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Oto snags $5.3M seed to use AI to understand voice intonation
Oto, a startup spun off from research at SRI International to help customer service operations understand voice intonation, announced a $5.3 million seed round today.
Participants in the round included Firstminute Capital, Fusion Fund, Interlace Ventures, SAP.iO and SRI International . The total includes a previous $1 million seed round, according to the company.
Teo Borschberg, co-founder and CEO at Oto, says the company launched out of SRI International, the same company where Apple’s Siri technology was originally developed. It has been developing intonation data, based originally on SRI research, to help customer service operations respond better to caller’s emotions. The goal is to use this area of artificial intelligence to improve interactions between customer service reps (CSRs) and customers in real time.
As part of the research phase, the company compiled a database of 100,000 utterances from 3,000 speakers, culled from two million sales conversations. From this data, it has built a couple of tools to help customer service operations automate intonation understanding.
The first is a live coaching tool. It’s difficult to have management monitor every call, so only a small percentage gets monitored. With Oto, CSRs can get real-time coaching on every call to raise their energy or to calm a frustrated customer before a problem escalates. “In real time, we’re able to guide the agents on how they sound, how energetic they are, and we can nudge and push them to be more energetic,” Borschberg explained.
He says this has three main advantages: more engaged agents, higher sales conversion rates and better satisfaction scores and cost reduction.
The other product measures the quality of a customer experience and gives a score at the end of each call to help the CSR (and their managers) understand how well they did, simply based on intonation. It displays the score in a dashboard. “We’re building a universal understanding of satisfaction from intonation, where we can learn acoustic signatures that are positive, neutral, negative,” Borschberg said.
He sees a huge market opportunity here, pointing to Qualtrics, which sold to SAP last year for $8 billion. He believes that surveying people is just a part of the story. You can build a better customer experience when you understand intonation of just how well that experience is going, and you put it on a scale so that it makes it easy to understand just how well or how poorly you are doing.
The company has 20 employees today, with offices in New York, Zurich and Lisbon. It has seven customers working with the product so far, but it is still early days.
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Skyryse shows off end-to-end autonomous flight technology with helicopter demonstration
Skyryse is a three-year-old transportation startup that is approaching the future of aviation from a different angle when compared to most. You often see startups building new kinds of aircraft, with electric powertrains, multiple rotors for vertical take-off and landing, and more: Skyryse thinks the smarter approach is to start at a more fundamental — and comprehensive — level, building an autonomous technology “stack” that can work with existing flight and safety-certified aircraft.
The Skyryse model, as explained to me by CEO and founder Mark Groden, is all about broad applicability, reliability, redundancy and safety. The startup’s main product, which it is unveiling today, along with the demonstration below of the tech in action on a Robinson R-44 helicopter, is the “Skyryse Flight Stack,” which includes simplified flight controls to either fully automate flight, or provide assistance to human pilots; flight control automation that can still operate safely even in case of failure; safe operational limit monitoring and intervention; connected, intelligent helipads that provide monitoring and alerts; and an air traffic control component designed to work with existing FAA systems.
Skyryse and its approach comes from Groden’s belief that city infrastructure has developed to the point where solutions about managing movement within and around them isn’t addressable simply by adjusting the grid or changing the flow of people and things along the paths of the network; instead, he thinks what’s needed is a much more basic perception shift about the potential solutions available.
“At a fundamental level, I realized at a very young age that the transportation system that’s built on the infrastructure that cars follow was no longer serving us,” explained Groden. “Rather the other way around, we are now serving our transportation systems — for example, where I live in Los Angeles, and many of the people that work at Skyryse, we choose where we live based upon the way the transportation system may or may not be able to get us to the places that we need to go.”
“The reality is that it just hasn’t evolved in roughly 100 years,” he added. “We’re trying to push more and more throughput through existing transportation infrastructure. And the only way to solve this problem is to get away from infrastructure — any infrastructure-dependent approach is going to have some fixed throughput.”
Groden’s reasoning isn’t that far off from that of others pursuing autonomous aerial transportation technology. Kitty Hawk and Google self-driving car project founder Sebastian Thrun, for instance, has often talked about how it’s actually likely more easily achievable to tackle autonomy in the air than on the ground, for similar reasons. But Skyryse’s approach differs from others tackling this problem because they’s intent on building the full system, not just the flying car.
“We want to deliver the fastest and safest transportation system to the people and communities that we serve,” Groden says. “We think automation is really critical to making it affordable and ultimately accessible to everyone — but more than automation is necessary. This is like a metaphorical train system, and so you need the tracks, you need the switches, you need the communications architecture, you need all these other things going on, in order to allow the ‘locomotives,’ to roll down the ‘track’ and be automated to whatever level that it is. That full-stack technology system to support this transportation system is what we’re focused on.”
To that end, Skyryse has a team made up of talented transportation experts and engineers with history at companies including Airbus, Boeing, Ford, JetBlue, Moog, SpaceX and more. The startup’s CTO is Dr. Gonzalo Rey, who previously was CTO at Moog, where he oversaw the development of flight control actuation systems for the Boeing 787 and Airbus 350. Skyryse COO Brian Coulter previously co-founded both JetSuite Air and JetBlue, which adds into the mix experience operating in the airline industry.
Today, the company is demonstrating that its technology can already work with existing aircraft and air traffic management systems — that’s a promising achievement that shows more in terms of real-world feasibility than many of the new vehicle technology demonstrations you see in this industry. Skyryse is also revealing that it now has $38 million in total funding, including an additional $13 million on top of the Series A it announced last August. This round includes participation by Ford Motor Company Chairman Bill Ford, a sign that Groden says shows confidence the startup’s approach has the potential to upend traditional transportation models.
Car sharing, ride hailing and now on-demand electric bike and scooter services have all made claims around being able to alleviate congestion and traffic within cities, but so far none has really helped reverse the problem. Autonomous air transportation might be the solution that actually makes a difference, and Skyryse might be the startup that helps make that possible with its full-stack approach.
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Pepper, founded by five Snap alums, has raised $5.6 million to help startups analyze their spend
For years, startups have been encouraged to grow at all costs. That hasn’t always turned out so well, and founders are feeling pressure for the first time in a long time to do a better job of keeping track of their spending — and their return on investment.
Enter Pepper, an LA-based company that has sealed up $5.6 million in seed funding from Upfront Ventures, Lerer Hippeau and Manta Ray Ventures to help direct-to-consumer startups, along with other digitally native businesses, do just that.
It says it can help them better predict and understand how every investment they make is impacting the future health of their business.
Started by a clutch of Snap alums — five of the company’s six founders logged time at the social media company — they say that marketing spend will be a big part of they’re looking at, but Pepper will also analyze other areas where spending could be smarter and more effective, from salaries to office space to travel and entertainment. All “functionally impact a business’s all-in customer acquisition costs,” says Pepper’s CEO, James Borow.
What Pepper will offer specifically, or how it will differ from other financial analytics platforms, is right now impossible to say. Borrow — who previously led Snap’s revenue programs and, before that, sold a social ad platform for $50 million — isn’t ready to share many details about how Pepper works. What he does say is that it will remain free when it launches in beta in the first quarter (you can sign up for a waitlist here), that privacy was designed into “its core” and that it will be rolling out premium paid-for features as 2020 gets underway.
It’s also worth noting that Pepper came together thanks in part to another company that TechCrunch featured earlier this year called Forge Platform — a company that was developing a new toolkit for distributed applications, was advised by Borow and that was founded by his former Snap colleagues Chris Lorenz and Geoffrey Anderson.
As Borow tells it, he knew the two were working on complex analytics tools, and when he began working on the idea for Pepper, he recognized that he’d need a strong analytics team, so they joined forces.
They also combined funding. Indeed, $1 million of the Pepper’s $5.6 million in seed funding is money that Forge had raised from Upfront and Manta Ray, both of which have more recently plugged more money into Pepper.
Borow is also quick to note that beyond the Snap employees who’ve launched the company, there are numerous former and current Snap employees who’ve either invested in or are advising Pepper. Among these is Imran Khan, Snap’s former chief strategy officer; Jeff Lucas, its former head of global sales; Omar Hasan, its former global head of sales finance; Dante DiCicco, its current head of international expansion; and Cristina Grace Borow, who formerly focused on brand partnerships for Snap and is also James Borow’s wife.
“It’s very Snap heavy,” says Borow, because people are “bullish” about what Borow and his co-founders built across their different disciplines at the company.
Snap he adds, has “very deep talent pool.”
Others of Pepper’s co-founders from Snap include its general counsel, Sean Friedland, who previously led Snap’s monetization legal efforts; and Daniel Druger, who previously headed up Snap’s revenue partnerships team (general counsel). Meanwhile, before setting off on their own to create Forge Platform, Lorenz and Anderson had worked as a product lead and an engineer lead, respectively, at Snap.
Pictured above, left to right: Chris Lorenz, Daniel Druger, Geoff Anderson, Sean Friedland, Soraya Belhadj Aissa, James Borow and Spencer Anderson
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San Diego’s Trust & Will raises $6 million for online estate planning
Estate planning in the U.S. is a $180 billion industry and, unlike many of the other areas in the multitrillion-dollar financial services market, it’s one that has yet to see a slew of technology companies come in to try to improve efficiencies.
One notable exception is Trust & Will, the San Diego-based startup that has announced a new $6 million investment to expand sales and marketing, product development and partnerships.
The company joins services like Quicken’s WillMaker and startups like Everplans as relatively new entrants into the technology-enabled estate planning business.
Timing seems good for the company and its other competitors. The $180 billion estate planning business is expected to surge as millennials start having children and begin thinking about their wills. It joins other staid businesses like life insurance and home insurance as a category that’s traditionally been overlooked by entrepreneurs who now see increasingly digital customers make demands of industry participants.
Right now, half of all adults in the U.S. have no will and millions more have out-of-date estate plans, according to Trust & Will. In addition, 45 million parents with minor children have no form of estate plan.
Since its launch in April, Trust & Will has had 60,000 members enroll in the company’s platform; those enrollments represent $15.1 billion in total assets, $2.7 billion in reported life insurance policies, $137 million in charitable commitments and 88% holding real estate assets.
The company has a tiered subscription model offering a $399-$499 service plus an annual subscription fee for the creation of a trust-based estate plan that the company says can avoid probate for the protection and transfer of assets; a $69-$129 level, which includes plans for surviving beneficiaries and asset distribution; and a $39-$49 plan for parents with minor children who aren’t ready to complete a will.
While customers may be able to draft a will themselves and just store it in a safe place, some people will likely gravitate to a digital will. At least, that’s what Link Ventures, Revolution’s Rise of the Rest Seed Fund, Western Technology Investment, Techstars Ventures, Luma Launch and Halogen Ventures are hoping for with their commitment to the company’s Series A financing.
In January, the company closed its first electronic will with help from its industry partner, Notarize. Co-founded by serial entrepreneur Cody Barbo, former product ad marketing strategist Daniel Goldstein and product designer Brian Lamb, the company now counts 11 people on staff.
“Trust & Will is another example of how digital services are disrupting traditional industries by offering a convenient and lower-cost estate planning solution that helps consumers protect their valuable assets and loved ones,” said Rob Chaplinsky, a managing director at Trust & Will’s series A lead investor, Link Ventures. “We have been following this category for quite some time and feel that Trust & Will’s product and rapid market traction are second to none. We look forward to leveraging our big data assets to help them scale.”
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Anyscale, from the creators of the Ray distributed computing project, launches with $20.6M led by a16z
Open source has become a critical building block of modern software, and today a new startup is coming out of stealth to capitalise on one of the newer frontiers in open source: using it to build and manage distributed application environments, an approach being used increasingly to handle large computing projects, such as those involving artificial intelligence or scientific or other complex calculations.
Anyscale, a startup founded by the same team that built the Project Ray open-source distributed programming framework out of UC Berkeley — Robert Nishihara, Philipp Moritz and Ion Stoica, and Berkeley professor Michael I. Jordan — has raised $20.6 million in a Series A round of funding led by Andreessen Horowitz, with participation also from NEA, Intel Capital, Ant Financial, Amplify Partners, 11.2 Capital and The House Fund.
The company plans to use the money to build out its first commercial products — details of which are still being kept under wraps but will more generally include the ability to easily scale out a computing project from one laptop to a cluster of machines; and a group of libraries and applications to manage projects. These are expected to launch next year.
“Right now we are focused on making Ray a standard for building applications,” said Stoica in an interview. “The company will build tools and a runtime platform for Ray. So, if you want to run a Ray application securely and with high performance then you will use our product.”
The funding is partly strategic: Intel is one of the big companies that has been using Ray for its own computing projects, alongside Amazon, Microsoft and Ant Financial.
“Intel IT has been leveraging Ray to scale Python workloads with minimal code modifications,” said Moty Fania, principal engineer and chief technology officer for Intel IT’s Enterprise and Platform Group, in a statement. “With the implementation into Intel’s manufacturing and testing processes, we have found that Ray helps increase the speed and scale of our hyperparameter selection techniques and auto modeling processes used for creating personalized chip tests. For us, this has resulted in reduced costs, additional capacity and improved quality.”
With an impressive user list like this for the free-to-use Ray, you might ask yourself, what is the purpose of Anyscale? As Stoica and Nishihara explained, the idea will be to create simpler and easier ways to implement Ray, to make it usable whether you’re one of the Amazons of the world, or a more modest, and possibly less tech-centric operation.
“We see that this will be valuable mostly for companies who do not have engineering experts,” Stoica said.
The problem that Anyscale is solving is a central one to the future of large-scale, involved computing projects: there are an increasing array of problems that are being tackled with computing solutions, but as the complexity of the work involved increases, there is a limit to how much work a single machine (even a big one) can handle. (Indeed, Anyscale cites IDC figures estimating that the amount of data created and copied annually will reach 175 zettabytes by 2025.)
While one day there may be quantum-computing machines that can run efficiently and at scale to address these kinds of tasks, today this isn’t a realistic option, and so distributed computing has emerged as a solution.
Ray was devised as a standard to use to implement distributed computing environments, but on its own it’s too technical for the uninitiated to use.
“Imagine you’re a biologist,” added Nishihara. “You can write a simple program and run it at a large scale, but to do that successfully you need not only to be a biology expert but a computing expert. That’s just way too high a barrier.”
The people behind Anyscale (and Ray) have a long and very credible list of other work behind them that speaks to the opportunities that are being spotted here. Stoica, for example, was also the co-founder of Databricks, Conviva and one of the original developers of Apache Spark.
“I worked on Databricks with Ion and that’s how it started,” Andreessen Horowitz co-founder Ben Horowitz said in an interview. He added that the firm has been a regular investor into projects coming out of UC Berkeley. Ray, and more specifically Anyscale, is notable for its relevance to today’s computing needs.
“With Ray it was a very attractive project because of the open-source metrics but also because of the issue it addresses,” he said.
“We’ve been grappling with Moore’s Law being over, but more interestingly, it’s inadequate for things like artificial intelligence applications,” where increasing computing power is needed that outstrips what any single machine can do. “You have to be able to deal with distributed computing, but the problem for everyone but Google is that distributed computing is hard, so we have been looking for a solution.”
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Automated web app testing startup ProdPerfect raises $13M Series A led by Anthos Capital
This morning ProdPerfect, a technology startup focused on web application testing, announced a $13 million Series A led by Anthos Capital. Anthos is perhaps best known for investing in Honey, a startup which recently sold to PayPal for several billion dollars.
ProdPerfect, a remote-focused company, closed a $2.6 million seed round earlier in 2019. Fika Ventures and Eniac Ventures took part in the Series A after also putting capital into the company in the company’s preceding seed investment. The startup has now raised $15.7 million across three rounds, according to Crunchbase.
What does ProdPerfect’s product do regarding testing? And what is it going to do with all its new money? TechCrunch chatted with Dan Widing, ProdPerfect’s founder and CEO, to answer those questions, and learn how quickly the company is growing.
Testing
ProdPerfect automates end-to-end testing for web developers. According to Widing, the product “followed some of the lessons of the product analytics industry to build a tool that lets us quantitatively understand how our customers’ live users traverse the customers’ web application.” The company estimates that “many companies are compelled to put around 20% of their engineering budget into staffing a QA engineering department,” spend that it reckons it can help cut.
The web is a big place, with lots of pages and apps and more built and maintained by a global army of developers. Those end products require testing to find errors and bugs that could cause havoc for end users and companies alike. You can test well, or poorly. But according to Widing, the “gold standard of web testing is either directly or indirectly controlling a browser to traverse the site like a user does,” also known as “end-to-end testing.”
The product seems to have found early market traction. According to Widing, 18 months after landing its first handful of customers, his company has reached the 50-customer mark, generating “around $2 million” in annual recurring revenue (ARR), a standard revenue metric for modern software (SaaS) companies.
What’s next
When TechCrunch last covered ProdPerfect, we called it a “Boston-based startup focused on automating QA testing for web apps.” All of that is still true aside from the location. According to its CEO, ProdPerfect transferred its headquarters from Boston to San Francisco earlier in 2019. However, Widing said, ProdPerfect doesn’t focus on the move much, as it views itself as “a remote-first company.”
But no matter where its nexus sits, the company plans on investing heavily in sales and marketing spend (traditional for a Series A-level company looking to quickly expand revenue), and invest in “product development and customer service,” according to Widing. So, tech investments, go-to-market spend and a modest war chest for the future are the game plan for ProdPerfect’s new money. (Widing noted in an email to TechCrunch that “it helps to have a good stockpile” in times of global macro uncertainty, which is a smart perspective.)
The firm ARR figure that ProdPerfect provided will help the market vet its progress over the next few years. The company will probably aim for more than a doubling in size next year, more likely shooting for a tripling. So, how close to $6 million ARR that ProdPerfect can reach in 2020 will be fun to watch. If the firm manages that sort of growth, expect it to raise again to keep investing in its product and go-to-market motion.
Photo by Ilya Pavlov on Unsplash
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HackerRank acquires Mimir, an online platform for computer science courses
HackerRank, a popular platform for practicing and hosting online coding interviews, today announced that it has acquired Mimir, a cloud-based service that provides tools for teaching computer science courses. Mimir, which is HackerRank’s first acquisition, is currently in use by a number of universities, including UCLA, Purdue, Oregon State and Michigan State, as well as by corporations like Google.
HackerRank says it will continue to support Mimir’s classroom product as a standalone product for the time being. By Q2 2020, the two companies expect to have an initial release of a combined product offering.
“HackerRank will work closely with professors, students and customers to help student developers learn, improve and assess their skills from coursework to career,” Vivek Ravisankar, the co-founder and CEO of HackerRank, told me. “Ultimately, we envision a combined product that allows students to obtain both a formal academic education as well as practical skills assessments which can help build a strong and successful career.”
The two companies did not disclose the financial details of the acquisition, but Indiana-based Mimir previously raised a total of $2.5 million and had eight employees at the time of the acquisition, including the three-person executive team.
As the companies stress, both focus on allowing developers for a variety of backgrounds to successfully vie for jobs, no matter where they went to school. HackerRank argues that the combination of its existing services and Mimir’s classroom tools will “provide computer science classrooms with the most comprehensive developer assessment platform on the market; allowing students to better prepare for real-world programming and universities to more accurately evaluate student progress.” The idea here clearly is to expand HackerRank’s reach into the world of academia and expand the talent pool for its customers who are looking to recruit from its users, but Ravisankar also noted that he hopes the combined strengths of HackerRank and Mimir will allow students to combine their academic learning with market learning. “This will ensure that they’re equipped with the skills that their future workplaces require,” he said.
Mimir isn’t so much a tool for massive online courses but instead focuses on helping teachers and students manage programming projects and assignments. To do so, it offers a full online IDE, as well as support for Jupyter notebooks, as well as more traditional teaching tools for creating quizzes and assignments. The built-in IDE supports 40 programming languages, including Python, Java and C. There’s also a tool for detecting plagiarism.
Currently, about 15,000 to 20,000 students are using Mimir’s platform for their coursework. That’s dwarfed by the 7 million developers who have signed up for HackerRank so far, but not all of those are active, while, almost by default, all of Mimir’s users will be on the job market sooner or later.
“Mimir has made a name for itself by becoming a secret weapon for computer science programs — Mimir equips them with the tools to make a real difference in the education of developers,” said Prahasith Veluvolu, co-founder and CEO of Mimir. “Working with HackerRank is a natural evolution of our mission, allowing our customers to scale their programs while simultaneously giving students an unmatched classroom experience to prepare them for the careers of tomorrow.”
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Satori Cyber raises $5.25M to help businesses protect their data flows
The amount of data that most companies now store — and the places they store it — continues to increase rapidly. With that, the risk of the wrong people managing to get access to this data also increases, so it’s no surprise that we’re now seeing a number of startups that focus on protecting this data and how it flows between clouds and on-premises servers. Satori Cyber, which focuses on data protecting and governance, today announced that it has raised a $5.25 million seed round led by YL Ventures.
“We believe in the transformative power of data to drive innovation and competitive advantage for businesses,” the company says. “We are also aware of the security, privacy and operational challenges data-driven organizations face in their journey to enable broad and optimized data access for their teams, partners and customers. This is especially true for companies leveraging cloud data technologies.”
Satori is officially coming out of stealth mode today and launching its first product, the Satori Cyber Secure Data Access Cloud. This service provides enterprises with the tools to provide access controls for their data, but maybe just as importantly, it also offers these companies and their security teams visibility into their data flows across cloud and hybrid environments. The company argues that data is “a moving target” because it’s often hard to know how exactly it moves between services and who actually has access to it. With most companies now splitting their data between lots of different data stores, that problem only becomes more prevalent over time and continuous visibility becomes harder to come by.
“Until now, security teams have relied on a combination of highly segregated and restrictive data access and one-off technology-specific access controls within each data store, which has only slowed enterprises down,” said Satori Cyber CEO and co-founder Eldad Chai. “The Satori Cyber platform streamlines this process, accelerates data access and provides a holistic view across all organizational data flows, data stores and access, as well as granular access controls, to accelerate an organization’s data strategy without those constraints.”
Both co-founders (Chai and CTO Yoav Cohen) previously spent nine years building security solutions at Imperva and Incapsula (which acquired Imperva in 2014). Based on this experience, they understood that onboarding had to be as easy as possible and that operations would have to be transparent to the users. “We built Satori’s Secure Data Access Cloud with that in mind, and have designed the onboarding process to be just as quick, easy and painless. On-boarding Satori involves a simple host name change and does not require any changes in how your organizational data is accessed or used,” they explain.
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Week in Review: Pet startups will be the death of Silicon Valley
Hey everyone. Thank you for welcoming me into your inboxes yet again.
I’m in Berlin. where TechCrunch just pulled off another great Disrupt event — we’ve got a lot of great Europe-focused startup content on the site, so get to scrolling if your interest is piqued.
If you’re reading this on the TechCrunch site, you can get this in your inbox here, and follow my tweets here.
The big story
Just as Pets.com symbolized the ridiculousness that came to frame the tech industry preceding the Dot-com bubble burst at the start of the century, dog-walking startup Wag might symbolize that SoftBank’s earthquaking investment overexposure may extend far beyond a one-time WeWork mistake.
This week, The WSJ reported that SoftBank had tossed in the towel on Wag, selling off its massive “nearly 50% stake” in the startup. The report states that SoftBank sold its stake back to the startup at a valuation far below its previous $650 million value. SoftBank is walking away from its two board seats in the process.
Wag will be laying off “a significant amount of the remainder of its workforce,” according to the report.
High-ambition startups stumble all the time, but SoftBank’s money bag-swinging swagger has left a handful of startups with dollar signs in their eyes and the desire to grow at a pace that they never dreamed of. When LA-based Wag closed its $300 million raise from SoftBank at the beginning of 2018, plenty of people wondered why on earth a dog-walking startup needed that kind of money.
Shift forward to the end of 2019, and startups that have relied on connecting contractor labor with phone-wielding consumers haven’t proven to be as capable in shifting into profitability, with Wag seeming to be yet another example.
Needless to say, Pets.com and Wag really don’t hold much comparison when it comes to the broader impact. Pets.com was well-known largely because of its hilarious marketing overextension; Wag’s stumblings are far more impactful, especially as they relate to the reputation of its Japanese benefactor, which has significantly reshaped the venture capital market in Silicon Valley and around the world.
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On to the rest of the week’s news.
Trends of the week
Here are a few big news items from big companies, with green links to all the sweet, sweet added context:
- Apple revamps parental controls on iOS
Apple is giving new functionality to its parental control tools for iOS. The new update in iOS 13.3 lets parents set limits over who their kids can talk to and text with during certain hours of the day. - Away CEO steps down
One of the weirder sagas of the week was Away CEO Steph Korey’s stepping down from her role at the D2C luggage company. The step-down followed a long investigation in The Verge, which basically chronicled how awful life was on Away’s customer service team, which painted a pretty ugly portrait of Korey’s leadership style. It was a rough article, but after Korey’s apology acknowledged that she had made some mistakes and would be trying to fix her management style, most people assumed the saga had wrapped. She stepped down this week following what was reported to be board pressure to do so; turns out they had been wanting to replace Korey and the negative press was the excuse they needed.
GAFA Gaffes
How did the top tech companies screw up this week? This clearly needs its own section, in order of badness:
- An iOS bug is locking up iPhones:
[An iOS bug in AirDrop lets anyone temporarily lockup nearby iPhones]
Image: Bryce Durbin/TechCrunch
Extra Crunch
Our premium subscription business had another great week of content. Our good friend Alex Wilhelm (who hired me as an intern four years ago!) is back at TechCrunch and has fired up a new series on Extra Crunch. Here’s his first post on the new hot club to join:
The $100M ARR Club
…Firms with valuations that their revenues can’t back are in similar straits. In the post-WeWork era, some unicorns are starting to look a bit long in the tooth. I suspect that the companies in most danger are those with slim revenues (compared to their valuations), poor revenue quality (compared to software startups) or both.
That said, there is a club of private companies that are really something, namely private ones that have managed to reach the $100 million annual recurring revenue (ARR) threshold. It’s not a large group, as startups that tend to cross the $100 million ARR mark are well on the path to going public…
Sign up for more newsletters, including my colleague Darrell Etherington’s new space-focused newsletter Max Q, here.
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Indian B2B food tech startup HungerBox raises $12M from Paytm and others
HungerBox, an Indian food tech startup that has courted 10 of the 11 largest companies in the country to use its services, today announced it has raised $12 million from Paytm and others as it looks to sign clients in Southeast Asia.
The three-year-old startup’s new financing round, a Series C, was funded by a consortium of Indian and international investors, including payments firm Paytm and NPTK, an Asian VC fund that invests in emerging firms. Existing investors Sabre Partners and Neoplux also participated in the round, which pushes the Bangalore-based startup’s to-date raise to $16.5 million.
HungerBox offers management services to companies and institutions to improve and run their in-house cafeterias and canteens. HungerBox also enables its clients to connect with food partners through an app and get real-time updates of their order.
The startup, which also provides these firms with a point-of-sale machine, helps them get better insight into the quality of food being catered to their employees, and enables scheduled delivery and tracking of orders to address the long queues, said Sandipan Mitra, co-founder and chief executive of HungerBox, in an interview with TechCrunch.
“We all talk about the food delivery to consumers, but not many are looking to improve the quality of food and how it is being catered to tens of millions of employees in the country each day,” he said. “It’s a challenge that has not been addressed well.”
It turns out, when a startup finally looked into the space, many quickly jumped to appreciate it. HungerBox has amassed more than 126 large businesses and institutions — with more than 100,000 workforce each, across 18 Indian cities, said Mitra. Food delivery startups Swiggy and Zomato have started to explore this space, too, in recent quarters.
HungerBox is processing 560,000 orders each day, a figure that is growing 10% every month, claimed Mitra. The startup’s solutions are today employed at more than 535 cafeterias for its clients that work in IT / technology, retail, healthcare, aviation, education, financial services and manufacturing, he said. He declined to reveal the name of the clients, citing confidential agreements.
Annual food sales on the HungerBox platform have exceeded $100 million, he said.
The startup, which employs 1,500 people, will use the fresh capital to fuel its expansion in 10 additional Indian cities and to markets in Southeast Asia, said Mitra.
In a statement, Madhur Deora, president of Paytm, said HungerBox has enabled Paytm to add new use cases for the company’s payments business and digitization of offline transactions.
“HungerBox is the market leader in the institutional food tech space and we will partner closely with them and bring the benefits of Paytm’s ecosystem to HungerBox,” he said.
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