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Under-the-radar payments app True Balance just clocked $100M in GMV in India

Posted by | Amazon, Asia, BalanceHero, Flipkart, funding, Google, india, Mobikwik, Mobile, payments, Paytm, Startups, TC, True Balance, Walmart | No Comments

Away from the limelight of urban cities, where an increasingly growing number of firms are fighting for a piece of India’s digital payments market, a South Korean startup’s app is quietly helping millions of Indians pay digitally and enjoy many financial services for the first time.

The app, called True Balance, began its life as a tool to help users easily find their mobile balance, or topping up pre-pay mobile credit. But in its four-year journey, its ambition has significantly grown beyond that. Today, it serves as a digital wallet app that helps users pay their mobile and electricity bills, and it also lets users pay later.

One thing that has not changed for the parent company of True Balance, BalanceHero, which employs less than 200 people, is its consumer focus. It is strictly catering to people in tier-two and tier-three markets — often dubbed as India 2 and India 3 — who have relatively limited access to the internet, and lower financial power. And it remains operational just in India.

Even as India is already the second largest internet market with more than 500 million users, more than half of its population remains offline. In recent years, the nation has become a battleground for Silicon Valley giants and Chinese firms that are increasingly trying to win existing users and bring the rest of the population online.

And like many other companies, BalanceHero’s bet on India is beginning to pay off. The startup told TechCrunch today that it has clocked $100 million in GMV sales and has amassed about 60 million registered users. Yongsung Yoo, a spokesperson for the startup, added that BalanceHero, which has raised $42 million to date, is also nearing profitability.

The South Korean firm’s playbook is different from many other players that are racing to claim a slice of India’s burgeoning digital payments market. True Balance competes with the likes of Paytm, MobiKwik, Google, Amazon and Walmart-owned Flipkart, though its competitors are still largely catering to the urban parts of India.

In the last two years, many firms have begun to explore smaller cities and towns, but their services are still too out-of-the-world for local residents. Raising awareness about digital services is a big challenge in such markets, Yoo said, so the startup is relying on existing users to help others make their first transactions and in paying bills.

Yoo said the startup rewards these “digital agents” with cash back and other benefits. For these digital agents, many of whom do not have a day job, True Balance has emerged as a side project to make extra money.

Later this year, Yoo said the startup, which recently also added support for UPI in its service, will open an e-commerce store on its app and also offer insurance to users. To accelerate its growth and expansion, True Balance is in the final stages of raising between $50 million to $70 million in a new round that it expects to close in July this year, Yoo said.

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Amazon now sells flight tickets in India

Posted by | Amazon, amazon pay, Android, Asia, Booking.com, Google, india, MakeMyTrip, payments, Paytm, Transportation, zomato | No Comments

Indians can already use Amazon to pay for their mobile bills and borrow money to purchase items, but now there’s more. This week, the e-commerce giant quietly introduced an additional feature to its shopping site: flight tickets.

Amazon has partnered with local travel service ClearTrip to add a flight-booking option to its payment service — Amazon Pay — in India, according to an FAQ posted on its website. The feature, first spotted by news outlet Skift, is available on its Indian website and app.

The addition of plane ticketing underscores Amazon’s growing interest in expanding its payment service in India, which is both one of its fastest-growing markets and a country it uses to test new ideas.

Since launching Amazon Pay in India in late 2016, the company has added myriad features to the service. Amazon Pay today allows Indians to top up their phones, purchase cable TV subscriptions and pay for electricity and water bills. Last month, Amazon announced support for peer-to-peer (P2P) money transfers for users of its Android app. Amazon also plans to soon let users order food from its website, local media reported last month.

The company has also inked deals with other top firms such as movie ticketing site BookMyShow, food delivery startup Swiggy and bus-ticketing startup Redbus to embed Amazon Pay into many popular Indian services. To spur its adoption, the company has offered cashback incentives to those who checkout using Amazon Pay.

The flight ticketing option is not much different. The company is promising a one-time cashback of up to Rs 2,000 ($28.20) for each first booking.

The push comes as many local companies in India and those that operate in the nation begin to mold their apps into so-called super apps. Top mobile wallet service Paytm has expanded to add a number of financial services, including as of this week a credit card, in recent years. India’s ride-hailing service Ola also entered the credit card business this week.

Truecaller, an app that lets users screen for spam calls, has added messaging and payment features in India. The bundling often seems big names work together. For example, Paytm recently partnered with Zomato to test a food-ordering option on the mobile wallet app, a source with knowledge of the partner told TechCrunch.

Amazon’s interest in a flight-ticketing option in India should also help its partner ClearTrip gain a larger foothold in the nation. The company competes with giant MakeMyTrip, Booking.com and Paytm . Google also offers flights in India, though, at the moment, that is limited to search. When it comes to transactions, users are directed to ticketing websites to complete their purchase.

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India’s ride-hailing firm Ola is now in the credit card business, too

Posted by | Asia, Bhavish Aggarwal, Finance, go-jek, india, Mobile, ola money, payments, Paytm, Startups, Uber, visa | No Comments

A day after India’s largest wallet app Paytm entered the credit card business, local ride-hailing giant Ola is following suit. Ola has inked a deal with state-run SBI and Visa to issue as many as 10 million credit cards in the next three and a half years, it said today.

The move will help Visa and SBI (State Bank of India) acquire more customers in India, where most transactions are still bandied out over cash. For Ola, which rivals Uber in India, the foray into credit cards represents a new avenue to monetize its customers, as TechCrunch previously reported.

With about 150 million users availing more than 2 million rides on its platform each day, Ola is sitting on a mountain of data about its users’ financial power and spends. With the card, dubbed Ola Money-SBI Credit Card, the mobility firm is also offering several discounts and savings to retain its loyal customer base.

Ola, which is nearing $6 billion in valuation and counts SoftBank and Naspers among its investors, said it will offer its credit card holders “highest cashback and rewards” in the form of Ola Money that could be redeemed for Ola rides, as well as flight and hotel bookings. There will be 7% percent cashback on cab spends, 5% on flight bookings, 20% on domestic hotel bookings (6% on international hotel bookings), 20% on more than 6,000 restaurants and 1% on all other spends.

In an interview with TechCrunch, Nitin Gupta, CEO of Ola financial services, claimed that the company was offering “five times rewards to customers” in comparison to average credit card companies. “Also, the card is a first of its kind offering that can be managed digitally through the Ola App. We are committed to creating an inclusive ecosystem where mobility and financial services go hand in hand in leading growth and development,” he said. Ola said it has already rolled out the card to some users and will invite other eligible customers to avail it.

“Mobility spends form a significant wallet share for users and we see a huge opportunity to transform their payments experience with this solution. With over 150 million digital-first consumers on our platform, Ola will be a catalyst in driving India’s digital economy with cutting edge payment solutions,” Bhavish Aggarwal, co-founder and CEO of Ola, said in a statement.

Why credit cards?

Ola appears to be following the playbook of Grab and Go-Jek, two ride-hailing services in Southeast Asian markets that have ventured into a number of businesses in recent years. Both Grab and Go-Jek offer loans, remittance and insurance to their riders, while the former also maintains its own virtual credit card. Interestingly, Uber, which also offers a credit card in some markets, has no such play in India.

The move will allow Ola to look beyond ride-hailing and food delivery, two businesses that appear to have hit a saturation point in India, said Satish Meena, an analyst with research firm Forrester.

In recent years, Ola has started to explore financial services. It offers riders “micro-insurance” that covers a range of risks, including loss of baggage and medical expenses. The company said earlier this year, it has sold more than 20 million insurances to customers. Using Ola Money to facilitate cashbacks also underscores Ola’s push to increase the adoption of its mobile wallet, which, according to estimates, lags Paytm and several other wallet and UPI payment apps.

The company has also made a major push in the electric vehicles business, which it spun off as a separate company earlier this year. In March, its EV business raised $300 million from Hyundai and Kia. The company has said that it plans to offer one million EVs by 2022. Its other EV programs include a pledge to add 10,000 rickshaws for use in cities.

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India’s largest mobile wallet company Paytm now offers a credit card

Posted by | alibaba, Asia, Berkshire Hathaway, citibank, Finance, india, Mobile, Online lending, payments, Paytm, Softbank, Uber, Vijay Shekhar Sharma, warren buffett, zomato | No Comments

Paytm, India’s largest mobile wallet app, has branched out to several businesses in recent years as threat from Google and Facebook grows. On Tuesday, it added another category to the list: credit cards.

The firm, operated by One97 Communications, today unveiled Paytm First Credit Card with lofty benefits as it races to bulk up its financial offerings. The cards, issued by Citi Bank, will be the first in the country to offer unlimited, one percent cashback on purchases, Paytm claimed in a statement. The company is hoping to rope in about 25 million credit card customers in the coming months.

The penetration of credit cards remains very low in India with under 50 million people possessing one. With people conducting most of their businesses through cash in the nation, banks have little understanding of a customer’s credit history and score. And it also doesn’t help that banks in India are still wary of issuing credit cards to those who don’t perfectly fit the traditional blue collar job.

But why is a company that made its name through a mobile payment wallet open to its customers engaging with credit card companies? Paytm itself is struggling to grow its business and retain existing customers. Some of its recent major bets haven’t exactly paid off. Its ecommerce business Paytm Mall remains tiny despite bleeding money.

Yo! The First. Paytm First. pic.twitter.com/5kAxozc2IH

— Vijay Shekhar (@vijayshekhar) May 13, 2019

But more importantly, payments itself has become a commoditized space. Users park their money in Paytm and do transactions from there. Paytm makes money from this accumulated sum. This business flourished for years, especially in the months after the Indian government invalidated much of the cash in the nation. But then the government launched its own payment infrastructure called UPI, which removes the need for a middleman.

This has made payments more convenient for users, who are increasingly jumping ship. UPI apps such as PhonePe that have emerged in the last two and a half years now see more transactions than wallet apps. To make matter worse for Paytm, Google and Facebook — two companies that have larger userbase in India — have entered the payments space. Google Pay reached 100 million installs on Google Play Store recently, and WhatsApp plans a nation-wide roll out of its payment feature in India later this year.

So Paytm is now expanding its financial offerings and credit card play fits well in it. With more than 200 million active users, Paytm rivals banks on both the number of customers and volume of transaction it processes.

“Our new offering is designed to bring utmost flexibility to our customers in their digital payment options and will help spur large-ticket cashless payments,” Vijay Shekhar Sharma, chairman and CEO of One97 Communications said in a statement.

Backed by SoftBank, Alibaba, and most recently Warren Buffett’s Berkshire Hathaway, Paytm has the capital to spur the adoption of its new credit card. As part of the package, Paytm’s credit card holders will be able to avail dining, shopping, travel and other offers that Citi Bank provides to its privilege customers. In the first four months of issuing a card, the company will offer its customers discounts worth Rs 10,000 ($142) on spending of Rs 10,000.

Paytm First Credit Card will work both in India and elsewhere and support contactless transactions. Like any other credit card, customers will be able to pay back a sum in multiple monthly instalments. Paytm First Credit Card will charge users a nominal fee of Rs 500 ($7.1) that will be waived off if their spendings through the card exceeds Rs 50,000 ($710) in a year.

If the gamble works, Paytm will be able to retain some customers and convince many to do big-ticket transactions. For Citi Bank, this partnership is just an easy ploy to acquire some customers.

In the meantime, Paytm continues to aggressively expand its financial offerings. In recent years, it has launched a digital payments bank, and has started to offer prepaid Forex cards for international purchases. It also lets customers buy gold, and employers issue food allowance wallets for their staff. Last year, the company announced Paytm Money to facilitate purchase of mutual funds.

Earlier this year, the company launched Paytm First, a subscription bundle that includes access to subscriptions from other services such as Zomato, Uber, Gaana, and Eros Now. In an interview with TechCrunch late last month, Paytm’s Sharma said payments is the moat around which you can build a number of services. “Now that’s a business model… payment itself can’t make you money.”

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India’s most popular services are becoming super apps

Posted by | Apps, Asia, China, Cloud, Developer, Facebook, Finance, Flipkart, food, Foodpanda, Gaana, Gaming, grab, haptik, hike, india, MakeMyTrip, Media, Microsoft, microsoft garage, Mobile, Mukesh Ambani, mx player, payments, Paytm, paytm mall, reliance jio, saavn, SnapDeal, Social, Startups, Tapzo, Tencent, Times Internet, Transportation, Truecaller, Uber, Vijay Shekhar Sharma, WeChat | No Comments

Truecaller, an app that helps users screen strangers and robocallers, will soon allow users in India, its largest market, to borrow up to a few hundred dollars.

The crediting option will be the fourth feature the nine-year-old app adds to its service in the last two years. So far it has added to the service the ability to text, record phone calls and mobile payment features, some of which are only available to users in India. Of the 140 million daily active users of Truecaller, 100 million live in India.

The story of the ever-growing ambition of Truecaller illustrates an interesting phase in India’s internet market that is seeing a number of companies mold their single-functioning app into multi-functioning so-called super apps.

Inspired by China

This may sound familiar. Truecaller and others are trying to replicate Tencent’s playbook. The Chinese tech giant’s WeChat, an app that began life as a messaging service, has become a one-stop solution for a range of features — gaming, payments, social commerce and publishing platform — in recent years.

WeChat has become such a dominant player in the Chinese internet ecosystem that it is effectively serving as an operating system and getting away with it. The service maintains its own “app store” that hosts mini apps. This has put it at odds with Apple, though the iPhone-maker has little choice but to make peace with it.

For all its dominance in China, WeChat has struggled to gain traction in India and elsewhere. But its model today is prominently on display in other markets. Grab and Go-Jek in Southeast Asian markets are best known for their ride-hailing services, but have begun to offer a range of other features, including food delivery, entertainment, digital payments, financial services and healthcare.

The proliferation of low-cost smartphones and mobile data in India, thanks in part to Google and Facebook, has helped tens of millions of Indians come online in recent years, with mobile the dominant platform. The number of internet users has already exceeded 500 million in India, up from some 350 million in mid-2015. According to some estimates, India may have north of 625 million users by year-end.

This has fueled the global image of India, which is both the fastest growing internet and smartphone market. Naturally, local apps in India, and those from international firms that operate here, are beginning to replicate WeChat’s model.

Founder and chief executive officer (CEO) of Paytm Vijay Shekhar Sharma speaks during the launch of Paytm payments Bank at a function in New Delhi on November 28, 2017 (AFP PHOTO / SAJJAD HUSSAIN)

Leading that pack is Paytm, the popular homegrown mobile wallet service that’s valued at $18 billion and has been heavily backed by Alibaba, the e-commerce giant that rivals Tencent and crucially missed the mobile messaging wave in China.

Commanding attention

In recent years, the Paytm app has taken a leaf from China with additions that include the ability to text merchants; book movie, flight and train tickets; and buy shoes, books and just about anything from its e-commerce arm Paytm Mall . It also has added a number of mini games to the app. The company said earlier this month that more than 30 million users are engaging with its games.

Why bother with diversifying your app’s offering? Well, for Vijay Shekhar Sharma, founder and CEO of Paytm, the question is why shouldn’t you? If your app serves a certain number of transactions (or engagements) in a day, you have a good shot at disrupting many businesses that generate fewer transactions, he told TechCrunch in an interview.

At the end of the day, companies want to garner as much attention of a user as they can, said Jayanth Kolla, founder and partner of research and advisory firm Convergence Catalyst.

“This is similar to how cable networks such as Fox and Star have built various channels with a wide range of programming to create enough hooks for users to stick around,” Kolla said.

“The agenda for these apps is to hold people’s attention and monopolize a user’s activities on their mobile devices,” he added, explaining that higher engagement in an app translates to higher revenue from advertising.

Paytm’s Sharma agrees. “Payment is the moat. You can offer a range of things including content, entertainment, lifestyle, commerce and financial services around it,” he told TechCrunch. “Now that’s a business model… payment itself can’t make you money.”

Big companies follow suit

Other businesses have taken note. Flipkart -owned payment app PhonePe, which claims to have 150 million active users, today hosts a number of mini apps. Some of those include services for ride-hailing service Ola, hotel booking service Oyo and travel booking service MakeMyTrip.

Paytm (the first two images from left) and PhonePe offer a range of services that are integrated into their payments apps

What works for PhonePe is that its core business — payments — has amassed enough users, Himanshu Gupta, former associate director of marketing and growth for WeChat in India, told TechCrunch. He added that unlike e-commerce giant Snapdeal, which attempted to offer similar offerings back in the day, PhonePe has tighter integration with other services, and is built using modern architecture that gives users almost native app experiences inside mini apps.

When you talk about strategy for Flipkart, the homegrown e-commerce giant acquired by Walmart last year for a cool $16 billion, chances are arch rival Amazon is also hatching similar plans, and that’s indeed the case for super apps.

In India, Amazon offers its customers a range of payment features such as the ability to pay phone bills and cable subscription through its Amazon Pay service. The company last year acquired Indian startup Tapzo, an app that offers integration with popular services such as Uber, Ola, Swiggy and Zomato, to boost Pay’s business in the nation.

Another U.S. giant, Microsoft, is also aboard the super train. The Redmond-based company has added a slew of new features to SMS Organizer, an app born out of its Microsoft Garage initiative in India. What began as a texting app that can screen spam messages and help users keep track of important SMSs recently partnered with education board CBSE in India to deliver exam results of 10th and 12th grade students.

This year, the SMS Organizer app added an option to track live train schedules through a partnership with Indian Railways, and there’s support for speech-to-text. It also offers personalized discount coupons from a range of companies, giving users an incentive to check the app more often.

Like in other markets, Google and Facebook hold a dominant position in India. More than 95% of smartphones sold in India run the Android operating system. There is no viable local — or otherwise — alternative to Search, Gmail and YouTube, which counts India as its fastest growing market. But Google hasn’t necessarily made any push to significantly expand the scope of any of its offerings in India.

India is the biggest market for WhatsApp, and Facebook’s marquee app too has more than 250 million users in the nation. WhatsApp launched a pilot payments program in India in early 2018, but is yet to get clearance from the government for a nationwide rollout. (It isn’t happening for at least another two months, a person familiar with the matter said.) In the meanwhile, Facebook appears to be hatching a WeChatization of Messenger, albeit that app is not so big in India.

Ride-hailing service Ola too, like Grab and Go-Jek, plans to add financial services such as credit to the platform this year, a source familiar with the company’s plans told TechCrunch.

“We have an abundance of data about our users. We know how much money they spend on rides, how often they frequent the city and how often they order from restaurants. It makes perfect sense to give them these valued-added features,” the person said. Ola has already branched out of transport after it acquired food delivery startup Foodpanda in late 2017, but it hasn’t yet made major waves in financial services despite giving its Ola Money service its own dedicated app.

The company positioned Ola Money as a super app, expanded its features through acquisition and tie ups with other players and offered discounts and cashbacks. But it remains behind Paytm, PhonePe and Google Pay, all of which are also offering discounts to customers.

Integrated entertainment

Super apps indeed come in all shapes and sizes, beyond core services like payment and transportation — the strategy is showing up in apps and services that entertain India’s internet population.

MX Player, a video playback app with more than 175 million users in India that was acquired by Times Internet for some $140 million last year, has big ambitions. Last year, it introduced a video streaming service to bolster its app to grow beyond merely being a repository. It has already commissioned the production of several original shows.

In recent months, it has also integrated Gaana, the largest local music streaming app that is also owned by Times Internet. Now its parent company, which rivals Google and Facebook on some fronts, is planning to add mini games to MX Player, a person familiar with the matter said, to give it additional reach and appeal.

Some of these apps, especially those that have amassed tens of millions of users, have a real shot at diversifying their offerings, analyst Kolla said. There is a bar of entry, though. A huge user base that engages with a product on a daily basis is a must for any company if it is to explore chasing the super app status, he added.

Indeed, there are examples of companies that had the vision to see the benefits of super apps but simply couldn’t muster the requisite user base. As mentioned, Snapdeal tried and failed at expanding its app’s offerings. Messaging service Hike, which was valued at more than $1 billion two years ago and includes WeChat parent Tencent among its investors, added games and other features to its app, but ultimately saw poor engagement. Its new strategy is the reverse: to break its app into multiple pieces.

“In 2019, we continue to double down on both social and content but we’re going to do it with an evolved approach. We’re going to do it across multiple apps. That means, in 2019 we’re going to go from building a super app that encompasses everything, to Multiple Apps solving one thing really well. Yes, we’re unbundling Hike,” Kavin Mittal, founder and CEO of Hike, wrote in an update published earlier this year.

It remains unclear how users are responding to the new features on their favorite apps. Some signs suggest, however, that at least some users are embracing the additional features. Truecaller said it is seeing tens of thousands of users try the payment feature for the first time each day. It’s also being used to send 3 billion texts a month.

And Reliance Jio, of course

Regardless, the race is still on, and there are big horses waiting to enter to add further competition.

Reliance Jio, a subsidiary of conglomerate Reliance Industry that is owned by India’s richest man, Mukesh Ambani, is planning to introduce a super app that will host more than 100 features, according to a person familiar with the matter. Local media first reported the development.

It will be fascinating to see how that works out. Reliance Jio, which almost single-handedly disrupted the telecom industry in India with its low-cost data plans and free voice calls, has amassed tens of millions of users on the bouquet of apps that it offers at no additional cost to Jio subscribers.

Beyond that diverse selection of homespun apps, Reliance has also taken an M&A-based approach to assemble the pieces of its super app strategy.

It bought music streaming service Saavn last year and quickly integrated it with its own music app JioMusic. Last month, it acquired Haptik, a startup that develops “conversational” platforms and virtual assistants, in a deal worth more than $100 million. It already has the user bases required. JioTV, an app that offers access to over 500 TV channels; and JioNews, an app that additionally offers hundreds of magazines and newspapers, routinely appear among the top apps in Google Play Store.

India’s super app revolution is in its early days, but the trend is surely one to keep an eye on as the country moves into its next chapter of internet usage.

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Sapphire Ventures bets big on esports and entertainment with new $115M fund

Posted by | Adidas, Entertainment, fitbit, Gaming, major league baseball, new york jets, Paytm, San Jose Sharks, Sapphire Ventures, Sinclair Broadcast Group, Sports, Startups, TC, tom brady, Venture Capital | No Comments

Sapphire Ventures, formerly the corporate venture capital arm of SAP, has lassoed $115 million from new limited partners (LPs) to invest at the intersection of tech, sports, media and entertainment.

A majority of the LPs for the new fund, called Sapphire Sport, have ties to the sports industry, from City Football Group, which owns English Premier League team Manchester City, to Adidas, the owners of the Indiana Pacers, New York Jets, San Jose Sharks and Tampa Bay Lightning, among others.

The firm plans to do five to six investments per year, sized between $3 million and $7 million. So far, they’ve deployed capital to five startups: at-home fitness system Tonal, live soccer streaming platform mycujoo, digital sports network Overtime, ticketing and events platform Fevo and gaming studio Phoenix Labs. Sapphire began backing tech startups in 2008; in 2016, the firm closed on $1 billion for its third flagship venture fund.

Sapphire managing director and co-founder Doug Higgins is leading the effort alongside newly tapped partner Michael Spirito, who joined from 21st Century Fox, where he focused on business development and digital media for the Fox Sports-owned Yankees Entertainment and Sports (YES) Network, in September.

Higgins was an investment manager at Intel Capital for four years prior to co-launching Sapphire. Throughout his career, he’s managed the firm’s investments in LinkedIn, DocuSign, Square and more.

“We invest in anything that tech is disrupting,” Higgins told TechCrunch. “We were early investors in Fitbit, so we saw the beginning of digital fitness and how tech can impact the lives of anyone, not just high-performance athletes … We are also investors in Square, TicketFly and Paytm and what we’ve been seeing — the dream as a VC — is these massive markets in the sports, media and digital health world that are getting disrupted by tech.”

Sapphire is betting its traditional and well-established venture platform, coupled with the expertise of leading sports entities on board as LPs, will give it a competitive edge as it targets some of the best emerging sports tech companies.

“We see a lot of FOMO happening in this world, where everyone wants to have a play, but to make the best investment you need to have the widest perspective,” Higgins said. “So if you’re a team owner of a particular football team you are going to make better decisions if you are able to share perspectives with owners of other teams.”

“The best entrepreneurs, the ones we all want to invest in, there’s not a draft, they have to select you,” he added.

Investment in esports and gaming has skyrocketed, surpassing a total of $2.5 billion in VC funding in 2018. According to PitchBook, a handful of startups have already raised a total of $65 million in VC backing this year, including a $10.8 million financing for ReKTGlobal, a provider of esports infrastructure services.

“You can’t ignore the numbers on esports,” Higgins added. “They just continue to grow massively and people who have teenage kids, like myself, [those kids] want to grow up to be the next ninja, not the next Tom Brady .”

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Chinese app developers have invaded India

Posted by | alibaba, Android, Apps, Asia, bytedance, China, Flash, food delivery, india, oppo, Paytm, sensor tower, SnapDeal, Tencent, tiktok, WeChat, Xiaomi | No Comments

If you’ve conquered China, then India — the world’s second-largest country based on population — is the obvious next port of call, and that’s exactly what has happened in the world of consumer apps.

Following the lead of Chinese smartphone makers like Xiaomi and Oppo, which have dominated mobile sales in India for some time, the content behind the touchscreen glass in India is increasingly now from China, too. That’s according to a report from FactorDaily, which found that 44 of the top 100 Android apps in India were developed by Chinese companies, up from just 18 one year prior. (The focus is on Android because it is the overwhelming choice of operating system among India’s estimated 500 million internet users.)

The list of top Chinese apps includes major names like ByteDance, the world’s highest-valued startup, which offers TikTok and local language news app Helo in India, and Alibaba’s UCbrowser, as well as lesser-known quantities like Tencent-backed NewsDog and quiet-yet-prolific streaming app maker Bigo.

Citing data from Sensor Tower, the report found that five of the top 10 Android apps in India are from China, up from just two at the end of 2017.

For anyone who has been watching the Indian technology scene in recent years, this “Chinese app store invasion” will be of little surprise, although the speed of change has been unexpected.

China’s two biggest companies, Alibaba and Tencent, have poured significant amounts into promising Indian startups in recent years, setting the stage for others to follow suit and move into India in search of growth.

Alibaba bought into Snapdeal and Paytm via multi-hundred-million-dollar investments in 2015, and the pace has only quickened since then. In 2017, Tencent invested in Gaana (music streaming) and Swiggy (food delivery) in major deals, having backed Byju’s (education) and Ola (ride-hailing) the year prior. The pair also launched local cloud computing services inside India last year.

Beyond those two, Xiaomi has gone beyond selling phones to back local companies and develop local services for its customers.

That local approach appears to have been the key for those app makers which have found success in India. Rather than taking a very rigid approach like Chinese messaging app WeChat — owned by Tencent, which failed in India — the likes of ByteDance have developed local teams and, in some cases, entirely local apps dedicated to India. With the next hundreds of millions of internet users in India tipped to come from more rural parts of the country, vernacular languages, local content and voice-enabled tech are some of the key strategies that, like their phone-making cousins, Chinese app developers will need to focus on to ensure that they aren’t just a flash in the pan in India.

You can read more at FactorDaily.

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Tencent leads $50M investment in NewsDog, an app vying to be India’s Toutiao

Posted by | alibaba, alibaba group, Android, App Annie, Apps, artificial intelligence, Asia, Baidu, Fundings & Exits, Goldman Sachs, india, legend capital, Media, Paytm, practo, Princeton University, TC, Tencent, Times Internet, Toutiao, Tsinghua University | No Comments

The growth of China’s Bytedance, an ambitious $30 billion tech firm, and its highly addictive Toutiao news aggregator app has set off a search for services with similar growth potential across the world.

India, second in population only to China with rapidly growing internet access, is an obvious place to look, and would-be pretender to the Toutiao crown has been found in the shape of NewsDog, a Chinese company that stumbled on success in India. Today, NewsDog announced a $50 million Series C round led by Chinese internet giant Tencent.

Toutiao is a phenomenon in China. The app has around 200 million daily users, and it is one of the few new tech products to emerge in a China where Tencent and Alibaba dominate the consumer app landscape. Point in case, it is so mainstream now that it has even run into issues with China’s internet censors. Toutiao is essentially a news aggregation service that lets consumers catch their daily reads and discover stories with an experience tailored to their habits and likes.

That’s very much the style of NewsDog, which claims over 50 million users. The service has branched out to cover 10 of Indians many languages, while it recently established a platform — ‘WeMedia’ — that augments its content aggregation by allowing users to submit stories, too.

This round is a major milestone for the company. In a competitive environment, it is the largest fundraising round from a news app company in India while it more obviously brings Tencent, the $500 billion tech giant, on board with its experience and support. Other investors include Chinese VCs Danhua Capital (DHVC) and Legend Capital as well as Chinese mobile app firm DotC United.

NewsDog’s competition includes Dailyhunt — which is backed by Toutiao-owner Bytedance — Inshorts, which counts Tiger Global among its investors, and NewsPoint, which is owned by media firm Times Internet.

One other competition is UC News, a service from Alibaba-owned UC Web, which, like NewsDog, is Chinese.

NewsDog was launched in 2016 by CEO Forrest Chen Yukun, a computer science graduate from Tsinghua University graduate, and Yi Ma, who holds a PhD from Princeton University and previously worked at Baidu and Goldman Sachs .

Data from App Annie shows that NewsDog is the top news app in the Google Play Store in India — Android is the country’s dominant operating system — ahead of Dailyhunt and NewsPoint in second and third, respectively. According to Sensor Tower, another app download analytics service, the app has 43 million installs and its downloads grew 76 percent year-on-year in the first quarter of the year.

NewsDog plans to use this new funding to pull further ahead of the competition by focusing on adding more languages and deepening its content library.

The company said it is already using machine learning to help produce an experience that is customized to users — the experience that Toutiao pioneered in China — and it plans to double down on that.

“Poly culture and multiple languages make content matching an incredibly hard problem,” Chen said in a statement. “So far, we have made good initial progress but content business is like an endless journey. There is no finish line, you have to just keep running.”

NewsDog is aiming to reach 100 million users as its next milestone as India’s internet population surges. The country is tipped to reach 500 million internet users by June 2018, according to a report from the Internet and Mobile Association of India (IAMAI) and Kantar IMRB. That’s up from 481 million six months prior, but internet penetration in rural areas is at just 20 percent compared with 65 percent in urban India which indicates even more growth potential.

For Tencent, meanwhile, this investment is another upping of its pace in India.

Initially, the company was slow to put money to work in India, where Alibaba entered early to buy stakes in the likes of Paytm, but gradually Tencent has got its checkbook out. Its most notable India-based deals include WhatsApp challenger Hike, healthcare platform Practo, and music service Gaana. This year, it is reportedly focusing on finding promising early-stage startups where it can invest $5-15 million.

In NewsDog, Tencent will hope to jump on the news aggregator train that it missed in China, giving Bytedance an opportunity to become a major Chinese consumer brand.

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