Author: azeeadmin

13 Sep 2018

PlayVS taps League of Legends in launch of high school esports platform

PlayVS, the startup bringing an e-sports infrastructure to the high school level, has today announced that it will partner with Riot’s League of Legends for its beta season.

High school students across five states, including Connecticut, Georgia, Kentucky, Massachusetts, and Rhode Island, will be able to sign up to play for their school in Season Zero, which begins in October 2018.

Around 200 colleges and universities across the U.S. and Canada are offering esports scholarships, but without any infrastructure around high school esports, those recruiters are left at the mercy of the publishers and a grueling tournament schedule.

Meanwhile, young gamers who want to go pro are forced to gain a following via Twitch, or hit up all those tournaments and find a way to shine.

PlayVS offers access to recruiters while giving high school students the chance to play competitive esports at the high school level. The startup, backed by Science with $15.5 million in funding, has partnered with the NFHS (essentially the NCAA of high school) to offer turnkey competition through its dashboard.

PlayVS partners with publishers, and lets players sign up, receive team and league schedules, check standings and stats, and actually play the game all within the PlayVS online portal.

PlayVS has a no-cut policy, letting high schools submit as many unique teams as they like. Given that the company makes money from players themselves ($64/season/player), it makes sense that the company would take a ‘more the merrier’ approach.

The company then divides up those teams into conferences, and the teams play to be conference champions, advance to semi-finals, and eventually head to the state championship. All the games will be played from the students’ own school through the online portal, except for the State Championship tournament which will have a live spectator audience.

This beta season, which includes five states, gives PlayVS a chance to roll out the platform to a smaller pool of players and work out any issues ahead of the inaugural season, which starts February 2019.

13 Sep 2018

Walmart’s Jet.com relaunches site with focus on urban shoppers, same-day grocery delivery

Jet.com, the e-commerce site Walmart acquired in 2016 for $3 billion, is relaunching itself today with an upgraded look and assortment, as well as a stronger focus on serving the needs of shoppers in urban metros. The site’s updated catalog now features an assortment that’s more relevant to city shoppers’ interests across categories like grocery, home, fashion, beauty and electronics, the company says. It will also introduce 3-hour grocery delivery as a challenge to Amazon’s Prime Now.

Specifically, the site will now be localized to the city where the shoppers live.

This localization involves the use of localized imagery and messages on the homepage and elsewhere, as well as Jet’s decisions about what products are featured in its assortment for that region. The site will also transition from a daytime theme to a nighttime theme as the day progresses.

These localization efforts begin with New York, but will roll out to other cities over time.

According to Simon Belsham, President of Jet.com, the Northeast will be a priority. After NYC, it will local sites for Boston, then Philadelphia, then D.C.

The site will also focus on helping shoppers more easily reorder items and will be personalized to shoppers’ own preferences, in terms of things like product recommendations and when reorder reminders appear.

And it will tailor its shopping experiences for each product category in different ways.

“The way consumers are inspired by and shop for fashion is very different than food,” Belsham explains to TechCrunch. “When shopping for fashion, consumers want to shop the look, shop select styles and see the styles on real people so imagery and video are important.”

“For food, they want to see the brands and the products and confirm they will be fresh and quality,” he continues. “They also want to save time and get their weekly grocery needs plus stock up items. So it’s important for the imagery to be clear and crisp and offer scheduled delivery windows that consumers can get at a time convenient to their busy lives,” he says.

Voice computing is another key focus, but Walmart isn’t going to leverage rival Amazon.com’s Alexa platform for that, of course. Instead, it will allow iOS users to build lists using Siri voice commands.

For example: “Siri, add bananas to my grocery list.”

Another big shift for the revamped Jet.com is its new offering of three-hour same-day grocery delivery and next-day delivery options. Delivery will be provided through most of New York City via Parcel, the last-mile delivery startup it acquired in 2017 with the intention of launching same-day delivery in the city.

At launch, the majority of New York City customers will be able to select 3-hour delivery of groceries and other everyday essentials, including those from local and small businesses, like Bedford Cheese Shop, Pat LaFrieda meats, Orwashers Bakery, Big Gay Ice Cream, and Just Bagels. The decision to work with area businesses is similar to how Amazon Prime Now works with local shops, grocers, and restaurants.

Online grocery customers will be able to give Jet.com instructions on where to leave items, and groceries will arrive in recyclable, insulated bags that keep foods cold for up to three hours.

While not necessarily related to city shoppers’ needs, Jet also today announced a strategic partnership with Nike that will see the site offering online consumers a selection of Nike and Converse products in a fully-branded experience.

The debut assortment will include hundreds of products across apparel, footwear and accessories for men, women and children, including essentials for running, training and sportswear, Jet.com says.

Fashion and apparel is one of the top-growing categories online and more retailers have figured out how to get shoppers to buy products that usually require try-on through innovative programs, like Amazon’s home try-on service, Prime Wardrobe, or through leveraging their brick-and-mortar footprint for returns. Brands, meanwhile, have benefitted from the exposure provided by being available to consumers through these e-commerce giants’ sites. For example, Lord & Taylor just set up shop on Walmart.com and just days ago, J.Crew announced it was launching a storefront on Amazon.

Despite these moves to prioritize the needs of urban shoppers, Jet.com will not close down its site to shoppers outside major metros. The site will remain available to all consumers nationwide, Belsham says.

“I am so excited to relaunch Jet to consumers today,” said Belsham, in a prepared statement about the launch of the updated site. “As a retailer, we must build experiences that customers love and trust, backed by strong values. For Jet, this means offering a more tailored shopping experience combined with a unique assortment of great brands in a way that brings empathy back into e-commerce. This is only the beginning for Jet,” he said.

[gallery ids="1711810,1711811,1711812,1711813,1711814,1711815,1711802,1711819,1711823,1711816,1711820,1711821,1711822"]

 

13 Sep 2018

Snapchat enlists 20 partners to curate Our Stories from submissions

Themed collections of user generated content chosen by news publishers for viewing on and off Snapchat are the teen social network’s next great hope for relevance. Today Snap launches Curated Our Stories with the help of 20 partners like CNN, Cosmopolitan, Lad Bible, and NowThis. Instead of sifting through and selecting submissions to Our Story all by itself around events, holidays, and fads, these publishers can create slideshows of Snaps about whatever they want. They’ll both be featured in Snapchat Discover that sees 75 million Our Stories viewers per month, but also on the publishers’ own properties thanks to Snap’s embeds that have been underused since their January launch.

To entice partners, Snap has built in monetization from day one, splitting revenue with publishers from ads run in the Our Stories they curate. That’s in sharp contrast to Snap’s work with independent creators, where it still won’t split revenue with them directly though at least it’s finally connecting them with brand sponsors.

Snap’s head of Stories everywhere Rahul Chopra tells me that in exchange for its cut, Snap provides a content management system that publishers can use to search through submitted Snaps using a variety of filters like keywords in captions and locations. A human at Snap will also moderate Curated Our Stories to ensure nothing objectionable slips through.

The new revenue stream could help Snap offset its declining user count by squeezing more cash out of each user by exposing them to more content and ads, or score it new users through embedded Curated Our Stories on its partners’ apps and sites. Snap beat revenue expectations last quarter but it still lost $353 million, contributing to a share price decline that hit an all-time low yesterday.

Snap first created Our Stories in 2014 to let people get the perspectives of tons of different attendees to music festivals and sporting matches. With time it expanded to creating college-specific Our Stories and ones of more relatable activities like enjoying Fridays. Snapchat also lets users search its publicly submitted content, but seems to have found people are too lazy or unimaginative to do it, or the uncurated content isn’t high quality enough to be worth watching.

The full list of publisher partners is: Brut, CNN, Cosmopolitan, Daily Mail, Daquan, Dodo, Harper’s Bazaar, iHeart, The Infatuation, Jukin, Lad Bible, Love Stories TV, Mic, NBC News, NBC Sports, NBC, Today Show, New York Post, NowThis, Overtime, Refinery 29, Telemundo, The Tab, Viacom, Wave.TV, and Whalar. They run the gambit from traditional publishers to online news sources, and includes Snapchat’s Yellow startup accelerator portfolio company Love Stroies TV, plus CNN’s return to Discover after cancelling its daily anchored news show there.

The curation possibilities are infinite. Partners could create reels of reactions to major news stories or shots from people with eyes on the ground at the scene of the action. They could highlight how people use a certain product, experience a particular place, or use a certain Snapchat creative feature. The publishers might produce daily or weekly collections around a topic or try a wide range of one-offs to surprise their viewers. You could think of it as a little bit like YouTube playlists, but cobbled together from real-time short-form submissions that might be too brief to make an impact on their own.

This is the start of Snapchat crowdsourcing not only content but curation to dig out the best citizen journalism, comedy, and beauty shot on its app and turn it into easily consumable compendiums. Given that Snapchat lost three million users last quarter, it could use the help keeping viewers coming back. But like most everything it launches, if Curated Our Stories blows up, you can bet Facebook and Instagram will turn on their copying machines.

 

13 Sep 2018

Brazilian startup Yellow raises $63M — the largest Series A ever for a Latin American startup

After selling their ridesharing startup, 99, to Didi Chuxing for $1 billion last year, Ariel Lambrecht and Renato Freitas didn’t waste any time throwing their hats back in the ring.

Months after their big exit, the pair joined forces with Eduardo Musa, who spent two decades in the bicycle industry, to start another São Paulo-based mobility startup. Yellow, a bike- and scooter-sharing service, quickly captured the attention of venture capitalists, raising a $9 million seed round in April and now, the company is announcing the close of a $63 million Series A.

The round is the largest Series A financing ever for a startup in Latin America, where tech investment, especially from U.S.-based firms, has historically remained low. 2017, however, was a banner year for Latin American startups; 2018, it seems, is following suit. More than $600 million was invested in the first quarter of 2018, partly as a result of increased activity from international investors. And just last month, on-demand delivery startup Rappi brought in $200 million to become the second Latin American company to garner a billion-dollar valuation.

GGV Capital has led the round for Yellow . The Silicon Valley firm is a backer of several other mobility companies, including Grab, Hellobike and Didi Chuxing. Yellow represents the firm’s first foray into the Latin American tech ecosystem. Brazilian VC firm Monashees, Grishin Robotics, Base10 Partners and Class 5 also participated.

“We think there’s a new economy emerging in Latin America,” GGV managing partner Hans Tung told TechCrunch. “A lot of people are more cautious but what we’ve seen with our experience in China, when internet penetration started to happen, a new economy started to emerge that’s more efficient.”

Yellow’s bikes and e-scooters are only available in São Paulo. With the investment, the startup plans to expand to Mexico City, Colombia, Chile and Argentina, as well as add e-bikes to its portfolio of micro-mobility options.

The company also plans to tap into local resources by building a scooter manufacturing facility in the region. Yellow CEO Eduardo Musa told me the company doesn’t want to be reliant on Chinese manufacturers to import scooters and that a local supplier is a whole lot cheaper. The company’s bikes are already sourced locally.

“Since the beginning, we wanted to be vertically integrated,” Musa told TechCrunch. “We definitely believe you need a constant inflow of hardware and you need control and management over the supply chain … not only because of the cost but also because of the quality control.”

Yellow is one of several e-scooter startups to raise VC in 2018. Bird and Lime, for example, both raised large rounds of capital at billion-dollar valuations. A good chunk of that capital has gone into building more scooters, placing a huge demand on the few Chinese manufacturers that’ve tapped into the market.

“There was simply not available capacity or factories prepared to fulfill the demand that arose from the other scooter sharing companies,” Musa said. “This became, very, very quickly, a major bottleneck for this industry.”

 

 

13 Sep 2018

UK’s mass surveillance regime violated human rights law, finds ECHR

In another blow to the UK government’s record on bulk data handling for intelligence purposes the European Court of Human Rights (ECHR) has ruled that state surveillance practices violated human rights law.

Arguments against the UK intelligence agencies’ bulk collection and data sharing practices were heard by the court in November last year.

In today’s ruling the ECHR has ruled that only some aspects of the UK’s surveillance regime violate human rights law. So it’s not all bad news for the government — which has faced a barrage of legal actions (and quite a few black marks against its spying practices in recent years) ever since its love affair with mass surveillance was revealed and denounced by NSA whistleblower Edward Snowden, back in 2013.

The judgement reinforces a sense that the government has been seeking to push as close to the legal line as possible on surveillance, and sometimes stepping over it — reinforcing earlier strikes against legislation for not setting tight enough boundaries to surveillance powers, and likely providing additional fuel for fresh challenges.

The complaints before the ECHR focused on three different surveillance regimes: 1) The bulk interception of communications (aka ‘mass surveillance’); 2) Intelligence sharing with foreign governments; and 3) The obtaining of communications data from communications service providers.

The challenge actually combines three cases, with the action brought by a coalition of civil and human rights campaigners, including the American Civil Liberties Union, Amnesty International, Big Brother Watch, Liberty, Privacy International and nine other human rights and journalism groups based in Europe, Africa, Asia and the Americas.

The Chamber judgment from the ECHR found, by a majority of five votes to two, that the UK’s bulk interception regime violates Article 8 of the European Convention on Human Rights (a right to respect for private and family life/communications) — on the grounds that “there was insufficient oversight both of the selection of Internet bearers for interception and the filtering; search and selection of intercepted communications for examination; and the safeguards governing the selection of ‘related communications data’ for examination were inadequate”.

The judges did not find bulk collection itself to be in violation of the convention but noted that such a regime must respect criteria set down in case law.

In an even more pronounced majority vote, the Chamber found by six votes to one that the UK government’s regime for obtaining data from communications service providers violated Article 8 as it was “not in accordance with the law”.

While both the bulk interception regime and the regime for obtaining communications data from communications service providers were deemed to have violated Article 10 of the Convention (the right to freedom of expression and information,) as the judges found there were insufficient safeguards in respect of confidential journalistic material.

However the Chamber did not rule against the government in two other components of the case — finding that the regime for sharing intelligence with foreign governments did not violate either Article 8 or Article 10.

While the court unanimously rejected complaints made by the third set of applicants, under Article 6 (right to a fair trial), about the domestic procedure for challenging secret surveillance measures, and under Article 14 (prohibition of discrimination).

The complaints in this case were lodged prior to the UK legislating for a new surveillance regime, the 2016 Investigatory Powers Act, so in coming to a judgement the Chamber was considering the oversight regime at the time (and in the case of points 1 and 3 above that’s the Regulation of Investigatory Powers Act 2000).

RIPA has since been superseded by IPA but, as noted above, today’s ruling will likely fuel ongoing human rights challenges to the latter — which the government has already been ordered to amend by other courts on human rights grounds.

Nor is it the only UK surveillance legislation judged to fall foul on that front. A few years ago UK judges agreed with a similar legal challenge to emergency surveillance legislation that predates IPA — ruling in 2015 that DRIPA was unlawful under human rights law. A verdict the UK Court of Appeal agreed with, earlier this year.

Also in 2015 the intelligence agencies’ own oversight court, the IPT, also found multiple violations following challenges to aspects of its historical surveillance operations, after they have been made public by the Snowden revelations.

Such judgements did not stop the government pushing on with the IPA, though — and it went on to cement bulk collection at the core of its surveillance modus operandi at the end of 2016.

Among the most controversial elements of the IPA is a requirement that communications service providers collect and retain logs on the web activity of the digital services accessed by all users for 12 months; state power to require a company to remove encryption, or limit the rollout of end-to-end encryption on a future service; and state powers to hack devices, networks and services, including bulk hacking on foreign soil. It also allows the security agencies to maintain large databases of personal information on U.K. citizens, including individuals suspected of no crime.

On the safeguards front the government legislated for what it claimed was a “double lock” authorization process for interception warrants — which loops in the judiciary to signing off intercept warrants for the first time in the U.K., along with senior ministers. However this does not regulate the collection or accessing of web activity data that’s blanket-retained on all users.

This April this shiny new surveillance regime was also dealt a blow in UK courts — with judges ordering the government to amend the legislation to narrow how and why retained metadata could be accessed, giving ministers a deadline of November 1 to make the necessary changes.

In that case the judges also did not rule against bulk collection in general — declining to find that the state’s current data retention regime is unlawful on the grounds that it constituted “general and indiscriminate” retention of data. (For its part the government has always argued its bulk collection activities do not constitute blanket retention.)

And today’s ECHR ruling further focuses attention on the safeguards placed around bulk collection programs — having found the UK regime lacked sufficient monitoring to be lawful (but not that bulk collection itself is unlawful by default).

Opponents of the current surveillance regime will be busily parsing the ruling to find fresh fronts to attack.

It’s not the first time the ECHR has looked at bulk interception. Most recently, in June 2018, it deemed Swedish legislation and practice in the field of signals intelligence did not violate EU human rights law. Among its reasoning was that it found the Swedish system to have provided “adequate and sufficient guarantees against arbitrariness and the risk of abuse”.

However it said the Big Brother Watch and Others vs United Kingdom case being ruled upon today is the first case in which it specifically considered the extent of the interference with a person’s private life that could result from the interception and examination of communications data (as opposed to content).

In a Q&A about today’s judgement, the court notes that it “expressly recognised” the severity of threats facing states, and also how advancements in technology have “made it easier for terrorists and criminals to evade detection on the Internet”.

“It therefore held that States should enjoy a broad discretion in choosing how best to protect national security. Consequently, a State may operate a bulk interception regime if it considers that it is necessary in the interests of national security. That being said, the Court could not ignore the fact that surveillance regimes have the potential to be abused, with serious consequences for individual privacy. In order to minimise this risk, the Court has previously identified six minimum safeguards which all interception regimes must have,” it writes.

“The safeguards are that the national law must clearly indicate: the nature of offences which may give rise to an interception order; a definition of the categories of people liable to have their communications intercepted; a limit on the duration of interception; the procedure to be followed for examining, using and storing the data obtained; the precautions to be taken when communicating the data to other parties; and the circumstances in which intercepted data may or must be erased or destroyed.”

(Additional elements the court says it considered in an earlier surveillance case, Roman Zakharov v. Russia, also to determine whether legislation breached Article 8, included “arrangements for supervising the implementation of secret surveillance measures, any notification mechanisms and the remedies provided for by national law”.)

Commenting on today’s ruling in a statement, Megan Goulding, a lawyer for Liberty, said: “This is a major victory for the rights and freedom of people in the UK. It shows that there is — and should be — a limit to the extent that states can spy on their citizens.

“Police and intelligence agencies need covert surveillance powers to tackle the threats we face today — but the court has ruled that those threats do not justify spying on every citizen without adequate protections. Our government has built a surveillance regime more extreme than that of any other democratic nation, abandoning the very rights and freedoms terrorists want to attack. It can and must give us an effective, targeted system that protects our safety, data security and fundamental rights.”

A Liberty spokeswoman also told us it will continue its challenge to IPA in the UK High Court, adding: “We continue to believe that mass surveillance can never be compliant in a free, rights-respecting democracy.”

Also commenting in a statement, Silkie Carlo, director of Big Brother Watch, said: “This landmark judgment confirming that the UK’s mass spying breached fundamental rights vindicates Mr Snowden’s courageous whistleblowing and the tireless work of Big Brother Watch and others in our pursuit for justice.

“Under the guise of counter-terrorism, the UK has adopted the most authoritarian surveillance regime of any Western state, corroding democracy itself and the rights of the British public. This judgment is a vital step towards protecting millions of law-abiding citizens from unjustified intrusion. However, since the new Investigatory Powers Act arguably poses an ever greater threat to civil liberties, our work is far from over.”

A spokesperson for Privacy International told us it’s considering taking the case to the ECHR’s Grand Chamber.

Also commenting in a supporting statement, Antonia Byatt, director of English PEN, added: “This judgment confirms that the British government’s surveillance practices have violated not only our right to privacy, but our right to freedom of expression too. Excessive surveillance discourages whistle-blowing and discourages investigative journalism. The government must now take action to guarantee our freedom to write and to read freely online.”

We’ve reached out to the Home Office for comment from the UK government.

On intelligence sharing between governments, which the court had not previously considered, the judges found that the procedure for requesting either the interception or the conveyance of intercept material from foreign intelligence agencies to have been set out with “sufficient clarity in the domestic law and relevant code of practice”, noting: “In particular, material from foreign agencies could only be searched if all the requirements for searching material obtained by the UK security services were fulfilled.”

It also found “no evidence of any significant shortcomings in the application and operation of the regime, or indeed evidence of any abuse” — hence finding the intelligence sharing regime did not violate Article 8.

On the portion of the challenge concerning complaints that UK intelligence agencies’ oversight court, the IPT, lacked independence and impartiality, the court disagreed — finding that the tribunal had “extensive power to consider complaints concerning wrongful interference with communications, and those extensive powers had been employed in the applicants’ case to ensure the fairness of the proceedings”.

“Most notably, the IPT had access to open and closed material and it had appointed Counsel to the Tribunal to make submissions on behalf of the applicants in the closed proceedings,” it also writes.

In addition, it said it accepted the government’s argument that in order to ensure the efficacy of the secret surveillance regime restrictions on the applicants’ procedural rights had been “both necessary and proportionate and had not impaired the essence of their Article 6 rights”.

On the complaints under Article 14, in conjunction with Articles 8 and 10 — that those outside the UK were disproportionately likely to have their communications intercepted as the law only provided additional safeguards to people known to be in Britain — the court also disgareed, rejecting this complaint as manifestly ill-founded.

“The applicants had not substantiated their argument that people outside the UK were more likely to have their communications intercepted. In addition, any possible difference in treatment was not due to nationality but to geographic location, and was justified,” it writes. 

13 Sep 2018

Chinese electric vehicle maker Nio makes bumpy start following $1B IPO

Nio, the Tesla -wannabe electric vehicle firm from China, enjoyed a mix start to life as a public company after it raised $1 billion through a listing on the New York Stock Exchange on Wednesday.

The firm went public at $6.26just one cent above the bottom of its pricing range — meaning that it raised a little over $1 billion. That’s some way down on its original goal of $1.8 billion, per an initial filing in August, and for a while it looked like even that price was optimistic. Early trading saw Nio’s stock fall as low as $5.84 before a wave of optimism took it to $6.81.

The stock closed its first day at $6.60, up 12 percent overall, to give Nio a total market cap of $7.1 billion.

Nio sells in China only, although its tech and design teams are based in the U.S, UK and Germany.

Its main model, the ES8, is designed for the masses and is priced at 448,000 RMB, or around $65,000. That makes it cheaper than Tesla vehicles in China but it has only just got to making money. Nio has accrued some 17,000 orders for the vehicle, but it only began shipping in June. As a result, it has posted some pretty heavy losses in recent times — including minus $759 million in 2017.

Ultimately, the firm raised $1 billion but its leadership may be disappointed that the final sum is well short of its original target.

Reasons behind lukewarm investor interest may include:

Meanwhile, Nio is far from the newest kid on the block. Byton, another Chinese EV firm with global operations, is preparing to send prototype SUVs to the U.S. for the first time, as TechCrunch reported earlier this month. Byton, which raised $500 million from investors in June, is one of a number of competitors to Nio which also include BYD — a startup backed by Warren Buffet’s Berkshire Hathaway — Youxia, MW Motor and others.

13 Sep 2018

Instacart links up with Walmart Canada to expand its same-day delivery service

Instacart has teamed up with Walmart Canada to bring shoppers in Toronto and Winnipeg same-day grocery delivery.

The agreement is part of a pilot program for the two companies that will allow Instacart users to order groceries from 17 different Walmart locations across the two cities. This is the first time shoppers in Winnipeg will have access to the grocery delivery service and the first time Toronto residents will have the option for same-day delivery.

Interestingly, Instacart doesn’t have a partnership with Walmart in the U.S. Walmart, rather, has relationships with several other grocery delivery companies including DoorDash and Postmates. Instacart does have a deal with Sam’s Club, a subsidiary of Walmart. That partnership was announced in February and gives Sam’s Club members same-day delivery via Instacart.

Instacart initially launched in Canada in September 2017 and will continue expanding throughout the country to meet demand.

The company, which has raised $350 million at a $4.3 billion valuation this year alone, is available in 5,000 different stores in the U.S. and Canada and in more than 4,000 cities. As of late August, the business says it’s available to 70 percent of U.S. households.

This week, Instacart hired Mark Schaaf as CTO. He joined from Thumbtack where he held the same role. That announcement came one day after the company confirmed its chief growth officer and former VP of product Elliot Shmukler was leaving to pursue early-stage opportunities.

13 Sep 2018

Indonesian fintech startup Moka raises $24M led by Sequoia India

Indonesia’s Moka, a startup that helps SMEs and retailers manage payment and other business operations, has pulled in a $24 million Series B round for growth.

The investment is led by Sequoia India and Southeast Asia — which recently announced a new $695 million fund — with participation from new backers SoftBank Ventures Korea, EDBI — the corporate investment arm of Singapore’s Economic Development Board — and EV Growth, the later stage fund from Moka seed investor East Ventures. Existing investors Mandiri Capital, Convergence and Fenox also put into the round.

The deal takes Moka to $27.9 million raised to date, according to data from Crunchbase.

Moka was started four years ago primarily as a point-of-sale (POS) terminal with some basic business functionality. Today, it claims to work with 12,500 retailers in Indonesia and its services include sales reports, inventory management, table management, loyalty programs, and more. Its primary areas of focus are retailers in the F&B, apparel and services industries. It charges upwards of IDR 249,000 ($17) per month for its basic service and claims to be close to $1 billion in annual transaction volume from its retail partners.

That’s the company’s core offering, a mobile app that turns any Android or iOS device into a point-of-sale terminal, but CEO and co-founder Haryanto Tanjo — who started the firm with CTO Grady Laksmono — said it harbors larger goals.

“Our vision is to be a platform, we want to be an ecosystem,” he told TechCrunch in an interview.

That’s where much of this new capital will be invested.

Tanjo said the company is opening its platform up to third-party providers, who can use it to reach merchants with services such as accounting, payroll, HR and more. The focus is initially on local services that cater to SMEs in Indonesia, but as Moka targets larger enterprises as clients, he said that it will integrate larger, global solutions, too.

Moka itself is expanding its capabilities on the payment side.

Indonesia, the world’s fourth largest country based on population and Southeast Asia’s largest economy, is in the midst of a fintech revolution with numerous companies pioneering mobile-based wallet services aimed at ending the country’s fixation on cash-based transactions. That’s mean that there are a plethora of options available today. Tanjo said Moka is working to support them all in order to help its merchants grow their businesses and consumers to have easier lives.

There are so many wallets here in Indonesia,” he said. “There are more than 10 right now and maybe in the next few months there’ll be 15-20, we want to be the platform that works with all of them.”

Already it works with the likes of OVO, T-Cash and Akulaku, and e-wallets including DANA and Kredivo. The startup is also working in another area of fintech: loans.

As an extension of its platform, it has tied up with SME loan companies who can reach out to Moka businesses using its platform. With the merchant’s consent, Moka can provide business data — including revenue, profit, etc — to help provide data to assess a loan application. That’s important because the process is particularly challenging in Southeast Asia, where few organized credit checking facilities exist — it makes sense that Moka — which has built its business around encouraging business growth and management — uses the information it has access to help its partners.

Tanjo said the company takes an undisclosed cut of the loan in cases where it has successfully connected the two parties. He said that he doesn’t expect that to initially become a major revenue stream, but over time he anticipates it will help its customer base grow and become a more important source of income for the startup.

Sequoia India has some experience in POS startups having backed Pine Labs in India, which recently landed a big $125 million round from PayPal and Singapore sovereign fund Temasek. Still, there are plenty of local players across various markets in Southeast Asia, including StoreHub, which is backed by Temasek subsidiary Vertex Ventures, and Malaysia’s SoftSpace.

While those two competitors have established a presence in multiple markets in Southeast Asia, Tanjo — the Moka CEO — said there are no plans to venture overseas for at least the next 12 months.

“We’re still scratching the service,” he said. “So doesn’t make sense to expand too soon.”

13 Sep 2018

Alibaba’s Ant Financial denies stealing from Equifax

Ant Financial has denied claims that it covertly raided Equifax the U.S. credit firm that was hit by a hack last year — to grab information, including code, confidential data and documents to help recruit staff for its own credit scoring service.

The Alibaba affiliate, which is valued at over $100 billion, launched Sesame Credit in China in 2015, and a report this week from The Wall Street Journal suggests that it leaned heavily on Equifax to do so. Ant Financial hired China-born Canadian David Zou from Equifax and the Journal claims that Zou looked up employee information to gauge potential hires and squirreled away confidential documents via his personal email account.

Ant was said to have offered Chinese staff at Equifax lucrative raises — reportedly tripling their salaries — with a focus on those who “provided instructions on specific Equifax information… if they jumped ship.” Apparently, however, only Zou did.

Zou, for this part, denies the claims. He said he looked up Equifax team members to help with work on his project in Canada, and forward information to his email account in order to continue his work when he went home.

Ant Financial went a step further with its own denial — from the firm’s statement:

Ant Financial did not use Equifax intellectual property or trade secrets, including code, algorithms or methodology in the development of our credit rating product. Ant Financial has found absolutely no evidence of Equifax software, data or code having been transferred to our systems.

We did not directly or indirectly encourage potential job applicants to obtain Equifax intellectual property or trade secrets. This would be a violation of Ant Financial’s Code of Business Conduct and we would take immediate action against any employee found engaging in this behavior. Further, we have specific agreements with our third-party recruiters that prohibit them from violating intellectual property rights of any parties. If any recruiter is found to have conducted such activities, we will stop accepting candidate referrals from them and may take legal action against them.

Ant said the Journal’s report is “full of innuendo based on disjointed facts and coincidence in timing.”

Beyond Ant, the report claims Equifax firm was also concerned when an unnamed Chinese firm swapped members of its delegation in the run-up to a meeting, a tactic that is apparently common among potential cases of espionage.

The company had been in contact with the FBI, but ultimately Equifax decided against pushing the matter. The Journal’s report also suggested that federal investigators backed down because they sensed that Equifax didn’t believe it had information that Chinese spies would be keen to get hold of. In addition, it hadn’t lost consumer information. Ultimately, of course, that leaked out when the firm was hacked last year.

“The story not only promotes hostility against a specific company, but also paints an overall narrative that maligns Chinese companies as a whole, and further promotes culturally divisive perceptions of ethnic Chinese people in America,” Ant said in its statement, which is attributed to the company’s general counsel, Leiming Chen.

13 Sep 2018

10 critical points from Zuckerberg’s epic security manifesto

Mark Zuckerberg wants you to know he’s trying his damnedest to fix Facebook before it breaks democracy. Tonight he posted a 3,260-word battle plan for fighting election interference. Amidst drilling through Facebook’s strategy and progress, he slips in several notable passages revealing his own philosophy.

Zuckerberg has cast off his premature skepticism and is ready to command the troops. He sees Facebook’s real identity policy as a powerful weapon for truth other social networks lack, but that would be weakened if Instagram and WhatsApp were split off by regulators. He’s done with the finger-pointing and wants everyone to work together on solutions. And he’s adopted a touch of cynicism that could open his eyes and help him predict how people will misuse his creation.

Here are the most important parts of Zuckerberg’s security manifesto:

Zuckerberg embraces his war-time tactician role

“While we want to move quickly when we identify a threat, it’s also important to wait until we uncover as much of the network as we can before we take accounts down to avoid tipping off our adversaries, who would otherwise take extra steps to cover their remaining tracks. And ideally, we time these takedowns to cause the maximum disruption to their operations.”

The fury he unleashed on Google+, Snapchat, and Facebook’s IPO-killer is now aimed at election attackers

“These are incredibly complex and important problems, and this has been an intense year. I am bringing the same focus and rigor to addressing these issues that I’ve brought to previous product challenges like shifting our services to mobile.”

Balancing free speech and security is complicated and expensive

“These issues are even harder because people don’t agree on what a good outcome looks like, or what tradeoffs are acceptable to make. When it comes to free expression, thoughtful people come to different conclusions about the right balances. When it comes to implementing a solution, certainly some investors disagree with my approach to invest so much in security.”

Putting Twitter and YouTube on blast for allowing pseudonymity…

“One advantage Facebook has is that we have a principle that you must use your real identity. This means we have a clear notion of what’s an authentic account. This is harder with services like Instagram, WhatsApp, Twitter, YouTube, iMessage, or any other service where you don’t need to provide your real identity.”

…While making an argument for why the Internet is more secure if Facebook isn’t broken up

“Fortunately, our systems are shared, so when we find bad actors on Facebook, we can also remove accounts linked to them on Instagram and WhatsApp as well. And where we can share information with other companies, we can also help them remove fake accounts too.”‘

Political ads aren’t a business, they’re supposedly a moral duty

“When deciding on this policy, we also discussed whether it would be better to ban political ads altogether. Initially, this seemed simple and attractive. But we decided against it — not due to money, as this new verification process is costly and so we no longer make any meaningful profit on political ads — but because we believe in giving people a voice. We didn’t want to take away an important tool many groups use to engage in the political process.”

Zuckerberg overruled staff to allow academic research on Facebook

“As a result of these controversies [like Cambridge Analytica], there was considerable concern amongst Facebook employees about allowing researchers to access data. Ultimately, I decided that the benefits of enabling this kind of academic research outweigh the risks. But we are dedicating significant resources to ensuring this research is conducted in a way that respects people’s privacy and meets the highest ethical standards.”

Calling on law enforcement to step up

“There are certain critical signals that only law enforcement has access to, like money flows. For example, our systems make it significantly harder to set up fake accounts or buy political ads from outside the country. But it would still be very difficult without additional intelligence for Facebook or others to figure out if a foreign adversary had set up a company in the US, wired money to it, and then registered an authentic account on our services and bought ads from the US.”

Instead of minimizing their own blame, the major players must unite forces

“Preventing election interference is bigger than any single organization. It’s now clear that everyone — governments, tech companies, and independent experts such as the Atlantic Council — need to do a better job sharing the signals and information they have to prevent abuse . . . The last point I’ll make is that we’re all in this together. The definition of success is that we stop cyberattacks and coordinated information operations before they can cause harm.”

The end of Zuckerberg’s utopic idealism

“One of the important lessons I’ve learned is that when you build services that connect billions of people across countries and cultures, you’re going to see all of the good humanity is capable of, and you’re also going to see people try to abuse those services in every way possible.”