Ant steps around China tech backlash into Europe 15 Feb 2019 Jack Ma's $150 bln fintech group has snapped up UK payments outfit WorldFirst. The mooted $700 mln deal, coming a year after a failed bid for U.S.-based MoneyGram, revives Ant’s overseas push. But heightened European anxiety about China suggests future buys may not be so easy.
Superapps will starve the rest in Southeast Asia 2 Jan 2019 Cash is being lavished on giants, Grab and Go-Jek, which dabble in everything from ride-hailing to groceries. It’s a Chinese approach to snaring online consumers. As investors follow SoftBank and Tencent’s seal, the gap will widen between these “do it all” outfits and the rest.
Chinese startups will get thrown an M&A lifeline 14 Dec 2018 Regulatory tightening and skittish investors mean many tech seedlings will struggle to raise funds in 2019. With Tencent less active, it’s a buyer’s market for the likes of Alibaba, SoftBank and Xiaomi. Enterprise tech, AI and electric cars will make for vulnerable targets.
SoftBank and startups get Saudi cover from Trump 21 Nov 2018 The U.S. president is standing by Riyadh after the murder of journalist Jamal Khashoggi. It should ease pressure on Masayoshi Son’s Saudi-backed Vision Fund. A fresh $2 bln injection into South Korea’s Coupang also suggests unicorns aren’t getting bothered by the source of cash.
Unicorns spawn new fantastical tech beasts 27 Sep 2018 Just a few years ago, a mythology sprang up around startups with a $1 bln paper valuation. India’s Oyo Hotels just became the latest to raise at least that much cash in one go. For the unbridled chaos these investment creatures represent, they might best be labelled centaurs.
Indonesia’s Go-Jek can hitch ride on Meituan IPO 17 Sep 2018 The smartphone-based taxi service is raising about $2 bln. New cash will help Nadiem Makarim’s unicorn expand in the region and even into online shopping. A successful market debut by its Chinese backer Meituan Dianping also should fuel Go-Jek’s quest to be a multi-purpose app.
Chinese used-car sale fails timing test 28 Jun 2018 Online marketplace Uxin has halved the size of its U.S. float. A hefty lending business may be to blame, but its worst offense is probably picking a moment when regulatory uncertainty is already battering Chinese tech stocks. Rivals waiting in the IPO queue should take note.
India’s taxi-app war enters China territory 15 Jun 2018 Local operator Ola lost over $700 mln in the year to March 2017 despite growing revenue 70 pct. That’s nearly as much as Uber was burning when it was battling China’s Didi. The U.S. company’s commitment to India suggests losses will keep piling up for both SoftBank-backed firms.
Toyota plots yet another jittery ride-hail route 13 Jun 2018 The Japanese carmaker is investing $1 bln into Asian startup Grab. It’s the latest in a slew of deals that mostly reflect manufacturer fears about where things are headed in autonomous driving and beyond. As GM’s fading Lyft alliance shows, though, the path is far from clear.
The Exchange: Anatomy of a Theranos takedown 1 Jun 2018 John Carreyrou, the author of “Bad Blood,” explains how Elizabeth Holmes used fear and Silicon Valley myth-making to temporarily become a multi-billionaire – and how he exposed that the $9 bln company’s technology didn’t work.
Startups bump up against myth of Southeast Asia 25 May 2018 Indonesia’s Go-Jek is moving into four nearby markets. For this, the $5 bln ride-hailing firm will spend heavily on separate brands and apps. The problem for it, Alibaba and others is that this region of 660 mln remains more of a political concept than an economic reality.
The Exchange: Indonesia’s startup boom 11 May 2018 Southeast Asia's largest economy has seen a flurry of homegrown tech successes, led by $5 billion ride-hailing firm Go-Jek. Willson Cuaca of East Ventures and Donald Wihardja of Convergence Ventures explain why, and how, Jakarta can keep the hits coming.
Cox: Lisbon turns Tatooine for tech Rebel Alliance 9 Nov 2017 If the internet world can be likened to Star Wars, its dominant companies are the Death Star – and EU competition enforcer Margrethe Vestager is Princess Leia. But the insurgents descending on Portugal's capital are mostly finding ways to live with, not overthrow, the empire.
Meituan orders up help to be China’s next web star 20 Oct 2017 The food-delivery to hotel-bookings startup raised $4 bln at a $30 bln valuation. Investors reckon Meituan-Dianping could be China’s next huge online platform. With scale benefits from offering many different services, and this warchest to fight off rivals, they could be right.
Market to Rocket Internet: initiate breakup mode 26 Sep 2017 The $4 billion German tech investor trades at a whopping discount to the sum of its parts. To unlock that value, Oliver Samwer’s company needs urgent repair. Returning spare cash to shareholders and spinning off its stake in Delivery Hero would be a good start.
Rocket buyback hints at change of trajectory 14 Aug 2017 A 100 mln euro share buyback is an attempt to show the German tech investor has completed its wobbly booster phase. As it now has 1.7 bln euros of net cash, that’s partly true. But ongoing losses, and doubt over the IPO of HelloFresh, could constrain its upward potential.
Holding: Courts may save startups from redemptions 25 May 2017 Cashing out venture capitalists on demand can leave other investors in a lurch. A case involving onetime dot-com darling Oversee.net and Oak Hill suggests judges have growing concerns. It’s an overdue warning about how such conflicts can hurt fledgling firms and their owners.
Tech exuberance drives Didi to a $50 bln valuation 27 Apr 2017 China's top ride-hailing app is raising up to $6 bln. With no competition at home, the extra firepower seems unnecessary. A big chunk of the cash will probably go into counterparts abroad. It’s a fresh sign the huge sums raised by SoftBank and others are inflating startup values.
Chinese news app gets a sci-fi valuation 18 Apr 2017 A recent fundraising values Toutiao at $11 bln. Mainland advertisers are flocking to mobile apps, and Toutiao has a huge user base. But news feeds are not new and the business model has disappointed in the West. Buzzwords such as AI and big data are like clickbait for investors.
SoftBank and Alibaba have Indian tangle to unpick 22 Mar 2017 A potential merger between Snapdeal and Paytm would take Masayoshi Son and Jack Ma off the warpath in India, where their flagship companies, SoftBank and Alibaba, have invested in the rival e-commerce unicorns. Such a truce would save investors money in the long run.