Peer-to-peer lending’s demise is cautionary tale 13 Dec 2021 The business of directly linking savers and borrowers is all but dead after pioneers Zopa and $3 bln LendingClub pulled out. Creating an asset class requires regulatory buy-in, while bank funding costs are hard to beat. Both lessons are relevant for newer fintech upstarts.
Super-app Grab rides high into New York debut 1 Dec 2021 The Southeast Asian giant held firm in a difficult year. It’s on track to hit targets set from its record $31 bln SPAC merger, supporting a rich 13 times sales valuation multiple. Margins in its ride-hailing business show the promise of its food-delivery-to-fintech ambitions.
Capital Calls: Google, Twitter, Swedish grocer 10 Nov 2021 Concise views on global finance: The search giant’s defeat in appealing a $2.8 bln EU fine is tolerable if American judges don’t follow; the social media network hopes to charge hardcore U.S. users a monthly fee; ICA Gruppen’s top shareholder takes the $12 bln retailer private.
Tech gabfest shows conferences a real-world future 8 Nov 2021 To see how the pandemic has changed the conference business it makes sense to observe the tech-savvy. The 43,000 people who descended on Lisbon for last week’s Web Summit showed face-to-face gatherings have enduring value, even for those making their living in the digital realm.
Viewsroom: Climate and tech shindig dispatches 5 Nov 2021 World and business leaders made some headway in pledges to limit planetary frying during the first week of COP26 in Glasgow, say George Hay and Rob Cox. Also, venture capitalists and startups mingled along the banks of the Tagus in Lisbon with Peter Thal Larsen and Karen Kwok.
Rapid grocery delivery will keep investors waiting 19 Oct 2021 Loss-making startups from Getir to Deliveroo are ferrying booze and nibbles to homes in under half an hour. Economies of scale will eventually help, although most operators will at best break even. Until delivery robots come along, shareholders will be subsidising lazy living.
Sweden’s tiny tech investor is proxy bet on Klarna 8 Oct 2021 Sebastian Siemiatkowski is listing his investment firm in Stockholm, including a small stake in the $46 bln buy-now-pay-later lender he runs. Klarna will account for less than a third of the $31 mln portfolio. Still, Flat Capital offers rare exposure to the group before it lists.
Al Gore makes appropriately hedged bet on UK power 28 Sep 2021 Generation, co-founded by the ex-vice president, is pumping $600 mln into Octopus. That gives the UK energy firm a $4.6 bln valuation and insurance if its swoop on rivals caught out by surging gas prices goes awry. Yet first-mover status should limit Octopus’ downside anyway.
Capital Calls: Pennies matter to dollar stores 26 Aug 2021 Concise views on global finance: Low-margin U.S. retailers are suffering from supply-chain cost inflation, a direct hit to their business model.
Review: WeWork’s debacle had many enablers 6 Aug 2021 Founder Adam Neumann led the hyping-up of the office-sharing upstart, once purported to be worth nearly $50 bln. But he was far from alone. “The Cult of We” by Eliot Brown and Maureen Farrell exposes how banks, return-chasing investors and the media danced around the red flags.
The Exchange: Travel disruption, SoftBank-style 20 Jul 2021 After a dizzying expansion from China to the United States, the pandemic forced a tough reset at Oyo Hotels and Homes. The plucky Indian startup’s 27-year-old founder and CEO Ritesh Agarwal tells Una Galani about the lessons learnt, rightsizing challenges, and of his IPO plans.
Fintech Wise’s hybrid IPO may be a one-off for UK 17 Jun 2021 Like Spotify in the U.S., the money transfer group will list in London without inviting bids from would-be investors. A direct listing is alluring, but only open to companies that don’t need cash and already have a base of external shareholders. Few other hopefuls fit the bill.
Capital Calls: Platinum Equity, FTC chair, Tui 16 Jun 2021 Concise views on global finance: The buyout firm acquires textbook company McGraw Hill and the maker of Singer sewing machines; Joe Biden’s pick for the Federal Trade Commission brings swagger; and another capital hike will still leave the German holiday group heavily indebted.
Capital Calls: Warren Buffett’s taxes 8 Jun 2021 Concise views on global finance: A ProPublica report unveils the true tax rate of the Sage of Omaha, Jeff Bezos and other members of the uber-rich elite.
GoTo steers e-tail to smarter, fiercer last mile 4 Jun 2021 The enlarged Indonesian tech group will make gains in data analytics, helping it keep pace with $130 bln Sea. Getting goods closer to customers will trim order costs and boost on-demand services. It hints at complexities in the pair’s reliance on third-party logistics too.
Rapid grocery delivery splurge will end with purge 30 Apr 2021 The business of bringing alcohol and ice cream to punters within minutes has attracted $8 bln from investors like SoftBank this year. The stage is set for a frantic fight between startups, takeout apps and supermarkets. They will burn much cash in pursuit of uncertain returns.
Uber for ambulances treats one ill, fuels another 9 Mar 2021 DocGo’s roaming medics, merging with a blank-check firm for $1.1 bln, are a creative addition to the U.S. healthcare system. The jargon-laden business is, however, in its early stages and unprofitable. The SPAC boom has blurred the line between good ideas and good investments.
London IPO shakeup is more about SPACs than tech 3 Mar 2021 Finance minister Rishi Sunak plans to overhaul stock market rules to attract more listings. The changes may prevent some UK startups from defecting. But they also allow London to join the craze for blank-cheque offerings. The costs of weaker regulation will become apparent later.
Capital Calls: Sarkozy’s trial 1 Mar 2021 Concise views on global finance in the Covid-19 era: the former French prime minister’s conviction for trying to bribe a judge creates a new dilemma for the companies on whose board he sits, including hotel chain Accor.
Oatly value ingests Beyond Meat’s bloat 24 Feb 2021 The Oprah-backed oat milk maker can hit a $9 bln valuation in an IPO based on its faux meat rival’s multiple. That’s an almost fivefold increase from last year. Big partnerships help justify growth. But using one inflated stock to validate another is too much of a good thing.