Author: azeeadmin

24 Aug 2021

Max Q: Launch industry low-down

Max Q is a weekly newsletter from TechCrunch all about space. Sign up here to receive it weekly on Mondays in your inbox.

Another public launch company is coming soon, while a still-private launch had to push off their planned first flight date. Still another launcher got the go-ahead for its big debut. It’s a launch launch launch news week in space.

Virgin Orbit plans $3.2B SPAC

Virgin Orbit 87

Image Credits: Virgin Orbit

The past year has been a real dam-break in terms of exit events for space-focused startups, and it’s hard to attribute that to anything other than the rise in popularity of the SPAC merger path to public markets. Virgin Galactic began the fad, and now Richard Branson’s other space company, Virgin Orbit, is following suit.

Virgin Orbit, which also launches its spacecraft from a modified commercial airplane at high-altitude, but which focuses on small satellite payloads instead of flying people, stands to gain nearly half-a-bilion dollars in on-hand cash from the merger.

SPACs remain something that most retail investors and market observers should be wary of, but Virgin Orbit does appear to have some solid business in fundamentals in place, now that it’s actually an active launch services provider. The company reached orbit for the first time in January, and then flew its first commercial mission for paying customers in June.

Relativity’s first launch slips, but Astra’s is on track

Relativity Space's Terran 1 rocket, artist's rendering

Image Credits: Relativity Space

In other newbie launch provider news, 3D-printed rocket startup Relativity Space has pushed its first flight to 2022. The company’s debut Terran 1 rocket needs a bit more time, owing to no individual factor, but because of various refinements to the design, a new engine design, better construction materials — and yes, the impact of COVID-19.

The company is still aiming to have that launch done by “early 2022,” so it doesn’t sound like it’s slipping in terms of target time very much. Of course, in the space industry, you can never be sure of when a rocket is taking off until it actually takes off.

Astra is another provider looking to join the club of active launch companies by the end of 2021. While the company has done well with its test launches to date, but it hasn’t technically achieved orbit. It’ll look to add that notch to its belt, along with getting its first commercial launch done for a paying customer, with a launch window that opens later this week. It got the green light from the FAA to fly the mission last week, setting the stage for the attempt.

Taiwan and Australia’s commercial launch moves

Taiwanese launch startup Tispace has also gotten a regulatory green light for its first commercial launch. The company is looking to fly a test flight of its two-stage suborbital rocket, and will do so from a launch complex in Southern Australia. Both Australia and Taiwan have young but potentially promising space industries, so this should be a mission to watch once it gets a firm schedule for later this year.

Join us at TC Sessions: Space in December

Last year we held our first dedicated space event, and it went so well that we decided to host it again in 2021. This year, it’s happening December 14 and 15, and it’s once again going to be an entirely virtual conference, so people from all over the world will be able to join — and you can, too.

24 Aug 2021

Samsung to invest $205B in semiconductor, biopharma and telco units by 2023, creating 40,000 jobs

Samsung Group, South Korea’s tech giant, announced on Tuesday that it will invest $205 billion (240 trillion won) in their semiconductor, biopharmaceuticals and telecommunications units over the next three years to enhance its global presence and lead in new industries such as next-generation telecommunication and robotics.

The investment will be led by Samsung affiliates including Samsung Electronics and Samsung Biologics. It also unveiled mergers and acquisitions plan to fortify its technology and market leadership.

With setting aside $154.3 billion (180 trillion won) for home ground, Samsung expects to create 40,000 new jobs by 2023 through the investment.

This announcement comes days after Samsung Electronics vice chairman Jay Y. Lee was released on parole on 13 August right before South Korea’s Liberation Day. People speculated Samsung would be able to move forward with major investment once he was freed from prison, according to local media reports.

Samsung’s latest investment will be used for semiconductor, biopharmaceuticals and the next-generation telco units, according to the company’s statement.

Samsung Electronics plans to develop advanced process technology and expand the business with artificial intelligence (AI) and data centers for its system semiconductors while it will focus on up-to-date technology such as EUV-based sub14-nanometer DRAM and over 200-layer V-NAND products for the memory business. Samsung had announced in May the company will invest $151 billion in its logic chip and foundry sector, to be the top logic chip maker, by 2030.

Samsung Biologics and Samsung Bioepis plans to establish additional two new plants, in addition to a fourth factory that is under construction, for expanding the contract development manufacturing organization (CDMO) business, the statement said.

South Korea’s largest conglomerate also will support its ongoing R&D in new technologies and emerging application in areas such as AI and robotics along with the next generation OLED, quantum-dot display and high-energy density batteries development.

24 Aug 2021

Plentific cements $100M to expand its property management SaaS

London based Plentific, which operates a marketplace SaaS platform targeting the property management space, has closed a $100 million Series C. The funding round is led by new investors Highland Europe and Brookfield Technology Partners — the VC arm of the eponymous real estate giant — along with Mubadala Investment Company and RXR Digital Ventures, as well as existing investors A/O PropTech and Target Global.

The 2013-founded startup provides a cloud platform for landlords, property and facilities managers, and service providers — taking aim at legacy software with a joined up digital marketplace for locating tradespeople, managing repairs, keeping tenants informed and generating analytics to support data-driven property service delivery. 

Live in the UK, Germany and the US, it says the new financing will go on significantly growing its presence in the US as well as further global expansion. Its total equity raised to date with this latest round is $140M.

Plentific says it intends to spend on accelerating its engineering and product development to further fire up digitalisation across the property and facilities management space — with a plan to integrate Internet of Things (IoT) into its platform and also build out asset management solutions.

It’s also eying baking in machine learning and AI to help commercial and residential landlords increase returns and “make smarter decisions”, per its pitch.

Series C funds will also go on beefing up its offer for service provider — such as by increasing its CRM (Customer Relationship Management) functionality so it can better position itself to pull in contractors of all sizes.

The home improvement trend that boomed during the pandemic lockdown certainly seems to have been very positive for Plentific’s business: Per its website, 350,000+ properties are now managed by the platform across its three (current) markets.

The startup also told TechCrunch it has 100+ “large clients”, at this stage, and more than 16,000 contractors on their marketplace. While the number of property it has under management has grown 17-fold in the last three years.

It targets its property management tools broadly, at a range of customers and sectors, from private landlords and those running short term lets; to those responsible for managing social housing or student accommodation; and to property managers in sectors like education, hospitality, sport/fitness and social care. So — unlike startups like Mashroom, which are trying to disrupt the traditional managed service letting agency model — it doesn’t play in the lettings side of the market and would instead be hoping to win such agencies as customers for its tools.

Commenting on the Series C in a statement, Cem Savas, CEO and co-founder of Plentific, said: “We had a phenomenal year of growth, more than doubling headcount to almost 200 employees, opening an office in the United States and cementing our position in the UK and German markets. Our next step is to rapidly expand in the US, as well as look to begin operating in new geographies. We have only just scratched the surface of a $2.5 trillion potential market opportunity. We will now be rapidly expanding both our global footprint and the solutions we offer to become the de facto digital partner for landlords and service providers across the world.”

In another supporting statement, Josh Raffaelli, managing partner at Brookfield, added: “We are thrilled to partner with Plentific as it seeks to fully digitize the repairs and maintenance process. As one of the world’s largest real estate owner, operator and investor we have first-hand knowledge of how lowering operating costs can help drive efficiencies. We look forward to leveraging that knowledge and experience to help fuel Plentific’s growth and expand its global footprint.”

Another growing area of focus Plentific flags is supporting customers to expand their Environment, Social and Governance (ESG) credentials — saying it will expand capabilities in this “critical area”. Here it works with clients through its PropertyLab accelerator program which it says aims to develop solutions to strengthen ESG initiatives and make reporting more robust through enhanced analytics, in addition to trying to tackle the carbon footprint of properties.

 

24 Aug 2021

A new NSO zero-click attack evades Apple’s iPhone security protections, says Citizen Lab

A Bahraini human rights activist’s iPhone was silently hacked earlier this year by a powerful spyware sold to nation-states, defeating new security protections that Apple designed to withstand covert compromises, say researchers at Citizen Lab.

The activist, who remains in Bahrain and asked not to be named, is a member of the Bahrain Center for Human Rights, an award-winning nonprofit organization that promotes human rights in the Gulf state. The group continues to operate despite a ban imposed by the kingdom in 2004 following the arrest of its director for criticizing the country’s then-prime minister.

Citizen Lab, the internet watchdog based at the University of Toronto, analyzed the activist’s iPhone 12 Pro and found evidence that it was hacked starting in February using a so-called “zero-click” attack, since it does not require any user interaction to infect a victim’s device. The zero-click attack took advantage of a previously unknown security vulnerability in Apple’s iMessage, which was exploited to push the Pegasus spyware, developed by Israeli firm NSO Group, to the activist’s phone.

The hack is significant, not least because Citizen Lab researchers said it found evidence that the zero-click attack successfully exploited the latest iPhone software at the time, both iOS 14.4 and later iOS 14.6, which Apple released in May. But the hacks also circumvent a new software security feature built into all versions of iOS 14, dubbed BlastDoor, which is supposed to prevent these kinds of device hacks by filtering malicious data sent over iMessage.

Because of its ability to circumvent BlastDoor, the researchers called this latest exploit ForcedEntry.

Citizen Lab’s Bill Marczak told TechCrunch that the researchers made Apple aware of the efforts to target and exploit up-to-date iPhones. When reached by TechCrunch, Apple would not explicitly say if it had found and fixed the vulnerability that NSO is exploiting.

In a boilerplate statement re-released Tuesday, Apple’s head of security engineering and architecture Ivan Krstic said: “Apple unequivocally condemns cyberattacks against journalists, human rights activists, and others seeking to make the world a better place … Attacks like the ones described are highly sophisticated, cost millions of dollars to develop, often have a short shelf life, and are used to target specific individuals. While that means they are not a threat to the overwhelming majority of our users, we continue to work tirelessly to defend all our customers, and we are constantly adding new protections for their devices and data.”

Read more on TechCrunch

A spokesperson for Apple said BlastDoor was not the end of its efforts to secure iMessage and that it has strengthened its defenses in iOS 15, which is slated for release in the next month or so.

Citizen Lab said the Bahraini government was likely behind the targeting of the Bahraini human rights activist, as well as eight other Bahraini activists between June 2020 and February 2021.

Bahrain is one of several authoritarian states known to be government customers of Pegasus, including Saudi Arabia, Rwanda, the United Arab Emirates and Mexico; though, NSO has repeatedly declined to name or confirm its dozens of customers, citing nondisclosure agreements.

Five of the targeted Bahrainis’ phone numbers were found on the Pegasus Project list of 50,000 phone numbers of potential surveillance targets of the Pegasus spyware, which gives its government customers near-complete access to a target’s device, including their personal data, photos, messages and location.

One of those listed phone numbers belongs to another member of the Bahrain Center for Human Rights, which Citizen Lab said was targeted months earlier and with a different zero-click exploit, called Kismet, which predates ForcedEntry. Citizen Lab says Kismet no longer works on iOS 14 and later since BlastDoor was introduced, but still poses a risk to devices running older iPhone versions.

Two other Bahrainis, who now live in exile in London and consented to be named, also had their iPhones hacked.

Moosa Abd-Ali, a photojournalist who was previously targeted by FinFisher spyware sold to the Bahraini government, had his iPhone hacked while living in London. Citizen Lab said it has only seen the Bahraini government spy in Bahrain and in neighboring Qatar, and said it suspects that another foreign government with access to Pegasus may have been responsible for the hack. Recent reporting found the United Arab Emirates, a close ally of Bahrain, is the “principal government” for selecting phone numbers in the U.K. Abd-Ali’s phone number was also on the list of 50,000 phone numbers.

Bahraini activist Yusuf Al-Jamri also had his iPhone hacked, believed by the Bahraini government, some time before September 2019, though it is not known if Al-Jamri’s iPhone was hacked while in Bahrain or the UAE, before he was granted asylum in the U.K. in 2017.

The seven unnamed Bahrainis continue to work in the kingdom despite a long history of human rights violations, internet censorship and widespread oppression. Reporters Without Borders ranks Bahrain’s human rights record as one of the most restrictive in the world, ranked only behind Iran, China and North Korea. A 2020 report by the U.S. State Department on Bahrain’s human rights said the country cited considerable violations and abuses, and noted that the government “used computer programs to surveil political activists and members of the opposition inside and outside the country.”

When reached, NSO Group did not answer specific questions nor would it say if the Bahraini government was a customer. In a statement attributed only as an NSO spokesperson sent via its external public relations firm Mercury, NSO said that it had not seen Citizen Lab’s findings and that it would “vigorously investigate the claims and act accordingly based on the findings.”

NSO recently claimed it cut off five government customers’ access to Pegasus for human rights abuses.

Zainab Al-Nasheet, a spokesperson for the Bahraini government, told TechCrunch in a statement: “These claims are based on unfounded allegations and misguided conclusions. The government of Bahrain is committed to safeguarding the individuals’ rights and freedoms.”

Abd-Ali, who said he was arrested and tortured in Bahrain, said that he thought he would find safety in the U.K. but that he still encounters digital surveillance but also physical attacks, as many victims of spyware experience.

“Instead of protecting me, the U.K. government has stayed silent while three of their close allies — Israel, Bahrain and the UAE — conspired to invade the privacy of myself and dozens of other activists,” he said.


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24 Aug 2021

India’s KhataBook raises $100 million for its bookkeeping platform for merchants

Khatabook, a startup that is helping merchants in India digitize their bookkeeping and accept online payments, said on Tuesday it has raised $100 million in a new financing round as it prepares to launch financial services.

The startup’s new financing round — a Series C — was led by Tribe Capital and Moore Strategic Ventures and valued the two-and-a-half-year-old Bangalore-headquartered startup at “close to $600 million,” its co-founder and chief executive Ravish Naresh told TechCrunch in an interview.

As part of the new round — which was oversubscribed and also saw participation of Balaji Srinivasan and Alkeon Capital as well as many other existing investors including Sriram Krishnan, B Capital Group, Sequoia Capital, Tencent, RTP Ventures, Unilever Ventures, and Better Capital — KhataBook said it is also buying back shares worth $10 million to reward its current and former employees and early investors. The startup said it is also expanding its stock options pool for employees to $50 million

Even as hundreds of millions of Indians came online in the past decade, most merchants in the South Asian nation are still offline. These merchants, who run neighborhood stores, rely on traditional ways for bookkeeping — maintaining ledgers on paper — that are both time-consuming and prone to errors.

KhataBook is attempting to change that by providing these merchants with a suite of products to digitize their bookkeeping and manage their expenses and staff. The startup said it has a user in nearly every zip code in India.

“At Tribe, we believe strongly in the power of the network effect and how it can create moats for businesses. Khatabook has successfully built such a network by empowering this seismic shift among MSME businesses to move from paper to digital, literally. Despite its large early success and fast adoption to date, the company is early in its path to power the segment. We’re thrilled to be a part of its growth as it leverages its network to build additional scale,” said Arjun Sethi, co-founder and partner at Tribe Capital, in a statement.

KhataBook has expanded its product offerings in recent years to try to solve a lot of other challenges merchants face. Later this year, Naresh said, the startup will provide lending to merchants. “We are currently testing the product with both retailers and distributors,” he said.

Online lending has boomed in India in recent years, but very few companies are today attempting to cater to small- and medium-sized businesses. “The unaddressed SME credit demand in India is ~US$300-$350 billion, with more than 90% of current demand being met by banks. A typical digital SME lender focusses on Rs1-5 million ($13,575 to $67,875) ticket size with no collateral, average tenure ~12-18 months, and with some ecosystem anchor,” analysts at Bank of America wrote in a report last year.

As with scores of other firms, the pandemic was not good news for KhataBook, which lost a significant portion of the business last year after Indian states enforced lockdown to restrict mobility. But the startup has since bounced back. The month of July, said Naresh, was its all-time high. “MSMEs have come back very strongly and businesses were not as impacted by the second wave this year as they were by last year’s,” he said.

This is a developing story. More to follow…

24 Aug 2021

Pakistan’s B2B marketplace and digital ledger platform Bazaar raises $30 million

A one-year-old startup that is building a business-to-business marketplace for merchants in Pakistan and also helping them digitize their bookkeeping is the latest to secure a mega round in the South Asian market.

Bazaar said on Tuesday it has raised $30 million in a Series A round. The new financing round — the largest Series A in Pakistan — was led by Silicon Valley-based early stage VC Defy Partners and Singapore-based Wavemaker Partners.

Scores of other investors including current and former leaders of Antler, Careem, Endeavor, Gumroad, LinkedIn and Notion as well as new investors Acrew Capital, Japan’s Saison Capital, UAE’s Zayn Capital and B&Y Venture Partners and existing investors Indus Valley Capital, Global Founders Capital, Next Billion Ventures, and Alter Global also participated in the new round.

One way to think about Bazaar is — especially if you have been following the Indian startup ecosystem — that it’s sort of a blend between Udaan and KhataBook. “That’s a good way to describe us,” said Hamza Jawaid, co-founder of Bazaar in an interview. “We had this benefit of hindsight to not just look at India but other emerging markets,” he said.

“We saw lots of synergies between these two. If you look at commerce, you have to acquire every single merchant in every single category differently. Whereas with Khata, merchants in any city and category can download it. So effectively, it’s a great customer acquisition tool for you,” he said on a WhatsApp call, adding that this also provides greater insight into businesses.

Bazaar’s business-to-business marketplace, which provides merchants with the ability to procure inventories at a standard price and choose from a much larger catalog, is currently available in Karachi and Lahore, the nation’s largest cities, while Easy Khata is live across the country.

At stake is a booming market that is yet to see much deployment of technology, said Saad Jangda, Bazaar’s other co-founder. Both of them have known each other since childhood and reconnected in Dubai a few years ago. At the time, Jawaid was at McKinsey & Company while Jangda was working with Careem as a product manager for ride-hailing and food delivery products.

There are about 5 million micro, small, and medium-sized businesses in Pakistan. Like India, even as a significant portion of the population has come online, most merchants remain unconnected.

“We’ve been investing in FMCG B2B marketplaces across the region since 2017. After working with Hamza and Saad over the past year, we’ve been impressed by their customer-centric approach to product development and the speed of their learning and execution,” said Paul Santos, Managing Partner at Wavemaker Partners, in a statement.

“It’s no surprise that they’ve received glowing reviews from their customers and partners. We’re excited to support Bazaar as they solidify their market leadership and digitize Pakistan’s retail ecosystem,” he added.

The startup said it has amassed over 750,000 merchants since launch last year. And it appears to have solved a problem that many of its South Asian peers are still grappling with: Retention. Bazaar said it has a 90% retention rate.

I asked Jangda if he plans to expand to the ‘dukaan’ category. Several startups in Asia are currently building tools to help merchants set up online presence and accept digital orders. He said the market is currently not ready for a dukaan product just yet. “The B2C market is still developing, so there is not so much demand from the consumer side yet,” he added.

Instead the current new focus is financial services. In recent months, the startup said it has tested a buy now pay later product and early results have shown a 100% repayment.

“Bazaar is going after a massive opportunity with the ultimate aim of creating a generational story in and from Pakistan. In a country with incredible talent and huge market opportunity, it’s about time we create an inspirational story that brings together the country’s best talent who can go on to create many such stories in the future,” said the founders.

The startup eventually wants to become a super app, or a broader operating system for retail in Pakistan. It plans to deploy the fresh funds to expand its services to more cities across Pakistan and build and scale more products.

“What Bazaar has managed to accomplish in the last year is incredible. We are extremely impressed by the speed and robustness with which they build and deploy. As Defy’s first investment into Pakistan’s burgeoning tech ecosystem, we feel Bazaar is on its way to create a category defining company for the country” said Kamil Saeid – Partner at Defy Partners.

Tuesday’s announcement comes a week after Airlift, another Pakistan’s startup, announced a big round.

24 Aug 2021

SoBanHang gets $1.5M to help small Vietnamese stores sell online for the first time

A few months ago, brothers Hai Nam Bui and Hai Long Bui were developing a bookkeeping app for small retailers in Vietnam. Called SoBanHang (or “sales book”), it would help businesses that usually rely on paper ledgers digitize their operations, similar to Khatabook in India and BukuKas and BukuWarung in Indonesia. Then a new COVID-19 outbreak hit Vietnam. The businesses SoBanHang had been working with, which are often family owned and have less than five employees, struggled to cope. The team held a hackathon and came up with a new product for retailers to create online stores and manage orders. Since launching three months ago, SoBanHang’s “hyper local e-commerce enabler” has signed up almost 20,000 merchants, many selling online for the first time.

The company announced today that it has raised $1.5 million in seed funding, with participation from investors including FEBE Ventures, Class 5 and Kevin P. Ryan, founder of businesses like Gilt Groupe, Business Insider and MongoDB.

Before launching SoBanHang, Hai Nam Bui founded Datamart Solutions, a data analytics and automation platform, and served leadership roles at Lazada. Hai Long Bui also spent several years in management at Lazada, before holding the chief analytics and chief technology officer positions at Landers Superstore, a Philippines supermarket chain.

The idea for SoBanHang was planted when Hai Nam Bui visited a grocery store while wearing a Lazada T-shirt. The store’s owners saw the shirt and asked him how they could start selling online. So he helped them register an account on Shoppe and start uploading product photos and descriptions.

“After I had everything set up, they got their first order and asked, ‘how can I ship the product?’” Hai told TechCrunch. “I said that a third-party logistics provider will come and pick up the goods. And then they asked about the money. They didn’t understand the process and they didn’t feel comfortable giving goods to a third-party logistics providers.”

A photo of a merchant in Vietnam looking at a smartphone

One of SoBanHang’s clients

Since the majority of e-commerce orders in Vietnam are paid through cash on deliveries, the store’s owners also had questions about payment. Hai explained that the customer would hand cash to the rider, who would then give it to Shoppe and, in turn, Shopee would deposit it into the store owner’s digital wallet.

“And they asked ‘where is the wallet? How can I withdraw money to a bank account if I don’t have a bank account?’ That was an a-ha moment, when I realized that a lot of e-commerce platforms are still not touchable to about 90% of retailers in Vietnam,” said Hai. “The systems are still way too complex for them.”

Hai and his brothers started working on a digital bookkeeping app to help businesses digitize their operations, but when the outbreak and lockdowns hit, it became imperative to help them start selling online immediately. Based on SoBanHang’s research, there are about 16 million “nano” to micro-sized businesses in Vietnam. Many are very local, serving customers within a couple kilometers. In fact, businesses on SoBanHang often perform their own deliveries on foot.

“That was our second a-ha moment about the retailers, which is that they are selling to customers in their neighborhoods. The buyers and sellers are actually within walking distance. When they connect with buyers, they can make that order transaction, and then retailers deliver the good themselves and collect the money at the customer’s doorstep,” said Hai. This eliminates the need for SoBanHang to have complex logistics or payment systems, or for merchants to use third-party delivery apps that charge high commission fees.

Many of SoBanHang’s clients previously managed most of their transactions on paper and didn’t have a point-of-sale system or laptop, so the app is the first time they have digitized their operations. SoBanHang can be used for all kinds of retailers, but during the COVID-19 outbreak, it’s seen the most adoption from food and convenience stores.

The retailers are small enough that their customers can just message them orders, but SoBanHang makes the process smoother and enables them to sell more. Having an online storefront also helps prepare retailers for other COVID-19 outbreaks and maintain relationships with their customers.

For example, SoBanHang has a strategic partnership with Viettel, the largest telecommunications company in Vietnam. This lets them offer discounted SMS to businesses so customers can see special offers even if they haven’t installed SoBanHang’s app and don’t get its push notifications. For example, if a grocery store wants to sell out their inventory of fresh fish, they can send out a text blast to shoppers.

After lockdown restrictions are lifted, Hai said SoBanHang can help small retailers continue competing against larger players like supermarket and convenience store chains. Their advantage is that “they have a very good relationship with their customers, they know them well and they sit and wait for their customers to come. We want to turn that relationship into a new sales strategy for them.”

In the future, SoBanHang plans to continue working on its original plans for bookkeeping app. Like other bookkeeping apps, it plans to add financial services, like working capital loans that can be disbursed even without a digital wallet or bank account. But in the near-future, the startup will continue helping small retailer sell online for the first time.

24 Aug 2021

GM says it will seek reimbursement from LG Chem for $1B Chevy Bolt recall losses

American automaker General Motors expanded its recall of Chevrolet Bolt electric vehicles on Friday due to fire risks from battery manufacturing defects. The automaker said it would seek reimbursement from LG Chem, its battery cell manufacturing partner, for what it expects to be $1 billion worth of losses.

Following the news of the recall, the third one GM has issued for this vehicle, LG Chem shares fell by 11% on Monday, and its stock price lost $6 billion in market value. GM’s shares were down 1.27% at market close.

This isn’t the first time LG Chem’s batteries have resulted in a recall from automakers. Earlier this year, Hyundai recalled 82,000 EVs due to a similar battery fire risk at an estimated cost of about $851.9 million. Hyundai’s joint battery venture was with LG Energy Solution, the specific battery unit of LG Chem, which is preparing for its initial public offering in September, but experts say the IPO could be delayed due to the recall cost.

GM’s investigation into the problems with its batteries found battery cell defects like a torn anode tab and folded separator. The recall comes a week after a fire involving a Volkswagen AG ID.3 EV with an LG Energy Solution battery. Earlier this year Volkswagen, as well as Tesla, began making moves to shift from LG Chem’s brand of pouch-type lithium-ion battery cells and towards more prismatic-type cells, like those made by CATL and Samsung SDI.

The recall leaves GM without any fully electric vehicles for sale in North America, which means it can’t compete with Tesla and other automakers as EV sales are on the rise. The loss in sales, the safety risks and the possibility of better tech on the horizon might cause GM to take its business elsewhere.

For now, there’s still work to be done together. GM said it will replace defective battery modules with new modules in the Chevy Bolt EVs and EUVs, which it says accounts for the $1 billion in losses. This is on top of the $800 million GM already is spending for the original Bolt recall last November. Battery packs are the most expensive components of the electric vehicle, on average costing about $186 per kWh, according to data from energy storage research firm Cairn ERA. GM pays about $169 per kWh, and the Bolt has a 66 kWh battery pack.

LG Chem and GM did not respond to requests for comment, so it’s not clear whether the two plan to move forward on plans announced in April to build a second U.S. battery cell factory in Tennessee. The joint venture, dubbed Ultium Cells, would aim to produce more than 70 GWh of energy.

24 Aug 2021

Japan’s B2B ordering and supply platform CADDi raises $73 million Series B funding

With COVID-19 disrupting the entire manufacturing supply chain including semiconductor shortages, companies across multiple industries have been struggling to seek a procurement solution that can rebalance the gap between supply and demand.

CADDi, a Tokyo-based B2B ordering and supply platform in the manufacturing and procurement industry, helps both procurement (demand side) and manufacturing facilities (supply side) by aggregating and rebalancing supply and demand via its automated calculation system for manufacturing costs and databases of fabrication facilities across Japan.

The company announced this morning a $73 million Series B round co-led by Globis Capital Partners and World Innovation Lab (WiL), with participation from existing investors DCM and Global Brain. Six new investors also have joined the round including Arena Holdings, DST Global, Minerva Growth Partners, Tybourne Capital Management, JAFCO Group and SBI Investment.

CADDi was founded by CEO Yushiro Kato and CTO Aki Kobashi in November 2017.

The post-money valuation is estimated at $450 million, according to sources close to the deal.

The new funding brings CADDi’s total raised so far to $90.5 million. In December 2018, the company closed a $9 million Series A round led by DCM and followed by Globis Capital Partners and WiL and Global Brain.

The funding proceeds will be used for accelerating digital transformation of the platform, hiring and expanding to global markets.

“We enable integrated production of complete sets of equipment consisting of custom-made parts such as sheet metal, machined parts and structural frames. Using an automatic quotation system based on a proprietary cost calculation algorithm, we select the processing company that best matches the quality, delivery date and price of the order and build an optimal supply chain,” CEO and co-founder Yushiro Kato said.

The goal of CADDi’s ordering platform is to transform the manufacturing industry from a multiple subcontractor pyramid structure to a flat, connected structure based on each manufacturers’ individual strengths, thus creating a world where those on the front lines of manufacturing can spend more time on essential and creative work, Kato said.

CADDi’s ordering platform, backed by its unique technology including automatic cost calculation system, optimal ordering and production management system, and drawing management system, offers a 10%-15% cost reduction, stable capacity and balanced order placement to its more than 600 Japanese supply partners spanning a multitude of industries.

“The demand for CADDi’s services has seen significant acceleration. Our business has been growing very fast, and our latest orders have grown more than six times compared to the previous year, leading to the company’s expanded presence into both eastern and western Japan in order to meet this increase in demand,” Kato said.

“Going forward, in addition to continuously expanding our ordering platform, we will also start to provide purchases (manufacturers) and supply partners with our technology directly to promote digital transformation of their operations, for example, the production management system and drawing management system,” Kato continued.

“As a start point, in the near future, we are thinking about selling ‘Drawing Management SaaS,’” which has been used internally for CADDi’s ordering operation, to help customers solve operational pains in handling piles of drawings. “Our ‘Drawing Management SaaS’ technology will not only help manage drawings as documents properly but also allow utilization of data of drawings in a practical way for future decision-making and action in their procurement process.”

CADDi’s next axis of growth will be other growing markets, especially in Southeast Asia, Kato pointed out. “Many of our Japanese customers have subsidiaries and branches in these countries, so it’s a natural expansion opportunity for us to strengthen our value proposition and provide more continuity and seamless service to our customers,” Kato added.

Kato also said it wants to continue investing in hiring, especially engineers, to further the development of its platform CADDi and new business. It plans to hire 1,000 employees in the next three years. CADDi had 102 employees as of March 2021.

The company aims to become a global platform with sales of USD 9.1 billion (that is 1 trillion YEN) by 2030, Kato said.

COVID-19 had a different impact on different industries in the procurement and manufacturing sector, with “the automobile and machine tool industries were negatively affected by the pandemic and experienced an up to 90% temporary drop in sales, while other industries such as the medical and semiconductor industries have experienced explosive growth in demand. The overall result of COVID-19 is that the company has captured more demand because CADDi’s system rebalances receipts across multiple industries,” according to Kato.

Masaya Kubota, partner at World Innovation Lab, told TechCrunch, “CADDi’s solution of aggregating and rebalancing supply and demand has once again proven to be indispensable to both purchasers and manufacturers, with the pandemic disrupting the entire supply chain in manufacturing. We first invested in CADDi in 2018, because we strongly believed in their mission of digitally transforming one of the most analog industries, the $1 trillion procurement market.”

Another investor principal at DCM, Kenichiro Hara, also said in an email interview with TechCrunch, “The pandemic made the manufacturing industry’s supply chain vulnerabilities quite clear early on. For example, if a country is on lockdown or a factory stalls the operations, their customers cannot procure necessary parts to produce their products. This impact amplifies, and the entire supply chain is affected. Therefore, the demand for finding new, available and accessible suppliers in a timely manner increased in importance, which is CADDi’s primary value-add.”

23 Aug 2021

Back to the suture: The future of healthcare is in the home

The pandemic has highlighted some of the brightest spots — and greatest areas of need — in America’s healthcare system. On one hand, we’ve witnessed the vibrancy of America’s innovation engine, with notable contributions by U.S.-based scientists and companies for vaccines and treatments.

On the other hand, the pandemic has highlighted both the distribution challenges and cost inefficiencies of the healthcare system, which now accounts for nearly a fifth of our GDP — far more than any other country — yet lags many other developed nations in clinical outcomes.

Many of these challenges stem from a lack of alignment between payment and incentive models, as well as an overreliance on hospitals as centers for care delivery. A third of healthcare costs are incurred at hospitals, though at-home models can be more effective and affordable. Furthermore, most providers rely on fee for service instead of preventive care arrangements.

These factors combine to make care in this country reactive, transactional and inefficient. We can improve both outcomes and costs by moving care from the hospital back to the place it started — at home.

Right now in-home care accounts for only 3% of the healthcare market. We predict that it will grow to 10% or more within the next decade.

In-home care is nothing new. In the 1930s, over 40% of physician-patient encounters took place in the home, but by the 1980s, that figure dropped to under 1%, driven by changes in health economics and technologies that led to today’s hospital-dominant model of care.

That 50-year shift consolidated costs, centralized access to specialized diagnostics and treatments, and created centers of excellence. It also created a transition from proactive to reactive care, eliminating the longitudinal relationship between patient and provider. In today’s system, patients are often diagnosed by and receive treatment from individual doctors who do not consult one another. These highly siloed treatments often take place only after the patient needs emergency care. This creates higher costs — and worse outcomes.

That’s where in-home care can help. Right now in-home care accounts for only 3% of the healthcare market. We predict that it will grow to 10% or more within the next decade. This growth will improve the patient experience, achieve better clinical outcomes and reduce healthcare costs.

To make these improvements, in-home healthcare strategies will need to leverage next-generation technology and value-based care strategies. Fortunately, the window of opportunity for change is open right now.

Five factors driving the opportunity for change

Over the last few years, five significant innovations have created new incentives to drive dramatic changes in the way care is delivered.

  1. Technologies like remote patient monitoring (RPM) and telemedicine have matured to a point that can be deployed at scale. These technologies enable providers to remotely manage patients in a proactive, long-term relationship from the comfort of their homes and at a reduced cost.