All posts in “Recent Funding”

Nigerian logistics startup Kobo360 raises $6M, expands in Africa

Nigerian trucking logistics startup Kobo360 has raised $6 million to upgrade its platform and expand operations to Ghana, Togo and Cote D’Ivoire.

The company — with an Uber -like app that connects truckers and companies with freight needs — gained the equity financing in an IFC led investment. The funding saw participation from others, including TLcom Capital and Y Combinator.

With the investment Kobo360 aims to become more than a trucking transit app.

“We started off as an app, but our goal is to build a global logistics operating system. We’re no longer an app, we’re a platform,” founder Obi Ozor told TechCrunch.

In addition to connecting truckers, producers and distributors, the company is building that platform to offer supply chain management tools for enterprise customers.

“Large enterprises are asking us for very specific features related to movement, tracking, and sales of their goods. We either integrate other services, like SAP, into Kobo or we build those solutions into our platform directly,” said Ozor.

Kobo360 will start by developing its API and opening it up to large enterprise customers.

“We want clients to be able to use our Kobo dashboard for everything; moving goods, tracking, sales, and accounting…and tackling their challenges,” said Ozor.

Kobo360 will also build more physical presence throughout Nigeria to service its business. “We’ll open 100 hubs before the end of 2019…to be able to help operations collect proof of delivery, to monitor trucks on the roads, and have closer access to truck owners for vehicle inspection and training,” said Ozor.

Kobo360 will add more warehousing capabilities, “to support our reverse logistics business”—one of the ways the company brings prices down by matching trucks with return freight after they drop their loads, rather than returning empty, according to Ozor.

Kobo360 will also use its $6 million investment to expand programs and services for its drivers, something Ozor sees as a strategic priority.

“The day you neglect your drivers you are not going to have a company, only issues. If Uber were more driver focused it would be a trillion dollar company today,” he said.

The startup offers drivers training and group programs on insurance, discounted petrol, and vehicle financing (KoboWin). Drivers on the Kobo360 app earn on average approximately $5000 per month, according to Ozor.

Under KoboCare, Kobo360 has also created an HMO for drivers and an incentive based program to pay for education. “We give school fee support, a 5000 Naira bonus per trip for drivers toward educational expenses for their kids,” said Ozor.

Kobo360 will complete limited expansion into new markets Ghana, Togo, and Cote D’Ivoire in 2019. “The expansion will be with existing customers, one in the port operations business, one in FMCG, and another in agriculture,” said Ozor

Ozor thinks the startup’s asset-free, digital platform and business model can outpace traditional long-haul 3PL providers in Nigeria by handling more volume at cheaper prices.

“Owning trucks is just too difficult to manage. The best scalable model is to aggregate trucks,” he told TechCrunch in a previous interview.

With the latest investment, IFC’s regional head for Africa Wale Ayeni and TLcom senior partner Omobola Johnson will join Kobo360’s board. “There’s a lot of inefficiencies in long-haul freight in Africa…and they’re building a platform that can help a lot of these issues,” said Ayeni of Kobo360’s appeal as an investment.

The company has served 900 businesses, aggregated a fleet of 8000 drivers and moved 155 million kilograms, per company stats. Top clients include Honeywell, Olam, Unilever, Dangote, and DHL.

MarketLine estimated the value of Nigeria’s transportation sector in 2016 at $6 billion, with 99.4 percent comprising road freight.

Logistics has become an active space in Africa’s tech sector with startup entrepreneurs connecting digital to delivery models. In Nigeria, Jumia founder Tunde Kehinde departed and founded Africa Courier Express. Startup Max.ng is wrapping an app around motorcycles as an e-delivery platform. Nairobi-based Lori Systems has moved into digital coordination of trucking in East Africa. And U.S.-based Zipline—who launched drone delivery of commercial medical supplies in partnership with the government of Rwanda and support of UPS—and is in “process of expanding to several other countries,” according to a spokesperson.

Kobo360 has plans for broader Africa expansion but would not name additional countries yet.

Ozor said the company is profitable, though the startup does not release financial results. Wale Ayeni also wouldn’t divulge revenue figures, but confirmed IFC’s did full “legal and financial due diligence on Kobo’s stats,” as part of the investment.

Ozor named Lori Systems as Kobo360’s closest African startup competitor.

On the biggest challenge to revenue generation, it’s all about service delivery and execution, according to Ozor.

“We already have volume and demand in the market. The biggest threat to revenues is if Kobo360’s platform doesn’t succeed in solving our client’s problems and bringing reliability to their needs,” he said.

Contentful raises $33.5M for its headless CMS platform

Contentful, a Berlin- and San Francisco-based startup that provides content management infrastructure for companies like Spotify, Nike, Lyft and others, today announced that it has raised a $33.5 million Series D funding round led by Sapphire Ventures, with participation from OMERS Ventures and Salesforce Ventures, as well as existing investors General Catalyst, Benchmark, Balderton Capital and Hercules. In total, the company has now raised $78.3 million.

It’s only been less than a year since the company raised its Series C round and as Contentful co-founder and CEO Sascha Konietzke told me, the company didn’t really need to raise right now. “We had just raised our last round about a year ago. We still had plenty of cash in our bank account and we didn’t need to raise as of now,” said Konietzke. “But we saw a lot of economic uncertainty, so we thought it might be a good moment in time to recharge. And at the same time, we already had some interesting conversations ongoing with Sapphire [formeraly SAP Ventures] and Salesforce. So we saw the opportunity to add more funding and also start getting into a tight relationship with both of these players.”

The original plan for Contentful was to focus almost explicitly on mobile. As it turns out, though, the company’s customers also wanted to use the service to handle its web-based applications and these days, Contentful happily supports both. “What we’re seeing is that everything is becoming an application,” he told me. “We started with native mobile application, but even the websites nowadays are often an application.”

In its early days, Contentful also focuses only on developers. Now, however, that’s changing and having these connections to large enterprise players like SAP and Salesforce surely isn’t going to hurt the company as it looks to bring on larger enterprise accounts.

Currently, the company’s focus is very much on Europe and North America, which account for about 80% of its customers. For now, Contentful plans to continue to focus on these regions, though it obviously supports customers anywhere in the world.

Contentful only exists as a hosted platform. As of now, the company doesn’t have any plans for offering a self-hosted version, though Konietzke noted that he does occasionally get requests for this.

What the company is planning to do in the near future, though, is to enable more integrations with existing enterprise tools. “Customers are asking for deeper integrations into their enterprise stack,” Konietzke said. “And that’s what we’re beginning to focus on and where we’re building a lot of capabilities around that.” In addition, support for GraphQL and an expanded rich text editing experience is coming up. The company also recently launched a new editing experience.

Workato raises $25M for its integration platform

Workato, a startup that offers an integration and automation platform for businesses that competes with the likes of MuleSoft, SnapLogic and Microsoft’s Logic Apps, today announced that it has raised a $25 million Series B funding round from Battery Ventures, Storm Ventures, ServiceNow and Workday Ventures. Combined with its previous rounds, the company has now received investments from some of the largest SaaS players, including Salesforce, which participated in an earlier round.

At its core, Workato’s service isn’t that different from other integration services (you can think of them as IFTTT for the enterprise) in that it helps you to connect disparate systems and services, set up triggers to kick of certain actions (if somebody signs a contract on Docusign, send a message to Slack and create an invoice). Like its competitors, it connects to virtually any SaaS tool that a company would use, no matter whether that’s Marketo and Salesforce, or Slack and Twitter. And like some of its competitors, all of this can be done with a drag-and-drop interface.

What’s different, Workato founder and CEO Vijay Tella tells me, is that the service was built for business users, not IT admins. “Other enterprise integration platforms require people who are technical to build and manage them,” he said. “With the explosion in SaaS with lines of business buying them – the IT team gets backlogged with the various integration needs. Further, they are not able to handle all the workflow automation needs that businesses require to streamline and innovate on the operations.”

Battery Ventures’ general partner Neeraj Agrawal also echoed this. “As we’ve all seen, the number of SaaS applications run by companies is growing at a very rapid clip,” he said. “This has created a huge need to engage team members with less technical skill-sets in integrating all these applications. These types of users are closer to the actual business workflows that are ripe for automation, and we found Workato’s ability to empower everyday business users super compelling.”

Tella also stressed that Workato makes extensive use of AI/ML to make building integrations and automations easier. The company calls this Recipe Q. ” Leveraging the tens of billions of events processed, hundreds of millions of metadata elements inspected, and hundreds of thousands of automations that people have built on our platform – we leverage ML to guide users to build the most effective integration/automation by recommending next steps as they build these automations,” he explained. “It recommends the next set of actions to take, fields to map, auto-validates mappings, etc. The great thing with this is that as people build more automations – it learns from them and continues to make the automation smarter.”

The AI/ML system also handles errors and offers features like sentiment analysis to analyze emails and detect their intent, with the ability to route them depending on the results of that analysis.

As part of today’s announcement, the company is also launching a new AI-enabled feature: Automation Editions for sales, marketing and HR (with editions for finance and support coming in the future). The idea here is to give those departments a kit with pre-built workflows that helps them to get started with the service without having to bring in IT.

Cove.Tool wants to solve climate change one efficient building at a time

As the fight against climate change heats up, Cove.Tool is looking to help tackle carbon emissions one building at a time.

The Atlanta-based startup provides an automated big-data platform that helps architects, engineers and contractors identify the most cost-effective ways to make buildings compliant with energy efficiency requirements. After raising an initial round earlier this year, the company completed the final close of a $750,000 seed round. Since the initial announcement of the round earlier this month, Urban Us, the early-stage fund focused on companies transforming city life, has joined the syndicate comprised of Tech Square Labs and Knoll Ventures.

Cove.Tool software allows building designers and managers to plug in a variety of building conditions, energy options, and zoning specifications to get to the most cost-effective method of hitting building energy efficiency requirements (Cove.Tool Press Image / Cove.Tool / https://covetool.com).

In the US, the buildings we live and work in contribute more carbon emissions than any other sector. Governments across the country are now looking to improve energy consumption habits by implementing new building codes that set higher energy efficiency requirements for buildings. 

However, figuring out the best ways to meet changing energy standards has become an increasingly difficult task for designers. For one, buildings are subject to differing federal, state and city codes that are all frequently updated and overlaid on one another. Therefore, the specific efficiency requirements for a building can be hard to understand, geographically unique and immensely variable from project to project.

Architects, engineers and contractors also have more options for managing energy consumption than ever before – equipped with tools like connected devices, real-time energy-management software and more-affordable renewable energy resources. And the effectiveness and cost of each resource are also impacted by variables distinct to each project and each location, such as local conditions, resource placement, and factors as specific as the amount of shade a building sees.

With designers and contractors facing countless resource combinations and weightings, Cove.Tool looks to make it easier to identify and implement the most cost-effective and efficient resource bundles that can be used to hit a building’s energy efficiency requirements.

Cove.Tool users begin by specifying a variety of project-specific inputs, which can include a vast amount of extremely granular detail around a building’s use, location, dimensions or otherwise. The software runs the inputs through a set of parametric energy models before spitting out the optimal resource combination under the set parameters.

For example, if a project is located on a site with heavy wind flow in a cold city, the platform might tell you to increase window size and spend on energy efficient wall installations, while reducing spending on HVAC systems. Along with its recommendations, Cove.Tool provides in-depth but fairly easy-to-understand graphical analyses that illustrate various aspects of a building’s energy performance under different scenarios and sensitivities.

Cove.Tool users can input granular project-specifics, such as shading from particular beams and facades, to get precise analyses around a building’s energy performance under different scenarios and sensitivities.

Traditionally, the design process for a building’s energy system can be quite painful for architecture and engineering firms.

An architect would send initial building designs to engineers, who then test out a variety of energy system scenarios over the course a few weeks. By the time the engineers are able to come back with an analysis, the architects have often made significant design changes, which then gets sent back to the engineers, forcing the energy plan to constantly be 1-to-3 months behind the rest of the building. This process can not only lead to less-efficient and more-expensive energy infrastructure, but the hectic back-and-forth can lead to longer project timelines, unexpected construction issues, delays and budget overruns.

Cove.Tool effectively looks to automate the process of “energy modeling.” The energy modeling looks to ease the pains of energy design in the same ways Building Information Modeling (BIM) has transformed architectural design and construction. Just as BIM creates predictive digital simulations that test all the design attributes of a project, energy modeling uses building specs, environmental conditions, and various other parameters to simulate a building’s energy efficiency, costs and footprint.

By using energy modeling, developers can optimize the design of the building’s energy system, adjust plans in real-time, and more effectively manage the construction of a building’s energy infrastructure. However, the expertise needed for energy modeling falls outside the comfort zones of many firms, who often have to outsource the task to expensive consultants.

The frustrations of energy system design and the complexities of energy modeling are ones the Cove.Tool team knows well. Patrick Chopson and Sandeep Ajuha, two of the company’s three co-founders, are former architects that worked as energy modeling consultants when they first began building out the Cove.Tool software.

After seeing their clients’ initial excitement over the ability to quickly analyze millions of combinations and instantly identify the ones that produce cost and energy savings, Patrick and Sandeep teamed up with CTO Daniel Chopson and focused full-time on building out a comprehensive automated solution that would allow firms to run energy modeling analysis without costly consultants, more quickly, and through an interface that would be easy enough for an architectural intern to use.

So far there seems to be serious demand for the product, with the company already boasting an impressive roster of customers that includes several of the country’s largest architecture firms, such as HGA, HKS and Cooper Carry. And the platform has delivered compelling results – for example, one residential developer was able to identify energy solutions that cost $2 million less than the building’s original model. With the funds from its seed round, Cove.Tool plans further enhance its sales effort while continuing to develop additional features for the platform.

The value proposition Cove.Tool hopes to offer is clear – the company wants to make it easier, faster and cheaper for firms to use innovative design processes that help identify the most cost-effective and energy-efficient solutions for their buildings, all while reducing the risks of redesign, delay and budget overruns.

Longer-term, the company hopes that it can help the building industry move towards more innovative project processes and more informed decision-making while making a serious dent in the fight against emissions.

“We want to change the way decisions are made. We want decisions to move away from being just intuition to become more data-driven.” The co-founders told TechCrunch.

“Ultimately we want to help stop climate change one building at a time. Stopping climate change is such a huge undertaking but if we can change the behavior of buildings it can be a bit easier. Architects and engineers are working hard but they need help and we need to change.”

Brazilian long-term rentals service QuintoAndar raises $64M Series C

There’s quite a bit wrong with real estate in Brazil, according to QuintoAndar founder and CEO Gabriel Braga. Those seeking long-term rentals in big Brazilian cities like São Paulo and Rio de Janeiro are throttled by bureaucratic policies that enforce outrageously expensive deposits, the requirement of local cosigners and sky-high insurance fees. On the supply side, amateur landlords are tunnel visioned on making money from transactions, creating a low quality of service and many wasted hours of apartment hunting for tenants.

This is where QuintoAndar, a São Paulo-based rental marketplace, comes in. Now, the 600-person company has raised a $64 million (R$ 250 million) round led by General Atlantic to accelerate expansion in Brazil. Existing investors Kaszek Ventures, Qualcomm Ventures and QED also participated in the round.

Marketplaces like OLX, Craigslist and VivaReal all surface listings for rentals in Brazil. But QuintoAndar wants to set itself apart as an end-to-end service that lets users search, book, rent and advertise rental properties. The site provides the listings, allows users to schedule tenant visits to the property (the founder says more than 86,000 property showings were booked in October) and processes the transactions. Landlords and tenants negotiate through the platform, where they also sign the contract. Braga says this process is much easier than working with — and paying for — an agent. QuintoAndar guarantees landlords that they’ll get rent every month as well as protection against any damages the renter may make to a property. Contracts are digitized and renters don’t need to physically go to a notary to finalize a contract, allowing landlords to be anywhere. If a property needs a repair or maintenance, users can tap into QuintoAndar’s network of service providers through the site. 

The company believes there’s a big opportunity to make renting in Brazil more efficient. “Twenty percent of the population in Brazil lives in rented properties, and the sentiment toward buying homes in Brazil is changing,” says Braga, citing data from the Brazilian Institute of Geography and Statistics. Brazilians are seeing home ownership as less of a long-term goal and are opting to rent, meaning more money in the bank and freedom to relocate. 

Brazil remains undercapitalized relative to other countries, meaning smaller check sizes for early-stage tech companies. So a private equity growth round like this represents a solid deal for tech-enabled businesses looking to gain market share of the world’s fifth most populous country. 

Before the private equity round, QuintoAndar had raised $25 million. General Atlantic is fairly active in Latin America, with 18 portfolio companies based in the region, according to its website. “GA is one of the largest investors in online marketplaces across the globe combined with deep pockets, a long-term mindset, and a strong commitment and success within Latin America,” says the founder of the GA partnership.

Braga certainly believes Brazil is a large enough market to build a digital service for people who want to rent properties, but doesn’t want to stop there. The new capital will enable QuintoAndar to consolidate its existing operations in Belo Horizonte, Brasília and Goiânia, and start new operations in Porto Alegre and Curitiba. The investment will also be used to create a partnership system with the country’s main real estate agencies, which will be able to use the platform to offer QuintoAndar’s renting experience to clients (both landlords and tenants). 

Investment into Latin American tech companies reached an all-time high in 2017 thanks to mega rounds from U.S. and Chinese investors — and the investment wave continued well into 2018. Brazilian credit card processor Stone recently went public. VCs continue pumping money into Latin America-based unicorns like Rappi and Nubank, and younger players are punching up against antiquated industries like banking and real estate.

QuintoAndar’s Series C brings the company’s total funding to $95 million (R$ 367,350,750). Braga declined to disclose the company’s valuation.