Expanding its women’s health benefits offerings for employers, Mayven raises $45 million

Over the past twelve months, Mayven, the benefits provider focused on women’s health and family planning, has expanded its customer base to include over 100 companies and grownits telehealth services to include 1,700 providers across 20 specialties — for services like shipping breast milk, finding a doula and egg freezing, fertility treatments, surrogacy and adoption.

The New York-based company which offers its healthcare services to individuals, health plans, and employers has now raised an additional $45 million to expand its offerings even further.

Its new money comes from a clutch of celebrity investors like Mindy Kaling, Natalie Portman, and Reese Witherspoon and institutional investors led by Icon Ventures and return backers Sequoia Capital, Oak HC/FT, Spring Mountain Capital, Female Founders Fund and Harmony Partners. Anne Wojcicki, the founder of 23andMe, is also an investor in the company.

Maven is addressing critical gaps in care by offering the largest digital health network of women’s and family health providers,” said Tom Mawhinney, lead investor from Icon Ventures, who will join the Maven board of directors, in a statement. “With its virtual care and services, Maven is changing how global employers support working families by focusing on improving maternal outcomes, reducing medical costs, retaining more women in the workplace, and ultimately supporting every pathway to parenthood.”

In the six years since founder Katherine Ryder first launched Mayven, the company has raised more than $77 million for its service and become a mother of two boys.

“You go through this enormous life experience; it’s hugely transformative to have a child,” she told TechCrunch after announcing the company’s $27 million Series B round, led by Sequoia. “You do it when your careers is moving up — they call it the rush hour of life — and with no one supporting you on the other end, it’s easy to say ‘screw it, I’m going home to my family’ … If someone leaves the workforce, that’s fine, it’s their choice but they shouldn’t feel forced to because they don’t have support.”

Some of Mayven’s partners include Snap and Bumble to provide employees access to its women’s and family health provider network. The company connects users with OB-GYNs, pediatricians, therapists, career coaches and other services around family planning.

Expanding its women’s health benefits offerings for employers, Mayven raises $45 million

Over the past twelve months, Mayven, the benefits provider focused on women’s health and family planning, has expanded its customer base to include over 100 companies and grownits telehealth services to include 1,700 providers across 20 specialties — for services like shipping breast milk, finding a doula and egg freezing, fertility treatments, surrogacy and adoption.

The New York-based company which offers its healthcare services to individuals, health plans, and employers has now raised an additional $45 million to expand its offerings even further.

Its new money comes from a clutch of celebrity investors like Mindy Kaling, Natalie Portman, and Reese Witherspoon and institutional investors led by Icon Ventures and return backers Sequoia Capital, Oak HC/FT, Spring Mountain Capital, Female Founders Fund and Harmony Partners. Anne Wojcicki, the founder of 23andMe, is also an investor in the company.

Maven is addressing critical gaps in care by offering the largest digital health network of women’s and family health providers,” said Tom Mawhinney, lead investor from Icon Ventures, who will join the Maven board of directors, in a statement. “With its virtual care and services, Maven is changing how global employers support working families by focusing on improving maternal outcomes, reducing medical costs, retaining more women in the workplace, and ultimately supporting every pathway to parenthood.”

In the six years since founder Katherine Ryder first launched Mayven, the company has raised more than $77 million for its service and become a mother of two boys.

“You go through this enormous life experience; it’s hugely transformative to have a child,” she told TechCrunch after announcing the company’s $27 million Series B round, led by Sequoia. “You do it when your careers is moving up — they call it the rush hour of life — and with no one supporting you on the other end, it’s easy to say ‘screw it, I’m going home to my family’ … If someone leaves the workforce, that’s fine, it’s their choice but they shouldn’t feel forced to because they don’t have support.”

Some of Mayven’s partners include Snap and Bumble to provide employees access to its women’s and family health provider network. The company connects users with OB-GYNs, pediatricians, therapists, career coaches and other services around family planning.

Portfolio bloat: What’s happening to thousands of startups going nowhere fast

Earlier this week, much was made of the e-commerce business Brandless deciding to shutter its doors. Industry observers found its fate particularly interesting, given that Brandless was only a few years old and had raised substantial funding, including $100 million from the SoftBank Vision Fund alone.

Still, Brandless is far from alone in having tried — and failed — to break away from its many rivals and become the kind of juggernaut that makes venture investors money. There are now thousands of venture-backed companies that once looked like bigger opportunities or whose growth has slowed, and which aren’t finding follow-on dollars.

Ravi Viswanathan of the venture firm NewView Capital sums up what’s happening out there this way: “Firms and funds are generally coming back to market faster with bigger funds, and they’e investing a lot more, so you’re seeing portfolio bloat across the industry. But [limited partners, the outfits and people supplying money to venture funds] are investing for you to make money, and that means spending time on the needle movers.”

So what’s a startup with dwindling attention from its investors to do? There are numerous options, some newer than others, and some more desirable than others.

Option #1

Naturally some — maybe most — of these companies will eventually, like Brandless, close down. This is the least favorable scenario for everyone involved as it means lost jobs, lost dollars and often an uncertain future for the founders who’ve poured their heart and soul into the company.

Venture capitalists don’t love closing down companies, either, as it means writing down the holdings in their financial statements, something they’re always loathe to do — though external events can also impact the timing.

As Jeff Clavier of the venture firm Uncork Capital explains it, “We maintain a company’s valuation on our books until we decide to impair it.” But if a venture firm has a “big gain [because another company sold or went public], we might as well take advantage and sell the shares for $1 or forego them altogether,” minimizing the firm’s overall tax bill in the process.

Option #2

Other companies that have grown more self-sufficient might look to buy back their shares from investors at a discount. Joel Gascoigne, the founder of a now six-year-old social media management company called Buffer, publicly outlined his own process for saving up enough money to buy out the company’s main venture investors a couple of years ago.

It’s not easy to pull off. Gascoigne says it took more than a year to persuade the VCs to take the deal he was offering them, and their relationship suffered as result.

The reason, offers Clavier, is that in a buyback scenario, an “investor has to admit complete defeat, and that’s kind of the last stop on the road.” Unsurprisingly, Clavier suggests a far better strategy is to “get out sooner, when there’s more time for a proper exit.”

Says Clavier, “The best thing you can do is find a nice home” for the founders, including so they can “move one, get a new gig, join something, rather than toiling away for the next three to five years” on a company that might eventually fail anyway.

At least, in some cases where the investors have essentially written the deal down to zero, they’ll let the founders retain their intellectual property.

“It’s worth something to him or her or them,” says Hunter Walk, co-founder of the venture firm Homebrew, “and it’s really not worth anything to the investors and maybe the founder wants to re-start it as a non-venture-backed company.”

Important to note, says Walk, this “usually occurs when they haven’t raised too much money.”

It’s a different story for startups that have raised bigger rounds, as VCs need to wring what they can from a company to fulfill their firm’s fiduciary obligations. That means selling off assets, from office chairs to IP.

Option #3

Thankfully, for startups going nowhere fast, there’s also a third option that’s picking up traction: private equity firms that have grown increasingly focused on tech. Their terms might not always be ideal, but the founder gets to claim an exit, while the private equity firm gets to roll up sub-scale properties or bolt a startup onto one of its core assets and re-sell the package to another buyer.

These deals can sometimes be a “bitter pill to swallow” for investors, notes Viswanathan, but the “sooner you do it, the faster you free up resources and show your LPs that you can manage your portfolio.”

Sometimes, too, he notes, investors hang on with the expectation that the PE firm will fuel a better outcome for everyone.

Just last month, for example, Insight Partners, the New York-based private equity and venture firm, agreed to paid cash for Armis Security, a five-year-old company whose tech helps businesses secure their connected devices. Though terms of the deal weren’t disclosed, a number of Armis investors have rolled their stakes into the new, Insight-controlled company.

A similar situation played out when the 13-year-old web content management company Acquia sold to Vista Equity Partners last fall.

Options #3 and #4

What if such a deal never materializes? Well, there are other alternatives still for startups that are chugging along — if less quickly than expected.

One is to try debt lenders. Debt is always a gamble, but one that sometimes pays off.

Another is to use convertible notes if one’s investors (or even outsiders) are open to the idea. These notes are structured as debt that convert into equity upon a specific event like a certain date or the closing of a priced investment round.

The Hail Mary pass

There’s always the hope, too, that if a company is doing decently, a venture investor will let a bet ride.

Jason Lemkin, a former entrepreneur who now runs the venture firm SaaStr fund, says he’s open to doing this when he can.  “My view as a founder and investor has evolved over time, but if I think it’s a good team and the company is achieving a few million in revenue and doesn’t need to raise money and has high retention and recurring revenue but is no longer on a venture trajectory, I’ll wait,” says Lemkin. “I’ll wait because things can change.”

It’s true of SaaS startups in particular, he says, “because competitors get acquired, they quit, they take too much money and they stumble.”

It can take some time, of course, but “if you’re the last man or woman standing, if you’re still out there fighting” he says, “you can win.”

Twitter-backed ShareChat eyes fantasy sports in India

The growing market of fantasy sports in India may soon have a new and odd entrant: ShareChat .

The local social networking app, which in August last year raised $100 million in a financing round led by Twitter, has developed a fantasy sports app and has been quietly testing it for six months, two sources familiar with the matter told TechCrunch.

ShareChat’s fantasy sports app, called Jeet11, allows betting on cricket and football matches and has already amassed more than 120,000 registered users, the sources said. The app, or its website, does not disclose its association with ShareChat.

A ShareChat spokesperson confirmed the existence of the app and said the startup was testing the product.

Jeet11 is not available for download on the Google Play Store due to the Android maker’s guidelines on betting apps, so ShareChat has been distributing it through Xiaomi’s GetApps app store and the Jeet11 website, and has been promoting it on Instagram. It is also available as a web app.

Fantasy sports, a quite popular business in many markets, has gained some traction in India in recent years. Dream11, backed by gaming giant Tencent, claimed to have more than 65 million users early last year. It has raised about $100 million to date and is already valued north of $1 billion.

Bangalore-based MPL, which counts Sequoia Capital India as an investor and has raised more than $40 million, appointed Virat Kohli, the captain of the Indian cricket team, as its brand ambassador last year.

In the last two years, scores of startups have emerged to grab a slice of the market, and the vast majority of them are focused on cricket. Cricket is the most popular sport in India, just ask Disney’s Hotstar, which claimed to have more than 100 million daily active users during the cricket season last year.

Or ask Facebook, which unsuccessfully bid $600 million to secure streaming rights of the IPL cricket tournament. It has since grabbed rights to some cricket content and appointed the Hotstar chief as its India head.

So it comes as no surprise that many sports betting apps have signed cricketers as their brand ambassador. Hala-Play has roped in Hardik Pandya and Krunal Pandya, while Chennai-based Fantain Sports has appointed Suresh Raina.

But despite the growing popularity of fantasy sports apps, where users pick players and bet real money on their performances, the niche is still sketchy in many markets that consider it betting. In fact, Twitter itself restricts promotion of fantasy sports services in many markets across the world.

In India, too, several states, including Assam, Arunachal Pradesh, Odisha, Sikkim and Telangana, have banned fantasy sports betting. Jeet11 currently requires users to confirm that they don’t live in any of the restricted states before signing up for the service.

“It doesn’t help matters either that the fantasy sports business’ attempts at legitimacy involve trying to be seen as video games — a cursory glance at a speakers panel for any Indian video game developer event is evidence of this — rather than riding on its own merits,” said Rishi Alwani, a long-time analyst of Indian gaming market and publisher of news outlet the Mako Reactor.

An executive who works at one of the top fantasy sports startups in India, speaking on the condition of anonymity, said that despite handing out cash rewards to thousands of users each day, it is still challenging to retain customers after the conclusion of any popular cricket tournament. “And that’s after you have somehow convinced them to visit your website or download the app,” he said.

For ShareChat, which has been exploring ways to monetize its 60 million-plus users and posted a loss of about $58 million on no revenue in the financial year ending March 31, that’s anything but music to the ears. In recent months, the startup, which serves users in more than a dozen local languages, has been experimenting with ads.

Where top VCs are investing in open source and dev tools (Part 1 of 2)

The once-polarizing world of open-source software has recently become one of the hotter destinations for VCs.

As the popularity of open source increases among organizations and developers, startups in the space have reached new heights and monstrous valuations.

Over the past several years, we’ve seen surging open-source companies like Databricks reach unicorn status, as well as VCs who cashed out behind a serious number of exits involving open-source and dev tool companies, deals like IBM’s Red Hat acquisition or Elastic’s late-2018 IPO. Last year, the exit spree continued with transactions like F5 Networks’ acquisition of NGINX and a number of high-profile acquisitions from mainstays like Microsoft and GitHub.

Similarly, venture investment in new startups in the space has continued to swell. More investors are taking shots at finding the next big payout, with annual invested capital in open-source and dev tool startups increasing at a roughly 10% compounded annual growth rate (CAGR) over the last five years, according to data from Crunchbase. Furthermore, attractive returns in the space seem to be adding more fuel to the fire, as open-source and dev tool startups saw more than $2 billion invested in the space in 2019 alone, per Crunchbase data.

As we close out another strong year for innovation and venture investing in the sector, we asked 18 of the top open-source-focused VCs who work at firms spanning early to growth stages to share what’s exciting them most and where they see opportunities. For purposes of length and clarity, responses have been edited and split (in no particular order) into part one and part two of this survey. In part one of our survey, we hear from:

Verkada raises $80M at $1.6B to be every building’s security OS

Fifty iPads were stolen from Verkada co-founder Hans Robertson’s old company. Only when they checked the security system did they realize the video cameras hadn’t been working for months. He was pissed. “The market lagged behind the progress seen in the consumer space, where someone could buy high-end cameras with cloud-based software to protect their home,” Verkada’s CEO and co-founder Filip Kaliszan tells me of his own attempt to buy enterprise-grade security hardware.

Usually, startups ascend on the backs of fresh technologies and developer platforms. But Kaliszan and Robertson realized that commercial security was so backward that just implementing the established principles of machine vision and the cloud could create a huge company. The plan was to keep data secure yet accessible and train its cameras to take clearer photos when AI detects suspicious situations instead of just grainy video.

At first, few could see the vision through the slow upgrade cycles and basement security rooms common with most potential clients. “The seed and the A were extremely difficult rounds to raise compared to the later rounds because people didn’t believe we could execute what were are proposing,” Kaliszan glumly recalls.

But today Verkada receives a huge vote of confidence. It just raised an $80 million Series C at a stunning $1.6 billion post-money valuation thanks to lead investor Felicis Ventures writing Verkada its biggest check to date. The cash brings Verkada to $139 million in funding to sell dome cameras, fisheye lenses, footage viewing stations and the software to monitor it all from anywhere.

Why sink in so much cash at a valuation triple that of Verkada’s $540 million price tag after its April 2019 Series B? Because Verkada wants to bring two-factor authentication to doors with its new access control system that it’s announcing is now in beta testing ahead of a Spring launch. Instead of just allowing a stealable key fob or badge to open your office entryway, it could ask you to look into a Verkada camera too so it can match your face to your permissions.

“Our mission is to be the essential physical security software layer for every building, and the foundation of a larger enterprise IoT infrastructure,” Kaliszan tells me. By uniting security cameras and door locks in one system, it could keep banks, schools, hospitals, government buildings and businesses safe while offering new insights on how their spaces are used.

The founders’ pedigrees don’t hurt its efforts to sell that future to investors like Next47, Sequoia Capital and Meritech Capital, which joined the round. Robertson co-founded IT startup Meraki and sold it to Cisco for $1.2 billion. Kaliszan and his other co-founders Benjamin Bercovitz and James Ren started CourseRank for education software while at Stanford before selling it to Chegg.

Making a better product than what’s out there isn’t rocket science, though. Many building security systems only let footage be accessed from a control room in the building… which doesn’t help much if everyone’s trying to escape due to emergency or if a manager elsewhere simply wants to take a look. Verkada’s cloud lets the right employees keep watch from mobile, and data is also stored locally on the cameras so they keep recording even if the internet cuts out. “Our competitors stream unencrypted video and it’s on you to protect it. We’re responsible for handling that data,” Kaliszan says.

Verkada’s machine vision software can make sense of all the footage its cameras collect. “We can immediately show them all the video containing a particular person of interest rather than manually searching through hours of footage,” Kaliszan insists. “Our platform can use AI/machine learning to recognize patterns and behaviors that are out of the norm in real time.”

For example, a hostage negotiator was able to use Verkada’s system to assess whether a SWAT team needed to invade a building. Verkada can group all spottings of an individual together for review, or scan all the footage for people wearing a certain color or with other search filters.

Indeed, 2,500 clients, including 25 Fortune 500 companies, are already using Verkada. In the last year it has tripled revenue, partnered with 1,100 resellers, launched nine new camera models, added people and vehicle analytics, opened its first London office and is on track to grow from 300 to 800 employees by the end of 2020.

“We call this reinvention,” says Felicis Ventures founder and managing director Aydin Senkut. “One thing people underestimate is how big this market is. Honeywell is valued at $110 billion-plus. There’s a Chinese company that’s over $50 billion. The opportunity to be the operating system for all buildings in the world? Sounds like that market couldn’t be better.” Senkut knows Verkada works because he had it installed in all his homes and offices.

Most enterprise software companies don’t have to worry about the complexities of hardware supply chains. There’s always a risk that its sales process stumbles, leaving it stuck with too many cameras. “We’re still burning money. We’re not there yet or we wouldn’t be raising venture. Because we’re going after a mature market, you can’t come at it with a model that doesn’t make sense. Investors come at it from a hard-nosed approach,” Robertson admits.

“People have a tendency to write off Verkada as a boring camera company. They don’t realize how access control as the second product is going to supercharge the company’s potential,” Senkut declares.

One bullet Verkada dodged is the one firmly lodged in Amazon’s chest. Ring security cameras have received stern criticism over Amazon’s cooperation with law enforcement that some see as a violation of privacy and expansion of a police state. “We don’t have any arrangements with law enforcement like Ring,” Kaliszan tells me. “We view ourselves as providing great physical security tools to the people that run schools, hospitals and businesses. The data that those organizations gather is their own.”

What we know (and don’t) about Goldman Sachs’ Africa VC investing

Goldman Sachs is investing in African tech companies. The venerable American investment bank and financial services firm has backed startups from Kenya to Nigeria and taken a significant stake in e-commerce venture Jumia, which listed on the NYSE in 2019.

Though Goldman declined to comment on its Africa VC activities for this article, the company has spoken to TechCrunch in the past about specific investments.

Goldman Sachs is one of the most enviable investment banking shops on Wall Street, generating $36 billion in net revenues in 2019, or roughly $1 million per employee. It’s the firm that always seems to come out on top, making money during the financial crisis while its competitors were hemorrhaging. For generations, MBAs from the world’s top business schools have clamored to work there, helping make it a professional incubator of sorts that has spun off alums into leadership positions in politics, VC and industry.

All that cache is why Goldman’s name popping up related to African tech got people’s attention, including mine, several years ago.

Former Google Pay execs raise $13.2M to build neo-banking platform for millennials in India

Two co-founders of Google Pay in India are building a neo-banking platform in the country — and they have already secured backing from three top VC funds.

Sujith Narayanan, a veteran payments executive who co-founded Google Pay in India (formerly known as Google Tez), said on Monday that his startup, epiFi, has raised $13.2 million in its Seed financial round led by Sequoia India and Ribbit Capital. The round valued epiFi at about $50 million.

David Velez, the founder of Brazil-based neo-banking giant Nubank, Kunal Shah, who is building his second payments startup CRED in India, and VC fund Hillhouse Capital also participated in the round.

The eight-month-old startup is working on a neo-banking platform that will focus on serving millennials in India, said Narayanan, in an interview with TechCrunch.

“When we were building Google Tez, we realized that a consumer’s financial journey extends beyond digital payments. They want insurance, lending, investment opportunities and multiple products,” he explained.

The idea, in part, is to also help users better understand how they are spending money, and guide them to make better investments and increase their savings, he said.

At this moment, it is unclear what the convergence of all of these features would look like. But Narayanan said epiFi will release an app in a few months.

Working with Narayanan on epiFi is Sumit Gwalani, who serves as the startup’s co-founder and chief product and technology officer. Gwalani previously worked as a director of product management at Google India and helped conceptualize Google Tez. In a joint interview, Gwalani said the startup currently has about two-dozen employees, some of whom have joined from Netflix, Flipkart, and PayPal.

Shailesh Lakhani, Managing Director of Sequoia Capital India, said some of the fundamental consumer banking products such as savings accounts haven’t seen true innovation in many years. “Their vision to reimagine consumer banking, by providing a modern banking product with epiFi, has the potential to bring a step function change in experience for digitally savvy consumers,” he said.

Cash dominates transactions in India today. But New Delhi’s move to invalidate most paper bills in circulation in late 2016 pushed tens of millions of Indians to explore payments app for the first time.

In recent years, scores of startups and Silicon Valley firms have stepped to help Indians pay digitally and secure a range of financial services. And all signs suggest that a significant number of people are now comfortable with mobile payments: More than 100 million users together made over 1 billion digital payments transaction in October last year — a milestone the nation has sustained in the months since.

A handful of startups are also attempting to address some of the challenges that small and medium sized businesses face. Bangalore-based Open, NiYo, and RazorPay provide a range of features such as corporate credit cardsa single dashboard to manage transactions and the ability to automate recurring payouts that traditional banks don’t currently offer. These platforms are also known as neo-bank or challenger banks or alternative banks. Interestingly, most neo-banking platforms in South Asia today serve startups and businesses — not individuals.

Paytm targets merchants to fight back Google and Walmart in India’s crowded payments field

Paytm today announced two new features for businesses as the financial services firm looks to expand its reach in the nation that has quickly become one of the world’s most crowded and competitive payments markets.

The Noida-headquartered firm, which raised $1 billion in late November, said its app for businesses now features an “all-in-one” QR code system to accept payments from multiple platforms, including mobile wallets (that act as an intermediary between a user and their bank but provide convenience) and those that are powered by UPI, a payments infrastructure built by a coalition of banks that has been widely adopted by the industry players.

Merchants had expressed an interest in having one QR code that could understand any payments app, said Vijay Shekhar Sharma, the founder and chief executive of Paytm’s parent firm One97 Communications. In addition to supporting mobile wallet apps, and UPI-powered payment apps, Paytm’s new QR codes also support payments through popular Rupay cards.

Merchants can also stick these QR codes on devices such as battery packs and chargers to enable quick transaction from users, Sharma explained at a press conference today.

Bookkeeping for merchants and small businesses

The nation’s highest-valued startup (at around $16 billion) also announced a bookkeeping feature for businesses to help them maintain their daily records. The feature is already rolling out to merchants, Sharma told TechCrunch.

Dubbed Paytm Business Khata, the feature will help merchants manage payments, record transactions and secure loans and insurance. The service will also enable them to set a reminder for credit transactions, get an audio alert when they have received new payment, and send links to their customers to easily pay their dues, said Sharma.

Hundreds of millions of Indians, many in small towns and villages, came online for the first time in the last decade thanks to the proliferation of cheap Android smartphones and the availability of some of the world’s cheapest mobile data plans.

In recent years, millions of merchants and small businesses have also started to accept digital payments and listed them on the web for the first time. But most of them are still offline. Scores of startups and heavily backed firms such as Google, Walmart and Amazon are chasing this untapped market.

Google, which has amassed more than 67 million users on its payments app in India, last year announced a range of offerings to allow businesses to easily start accepting payments online. In the past, the company also launched tools to help mom and pop stores build presence on the web.

A number of startups today, including Bangalore-based Instamojo, Khatabook (which raised $25 million in October last year and counts GGV Capital, Sequoia Capital India and Tencent among its investors) and Lightspeed-backed OkCredit, which raised $67 million in August last year, offer bookkeeping features and allow their consumers to enable easier payment options.

Google Pay or GPay sticker pasted on the glass of a car in New Delhi India on 18 September 2019 (Photo by Nasir Kachroo/NurPhoto via Getty Images)

Paytm’s Sharma claimed that his business app has already amassed more than 10 million merchant users, a number he expects to more than double by next year.

The announcements today illustrate how aggressively Paytm, which once led the mobile payments market in India, is expanding its service. Some critics have cautioned that the firm, which counts SoftBank, Alibaba and T. Rowe Price among its key investors and has raised over $3.3 billion to date, is quickly losing its market share and chasing opportunities that could significantly increase its expenses and losses. According to several industry estimates, Google Pay and Walmart’s PhonePe now lead the mobile payments market in India.

Paytm lost more than half a billion dollars in the financial year that ended in March 2019. The trouble for the company is that there is currently little money to be made in the payments market because of some of the local guidelines set by the government.

“The current Paytm’s potential is a pale shadow of its former self. And to stay relevant, the company is entering new businesses (and failing spectacularly in some) at a pace that shows both a lack of clarity and urgency. Paytm is stuck between a glorious past that was built on the back of digital payments and a future that doesn’t look anything like Jack Ma’s Alibaba, one of Paytm’s largest investors and Sharma’s inspiration,” wrote Ashish Mishra, a long-time journalist, in a scathing post (paywalled).

Sharma said today that the company plans to offer services such as stock brokerage and insurance brokerage in the coming months. At stake is India’s payments market that is estimated to be worth $1 trillion in the next four years, up from about $200 billion currently, according to Credit Suisse. And that market is only going to get more crowded when WhatsApp, which has amassed over 400 million users in India, rolls out its payments service to all its users in the country in the coming months.

Indian tech startups raised a record $14.5B in 2019

Indian tech startups have never had it so good.

Local tech startups in the nation raised $14.5 billion in 2019, beating their previous best of $10.5 billion last year, according to research firm Tracxn .

Tech startups in India this year participated in 1,185 financing rounds — 459 of those were Series A or later rounds — from 817 investors.

Early stage startups — those participating in angel or pre-Series A financing round — raised $6.9 billion this year, easily surpassing last year’s $3.3 billion figure, according to a report by venture debt firm InnoVen Capital.

According to InnoVen’s report, early stage startups that have typically struggled to attract investors saw a 22% year-over-year increase in the number of financing deals they took part in this year. Cumulatively, at $2.6 million, their valuation also increased by 15% from last year.

Also in 2019, 128 startups in India got acquired, four got publicly listed, and nine became unicorns. This year, Indian tech startups also attracted a record number of international investors, according to Tracxn.

This year’s fundraise further moves the nation’s burgeoning startup space on a path of steady growth.

Since 2016, when tech startups accumulated just $4.3 billion — down from $7.9 billion the year before — flow of capital has increased significantly in the ecosystem. In 2017, Indian startups raised $10.4 billion, per Tracxn.

“The decade has seen an impressive 25x growth from a tiny $550 million in 2010 to $14.5 billion in 2019 in terms of the total funding raised by the startups,” said Tracxn.

What’s equally promising about Indian startups is the challenges they are beginning to tackle today, said Dev Khare, a partner at VC fund Lightspeed Venture Partners, in a recent interview to TechCrunch.

In 2014 and 2015, startups were largely focused on building e-commerce solutions and replicating ideas that worked in Western markets. But today, they are tackling a wide-range of categories and opportunities and building some solutions that have not been attempted in any other market, he said.

Tracxn’s analysis found that lodging startups raised about $1.7 billion this year — thanks to Oyo alone bagging $1.5 billion, followed by logistics startups such as Elastic Run, Delhivery, and Ecom Express that secured $641 million.

176 horizontal marketplaces, more than 150 education learning apps, over 120 trucking marketplaces, 82 ride-hailing services, 42 insurance platforms, 33 used car listing providers, and 13 startups that are helping businesses and individuals access working capital secured funding this year.

The investors

Sequoia Capital, with more than 50 investments — or co-investments — was the most active venture capital fund for Indian tech startups this year. (Rajan Anandan, former executive in charge of Google’s business in India and Southeast Asia, joined Sequoia Capital India as a managing director in April.) Accel, Tiger Global Management, Blume Ventures, and Chiratae Ventures were the other top four VCs.

Steadview Capital, with nine investments in startups including ride-hailing service Ola, education app Unacademy, and fintech startup BharatPe, led the way among private equity funds. General Atlantic, which invested in NoBroker and recently turned profitable edtech startup Byju’s, invested in four startups. FMO, Sabre Partners India, and CDC Group each invested in three startups.

Venture Catalysts, with over 40 investments including in HomeCapital and Blowhorn, was the top accelerator or incubator in India this year. Y Combinator, with over 25 investments, Sequoia Capital’s Surge, Axilor Ventures, and Techstars were also very active this year.

Indian tech startups also attracted a number of direct investments from top corporates and banks this year. Goldman Sachs, which earlier this month invested in fintech startup ZestMoney, overall made eight investments this year. Among others, Facebook made its first investment in an Indian startup — social-commerce firm Meesho and Twitter led a $100 million financing round in local social networking app ShareChat.