Menu

Timesdelhi.com

June 25, 2019
Category archive

Companies

Food delivery startup Dahmakan eats up $5M for expansion in Southeast Asia

in Artificial Intelligence/Asia/Atami Capital/ceo/China/Companies/Dahmakan/Delhi/Food/food delivery/Foodpanda/funding/Fundings & Exits/go-jek/Google/grab/grain/India/Indonesia/jessica li/Kuala Lumpur/Malaysia/nestle/online food ordering/Politics/Rocket Internet/Singapore/Southeast Asia/TC/temasek/Thailand/transport/websites/Y Combinator/zomato by

It’s harvest season for Southeast Asia’s full-stack food delivery startups. Following on from Singapore’s Grain raising $10 million, so Malaysia-based Dahmakan today announced a $5 million financing round of its own.

The money takes the startup to $10 million raised to date — its last round as $2.6 million last year — and it comes via new investors U.S-based Partech Partners and China’s UpHonest Capital and existing backers Y-Combinator, Atami Capital and the former CEO of Nestlé who was an angel investor. The round was closed earlier this year but is now being announced alongside this expansion play.

It’s been a busy couple of years for the company, which was founded in 2015 by former execs from Rocket Internet’s FoodPanda service. Dahmakan — which means “Have you eaten?” in Malay — graduated Y Combinator in 2017 and it expanded to Thailand last year through an acquisition, so what’s on the menu for 2019?

It is going all in on ‘cloud kitchen’ model of using unwanted retail space to cook up meals specifically for digital orders, which is entirely its business since it handles all processes in house rather than through a marketplace model.

Already, in its home town of Kuala Lumpur, Malaysia, Dahmakan has introduced ‘satellite’ hubs that will allow it to serve customers located in different parts of the city more efficiently. The service already fares better than rivals like FoodPanda, Grab Food and (in Thailand) GoJek’s GetFood service because customers order ahead of time from a fixed menu with scheduled delivery times, but there’s room to do better and more.

“The way that we are thinking about it is that we are 18 months ahead of the competition in terms of the cloud kitchen model. Most are only starting to build out clusters of mini kitchens (150sqft) or so without leveraging too much AI in terms of product development, procurement or automation in machinery,” Dahmakan COO and co-founder Jessica Li told TechCrunch.

“What we’ve figured out is how to scale food production for thousands of deliveries while maintaining quality and keeping costs at 30 percent below comparable restaurant prices,” she added, explaining that the company plans to add “new brands and new products” using the satellite hub approach.

A serving of Ayam Penyet, Indonesian smashed chicken

Dahmakan is looking to extend its reach in Southeast Asia, too.

Li said the immediate priority is domestic growth in Malaysia with the service set to expand in Penang and Johor Bharu during the third quarter of this year. Beyond that, she revealed that Dahmakan plans to move into Singapore and Indonesia before the end of 2019.

Food delivery is quickly becoming the new ride-hailing war in Southeast Asia as Grab and Go-Jek, which have raised the most money in the region, pour capital into space. Quite why they are doing so isn’t entirely clear. Food could be a channel for loyalty (if such a thing can exist in incentive-led verticals) and user engagement for ride-hailing or other parts of their so-called “super app” services, but, either way, it is certainly distorting the market by flooding users with promotions.

That’s not necessarily a bad thing for startups like Dahmakan and Grain which have grown in a more sustainable and responsible manner. They benefit from more people using food delivery in general, while they may also become attractive acquisition targets in the future.

Like Grain, Dahmakan puts a focus on healthy eating, which stands in contrast to the typical junk food orders that others in the space serve through their marketplace of restaurants. That certainly helps them stand out among certain audiences, and it’ll be interesting to see what new products and brands that Dahmakan is hatching to capitalize on the flood of attention food delivery is seeing..

This is certainly only the start. A Google-Temasek report on Southeast Asia published last year forecasts that the region’s food delivery market will grow from an estimated $2 million last year to $8 billion in 2025. That four-fold prediction is larger than the growth forecast for ride-hailing, although the latter is larger.

“That’s faster than any other region even China,” Li said.

A report from Google and Temasek predicts huge growth for ride-hailing and food delivery services in Southeast Asia

Ikea invests in Livspace, a one-stop platform for interior design based in India

in Asia/ceo/Companies/Delhi/Economy/Finance/funding/Fundings & Exits/Goldman Sachs/Hyderabad/ikea/India/livspace/omnichannel/Politics/retail/retailers/Startup company/TPG Capital/TPG Growth by

Fresh from raising $70 million last year via big names including Goldman Sachs and TPG Growth, Livspace, an India-based startup that offers a one-stop-shop for interior design, has lured yet another marquee investor: Ikea.

The startup said today it has taken an undisclosed investment from Ingka Investments, the VC arm of Ikea parent Ingka Group, which operates 90 percent of Ikea’s retail footprint. Livspace CEO and co-founder Anuj Srivastava declined to provide a figure for the deal, but he told TechCrunch that the stake involved is a minor one while there is no plan to bolt a larger round on to this investment. Deal Street Asia first reported news of the deal.

“There is strong strategic and commercial potential,” Srivastava, a former Googler who started Livspace in 2015, said of the new investor. “This is an opportunity to create the best possible omnichannel experience for consumers.”

India is a tough place for international retail companies but Ikea has made progress in recent times.

The company opened its first India-based store in Hyderabad last year and, having gained FDI approval to operate retails store, it is planning a substantial expansion with at least 25 new stores in the offing.

Livspace, for those unaware of it, runs a service that is aimed at taking the hassle out of interior design. The company’s platform connects homeowners with designers and the supply chain to go through ideas, chose a plan and implement it. That includes, among other things, 3D virtual renders of a renovation, offline meetings at a Livspace design center and, in some cases, customized furnishings. By bringing all parties together, Livspace claims to offer cost savings to consumers as well as higher rates and more efficient use of time for designers.

That model resonates with Ikea (Ingka), according to Srivastava, who said the company sides began talking following the announcement of Livspace’s Series C round last September.

“We’ve felt the natural synergy always existed,” he said. “This is an extremely strong endorsement of our vision.”

Synergies, indeed, although somewhat frustratingly neither party is saying how they will work together going forward. The obvious suggestion would be that Ikea products become available through Livspace, but Srivastava said the specifics are still to be agreed.

Further down the line, though, he admitted that Ikea’s involvement could fuel an international expansion beyond India. Going overseas is something that the company is openly talked up in the past and, with Ikea’s global footprint of 367 stores across 30 markets, the investment from Ingka could give Livspace a running start in new markets.

That, like the details of the alliance, is something that will come later, however.

“The India business is keeping us really, really busy at this time,” said Srivastava on that possibility.

“We’re engaged in exploratory activities but there’s no immediate plan or timeline,” he added as a tease. A new market launch isn’t likely until something like 12-18 months down the line, the Livspace CEO said.

As for whether this deal might be a precursor to an eventual acquisition, such are the synergies, Srivastava said that possibility isn’t being entertained.

“There is no such intention as of now,” he explained. “We continue to have strong interest from financial investors and continue to operate with the intention to stay independent, there’s now even more belief in our platform approach.”

“There is distinctly an investment outlay involved [with] no long term indication of an M&A opportunity,” he added.

Trump’s Huawei ban ‘wins’ one trade battle, but the US may lose the networking war

in 5g/africa/Asia/Banking/Brazil/China/Companies/Delhi/didi/Didi Chuxing/eastern europe/Europe/huawei/India/latin america/leader/Mexico/Middle East/nubank/Politics/president/south america/StoneCo/TC/Technology/telecommunications/Trump/U.S. government/United States/wireless technology by

While U.S. government officials celebrate what they must consider to be a win in their battle against the low-cost, high-performance networking vendor Huawei and other Chinese hardware manufacturers, the country is at risk of falling seriously behind in the broader, global competition for telecom tech and customers.

It may be a race that the U.S. is willing to concede, but it should be noted that Huawei’s sphere of influence on other shores continues to expand, even as the company’s ability to operate in the U.S. is completely proscribed.

Indeed, Huawei’s executive director and chairman of its investment review board, David Wang, told Bloomberg that, “Our U.S. business is not that big. We have global operations. We still will have stable operations.”

Wang is right… to a point. Huawei derives most of its sales from international markets, according to a 2018 financial report released earlier this year, but it depends heavily on technology from U.S. chip manufacturers for its equipment. Without those supplies, Huawei could find itself in a very difficult spot, indeed.

Huawei’s end of year financials showed its consumer devices business is now its main money-maker, while the majority of its revenue is not derived from the U.S. market

And the U.S. has its reasons for working to stymie Huawei’s efforts to expand the reach of its networking technologies as this excellent Twitter thread from Adam Townsend persuasively argues.

Essentially, China has invested its basically limitless capital into subsidizing next-gen wireless technology and buying up next-generation startups and innovators, all while the U.S. has borne early stage risk. Meanwhile, it is also using unlimited money to poach regulators and industry experts who might advocate against it.

Huawei continues to make inroads in nations across the emerging markets of Latin America, Eastern Europe, Southeast Asia and Africa where demand for connectivity is on the rise. Those are regions where the U.S. has plenty of strategic interests, but America’s ability to sway public opinion or entice governments to act against Chinese networking companies could be severely limited by its inability to offer meaningful incentives or alternatives to them.

Even with the passage of the BUILD Act in October 2018, which was meant to revitalize U.S. foreign aid and investment with a $60 billion package, it’s worth noting that China spent nearly $47 billion in foreign investment in Europe alone in 2018. Chinese direct investments totaled another $49.45 billion into Africa and the Middle East and $18 billion into South America, according to data from the American Enterprise Institute, compiled by Foreign Policy.

Map courtesy of the American Enterprise Institute.

Those investments have turned nations that should be staunch political allies into reluctant or simply rhetorical backers of the U.S. position. Take the relationship between the U.S. and Brazil, for example — a historically strong partnership going back years and one that seemingly only strengthened given the similarities between the two ultraconservative leaders in power in both nations.

However, as Foreign Affairs reports, Brazil is unlikely to accede to President Trump’s demands that Brazil aids in steps to block China’s economic expansion.

“Brazilian business groups have already begun to defend the country’s deep trade ties to China, rightly pointing out that any hope of containing China and once more turning the United States into Brazil’s most important trading partner is little more than unrealistic nostalgia,” writes Foreign Affairs correspondent, Oliver Stuenkel. “Working alongside powerful military generals, these business associations are mobilizing to avoid any delays that sidelining Huawei in the region could cause in getting 5G up and running.”

The whole article is worth reading, but its refrain is that the attempts by U.S. government officials to paint Huawei and Chinese economic inroads as a national security threat in developing economies are largely falling on deaf ears.

It’s not just networking technologies either. As one venture capitalist who invests in Latin America and the U.S. told TechCrunch anonymously: “It’s interesting how the U.S.-China relationships are going to affect what is happening in Latin America. The Chinese are already being more aggressive on the banking side.”

China’s big technology companies are also taking an interest in South America, both as vendors and as investors on the continent.

In an article in Crunchbase, the South American and Chinese-focused venture capitalist, Nathan Lustig underscored the trend. Lustig wrote:

In both the private and the public sectors, China is swiftly increasing its support for Latin America. Chinese expertise in financial technology, as well as its influence in developing markets around the world, is turning China into a strategic partner for startups and entrepreneurs in Latin America. Most of the Chinese investment in Latin America so far is going to Brazil, although this is likely to spread across the region as Chinese investors become better-acquainted with the local tech ecosystems, most likely to Mexico.

Beyond the Didi Chuxing acquisition of Brazil’s 99 in January, Chinese companies began investing heavily in Brazilian fintech startups, specifically Nubank and StoneCo, this year.

Indeed, China has an entire catalog of low-cost technologies and economic packages from state-owned and privately held investors to support their adoption, backing up its position as the leader for tech across a range of applications in emerging markets.

For the U.S. to compete, it will have to look beyond protectionism at its shores to actual commitments to greater economic development abroad. With lower tax revenues coming in and the prospect of giant deficits building up as far as the eye can see, there’s not much room to promote an alternative to Huawei internationally. That could leave the country increasingly isolated and create far more problems as it gets left behind.

Amazon leads $575M investment in Deliveroo

in Amazon/Australia/Companies/Delhi/Deliveroo/Europe/food delivery/France/funding/Fundings & Exits/Germany/India/London/online food ordering/Politics/Singapore/spain/t.rowe price/taiwan/Uber/Uber Eats/united arab emirates/United Kingdom/United States/world wide web by

Amazon is taking a slice of Europe’s food delivery market after the U.S. e-commerce giant led a $575 million investment in Deliveroo .

First reported by Sky yesterday, the Series G round was confirmed in an early UK morning announcement from Deliveroo, which confirmed that existing backers including T. Rowe Price, Fidelity Management and Research Company, and Greenoaks also took part. The deal takes Deliveroo to just over $1.5 billion raised to date. The company was valued at over $2 billion following its previous raise in late 2017, no updated valuation was provided today.

London-based Deliveroo operates in 14 countries, including the U.K, France, Germany and Spain, and — outside of Europe — Singapore, Taiwan, Australia and the UAE. Across those markets, it claims it works with 80,000 restaurants with a fleet of 60,000 delivery people and 2,500 permanent employees.

It isn’t immediately clear how Amazon plans to use its new strategic relationship with Deliveroo — it could, for example, integrate it with Prime membership — but this isn’t the firm’s first dalliance with food delivery. The U.S. firm closed its Amazon Restaurants UK takeout business last year after it struggled to compete with Deliveroo and Uber Eats. The service remains operational in the U.S, however.

“Amazon has been an inspiration to me personally and to the company, and we look forward to working with such a customer-obsessed organization,” said Deliveroo CEO and founder Will Shu in a statement.

Shu said the new money will go towards initiatives that include growing Deliveroo’s London-based engineering team, expanding its reach and focusing on new products, including cloud kitchens that can cook up delivery meals faster and more cost-efficiently.

[Center] Will Shu, Deliveroo CEO and co-founder, on stage at TechCrunch Disrupt London

Tencent’s mixed bag for Q1: record profit despite weakest revenue growth yet

in alibaba/alibaba group/Asia/Baidu/Companies/Delhi/earnings/Facebook/India/iQiyi/ma huateng/mobile game/Netflix/online advertising/Politics/sensor tower/social media/TC/Tencent/WeChat/weixin/YouKu by

Tencent, Asia’s largest tech firm, had a horrific 2018 on account of a country-wide freeze on new game monetization in China, but there’s evidence it has turned the corner.

The company’s new mobile gaming hit Game for Peace has yet to kickstart the company’s recovery from a few weakening quarters, but its booming financial technology division has helped to neutralize the brunt to some degree.

The Chinese social media and gaming titan ended the first quarter of 2019 with its slowest revenue growth since going public to $12.69 billion, a 16 percent increase year-over-year. On the other side, net profit came in at a record $4 billion, beating analyst estimates in the process.

Though most famous for WeChat, video games have fuelled Tencent’s earnings and stock prices for many years. The lucrative segment took a hit during a prolonged licensing freeze last year that prevented Tencent from monetizing a few blockbuster titles like PUBG, and the impact was still felt in the latest quarter.

Online games revenue for Q1 dropped to 28.51 billion yuan ($4.1 billion), compared to 28.78 billion yuan a year before. Still, it is a testament to the global appeal of PUBG and Fortnite that the revenue drop wasn’t precipitous despite the issues in China.

The sluggish period may end soon as Tencent recently secured the official green light to start charging for its PUGB substitute Game for Peace, a less violent version than its predecessor. The new game grossed $14 million within the first three days of release, beating the $4 million Fortnite — the widely-heralded global smash hit — pocketed in the same duration, according to data from Sensor Tower.

On top of that, Tencent said it is introducing ‘season passes’ — using the same monetization technique as PUBG and Fortnite — to popular games Cross Fire Mobile, Honour of Kings and QQ Speed Mobile which could also boost monetization in China.

Fintech and enterprise-facing services made up Tencent’s second-largest revenue bucket with 21.79 billion yuan ($3.16 billion), a 44 percent growth year-over-year. In recent quarters, the firm began to single out its earnings for its booming fintech unit that contains its popular payments service WeChat Pay.

Unlike Facebook, Tencent hasn’t aggressively monetized its social media empire for advertising inventory until recently. Online ad revenues grew 25 percent to 13.38 billion yuan ($1.94 billion), accounting for 15.7 percent of total revenues.

That’s thanks to increased ad revenues from Weixin. All told, WeChat and its Chinese version Weixin crossed the 1.1 billion monthly active user benchmark. Its 20-year-old QQ, a legacy chatting app from the Chinese PC era, continued to grow and reached 823 MAUs.

Tencent’s Netflix -style video streaming service also contributed to increased ad earnings. Tencent Video, which has poured vast sums of money to license content in a bid to outrace Baidu’s iQiyi and Alibaba’s Youku, reached 89 million subscribers in the season.

1 2 3 9
Go to Top