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Hong Kong’s food e-commerce startup DayDayCook raises $20 million

The food blogging community in China is booming, and many creators have been cashing in big time by touting food products to loyal followers, a business model that has lured investors.

This week, Hong Kong-based startup DayDayCook announced that it has raised $20 million to expand its multifunctional food platform, whose users mainly come from mainland China. The company, founded by banker-turned food blogger and entrepreneur Norma Chu, offers a bit of everything: an app featuring recipes and food videos, cooking classes in upscale malls and a product line of its own branded food products sold online, which makes up 80% of its revenues.

London-based Talis Capital led the funding round, with participation from Hong Kong’s Ironfire Ventures. The eight-year-old startup has raised a total of $65 million to date from investors, including Alibaba Entrepreneurs Fund, the e-commerce giant’s not-for-profit effort to support young entrepreneurs in Hong Kong and Taiwan.

The selling point of DayDayCook products is their carefully crafted brand stories. Users first consume the content put out by the startup across social channels, and then they become customers of DayDayCook’s ready to eat or cook food packs, kitchenware and more.

“We really believe in the content-to-commerce model,” said Matus Maar, managing partner at Talis Capital .

He went on to explain that as content creation becomes easier thanks to an abundance of mobile editing tools, “even one person in rural China can make amazing content that creates a huge following.” He was referring to China’s reclusive influencer Li Ziqi who rose to stardom by posting videos on YouTube and domestic sites about her rural self-sufficiency.

“That goes hand in hand with people not wanting to see content that is super polished or comes out of mega agencies. People on the internet want to see authenticity. They want to see people doing real things,” suggested the investor.

While there is a legion of food influencers out there, not all are equipped to build a money-making venture. Matus believes DayDayCook has all the pieces in place: suppliers, distribution, logistics and shipment. By developing its private label products, the startup is also able to sell at higher margins.

Chu said her company has amassed 2.3 million registered users on its own app. Its paid users, ordering through e-commerce channels like JD.com and Alibaba’s Tmall, grew 12 times year-over-year to 2.2 million.

DayDayCook’s content has a wider reach, garnering 60 million followers across microblogging platform Weibo, TikTok’s Chinese edition Douyin, Tencent’s video site and more. That may not seem like a lot in the influencer era — Li Ziqi herself has nearly 12 million subscribers just on YouTube.

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Canalys: Google is top cloud infrastructure provider for online retailers

While Google Cloud Platform has shown some momentum in the last year, it remains a distant third behind Amazon and Microsoft in the cloud infrastructure market. But Google got some good news from Canalys today when the firm reported that GCP is the No. 1 cloud platform provider for retailers.

Canalys didn’t provide specific numbers, but it did set overall market positions in the retail sector, with Microsoft coming in second, Amazon third, followed by Alibaba and IBM in fourth and fifth respectively.

Canalys cloud infrastructure retail segment market share numbers

Image Credits: Canalys

It’s probably not a coincidence that Google went after retail. Many retailers don’t want to put their cloud presence onto AWS, as Amazon.com competes directly with these retailers. Brent Leary, founder and principal analyst at CRM Essentials, says that as such, the news doesn’t really surprise him.

“Retailers have to compete with Amazon, and I’m guessing the last thing they want to do is use AWS and help Amazon fund all their new initiatives and experiments that in some cases will be used against them,” Leary told TechCrunch. Further, he said that many retailers would also prefer to keep their customer data off of Amazon’s services.

Canalys Senior Director Alex Smith says that this Amazon effect combined with the pandemic and other technological factors has been working in Google’s favor, at least in the retail sector. “Now more than ever, retailers need a digital strategy to win in an omnichannel world, especially with Amazon’s online dominance. Digital is applied everywhere from customer experience to cost optimization, and the overall technological capability of a retailer is what will define its success,” he said.

COVID-19 has forced many retailers to close stores for extended periods of time, and when you combine that with people being more reluctant to go inside stores when they do open, retailers have had to take a crash course in e-commerce if they didn’t have a significant online presence already.

Canalys points out that Google has lured customers with its advertising and search capabilities beyond just pure infrastructure offerings, taking advantage of its other strengths to grow the market segment.

Recognizing this, Google has been making a big retail push, including a big partnership with Salesforce and specific products announced at Google Cloud Next last year. As we wrote at the time of the retail offering:

The company offers eCommerce Hosting, designed specifically for online retailers, and it is offering a special premium program, so retailers get “white glove treatment with technical architecture reviews and peak season operations support…” according to the company. In other words, it wants to help these companies avoid disastrous, money-losing results when a site goes down due to demand.

What’s more, Canalys reports that Google Cloud has also been hiring aggressively and forming partnerships with big systems integrators to help grow the retail business. Retail customers include Home Depot, Kohl’s, Costco and Best Buy.

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DST Global pumps $35 million into Asian e-grocer Weee!

Coronavirus stay-home orders have sparked an unprecedented demand for grocery delivery around the world. Now investors are clamoring to bet on promising players in the field.

That includes DST Global, the investment firm helmed by Israeli-Russian billionaire Yuri Milner. Most recently, it poured $35 million into Weee!, a California-based startup that from its own warehouses delivers to major cities across the U.S. Asian groceries like fresh kimchi and Japanese desserts. The funding boosted the five-year-old startup’s total raise since launch to more than $100 million.

Weee! declined to share its post-money valuation, but the figure likely surpasses $500 million, given it’s widely known that DST Global does not generally back companies whose valuation is less than $500 million.

Online grocery is a capital-intensive business with thin profit margins, so it’s unsurprising to see many contenders — in both China and the U.S. — operating in the red. Against the odds, Weee! turned profitable earlier this year and went cash-flow positive.

That means the startup was in no rush to fundraise, probably giving it more bargaining power in negotiating terms with a storied investor like DST Global, whose portfolio spans Spotify, Twitter, Airbnb, Slack, Didi and Gojek, just to name a few.

Weee! certainly matches DST Global’s investment target as a high-growth startup. In June, the company recorded 700% year-over-year growth in revenue and was on course to generate revenue in the lower hundreds of millions of dollars in 2020, it told TechCrunch at the time.

Since the U.S. began winding down lockdowns and people returned to supermarkets, some grocery delivery services have seen their revenue growth slow. Weee!, however, is currently growing 15-20% more than its March peak. CEO Larry Liu explained the sustained boom stems from the service’s product differentiation: Asian specialties that one can’t even find in Chinatowns.

“People don’t want to pay extra if [an online grocery] only provides convenient delivery but no product differentiation,” said Han Shen, founding partner of iFly.vc, a California-based fund that backed Weee! in its Series A round.

In addition, Weee! tries to streamline every step of its operations, from product procurement, warehouse management, staff allocation, through to door-to-door delivery. The result is zero food waste thanks to fast inventory turnover.

“There is no secret tactic that we can’t talk about, nothing more than achieving efficiency throughout the entire process,” Shen observed.

In the meantime, Weee! works to keep prices down by cultivating direct relationships with suppliers like local farms and opting for next-day delivery rather than the more costly 30-minute standard expected in China, where he grew up. Earlier this year, former chief operations officer of Netflix Tom Dillon joined the board to help beef up Weee!’s operational efficiency.

With the new proceeds, the Asian e-grocer hopes to hire new talents and expand its delivery service from eight key regions to 13-14 cities across the U.S. by the end of this year.

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Tencent wants to merge China’s esports archrivals Douyu and Huya

The war between two of China’s largest esports companies may soon come to a truce at the will of their investor, Tencent.

Tencent, the world’s biggest games publisher, announced late Monday a proposal to consolidate Douyu and Huya, the competing live-streaming sites focused on video games. Rather than paying in cash, the deal will see the pair enter a stock-for-stock merger.

The proposal is non-binding, but Tencent has paved the way for it to go through. In a separate deal, the entertainment giant agreed to pay Joyy, part-owner of Huya and the company behind TikTok’s serious rival Likee, $810 million in exchange for 30 million shares. Tencent will also buy 1 million shares from Huya CEO Dong Rongjie. Upon the transaction, Tencent will hold 51% of Huya’s shares and 70.4% of its voting rights.

Tencent is also the largest shareholder of Douyu, with a 38% stake and voting power.

What this means is the esports platforms that have long fought neck and neck for audiences and live-streaming hosts may soon need to work together. That’s good news for investors who have been hemorrhaging cash.

NYSE-listed Huya has a current market cap of $5.27 billion and Nasdaq-traded Douyu is worth $4.44 billion, giving the duo a combined value of around $10 billion. The pair will together control more than 300 million monthly esports users. By March, Douyu had 158 monthly active users and Huya claimed 151.3 MAUs, though there can be overlaps.

The question is who will be in charge of the consolidated behemoth. Could Mr. Dong be relinquishing control of Huya as he gives up a considerable amount of shares? Joyy already signaled its retreat in the first quarter when it stopped folding Huya’s operating results into its own report.

Ammo for Tencent

Industry observers believe the merger can significantly expand Tencent’s reach in the gaming supply chain. The company is the publisher behind blockbusters like the mobile versions of PUBG and Call of Duty, and the addition of a live-streaming empire will allow it to capture not just gamers but also the wider esports spectatorship.

It’s worth noting that Tencent has its own in-house Penguin Esports that’s a counterpart to Douyu and Huya. It’s not hard to imagine the three players integrating resources and generating synergies under Tencent’s oversight.

New challengers have sprung up in the field. While Douyu and Huya focused on esports from the outset, more general-purpose video services like Bilibili and Kuaishou have been luring legions of esports users in recent years. But lo and behold, Tencent is also an investor in Bilibili and Kuaishou.

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CakeResume, which wants to become Asia’s largest tech talent pool, raises $900,000 seed round

CakeResume is a startup creating an alternative for the tech industry to job search platforms like LinkedIn. The Taipei-based company, founded in 2016, announced today that it has raised $900,000 in seed funding from Mynavi, one of the largest staffing and public relations companies in Japan. The round will be used to expand CakeResume’s operations in other countries, including Japan and India.

Founder and chief executive officer Trantor Liu, who was a full-stack web developer at Codementor before launching CakeResume, said the startup’s goal is to have the biggest pool of tech talent in Asia. The platform currently has about 500,000 resumes in its database, 75% of which were created by job seekers in Taiwan. More than 3,000 employers, ranging from startups like Appier to large companies like Amazon Web Services, TSMC, Nvidia and Tesla, use it for recruitment.

The other 25% of resumes come from countries including India, Indonesia and the United States. CakeResume plans to expand in Japan with the help of Mynavi, a strategic investor, and is also seeking partnerships in Southeast and South Asia with recruiters. Liu said CakeResume has a particularly high conversion rate in India, and its goal is to build a pool of at least 100,000 resumes there.

In a statement about its decision to invest in CakeResume, a Mynavi representative said, “The global shortage of IT engineers is becoming more apparent and we are focusing on services related to IT talent in Asia. Among them, CakeResume’s service is excellent in product design, and the service is already used by many talent in the country,” adding that it expects the platform to become “the largest IT talent pool in Asia in the near future.”

In Taiwan, CakeResume’s main rivals are LinkedIn and job search site 104.com.tw. It also competes against other job sites like AngelList, Indeed and Glassdoor.

CakeResume differentiates by giving tech professionals more ways to show off their skills, since many tech companies want more in-depth resumes than the traditional one-pagers used in other fields. The startup was named because its resume builder enables job seekers to add more layers of information, like assembling a cake. For example, CakeResume’s template allows engineers to embed projects from GitHub, while designers can add data visualizations, instead of just including links to them.

“We aren’t just providing a form to fill in that you can then download as a formatted PDF resume. We want to allow you to be more creative,” said Liu. “You can easily embed project images and add descriptions, which makes it easier for HR to understand what you can contribute.”

Another difference between CakeResume and its competitors is that most people who create a profile are actively seeking new positions, instead of professional networking opportunities. Because it is also tailored for the tech industry, recruiters have a higher chance of getting responses from interested candidates, Liu said.

“We recently got a review from one of our clients, and they said when they used our platform to contact talent, they got about a 50% reply rate, but on LinkedIn it might be less than 10%,” he added.

Before the COVID-19 pandemic, many job seekers were willing to relocate, but chief operating officer Wei-Cheng Hsieh said CakeResume is now focusing more on helping people find remote jobs. More tech companies, including Facebook and Google, are extending their work from home policies until at least summer 2021.

Though many job postings still specify a location, Liu said CakeResume’s team anticipates this will change as companies continue adapting to the pandemic. While CakeResume will remain focused on matching applicants to jobs instead of networking, it also is also testing some social features to help workers around the world connect with companies and each other.

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Hypotenuse AI wants to take the strain out of copywriting for e-commerce

Imagine buying a dress online because a piece of code sold you on its ‘flattering, feminine flair’ — or convinced you ‘romantic floral details’ would outline your figure with ‘timeless style’. The very same day your friend buy the same dress from the same website but she’s sold on a description of ‘vibrant tones’, ‘fresh cotton feel’ and ‘statement sleeves’.

This is not a detail from a sci-fi short story but the reality and big picture vision of Hypotenuse AI, a YC-backed startup that’s using computer vision and machine learning to automate product descriptions for e-commerce.

One of the two product descriptions shown below is written by a human copywriter. The other flowed from the virtual pen of the startup’s AI, per an example on its website.

Can you guess which is which?* And if you think you can — well, does it matter?

Screengrab: Hypotenuse AI’s website

Discussing his startup on the phone from Singapore, Hypotenuse AI’s founder Joshua Wong tells us he came up with the idea to use AI to automate copywriting after helping a friend set up a website selling vegan soap.

“It took forever to write effective copy. We were extremely frustrated with the process when all we wanted to do was to sell products,” he explains. “But we knew how much description and copy affect conversions and SEO so we couldn’t abandon it.”

Wong had been working for Amazon, as an applied machine learning scientist for its Alexa AI assistant. So he had the technical smarts to tackle the problem himself. “I decided to use my background in machine learning to kind of automate this process. And I wanted to make sure I could help other e-commerce stores do the same as well,” he says, going on to leave his job at Amazon in June to go full time on Hypotenuse.

The core tech here — computer vision and natural language generation — is extremely cutting edge, per Wong.

“What the technology looks like in the back end is that a lot of it is proprietary,” he says. “We use computer vision to understand product images really well. And we use this together with any metadata that the product already has to generate a very ‘human fluent’ type of description. We can do this really quickly — we can generate thousands of them within seconds.”

“A lot of the work went into making sure we had machine learning models or neural network models that could speak very fluently in a very human-like manner. For that we have models that have kind of learnt how to understand and to write English really, really well. They’ve been trained on the Internet and all over the web so they understand language very well. “Then we combine that together with our vision models so that we can generate very fluent description,” he adds.

Image credit: Hypotenuse

Wong says the startup is building its own proprietary data-set to further help with training language models — with the aim of being able to generate something that’s “very specific to the image” but also “specific to the company’s brand and writing style” so the output can be hyper tailored to the customer’s needs.

“We also have defaults of style — if they want text to be more narrative, or poetic, or luxurious —  but the more interesting one is when companies want it to be tailored to their own type of branding of writing and style,” he adds. “They usually provide us with some examples of descriptions that they already have… and we used that and get our models to learn that type of language so it can write in that manner.”

What Hypotenuse’s AI is able to do — generate thousands of specifically detailed, appropriately styled product descriptions within “seconds” — has only been possible in very recent years, per Wong. Though he won’t be drawn into laying out more architectural details, beyond saying the tech is “completely neural network-based, natural language generation model”.

“The product descriptions that we are doing now — the techniques, the data and the way that we’re doing it — these techniques were not around just like over a year ago,” he claims. “A lot of the companies that tried to do this over a year ago always used pre-written templates. Because, back then, when we tried to use neural network models or purely machine learning models they can go off course very quickly or they’re not very good at producing language which is almost indistinguishable from human.

“Whereas now… we see that people cannot even tell which was written by AI and which by human. And that wouldn’t have been the case a year ago.”

(See the above example again. Is A or B the robotic pen? The Answer is at the foot of this post)

Asked about competitors, Wong again draws a distinction between Hypotenuse’s ‘pure’ machine learning approach and others who relied on using templates “to tackle this problem of copywriting or product descriptions”.

“They’ve always used some form of templates or just joining together synonyms. And the problem is it’s still very tedious to write templates. It makes the descriptions sound very unnatural or repetitive. And instead of helping conversions that actually hurts conversions and SEO,” he argues. “Whereas for us we use a completely machine learning based model which has learnt how to understand language and produce text very fluently, to a human level.”

There are now some pretty high profile applications of AI that enable you to generate similar text to your input data — but Wong contends they’re just not specific enough for a copywriting business purpose to represent a competitive threat to what he’s building with Hypotenuse.

“A lot of these are still very generalized,” he argues. “They’re really great at doing a lot of things okay but for copywriting it’s actually quite a nuanced space in that people want very specific things — it has to be specific to the brand, it has to be specific to the style of writing. Otherwise it doesn’t make sense. It hurts conversions. It hurts SEO. So… we don’t worry much about competitors. We spent a lot of time and research into getting these nuances and details right so we’re able to produce things that are exactly what customers want.”

So what types of products doesn’t Hypotenuse’s AI work well for? Wong says it’s a bit less relevant for certain product categories — such as electronics. This is because the marketing focus there is on specs, rather than trying to evoke a mood or feeling to seal a sale. Beyond that he argues the tool has broad relevance for e-commerce. “What we’re targeting it more at is things like furniture, things like fashion, apparel, things where you want to create a feeling in a user so they are convinced of why this product can help them,” he adds.

The startup’s SaaS offering as it is now — targeted at automating product description for e-commerce sites and for copywriting shops — is actually a reconfiguration itself.

The initial idea was to build a “digital personal shopper” to personalize the e-commerce experence. But the team realized they were getting ahead of themselves. “We only started focusing on this two weeks ago — but we’ve already started working with a number of e-commerce companies as well as piloting with a few copywriting companies,” says Wong, discussing this initial pivot.

Building a digital personal shopper is still on the roadmap but he says they realized that a subset of creating all the necessary AI/CV components for the more complex ‘digital shopper’ proposition was solving the copywriting issue. Hence dialing back to focus in on that.

“We realized that this alone was really such a huge pain-point that we really just wanted to focus on it and make sure we solve it really well for our customers,” he adds.

For early adopter customers the process right now involves a little light onboarding — typically a call to chat through their workflow is like and writing style so Hypotenuse can prep its models. Wong says the training process then takes “a few days”. After which they plug in to it as software as a service.

Customers upload product images to Hypotenuse’s platform or send metadata of existing products — getting corresponding descriptions back for download. The plan is to offer a more polished pipeline process for this in the future — such as by integrating with e-commerce platforms like Shopify .

Given the chaotic sprawl of Amazon’s marketplace, where product descriptions can vary wildly from extensively detailed screeds to the hyper sparse and/or cryptic, there could be a sizeable opportunity to sell automated product descriptions back to Wong’s former employer. And maybe even bag some strategic investment before then…  However Wong won’t be drawn on whether or not Hypotenuse is fundraising right now.

On the possibility of bagging Amazon as a future customer he’ll only say “potentially in the long run that’s possible”.

Joshua Wong (Photo credit: Hypotenuse AI)

The more immediate priorities for the startup are expanding the range of copywriting its AI can offer — to include additional formats such as advertising copy and even some ‘listicle’ style blog posts which can stand in as content marketing (unsophisticated stuff, along the lines of ’10 things you can do at the beach’, per Wong, or ’10 great dresses for summer’ etc).

“Even as we want to go into blog posts we’re still completely focused on the e-commerce space,” he adds. “We won’t go out to news articles or anything like that. We think that that is still something that cannot be fully automated yet.”

Looking further ahead he dangles the possibility of the AI enabling infinitely customizable marketing copy — meaning a website could parse a visitor’s data footprint and generate dynamic product descriptions intended to appeal to that particular individual.

Crunch enough user data and maybe it could spot that a site visitor has a preference for vivid colors and like to wear large hats — ergo, it could dial up relevant elements in product descriptions to better mesh with that person’s tastes.

“We want to make the whole process of starting an e-commerce website super simple. So it’s not just copywriting as well — but all the difference aspects of it,” Wong goes on. “The key thing is we want to go towards personalization. Right now e-commerce customers are all seeing the same standard written content. One of the challenges there it’s hard because humans are writing it right now and you can only produce one type of copy — and if you want to test it for other kinds of users you need to write another one.

“Whereas for us if we can do this process really well, and we are automating it, we can produce thousands of different kinds of description and copy for a website and every customer could see something different.”

It’s a disruptive vision for e-commerce (call it ‘A/B testing’ on steroids) that is likely to either delight or terrify — depending on your view of current levels of platform personalization around content. That process can wrap users in particular bubbles of perspective — and some argue such filtering has impacted culture and politics by having a corrosive impact on the communal experiences and consensus which underpins the social contract. But the stakes with e-commerce copy aren’t likely to be so high.

Still, once marketing text/copy no longer has a unit-specific production cost attached to it — and assuming e-commerce sites have access to enough user data in order to program tailored product descriptions — there’s no real limit to the ways in which robotically generated words could be reconfigured in the pursuit of a quick sale.

“Even within a brand there is actually a factor we can tweak which is how creative our model is,” says Wong, when asked if there’s any risk of the robot’s copy ending up feeling formulaic. “Some of our brands have like 50 polo shirts and all of them are almost exactly the same, other than maybe slight differences in the color. We are able to produce very unique and very different types of descriptions for each of them when we cue up the creativity of our model.”

“In a way it’s sometimes even better than a human because humans tends to fall into very, very similar ways of writing. Whereas this — because it’s learnt so much language over the web — it has a much wider range of tones and types of language that it can run through,” he adds.

What about copywriting and ad creative jobs? Isn’t Hypotenuse taking an axe to the very copywriting agencies his startup is hoping to woo as customers? Not so, argues Wong. “At the end of the day there are still editors. The AI helps them get to 95% of the way there. It helps them spark creativity when you produce the description but that last step of making sure it is something that exactly the customer wants — that’s usually still a final editor check,” he says, advocating for the human in the AI loop. “It only helps to make things much faster for them. But we still make sure there’s that last step of a human checking before they send it off.”

“Seeing the way NLP [natural language processing] research has changed over the past few years it feels like we’re really at an inception point,” Wong adds. “One year ago a lot of the things that we are doing now was not even possible. And some of the things that we see are becoming possible today — we didn’t expect it for one or two years’ time. So I think it could be, within the next few years, where we have models that are not just able to write language very well but you can almost speak to it and give it some information and it can generate these things on the go.”

*Per Wong, Hypotenuse’s robot is responsible for generating description ‘A’. Full marks if you could spot the AI’s tonal pitfalls

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Amazon inks cloud deal with Airtel in India

Amazon has found a new partner to expand the reach of its cloud services business — AWS — in India, the world’s second largest internet market.

On Wednesday, the e-commerce giant announced it has partnered with Bharti Airtel, the third-largest telecom operator in India with more than 300 million subscribers, to sell a wide-range of AWS offerings under Airtel Cloud brand to small, medium, and large-sized businesses in the country.

The deal could help AWS, which leads the cloud market in India, further expand its dominance in the country. The move follows a similar deal Reliance Jio — India’s largest telecom operator and which has raised more than $20 billion in recent months from Google, Facebook and a roster of other high-profile investors — struck with Microsoft last year to sell cloud services to small businesses. The two announced a 10-year partnership to “serve millions of customers.”

Airtel, which serves over 2,500 large enterprises and more than a million emerging businesses, itself signed a similar cloud deal with Google in January this year. That partnership is still in place, Airtel said.

“AWS brings over 175 services to the table. We pretty much support any workload on the cloud. We have the largest and the most vibrant community of customers,” said Puneet Chandok, President of AWS in India and South Asia, on a call with reporters Wednesday noon.

The two companies, which signed a similar agreement in 2015, will also collaborate on building new services and help existing customers migrate to Airtel Cloud, they said.

Today’s deal illustrates Airtel’s push to build businesses beyond its telecom venture, said Harmeen Mehta, Global CIO and Head of Cloud and Security Business at Airtel, on the call. Last month, Airtel partnered with Verizon — TechCrunch’s parent company — to sell BlueJeans video conferencing service to business customers in India.

Deals with carriers were very common a decade ago in India as tech giants rushed to amass users in the country. Replicating a similar strategy now illustrates the phase of the cloud adoption in the nation.

Nearly half a billion people in India came online last decade. And slowly, small businesses and merchants are also beginning to use digital tools, storage services, and accept online payments.

India has emerged as one of the emerging leading grounds for cloud services. The public cloud services market of the country is estimated to reach $7.1 billion by 2024, according to research firm IDC.

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YC-backed Statiq wants to bootstrap India’s EV charging network

Electric vehicles (EVs) are spreading throughout the world. While Tesla has drawn the most attention in the United States with its luxurious and cutting-edge cars, EVs are becoming a mainstay in markets far away from the environs of California.

Take India for instance. In the local mobility market, two- and three-wheel vehicles are starting to emerge as a popular option for a rapidly expanding middle class looking for more affordable options. EV versions are popular thanks to their reduced maintenance costs and higher reliability compared to gasoline alternatives.

Two-wheeled electric scooters are a fast-growing segment of India’s mobility market.

There’s just one problem, and it’s the same one faced by every country which has attempted to convert from gasoline to electric: how do you build out the charging station network to make these vehicles usable outside a small range from their garage?

It’s the classic chicken-and-egg problem. You need EVs in order to make money on charging stations, but you can’t afford to build charging stations until EVs are popular. Some startups have attempted to build out these networks themselves first. Perhaps the most famous example was Better Place, an Israeli startup that raised $800 million in venture capital before dying from negative cash flow back in 2013. Tesla has attempted to solve the problem by being both the chicken and egg by creating a network of Superchargers.

That’s what makes Statiq so interesting. The company, based in the New Delhi suburb of Gurugram, is bootstrapping an EV charging network using a multi-revenue model that it hopes will allow it to avoid the financial challenges that other charging networks have faced. It’s in the current Y Combinator batch and will be presenting at Demo Day later this month.

Akshit Bansal and Raghav Arora, the company’s co-founders, worked together previously as consultants and built a company for buying photos online, eventually reaching 50,000 monthly actives. They decided to make a pivot — a hard pivot really — into EVs and specifically charging equipment.

Statiq founders Raghav Arora and Akshit Bansal. Photos via Statiq

“We felt the need to do something about the climate because we were living in Delhi and Delhi is one of the most polluted cities in the world, and India is home to a lot of the polluted cities in the world. So we wanted to do something about it,” Bansal said. As they researched the causes of pollution, they learned that automobile exhaust represented a large part of the problem locally. They looked at alternatives, but EV charging stations remain basically non-existent across the country.

Thus, they founded Statiq in October 2019 and officially launched this past May. They have installed more than 150 charging stations in Delhi, Bangalore, and Mumbai and the surrounding environs.

Let’s get to the economics though, since that to me is the most fascinating part of their story. Statiq as I noted has a multi-revenue model. First, end users buy a subscription from Statiq to use the network, and then users pay a fee per charging session. That session fee is split between Statiq and the property owner, giving landlords who install the stations an incremental revenue boost.

A Statiq charging station. Photo via Statiq

When it comes to installation, Statiq has a couple of tricks up its sleeves. First, the company’s charging equipment — according to Bansal — costs roughly a third of the equivalent cost of U.S. equipment. That makes the base technology cheaper to acquire. From there, the company negotiates installations with landlords where the landlords will pay the fixed costs of installation in exchange for that continuing session charge fee.

On top of all that, the charging stations have advertising on them, offering another income stream particularly in high-visibility locations like shopping malls which are critical for a successful EV charging network.

In short, Statiq hasn’t had to outlay capital in order to put in place their charging equipment — and they were able to bootstrap before applying to YC earlier this year. Bansal said the company had dozens of charging stations and thousands of paid sessions on its platform before joining their YC batch, and “we are now growing 20% week-over-week.”

What’s next? It’s all about deliberate scaling. The EV market is turning on in India, and Statiq wants to be where those cars are. Bansal and his co-founder are hoping to ride the wave, continuing to build out critical infrastructure along the way. India’s government will likely continue to help: its approved billions of dollars in incentives for EVs and for charging stations, tipping the economics even further in the direction of a clean car future.

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Hevo draws in $8 million Series A for its no-code data pipeline service

Hevo founders Manish Jethani and Sourabh Agarwal

According to data pipeline startup Hevo, many small- to medium-sized companies juggle more than 40 different applications to manage sales, marketing, finance, customer support and other operations. All of these applications are important sources of data that can be analyzed to improve a company’s performance. That data often remains separate, however, making it difficult for different teams to collaborate.

Hevo enables its clients’ employees to integrate data from more than 150 different sources, including enterprise software from Salesforce and Oracle, even if they don’t have any technical experience. The company announced today that it has raised an $8 million Series A round led by Singapore-based venture capital firm Qualgro and Lachy Groom, a former executive at payments company Stripe.

The round, which brings Hevo’s total raised so far to $12 million, also included participation from returning investors Chiratae Ventures and Sequoia Capital India’s early-stage startup program Surge. The company was first covered by TechCrunch when it raised seed funding in 2017.

Hevo’s Series A will be used to increase the number of integrations available on its platform, and hire sales and marketing teams in more countries, including the United States and Singapore. The company currently has clients in 16 markets, including the U.S., India, France, Australia and Hong Kong, and counts payments company Marqeta among its customers.

In a statement, Puneet Bysani, tech lead manager at Marqeta, said, “Hevo saved us many engineering hours, and our data teams could focus on creating meaningful KPIs that add value to Marqeta’s business. With Hevo’s pre-built connectors, we were able to get data from many sources into Redshift and Snowflake very quickly.”

Based in Bangalore and San Francisco, Hevo was founded in 2017 by chief executive officer Manish Jethani and chief technology officer Sourabh Agarwal. The two previously launched SpoonJoy, a food delivery startup that was acquired by Grofers, one of India’s largest online grocery delivery services, in 2015. Jethani and Agarwal spent a year working at Grofers before leaving to start Hevo.

Hevo originated in the challenges Jethani and Agarwal faced while developing tech for SpoonJoy’s order and delivery system.

“All of our team members would come to us and say, ‘hey, we want to look at these metrics,’ or we would ask our teams questions if something wasn’t working. Oftentimes, they would not have the data available to answer those questions,” Jethani told TechCrunch.

Then at Grofers, Jethani and Agarwal realized that even large companies face the same challenges. They decided to work on a solution to allow companies to quickly integrate data sources.

For example, a marketing team at a e-commerce company might have data about its advertising on social media platforms, and how much traffic campaigns bring to their website or app. But they might not have access to data about how many of those visitors actually make purchases, or if they become repeat customers. By building a data pipeline with Hevo, they can bring all that information together.

Hevo is designed to serve all sectors, including e-commerce, healthcare and finance. In order to use it, companies sign up for Hevo’s services on its website and employees enter their credentials for software supported by the platform. Then Hevo automatically extracts and organizes the data from those sources and prepares it for cloud-based data warehouses, such as Amazon Redshift and Snowflake. A user dashboard allows companies to customize integrations or hide sensitive data.

Hevo is among a roster of “no code, low code” startups that have recently raised venture capital funding for building tools that enable non-developers to add features to their existing software. The founders say its most direct competitor is Fivetran, an Oakland, California-based company that also builds pipelines to move data to warehouses and prepare it for analysis.

Jethani said Hevo differentiates by “optimizing our product for non-technical users.”

“The number of companies who need to use data is very high and there is not enough talent available in the market. Even if it is available, it is very competitive and expensive to hire that engineering talent because big companies like Google and Amazon are also competing for the same talent,” he added. “So we felt that there has to be some democratization of who can use this technology.”

Hevo also focuses on integrating data in real-time, which is especially important for companies that provide on-demand deliveries or services. During the COVID-19 pandemic, Jethani says e-commerce clients have used Hevo to manage an influx in orders as people under stay-at-home orders purchase more items online. Companies are also relying on Hevo to help organize and manage data as their employees continue to work remotely.

In a statement about the funding, Qualgro managing partner Heang Chhor said, “Hevo provides a truly innovative solution for extracting and transforming data across multiple data sources–in real time with full automation. This helps enterprises to fully capture the benefit of data flowing though the many databases and software they currently use. Hevo’s founders are the type of globally-minded entrepreneurs that we like to support.”

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Entri raises $3.1M to build a vernacular language ‘Udemy for India’

Scores of online learning startups have emerged in India in recent years to serve school-age students. More than 250 million students are enrolled across schools in urban and rural parts of the country.

Whether one is in kindergarten, or preparing to join a college to pursue an undergraduate course, there are several startups offering a plethora of courses at affordable price points to help these students get there.

Byju’s, Unacademy and Vedantu among other local startups today help tens of millions of students each year gain access to high-profile and established teachers and a repository of study material that many might not have been able to find in an offline setting.

These startups — and legacy educational institutions — are helping students chase some of the most aspirational jobs: careers in engineering and medicine.

Most of these students, however, will either end up not getting their dream job — or based on their skills and India’s growing unemployment figures, a job altogether.

There are about 400 million people in India, or roughly a third of the country’s population, who are confronting a fundamental challenge: Not able to speak English, and lacking other skills that could prove crucial when applying for a job.

Entri, a startup based in the Southern city of Kochi, is attempting to address this market. The three-year-old startup offers upskilling courses to help people excel at exams that would land them a job with state and federal governments. And it teaches them these courses in the language with which they are most comfortable.

Students who dropped out before high school to those who have already attained graduate-level degrees account for the vast majority of users of Entri .

The startup began its courses in Malayalam, a language spoken by about 50 million people in India and especially popular in South India, explained Mohammed Hisamuddin, co-founder and chief executive of Entri. It has since added its courses in several other languages, including Hindi, Telugu, Kannada and Tamil.

Over the years, Entri has also expanded its course catalog to help people pursuing other kinds of jobs, including those in the blue-collar category, replicating a model similar to that of San Francisco-headquartered Udemy .

The team at Kochi-based startup Entri. (Photo provided by Entri)

“We soon realized that only about 1.5 to 2% of the people who appear in these exams are able to make the shortlist,” he said. “These exams are very competitive, so many start to explore jobs in the private sector, sometimes even when they already have some low-profile job.”

The startup now offers more than 150 courses, including several languages, accounting and those that teach popular computer applications such as Microsoft Office. These pre-recorded video courses and quizzes run for 30 to 60 days.

“Starting with the 100 million people who apply for government jobs each year, Entri is expanding the universe of employable candidates by skilling people in their own language — as it should be,” said Arjun Malhotra, a partner at venture firm Good Capital . “It’s ridiculous that economic opportunities are bottlenecked because of the medium of learning. Skills bringing employability shouldn’t require people to be proficient in English.”

Hisamuddin said Entri has amassed more than 3 million users on its platform, up from 1.5 million early this year. About 90,000 of these users are paying subscribers. “We are adding close to 10,000 paying subscribers each month now,” he said in an interview with TechCrunch early this week.

Entri offers a portion of its courses in certain languages at no charge, but complete access requires a subscription. Paid subscriptions start as low as 300 Indian rupees a year ($4) and go as high as 10,000 Indian rupees ($133), said Hisamuddin. The most popular subscription tier costs 1,500 Indian rupees ($20).

The startup said this week that it had closed a $3.1 million Pre-Series A financing round, led by Good Capital. Hari TN, head of human resources at online grocery startup BigBasket, and HyperTrack founder Kashyap Deorah also participated in the round.

It plans to deploy the fresh capital into introducing 50 additional courses to its platform and reach more users. Hisamuddin said Entri’s revenues have surged 150% in the last three months and its annual recurring revenue (ARR) has reached $2 million. He aims to scale Entri’s ARR to $5 million by this year.

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