive cash flow.”
So she teamed up with Dmitry Kashlev, a Russian immigrant, in January of 2019 to create a solution for other foreign-born individuals and young adults facing similar credit challenges. That fall, the startup (short for Tomorrow’s Credit) was accepted into the Barclays Accelerator, powered by Techstars.
The fintech offers a credit card aimed at helping first-time borrowers build credit history, based on their cash flow, rather than on their FICO or credit report ratings. Its biggest differentiator, believes Kim, is that it has no fees, no APR and no credit pull. Traditional credit products rely heavily on fees and APR, she said, while TomoCredit makes money through merchant fees.
<img aria-describedby="caption-attachment-2202808" loading="lazy" class="wp-image-2202808 size-large" src="https://techcrunch.com/wp-content/uploads/2021/09/tomo-team.jpeg?w=680" alt="" width="680" srcset="https://techcrunch.com/wp-content/uploads/2021/09/tomo-team.jpeg 1496w, https://techcrunch.com/wp-content/uploads/2021/09/tomo-team.jpeg?resize=150,100 150w, https://techcrunch.com/wp-content/uploads/2021/09/tomo-team.jpeg?resize=300,201 300w, https://techcrunch.com/wp-content/uploads/2021/09/tomo-team.jpeg?resize=768,513 768w, https://techcrunch.com/wp-content/uploads/2021/09/tomo-team.jpeg?resize=680,455 680w, https://techcrunch.com/wp-content/uploads/2021/09/tomo-team.jpeg?resize=50,33 50w" sizes="(max-width: 680px) 100vw, 680px" />Image Credits: TomoCredit
TomoCredit is powered by Finicity (which was acquired by Mastercard last year), and leverages that company’s data network and open banking technology so that it can “securely” access applicants’ bank accounts to obtain financial data for underwriting purposes.
Once approved, applicants receive the<a href="https://www.businesswire.com/news/home/20210318005204/en/The-TomoCredit-Mastercard%2525C2%2525AE-Gives-Consumers-Access-to-Credit-Through-High-Limit-Offering-With-No-Fees-and-0-APR" target="_blank"> TomoCredit Mastercard</a>. The goal is to bring “millions of individuals that lack a credit score into the financial system, allowing a diverse group of consumers the opportunity to better position themselves as qualified candidates for mortgages, auto loans, or other major life purchases,” the company said.
TomoCredit has already pre-approved more than 300,000 customers and expects to issue a total of 500,000 cards by year’s end, according to Kim.
“We’ve grown 10x this year from the beginning of 2021,” Kim said. “Still, this round came together earlier than expected.”
Something that has been surprising to Kim is the interest from a variety of types of consumers.
“In the beginning, we thought international students and immigrants would be most interested in our product,” she told TechCrunch. “But after launching, we’ve realized that so many people can benefit &#8212; from gig economy workers to YouTubers to any young person who hasn’t had a chance to build credit yet. The market is way bigger than we even realized.”
In early 2022, the company plans to roll out the Tomo Black card, a product for some of its existing customers that “are showing good performance.” It’s currently testing it with some of its existing user base.
“This is a premium product that can grow with our customers, who we want to retain over the next 10 to 20 years,” Kim said. “We don’t want our product to be a stop-gap solution.”
<img aria-describedby="caption-attachment-2202805" loading="lazy" class="wp-image-2202805 size-medium" src="https://techcrunch.com/wp-content/uploads/2021/09/tomo-product.jpg?w=300" alt="" width="300" srcset="https://techcrunch.com/wp-content/uploads/2021/09/tomo-product.jpg 4501w, https://techcrunch.com/wp-content/uploads/2021/09/tomo-product.jpg?resize=150,150 150w, https://techcrunch.com/wp-content/uploads/2021/09/tomo-product.jpg?resize=300,300 300w, https://techcrunch.com/wp-content/uploads/2021/09/tomo-product.jpg?resize=768,768 768w, https://techcrunch.com/wp-content/uploads/2021/09/tomo-product.jpg?resize=680,680 680w, https://techcrunch.com/wp-content/uploads/2021/09/tomo-product.jpg?resize=1536,1536 1536w, https://techcrunch.com/wp-content/uploads/2021/09/tomo-product.jpg?resize=2048,2048 2048w, https://techcrunch.com/wp-content/uploads/2021/09/tomo-product.jpg?resize=32,32 32w, https://techcrunch.com/wp-content/uploads/2021/09/tomo-product.jpg?resize=50,50 50w, https://techcrunch.com/wp-content/uploads/2021/09/tomo-product.jpg?resize=64,64 64w, https://techcrunch.com/wp-content/uploads/2021/09/tomo-product.jpg?resize=96,96 96w, https://techcrunch.com/wp-content/uploads/2021/09/tomo-product.jpg?resize=128,128 128w" sizes="(max-width: 300px) 100vw, 300px" />Image Credits: TomoCredit
The startup plans to use its new capital to do more hiring and enhance features such as weekly autopay and high credit limits in an effort to “boost credit scores faster,” she added. Currently, TomoCredit has about 30 employees, up from 10 at the time of its last raise in February.
“My main focus is recruiting top talent,” Kim said, noting that the company had already hired “some senior people from Wells Fargo.” 
“When we recruit and hire, we care about diversity,” she added. “We’re building products for people who have been traditionally underserved by major banks. I think to align with our mission, we should embody that in building our team. More than 50% of our execs are female. The entire risk team is female. We are diverse in terms of gender, age and ethnicity because we want to truly understand our customers and build a product that is inclusive.”
Brian Dixon, partner at Kapor Capital, points out that there are about 45 million people in the U.S. who should have credit scores, but cannot take out a loan, get a credit card, or apply for a mortgage. And that number is only increasing. 
&#8220;When we learned that Kristy experienced these issues firsthand when she moved to the United States and thoughtfully figured out a way to circumvent the predatory and broken credit card system, it deepened our conviction in her and the product itself,&#8221; he wrote via email.
Dixon believes that TomoCredit&#8217;s model of not charging the user makes it a &#8220;safe and affordable alternative&#8221; to what is in the market.
&#8220;Their mission aligns with our thesis of closing gaps of access and opportunity in the credit space at large as well,&#8221; he added.

<blockquote class="wp-embedded-content" data-secret="hvPfacCm4F"><a href="https://www.flyingeze.com/news/tomocredit-raises-7m-to-help-people-with-cash-but-little-to-no-credit-history" target="_blank">TomoCredit raises $7M to help the cash rich and credit poor</a></blockquote>

Building credit history can be difficult if you are a consumer that is having trouble getting access to credit in the first place. Enter TomoCredit, which has developed a credit card focused on building credit history for first-time borrowers. The San Francisco-based startup is announcing today that it has raised $10 million in a Series […]

Payments

Kapor Capital

San Francisco

Tomocredit

Kapor Capital, Square co-founder Sam Wen back TomoCredit in its $10M Series A funding round

Funding startups that help manufacturers and sellers distribute products and merchants access them on a single platform keeps increasing across Africa.
Today, Cairo-based B2B e-commerce startup <a href="https://www.flyingeze.com/category/" target="_blank">Capiter</a> continues that trend by raising a $33 million Series A round.
The investment was co-led by Quona Capital and MSA Capital. Other participating investors include Savola, Shorooq Partners, Foundation Ventures, Accion Venture Lab, and Derayah Ventures.
Capiter was launched in July 2020 by <a href="https://eg.linkedin.com/in/mahmoud-nouh-363a2b119" target="_blank">Mahmoud Nouh</a> and <a href="https://eg.linkedin.com/in/ahmed-nouh" target="_blank">Ahmed Nouh</a>. Speaking with TechCrunch, CEO Mahmoud Nouh says Capiter solves problems around reach and insights for suppliers and manufacturers.
Many of the manufacturers in Egypt today do not have the right infrastructure of the supply chain in place to reach merchants. Nouh says that manufacturers can only reach 30% of merchants in the market, but with Capiter, that number goes up between 80% to 100%.
Also, a large portion of the manufacturers&#8217; end trade happens via traditional channels where there is basically no transparency over data or market insights.
Using machine learning, Capiter says it helps these manufacturers gain critical insights into the markets they serve, the products they sell, and how they fair with competition.
Then for merchants, Capiter attends to three problems. The first is the inconvenience merchants have to deal with engaging several suppliers to find the right product. The second is transparency which involves some back and forth between merchants and manufacturers on pricing. The third is that merchants often have little or no access to working capital to get the right product and the right time.
With Capiter, merchants can order products from FMCGs and wholesalers while the company delivers them. Capiter also provides fair pricing and matching techniques that showcases a wide range of inventory for merchants.
Then it affords working capital to them to buy more products even when they are strapped with cash. Capiter partners with local banks in Egypt and the Central Bank to perform this.
Capiter has over 12 merchant types on its platform, including mom-and-pop stores, hotels, restaurants, cafes, electronic shops, supermarkets, grocery shops, and catering companies, each with its own customized solutions.
&#8220;We&#8217;re able to get the data from the products they buy. So we offer them the best solution on what they should sell, at what time and peak seasons, including when are the offerings happening. All of these are customized solutions that we offer,&#8221; said Mahmoud Nouh.
<img aria-describedby="caption-attachment-2201379" loading="lazy" class="size-large wp-image-2201379" src="https://techcrunch.com/wp-content/uploads/2021/09/FA6BB442-B689-42A1-B1CB-69FA509055E8.jpeg?w=680" alt="Capiter" width="680" srcset="https://techcrunch.com/wp-content/uploads/2021/09/FA6BB442-B689-42A1-B1CB-69FA509055E8.jpeg 5906w, https://techcrunch.com/wp-content/uploads/2021/09/FA6BB442-B689-42A1-B1CB-69FA509055E8.jpeg?resize=150,90 150w, https://techcrunch.com/wp-content/uploads/2021/09/FA6BB442-B689-42A1-B1CB-69FA509055E8.jpeg?resize=300,180 300w, https://techcrunch.com/wp-content/uploads/2021/09/FA6BB442-B689-42A1-B1CB-69FA509055E8.jpeg?resize=768,461 768w, https://techcrunch.com/wp-content/uploads/2021/09/FA6BB442-B689-42A1-B1CB-69FA509055E8.jpeg?resize=680,408 680w, https://techcrunch.com/wp-content/uploads/2021/09/FA6BB442-B689-42A1-B1CB-69FA509055E8.jpeg?resize=1536,921 1536w, https://techcrunch.com/wp-content/uploads/2021/09/FA6BB442-B689-42A1-B1CB-69FA509055E8.jpeg?resize=2048,1229 2048w, https://techcrunch.com/wp-content/uploads/2021/09/FA6BB442-B689-42A1-B1CB-69FA509055E8.jpeg?resize=50,30 50w" sizes="(max-width: 680px) 100vw, 680px" />The Capiter app
The company&#8217;s revenues are derived from little margins on the products bought from manufacturers and sold to merchants. Then on rebates for the suppliers and commission from the working capital provided to merchants. Capiter also makes money from providing market insights and data services to manufacturers and FMCGs.
Typically B2B e-commerce platforms operate either asset-light, inventory-heavy models. Nouh tells me that Capiter chose to use a hybrid model &#8212; making deliveries without owning any trucks to ensure scalability and owning inventory, especially for high turnover products helping the company with high availability and better pricing.
&#8220;This way has enabled us to scale the business in a very fast manner and at the same time, efficiently and reliably. Regarding warehouses and trucks, we don&#8217;t own them; we rent them. We deal with third-party logistics for transportation and we manage them.&#8221;
Over 50,000 merchants and 1,000 sellers use Capiter. According to CEO Nouh, the company has provided up to 6,000 SKUs. He also adds that the company is targeting an annualized revenue of $1 billion by next year.
&#8220;We&#8217;re on a very good trajectory for achieving this,&#8221; he added. &#8220;In terms of team members, we have a team of more than 1000 people at the moment, including in warehouses, delivery, etc. So we&#8217;ve seen good traction across all board,&#8221; he answered when asked about Capiter&#8217;s traction.
Quona Capital, the co-lead investor in this round, is known to have made some B2B e-commerce bets over the past years, for instance, Kenya&#8217;s Sokowatch. The investment in Capiter adds to the firm&#8217;s portfolio in that regard and a growing presence in the MENA region being its first check made in Egypt.
In a statement, Quona co-founder and managing partner Monica Brand Engel said, “Capiter’s embedded finance model, combined with its expertise and strong user engagement, can have a dramatic impact on the financial lives of SMEs, helping them optimize their income which helps communities to thrive.”
“SME supply chain inefficiencies are massive throughout the Middle East. We believe the key blocker is the lack of working capital in the system. Capiter has built an asset-light way to aggregate retailers and suppliers and facilitate credit into the system through a comprehensive multi-product offering such as commerce, credit financing, digital payments, bookkeeping and inventory management for SMEs, leveraging on the ecosystem built by the local banks and financial institutions.” adds Ben Harburg, partner at MSA Capital, a global VC that has invested in fintechs like Nubank and Klarna.
According to Ahmed Nouh, the company&#8217;s COO, Capiter will expand into new verticals like agriculture and pharmaceutical offerings.
The co-founder brings experience from the shipping and logistics space. Both he and Mahmoud are serial entrepreneurs. The latter&#8217;s journey is quite prominent, having worked in the mobility space as the co-founder and COO of Egyptian ride-hailing company SWVL. The company recently <a href="https://www.flyingeze.com/news/egyptian-ride-sharing-company-swvl-plans-to-go-public-in-a-1-5b-spac-merger" target="_blank">announced a potential SPAC deal valuing it at $1.5 billion</a> and is one of the few African startups breeding a tech mafia. Ahmed Sabbah, another co-founder of the company, <a href="https://www.flyingeze.com/news/sequoia-leads-5m-pre-seed-in-egypts-1-month-old-digital-bank-telda" target="_blank">now runs early-stage fintech startup Telda</a>.

<blockquote class="wp-embedded-content" data-secret="u1CjNEA5mm"><a href="https://www.flyingeze.com/news/egyptian-ride-sharing-company-swvl-plans-to-go-public-in-a-1-5b-spac-merger" target="_blank">Egyptian ride-sharing company Swvl plans to go public in a $1.5B SPAC merger</a></blockquote>

Capiter has attracted a global team that brings together the expertise from companies like Careem and Flipkart needed to achieve the company’s targets, said Mahmoud.
He adds that the team, alongside the provision of financial services via partnerships with banks and its hybrid model, is how the company stands out in a competitive market, including the likes of Fatura, Bosta, and MaxAB.
Following this investment, the company plans to expand vertically (in terms of the buyer type) and geographically within the next year.
&#8220;We want to serve every single SME in the MENA region and expanding inside Egypt and globally.&#8221; He adds that Savola Group, one of its investors and the largest investor for FMCG products in the MENA region, will prove pivotal to this growth. Capiter also plans to diversify its financial services offerings to include payments.

Funding startups that help manufacturers and sellers distribute products and merchants access them on a single platform keeps increasing across Africa. Today, Cairo-based B2B e-commerce startup Capiter continues that trend by raising a $33 million Series A round. The investment was co-led by Quona Capital and MSA Capital. Other participating investors include Savola, Shorooq Partners, […]

B2b E-commerce Retail

Egypt

Merchant

Middle East

Egyptian startup Capiter raises $33M to expand B2B e-commerce platform across MENA

Payments made a huge shift to digital platforms during the Covid-19 pandemic &#8212; purchasing moved online for many consumers and businesses; and a large proportion of those continuing to buy and sell in-person went cash-free. Today a startup that has been focusing on one specific aspect of payments &#8212; recurring billing &#8212; is announcing a round of funding to capitalize on that growth with expansion of its own. <a href="https://www.flyingeze.com/category/" target="_blank" rel="noopener" target="_blank">Billogram</a>, which has built a platform for third parties to build and handle any kind of recurring payments (not one-off purchases), has closed a round of $45 million.
The funding is coming from a single investor, Partech, and will be used to help the Stockholm-based startup expand from its current base in Sweden to six more markets, Jonas Suijkerbuijk, Billogram&#8217;s CEO and founder, said in an interview, to cover more of Germany (where it&#8217;s already active now), Norway, Finland, Ireland, France, Spain, and Italy.
The company got its start working with SMBs in 2011 but pivoted some years later to working with larger enterprises, which make up the majority of its business today. Suijkerbuijk said that in 2020, signed deals went up by 300%, and the first half of 2021 grew 50% more on top of that. Its users include utilities like Skanska Energi and broadband company Ownit, and others like remote healthcare company Kry, businesses that take invoice and take monthly payments from their customers.
While there has been a lot of <a href="https://daringfireball.net/2021/08/implications_of_third-party_payment_processing_for_iap" target="_blank" rel="noopener" target="_blank">attention</a> around how companies like Apple and Google are <a href="https://techcrunch.com/2021/08/26/apple-lowers-commissions-on-in-app-purchases-for-news-publishers-who-participate-in-apple-news/" target="_blank" rel="noopener" target="_blank">handling subscriptions</a> and payments in apps, what Billogram focuses on is a different beast, and much more complex: it&#8217;s more integrated into the business providing services, and it may involve different services, and the fees can vary over every billing period. It&#8217;s for this reason that, in fact, even big companies in the realm of digital payments, like Stripe, which might even already have products that can help manage subscriptions on their platforms, partner with companies like Billogram to build the experiences to manage their more involved kinds of payment services.
I should point out here that Suijkerbuijk told me that Stripe recently became a partner of Billograms, which is very interesting&#8230; but he also added that a number of the big payments companies have talked to Billogram. He also confirmed that currently Stripe is not an investor in the company. &#8220;We have a very good relationship,&#8221; he said.
It&#8217;s not surprising to see Stripe and others wanting to more in the area of more complex, recurring billing services. <a href="https://www.businesswire.com/news/home/20210910005516/en/Insights-on-the-SubscriptionRecurring-Billing-Management-Global-Market-to-2025---Featuring-ActivePlatform-Amazon-and-FastSpring-Among-Others---ResearchAndMarkets.com" target="_blank" rel="noopener" target="_blank">Researchers estimate</a> that the market size (revenues and services) for subscription and recurring billing will be close to $6 billion this year, with that number ballooning to well over $10 billion by 2025. And indeed, the effort to make a payment or any kind of transaction will continue to be a point of friction in the world of commerce, so any kinds of systems that bring technology to bear to make that easier and something that consumers or businesses will do without thinking about it, will be valuable, and will likely grow in dominance. (It&#8217;s why the more basic subscription services, such as Prime membership or a Netflix subscription, or a cloud storage account, are such winners.)
Within that very big pie, Suijkerbuijk noted that rather than the Apples and Googles of the world, the kinds of businesses that Billogram currently competes against are those that are addressing the same thornier end of the payments spectrum that Billogram is. These include a wide swathe of incumbent companies that do a lot of their business in areas like debt collection, and other specialists like Scaleworks-backed Chargify &#8212; which itself got a big investment injection earlier this year from Battery Ventures, which put <a href="https://www.bizjournals.com/sanantonio/news/2021/04/23/battery-ventures-invests-in-chargify.html?page=all" target="_blank" rel="noopener" target="_blank">$150 million</a> into both it and another billing provider, SaaSOptics, in April.
The former group of competitors are not currently a threat to Billogram, he added.
&#8220;Debt collecting agencies are big on invoicing, but no one &#8212; not their customers, nor their customers&#8217; customers &#8212; loves them, so they are great competitors to have,&#8221; Suijkerbuijk joked.
This also means that Billogram is not likely to move into debt collection itself as it continues to expand. Instead, he said, the focus will be on building out more tools to make the invoicing and payments experience better and less painful to customers. That will likely include more moves into customer service and generally improving the overall billing experience &#8212; something we have seen become a bigger area also during the pandemic, as companies realized that they needed to address non-payments in a different way from how their used to, given world events and the impact they were having on individuals.
“We are excited to partner with Jonas and the team at Billogram.” says Omri Benayoun, General Partner at Partech, in a statement. “Having spotted a gap in the market, they have quietly built the most advanced platform for large B2C enterprises looking to integrate billing, payment, and collection in one single solution. In our discussion with leading utilities, telecom, e-health, and all other clients across Europe, we realized how valuable Billogram was for them in order to engage with their end-users through a top-notch billing and payment experience. The outstanding commercial traction demonstrated by Billogram has further cemented our conviction, and we can’t wait to support the team in bringing their solution to many more customers in Europe and beyond!”

Payments made a huge shift to digital platforms during the Covid-19 pandemic — purchasing moved online for many consumers and businesses; and a large proportion of those continuing to buy and sell in-person went cash-free. Today a startup that has been focusing on one specific aspect of payments — recurring billing — is announcing a […]

Europe

Apple

Battery Ventures

Billing

Billogram

Broadband

Business Software

E-health

Economy

Billogram, provider of a payments platform specifically for recurring billing, raises $45M

China’s first data privacy laws go into effect on November 1, 2021. Will your company be in compliance? Modeled after the EU’s GDPR, the new regulations “[introduce] perhaps the most stringent set of requirements and protections for data privacy in the world,” writes Scott W. Pink, special counsel in O’Melveny’s Data Security & Privacy practice. […]

Extra Crunch roundup: China’s new data privacy law, fractional farming, debt vs. equity

Challenger bank <a href="https://techcrunch.com/2020/07/30/point-wants-to-provide-credit-card-rewards-with-debit-cards/" target="_blank">Point</a> has raised a $46.5 million Series B funding round. The company offers an account associated with a debit card. And the startup positions itself as a premium debit card company and tries to offer credit card rewards with debit cards.
Existing investor Peter Thiel&#39;s Valar Ventures is investing more money in the company and leading the Series B round. Other investors include Breyer Capital, YC Continuity and Human Capital. The company raised a $10.5 million Series A round 18 months ago and a seed round before that, which means that Point has raised $60 million in total.
Point wants to build the anti-credit card. The company tries to keep what’s best about credit cards but leave behind what’s not so good. Many people think credit cards are a slippery slope. If you spend too much money without realizing that you’re not going to be able to make ends meet, you’ll pay interests. Those interests can even make it harder to pay back your credit card debt.
That’s why credit card incentives are both attractive and scary. If you have enough savings or if you earn a lot of money, paying your credit card bill is not going to be an issue. But that’s not always the case.
Point tells you that you should ditch your credit card altogether. When you open a Point account, you can top it up with another debit card or set up direct deposits with your employer. Opening a Point account currently costs $49 per year. You get two free ATM withdrawals per month and you don’t pay any foreign transaction fees.
After that, you can safely spend money with your Point card. You know that you have enough money to pay for your purchases as it’s a debit card. Every time you want to buy something expensive, you have to top up your account first.
Point users earn points with every purchase. You get 5x points on subscriptions, such as Spotify and Netflix, 3x points on food deliveries and ride sharing, and 1x points on everything else. If you pay with your Point card, you also get trip cancellation insurance, car rental insurance, global travel assistance, phone insurance and new purchase insurance.
You can control the Point card from the Point app —&nbsp;you can lock it and unlock it whenever you want and you can choose to receive notifications whenever you want. The Point debit card also works with Apple Pay and Google Pay.
With today’s funding round, the company plans to hire more people, launch new features and introduce new products. In other words, don’t expect any major changes. But the company now has more money to expand more rapidly.

<blockquote class="wp-embedded-content" data-secret="EskOBiTitd"><a href="https://techcrunch.com/2020/07/30/point-wants-to-provide-credit-card-rewards-with-debit-cards/" target="_blank">Point wants to provide credit card rewards with debit cards</a></blockquote>

<img aria-describedby="caption-attachment-2197505" loading="lazy" src="https://techcrunch.com/wp-content/uploads/2021/09/04_PointCard_Founders_0830_1xb.jpg" alt="" width="1024" class="size-full wp-image-2197505" srcset="https://techcrunch.com/wp-content/uploads/2021/09/04_PointCard_Founders_0830_1xb.jpg 2294w, https://techcrunch.com/wp-content/uploads/2021/09/04_PointCard_Founders_0830_1xb.jpg?resize=150,84 150w, https://techcrunch.com/wp-content/uploads/2021/09/04_PointCard_Founders_0830_1xb.jpg?resize=300,167 300w, https://techcrunch.com/wp-content/uploads/2021/09/04_PointCard_Founders_0830_1xb.jpg?resize=768,429 768w, https://techcrunch.com/wp-content/uploads/2021/09/04_PointCard_Founders_0830_1xb.jpg?resize=680,379 680w, https://techcrunch.com/wp-content/uploads/2021/09/04_PointCard_Founders_0830_1xb.jpg?resize=1536,857 1536w, https://techcrunch.com/wp-content/uploads/2021/09/04_PointCard_Founders_0830_1xb.jpg?resize=2048,1143 2048w, https://techcrunch.com/wp-content/uploads/2021/09/04_PointCard_Founders_0830_1xb.jpg?resize=50,28 50w" sizes="(max-width: 1024px) 100vw, 1024px" />Image Credits: Point

Challenger bank Point has raised a $46.5 million Series B funding round. The company offers an account associated with a debit card. And the startup positions itself as a premium debit card company and tries to offer credit card rewards with debit cards. Existing investor Peter Thiel&#39;s Valar Ventures is investing more money in the […]

Challenger Bank

Neobank

Point

Point Card

Point raises $46.5 million for its premium debit card

Amsterdam-based challenger bank <a href="https://www.bunq.com">Bunq</a> is updating its service with a handful of new features. In addition to Dutch, German and French bank account numbers, existing and new users in Spain can now get a Spanish IBAN.
European IBANs are supposed to work across Europe. Your employer or internet provider can’t force you to get a local IBAN. And yet, that’s rarely the case. When you move to another European country, chances are the first thing you do is that you open a local bank account.
While European fintech companies have teamed up to create a lobbying effort called <a href="https://www.acceptmyiban.org">‘Accept my IBAN’</a>, some challenger banks, such as Bunq, are adding the ability to get local bank account numbers as an intermediary fix. Bunq users can also choose to associate IBANs from multiple European countries with their account. You have to pay a one-time fee of €9.99 every time you add a new local IBAN.
Bunq is also drawing inspiration from <a href="https://www.revolut.com">Revolut</a>, <a href="https://wise.com">Wise</a>, <a href="https://vivid.money">Vivid Money</a> and others as you&#8217;ll soon be able to receive, convert and hold other currencies. For instance, if you’re going to a non-Euro country for an internship, you will be able to receive your salary on your Bunq account. Bunq is starting with USD accounts with plans to add more currencies down the road.
Other new features include the ability to receive reminders the day before a direct debit occurs, a subscription view that lets you view current subscriptions and when they’re set to expire, an improved search feature and the ability to automatically accept direct debits and payment requests from your friends — make sure you set up a limit before enabling that feature.
Bunq recently <a href="https://techcrunch.com/2021/07/07/european-challenger-bank-bunq-raises-228-million-at-1-9-billion-valuation/">announced plans</a> to raise $228 million (€193 million) at a $1.9 billion valuation (€1.6 billion). The investment round hasn’t been approved by the Netherlands’ banking regulator just yet. Bunq is currently operating in 29 European markets and has more than €&amp;billion in user deposits.

<blockquote class="wp-embedded-content" data-secret="smD9W7l3bn"><a href="https://techcrunch.com/2021/07/07/european-challenger-bank-bunq-raises-228-million-at-1-9-billion-valuation/">European challenger bank Bunq raises $228 million at $1.9 billion valuation</a></blockquote>

Amsterdam-based challenger bank Bunq is updating its service with a handful of new features. In addition to Dutch, German and French bank account numbers, existing and new users in Spain can now get a Spanish IBAN. European IBANs are supposed to work across Europe. Your employer or internet provider can’t force you to get a […]

Challenger bank Bunq rolls out Spanish IBANs

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