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April 23, 2019
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Singapore’s SalesWhale raises $5.3M to bring AI to sales and marketing teams

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SalesWhale, a Singapore-based startup that uses AI to help marketers and salespeople generate leads, has announced a Series A round worth $5.3 million.

The investment is led by Monk’s Hill Ventures — the Southeast Asia-focused firm that led SalesWhale’s seed round in 2017 — with participation from existing backers GREE Ventures, Wavemaker Partners, and Y Combinator. That’s right, SalesWhale is one a select few Southeast Asian startups to have been through YC, it graduated back in summer 2016.

SalesWhale — which calls itself “a conversational email marketing platform” — uses AI-powered ‘bots’ to handle email. In this case, its digital workforce is trained for sales leads. That means both covering the menial parts of arranging meetings and coordination, and the more proactive side of engaging old and new leads.

Back when we last wrote about the startup in 2017, it had just half a dozen staff. Fast forward two years, and that number has grown to 28, CEO Gabriel Lim explained in an interview. The company is going after more growth with this Series A money, and Lim expects headcount to jump past 70 while SalesWhale is deliberating opening an office in California. That location would be primarily to encourage new business and increase communication and support for existing clients, most of whom are located in the U.S, according to Lim. Other hires will be tasked with increasing integration with third-party platforms, and particularly sales and enterprise services.

The past two years have also seen SalesWhale switch gears and go from targeting startups as customers, to working with mid-market and enterprise firms. SalesWhale’s “hundreds” of customers include recruiter Randstad, educational company General Assembly, and enterprise service business Unit4. As it has added greater complexity to its service, so the income has jumped from an initial $39-$99 per seat all those years ago to over $1,000 per month for enterprise customers.

SalesWhale’s founding team (left to right): Venus Wong, Ethan Lee and Gabriel Lim

While AI is a (genuine) threat to many human jobs, SalesWhale sits on the opposite side of that problem in that it actually helps human employees get more work done. That’s to say that SalesWhale’s service can get stuck into a pile (or spreadsheet) of leads that human staff don’t have time for, begin reaching out, qualifying leads and sending them on to living and breathing colleagues to take forward.

“A lot of potential leads aren’t touched” by existing human teams, Lim reflected.

But when SalesWhale reps do get involved, they are often not recognized as the bots they are.

“Customers are often so convinced they are chatting with a human — who is sending collateral, PDFs and arranging meetings — that they’ll say things like ‘I’d love to come by and visit someday,’” Lim joked in an interview.

“Indeed, a lot of times, sales team refer to [SalesWale-powered] sales assistant like they are a real human colleague,” he added.

News Source = techcrunch.com

Google Cloud brings on 27-year SAP veteran as it doubles down on enterprise adoption

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Thomas Kurian, the newly minted CEO of Google Cloud, used the company’s Cloud Next conference last week to lay out his vision for the future of Google’s cloud computing platform. That vision involves, in part, a hiring spree to give businesses that want to work with Google more people to talk to and get help from. Unsurprisingly, Kurian is also looking to put his stamp on the executive team, too, and today announced that former SAP executive Robert Enslin is joining Google Cloud as its new president of Global Customer Operations.

Enslin’s hire is another clear signal that Kurian is focused on enterprise customers. Enslin, after all, is a veteran of the enterprise business, with 27 years at SAP, where he served on the company’s executive board until he announced his resignation from the company earlier this month. After leading various parts of SAP, including as president of its cloud product portfolio, president of SAP North America and CEO of SAP Japan, Enslin announced that he had “a few more aspirations to fulfill.” Those aspirations, we now know, include helping Google Cloud expand its lineup of enterprise customers.

“Rob brings great international experience to his role having worked in South Africa, Europe, Asia and the United States—this global perspective will be invaluable as we expand Google Cloud into established industries and growth markets around the world,” Kurian writes in today’s announcement.

For the last two years, Google Cloud already had a president of Global Customer Operations, though, in the form of Paul-Henri Ferrand, a former Dell exec who was brought on by Google Cloud’s former CEO Diane Greene . Kurian says that Ferrand “has decided to take on a new challenge within Google.”

News Source = techcrunch.com

African e-commerce startup Jumia’s shares open at $14.50 in NYSE IPO

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Pan-African e-commerce company Jumia listed on the New York Stock Exchange today, with shares beginning trading at $14.50 under ticker symbol JMIA. This comes four weeks after CEO Sacha Poignonnec confirmed the IPO to TechCrunch and Jumia filed SEC documents.

With the public offering, Jumia becomes the first startup from Africa to list on a major global exchange.

In an updated SEC filing, Jumia indicated it is offering 13,500,000 ADR shares, for an opening price spread of $13 to $16 per share, representing 17.6 percent of all company shares. The IPO could raise up to $216 million for the internet venture.

Since the original announcement (and reflected in the latest SEC docs), Mastercard Europe pre-purchased $50 million in Jumia ordinary shares.

The IPO creates another milestone for Jumia. The company became the first African startup unicorn in 2016, achieving a $1 billion valuation after a funding round that included Goldman Sachs, AXA and MTN.

There’s a lot to breakdown on Jumia’s going public. The company is often dubbed the “Amazon of Africa,” and like Amazon, Jumia comes with its own mixed buzz. Jumia’s SEC F-1 prospectus offers us more insight into the venture, and perhaps any startup from Africa, thus far.

About Jumia

Founded in Lagos in 2012 with Rocket Internet  backing, Jumia now operates multiple online verticals in 14 African countries. Goods and services lines include Jumia Food (an online takeout service), Jumia Flights (for travel bookings) and Jumia Deals (for classifieds). Jumia processed more than 13 million packages in 2018, according to company data.

Jumia’s original co-founders included Nigerian tech entrepreneurs Tunde Kehinde and Raphael, but both departed in 2015 to form other startups in fintech and logistics.

Starting in Nigeria, the company created many of the components for its digital sales operations. This includes its JumiaPay payment platform and a delivery service of trucks and motorbikes that have become ubiquitous with the Lagos landscape. Jumia has extended this infrastructure as an e-commerce fulfillment product called Jumia Services.

Jumia has also opened itself up to Africa’s traders by allowing local merchants to harness Jumia to sell online. The company has over 80,000 active sellers on the platform using the company’s payment, delivery, and data-analytics services, Jumia Nigeria CEO Juliet Anammah told TechCrunch a previously.

The most popular goods on Jumia’s shopping site include smartphones, washing machines, fashion items, women’s hair care products, and 32-inch TVs, according to Anammah.

Jumia an African startup?

Like Amazon, Jumia brings its own mix of supporters and critics. On the critical side, there are questions of whether it’s actually an African startup. The parent for Jumia Group is incorporated in Germany and current CEOs Jeremy Hodara and Sacha Poignonnec are French.

On the flipside, original Jumia co-founders (Kehinde and Afeodor) are African. The company is headquartered (and also incorporated) in Africa (Lagos), operates exclusively in Africa, pays taxes on the continent, employs 5,128 people in Africa (page 125 of K-1), and the CEO of its largest country operation (Nigeria) Juliet Anammah is Nigerian.

The Africa authenticity debate often shifts into questions of a Jumia diversity deficit, which is of course important from Silicon Valley to Nairobi. The company’s senior management and board is a mix of Africans and expats. Golden State Warriors basketball player and tech investor Andre Iguodala joined Jumia’s board this spring with a priority on “diversity and making sure the African culture is in the company,” he told TechCrunch.

Can Jumia turn a profit?

The Jumia authenticity and diversity debates will no doubt roll on. But the biggest question—the driver behind the VC, the IPO, the founders, and the people buying Jumia’s shares—is whether the startup can generate profits and ROI.

Obviously some of the world’s top venture investors, such as Jumia backers Goldman, AXA, and Mastercard, think so. But for Jumia skeptics, there are the big losses. The company has generated years and years of losses, including negative EBITDA of €172 million in 2018 compared to revenues of €139 that same year.

To be fair to Jumia, most startups (e-commerce startups in particular) rack up losses for years before getting into the black. And operating in a greenfield sector in Africa—where it had to create much of the surrounding infrastructure to do B2C online sales—has presented higher costs for Jumia than e-commerce startups elsewhere.

On the prospects for Jumia’s profitability, two things to watch will be Jumia’s fulfillment expenses and a shift to more revenue from its non-goods-delivery services, which offer lower unit costs and higher-margins. Per Jumia’s SEC F-1 index (see above) freight and shipping make up over half of its fulfillment expenses.

So Jumia has not turned a profit but its revenues have increased steadily, up 11 percent to €93.8M (roughly $106.2 million) in 2017 and up again to €130M (or $147 million) in 2018. If the company boosts customer acquisition and lowers fulfillment costs—which could come from more internet services revenue and platform investment with IPO capital—it could close the gap between revenues and losses. This reflects the equation for most e-commerce startups. With the IPO Jumia will have to publish its first full public financials in 2019, which will provide a better picture of profitability prospects.

Jumia’s IPO and African e-commerce?

There’s is, of course, a bigger play in Jumia’s IPO. One connected to global e-commerce and the future of online retail in Africa.

Jumia going public comes as Africa’s e-commerce landscape has seen its share of ups and downs, notably several failures in DealDey shutting down and the distressed acquisition of Nigerian e-commerce hopeful Konga.com.

As for the big global names, Alibaba has talked about Africa expansion, but for the moment has not entered in full.

Amazon  offers limited e-commerce sales on the continent, but more notably, has started offering AWS services in Africa.

And this week, DHL came on the scene launching its Africa eShop platform with 200 global retailers on board, in partnership with MallforAfrica’s Link Commerce fulfillment service.

Competition to capture Africa’s digitizing consumer markets—expected to spend $2 billion online by 2025, according to McKinsey—could get fierce, with more global entries, acquisitions, and competition on fulfillment services all part of the mix.

And finally, the outcome of Jumia’s IPO carries weight even for its competitors. “Many things, like business decisions and VC investments across Africa’s e-commerce sector are on on hold,” an African e-commerce exec told TechCrunch on background.

“Everyone’s waiting to see what happens with Jumia’s IPO and how they perform,” the exec said.

So the share-price connected to NYSE ticker sign JMIA could reflect not just investor confidence in Jumia, but investor confidence in African e-commerce overall.

News Source = techcrunch.com

DHL launches Africa eShop app for global retailers to sell into Africa

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DHL is launching an e-commerce app called DHL Africa eShop for global retailers to sell goods to Africa’s consumers markets.

The platform goes live today and brings more than 200 U.S. and UK retailers—from Nieman Marcus to Carters—online in 11 African markets: South Africa, Nigeria, Kenya, Mauritius, Ghana, Senegal, Rwanda, Malawi, Botswana, Sierra Leone, and Uganda.

DHL Africa eShop will operate using startup MallforAfrica.com’s white label service, Link Commerce. Payment methods will include local fintech options, such as Nigeria’s Paga and Kenya’s M-Pesa.

The announcement comes as e-commerce in Africa has seen some ups and downs—with online sales startup Jumia announcing an IPO, while several Africa digital retail ventures have recently faltered.

DHL Africa eShop takes advantage of shipping giant’s existing delivery structure on the continent, able to get goods to doorsteps near and far through its DHL Express shipping, tracking, and courier service.

DHL’s partner for the new app, MallforAfrica, has experience collaborating with DHL and a number of big name retailers, including Macy’s and Best Buy. Backed by Helios Investment Partners, MFA was founded in 2011 to solve challenges global consumer goods companies face when entering Africa.

MallforAfrica’s payment and delivery system serves as a digital broker and logistics manager for U.S. retailers that come online with the startup to sell their goods to African consumers.

DHL has been a MallforAfrica logistics partner since 2015 and in 2018, the two teamed up to launch MarketPlaceAfrica.com—an e-commerce site for select African artisans to sell their goods in any of DHL’s 220 delivery countries.

For DHL Africa eShop, MallforAfrica’s Link Commerce service will facilitate local payments, procurement, and delivery, MallforAfrica CEO Chris Folayan told TechCrunch.

“That’s what our service does. It takes care of that whole ecosystem to enable global e-commerce to exist, no matter what country you’re in,” he said.

In a statement, DHL Express CEO for Sub-Saharan Africa referred to the DHL Africa eShop app as something that “provides convenience, speed, and access to connect African consumers with exciting brands.” The DHL Africa app is also intended to fill a commercial void, according to DHL, as many U.S. and UK retailers do not ship to Africa.

E-commerce ventures, particularly in Nigeria, have captured the attention of VC investors looking to tap into Africa’s growing consumer markets. McKinsey & Company projects consumer spending on the continent to reach $2.1 trillion by 2025, with African e-commerce accounting for up to 10 percent of retail sales.

As mentioned, Africa’s e-commerce startup landscape has seen its own ups and downs. Pan-African e-commerce startup Jumia’s recent IPO filing on the NYSE is a first for any startup from Africa. MallforAfrica has also continued to expand into new countries, now operating in 17, with partners, such as DHL.

On the flip side, the distressed acquisition of Nigerian e-commerce hopeful Konga.com, backed by roughly $100 million in VC, created losses for investors. And in late 2018, Nigerian online sales platform DealDey shut down.

On a B2C level, DHL Africa eShop brings distinct advantages on a transaction cost basis (i.e., the cost of delivery) given it is connected to one of the world’s logistics masters, DHL.

Another component of DHL and MallforAfrica’s partnership is the market for offering e-commerce fulfillment services through MallforAfrica’s white label Link Commerce service.

This could put the duo on a footing to compete with (or work with) big e-commerce names entering Africa and adds another layer of competition with Jumia, which offers its own fulfillment services vertical in Africa.

As for the big global names, Alibaba has talked about Africa expansion, but for the moment has not entered in full.

Amazon offers limited e-commerce sales on the continent, but more notably, has started offering AWS services in Africa.

To watch is how DHL’s new Africa eShop business factors into the continent’s online-sales landscape. It could certainly serve as a new player in African e-commerce phase 2.0, now that the sector has shaken out some failures, produced an IPO, and drawn the attention of big global names.

 

 

 

 

 

 

 

News Source = techcrunch.com

ShopBack, a cashback startup in Asia Pacific, raises $45M from Rakuten and others

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ShopBack, a Singapore-based startup that offers cashback and consumer rewards in Asia Pacific, has closed a $45 million round led by new investors Rakuten Capital and EV Growth.

Founded in 2014, the startup had been relatively under-the-radar until late 2017 when it announced a $25 million investment that funded expansion into Australia among other things. Now, it is doubling down with this deal which sees participation from another new backer, EDBI, the corporate investment arm of Singapore’s Economic Development Board. Shopback has now raised close to $85 million from investors, which also include Credit Saison Blue Sky, AppWorks, SoftBank Ventures Korea, Singtel Innov8 and Qualgro.

The investment will see Amit Patel, who leads Rakuten-owned cashback service Ebates, and EV Growth managing partner Willson Cuaca, join the board. Cuaca is a familiar face since his East Ventures firm, which launched EV Growth alongside Yahoo Japan Capital and SMDV last year, was an early investor in Shopback, while the addition of Patel is potentially very significant for the startup. Indeed, when I previously wrote about ShopBack, I compared the startup directly to Ebates, which was bought by Rakuten for $1 billion in 2014.

Ebates brings operating experience in the cashback space,” Henry Chan, ShopBack co-founder and CEO told TechCrunch in an interview.

“A lot has changed in the last year and a half, Ebates has a very strong focus on the U.S… given that we’re not competing, it makes sense to partner and to learn,” he added.

The obvious question to ask is whether this deal is a precursor to a potential acquisition.

So, is it?

“It is squarely for learning and for growth,” Chan said in response. “It makes sense for us to partner with someone with the know-how.”

ShopBack operates in seven markets in Asia Pacific — Singapore, Malaysia, the Philippines, Thailand, Taiwan, Australia and Indonesia — with a core rewards service that gives consumers rebates for spending on areas like e-commerce, ride-hailing, food delivery, online travel and more. It has moved offline, too, with a new service for discovering and paying for food which initially launched in Singapore.

ShopBack said it saw a 250 percent growth in sales and orders last year which translated to nearly $1 billion in sales for its merchant partners. The company previously said it handled $400 million in 2017. It added that it typically handles more than 2.5 million transactions for upwards of seven million users.

(Left to right) Henry Chan, co-founder and CEO of ShopBack, welcomes new board member Amit Patel, CEO of Rakuten -owned Ebates [Image via ShopBack]

Chan said that, since the previous funding round, ShopBack has seen its business in emerging markets like Indonesia, Thailand and the Philippines take off and eclipse its efforts in more developed countries like Singapore. Still, he said, the company benefits from the diversity of the region.

Markets like Singapore and Taiwan, where online spending is more established, allow ShopBack to “learn ahead of time how different industries will develop” as the internet economy matures in Southeast Asia, Chan — who started the company with fellow co-founder Joel Leong — explained.

Outside of Southeast Asia, Chan said that ShopBack’s Australia business — launched nearly one year ago — has been its “most phenomenal market in terms of growth.”

“We’re already superseding incumbents,” he said.

ShopBack claims some 300,000 registered users in Australia, where it said purchases through its platform have grown by 1,300 percent between May 2018 and March 2019. Of course, that’s growth from a tiny initial base and ShopBack didn’t provide raw figures on sales.

For its next expansion, ShopBack is looking closer to home with Vietnam its upcoming target. The country is already home to one of its three R&D centers — the other two are located in Singapore and Taiwan — and Chan said the startup is currently hiring for a general manager to head up the soon-to-launch Vietnam business.

Already, though, the company is beginning to think about reaching beyond Asia Pacific. Chan maintained that the company already has a proven playbook — particularly on the tech side — so it “can enter a Western market” if it chooses, but that isn’t likely to happen in the immediate future.

“We could [expand beyond Asia Pacific] but we have a fair bit on our plate, right now,” said Chan with a laugh.

News Source = techcrunch.com

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