All posts in “Fundings & Exits”

Drip Capital helps exporters access working capital

Drip Capital is raising a $20 million funding round from Accel, Wing VC and Sequoia India. The company is helping small exporters in emerging markets access working capital in order to finance big orders.

The startup also participated in Y Combinator back in 2015. Many small companies in emerging markets have to turn down orders because they can’t finance big orders. Even if you found a client in the U.S. or Europe, chances are companies will end up paying for your order a month or two after signing a contract.

If you’re an importer or an exporter, capital is arguably your most valuable resource. You know where to source your products and how to ship many goods. But you still need to buy goods yourself.

And in many emerging markets, you have to pay right away. It creates a sort of capital gap.

At the same time, local banks are often too slow and reject too many credit applications. Drip Capital thinks there’s an opportunity for a tech platform that finances exporters in no time.

The startup is first focusing on India because it meets many of the criteria I listed. This could be particularly useful for small and medium businesses. Large companies don’t necessarily face the same issues as they can access capital more easily.

So far, Drip Capital has funded more than $100 million of trade. After signing up to the platform, you can submit invoices and open a credit line to finance your next orders. Family offices and institutional investors can also invest some money in Drip Capital’s fund and get returns on investment.

This isn’t the only platform that helps you get paid faster. But larger companies tend to do it all and optimize the supply chain for the biggest companies in the world. Drip Capital is focusing on a specific vertical.

With today’s funding round, the company plans to get more customers and expand to other countries.

Tiller raises $13.9 million for its modern cash register

French startup Tiller has raised a $13.9 million Series B round (€12 million) from Ring Capital. Omnes Capital and existing investors 360 Capital Partners also participated in today’s funding round. The company has been working on a cash register that works better than your clunky touchscreen from ten years ago.

Tiller is working on a software solution for restaurants. It works with a good old iPad and connects with multiple payment solutions.

You can customize the menu and restaurant layout in the app to make it as easy as possible to enter an order. And at the end of the meal, you can make your customers pay using multiple payment methods and keep track of what’s left to pay.

This sounds like basic features, but Tiller’s secret sauce is that you can configure your app and integrate with many third-party services. For instance, you can manage your inventory and your staff directly from Tiller with third-party services.

You can receive orders from UberEats or Lunchr on your Tiller tablet. You can manage bookings from TheFork and other services.

When it comes to payment, you can pair Tiller with a Sumup or Ingenico card reader and accept all sorts of cards and contactless payments. You can also add Lydia, Lyf Pay and other mobile payment apps. Finally, Tiller tries to automate your accounting reports as much as possible.

If you want to use Tiller even more than that, you can give an iPhone to your waiters so that they can use the Tiller mobile app to write down orders. You can also get reports and track your revenue depending on the time of the day or the product category.

Most of Tiller’s clients are based in France and Spain, and the startup has attracted 5,000 clients so far. With today’s funding round, the company plans to attract more customers in other European countries.

It’s also worth noting that Tiller has the option to raise an additional $9.3 million (€8 million) to finance acquisitions. It could be a good way to get started in new markets.

Stensul raises $7M to make email creation easier for marketers

Email marketing startup Stensul is announcing that it has raised $7 million.

Stensul spun out of founder and CEO Noah Dinkin’s previous company FanBridge. Dinkin explained via email that the startup isn’t competing with the big email service providers — in fact, it integrates with ESPs including Salesforce Marketing Cloud, Oracle Marketing Cloud, Adobe Marketing Cloud and Marketo.

Dinkin said that while ESPs include email creation tools, most companies ignore them. Instead, the marketer has to work with specialists like designers, developer and agencies: “That process often takes weeks, everyone hates it, and it is SUPER expensive.”

Stensul, meanwhile, is focused exclusively on the email creation process. Marketers can build the email themselves, without having to rely on anyone else, in less than 20 minutes.

“They don’t need to know how to code, they don’t need to know how to use Photoshop or have memorized the 100 page pdf of brand guidelines,” Dinkin said. “The platform controls for brand governance and rules, and also guarantees that the output will be technically perfect.”

Stensul

Javelin Venture Partners led the Series A, with participation from Arthur Ventures, First Round Capital, Uncork Capital, Lowercase Capital and former ExactTarget President Scott McCorkle.

“Stensul has zeroed in on a massive problem space hiding in plain sight,” said Javelin’s Alex Gurevich in the funding announcement. “Email Marketing is used by every large company in the world, and the amount of time and money spent on email creation is far more than most people realize. The quality of top-tier customers that stensul has been able to bring on made it clear to us that they have a solution that really delivers value on day 1.”

Companies that have used Stensul include YouTube, Grubhub, BMW, Lyft and Box. Dinkin said he will continue to invest in product, but he the big goal with the new funding is to grow sales and marketing.

Nginx lands $43 million Series C to fuel expansion

Nginx, the commercial company behind the open source web server, announced a $43 million Series C investment today led by Goldman Sachs Growth Equity.

NEA, which has been on board as an early investor is also participating As part of the deal, David Campbell, managing director at Goldman Sachs’ Merchant Banking Division will join the Nginx board. Today’s investment brings the total raised to $103 million, according to the company.

The company was not willing to discuss valuation for this round.

Nginx’s open source approach is already well established running 400 million websites including some of the biggest in the world. Meanwhile, the commercial side of the business has 1500 paying customers, giving those customers not just support, but additional functionality such as load balancing, an API gateway and analytics.

Nginx CEO Gus Robertson was pleased to get the backing of such prestigious investors. “NEA is one of the largest venture capitalists in Silicon Valley and Goldman Sachs is one of the largest investment banks in the world. And so to have both of those parceled together to lead this round is a great testament to the company and the technology and the team,” he said.

The company already has plans to expand its core commercial product, Nginx Plus in the coming weeks. “We need to continue to innovate and build products that help our customers alleviate the complexity of delivery of distributed or micro service based applications. So you’ll see us release a new product in the coming weeks called Controller. Controller is the control plane on top of Nginx Plus,” Robertson explained. (Controller was launched in Beta last fall.)

But with $43 million in the bank, they want to look to build out Nginx Plus even more in the next 12-18 months. They will also be opening new offices globally to add to its international presence, while expanding its partners ecosystem. All of this means an ambitious goal to increase the current staff of 220 to 300 by the end of the year.

The open source product was originally created by Igor Sysoev back in 2002. He introduced the commercial company on top of the open source project in 2011. Robertson came on board as CEO a year later. The company has been growing 100 percent year over year since 2013 and expects to continue that trajectory through 2019.

Italian grocery delivery service Supermercato24 picks up €13M Series B

Supermercato24, an Italian same-day grocery delivery service, has raised €13 million in Series B funding. Leading the round is FII Tech Growth, with participation from new investor Endeavor Catalyst, and current investors 360 Capital Partners, and Innogest.

Similar to Instacart in the U.S. and claiming to the leader in Italy, Supermercato24 lets customers order from local supermarkets for delivery. The startup uses gig economy-styled personal shoppers who go into the store and ‘pick’ the products ordered and then deliver them same-day, or for an added cost within an hour.

The company charges a delivery fee to consumers, but also generates revenue from fees charged to partnering merchants, and, notably, through advertising. Supermercato24 says it has more than 15 partnerships with merchants, and has more than 50 consumer packaged goods customers (CPGs) advertising on its platform.

“Our customers represent that increasing share of the population that would love to spend their time differently rather than doing grocery shopping,” says Supermercato24 CEO Federico Sargenti, who was previously an Amazon Executive and launched the Amazon FMCG Business in Italy and Spain.

“Going to the store, pushing a cart through the alleys, queuing up, checking out and lifting heavy grocery shopping bags from the store’s register all the way up to your apartment can take lots of energy and up to 3 hours every week. Plenty of people would prefer to do all of that in a few minutes”.

Specifically, Sargenti says that Supermercato24’s customers span “hip youngsters to elderly people, single professionals to parents and working couples,” and that more than 65 percent of customers are women. “Customers have high expectations on their groceries, because they are used to choose from a wide product range at supermarkets, with competitive prices and qualitative fresh products; plus, they expect a comfortable, convenient and same-day delivery. And that’s what we offer them,” he adds.

The company’s grocery ordering and delivery service is active in more than 23 Italian cities, and Supermercato24 says a number of cities are already profitable at contribution margin level. That said, Sargenti concedes it is still early days in terms of the switch from offline grocery shopping to online. He also says that Southern Europe has been historically limited by a lack of supply and that the way to address this is a collaboration between traditional grocery retailers and tech companies like Supermercato24, a model that he insists can scale in both big and small cities.

The Italian grocery market is particularly fragmented, too, with the top 5 retailers owning less than 40 percent of the national grocery market, apparently. This arguably makes it more ripe for a marketplace rather than traditional e-grocery delivery model. One challenge is that the majority of people in Italy don’t live in large cities or other high population density areas of the country. It is Supermercato24’s ability to scale in low density areas — or so it claims — that gives it an edge.

Meanwhile, I’m told the new funding will be used to improve operations and product both for customers and for merchants, as well as to expand the service to new markets. “In Europe, Supermercato24 is already the biggest on-demand e-grocery marketplace in terms of revenues and it’s already in discussion with current and prospect retailers to expand the service across Europe to successfully replicate Instacart’s case,” says the company, unashamedly.