Author: azeeadmin

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.

For this week’s deep dive, the Equity team sat down not with external investors or founders, but with two of our own. Yes, this week, for the first time Natasha and Alex got to break a little internal news instead of focusing on the world outside.

Why did we have Jordan Crook and Darrell Etherington on the show? Because we’re jazzed to add a second startups-focused podcast to a slowly but surely growing TC podcast network: Found. Found lands April 9, so tune in! The show will focus on talking to early-stage founders about building their company, from the emotional rollercoaster moments to tactical insights no one tells you until you’ve raised your first dollar.

Equity will keep its eyes on the news, with extra attention to all the dollar signs that are to be found in startup-land and the venture capital world.  At the same time, Found will bring a number of startup founders aboard to talk about the more human, and procedural work of building the next great tech company.

We hope you love a new show from our friends as much as we do, and remember Equity will be back on Friday with news, banter, and fun soon. In the meantime, here’s where you can find Found:

• Spotify
• Apple Podcasts
• @Found on twitter

Chat soon!

Equity drops every Monday at 7:00 a.m. PST, Wednesday, and Friday morning at 7:00 a.m. PST, so subscribe to us on Apple Podcasts, Overcast, Spotify and all the casts.

The longer we continue to work with either all or part of our teams in remote, out-of-physical-office environments, the more imperative it becomes for those teams to have some tools in place to keep the channels of communication and management open, and for the individuals in those teams to have a sense of how well they are performing. Today, one of the startups that provides a team productivity app with that in mind is announcing a round of funding to fuel its growth.

Pathlight, which has built a performance management platform for customer-facing teams — sales, field service and support — to help managers and employees themselves to track and analyze how they are doing, to coach them when and where it’s needed, and to communicate updates and more, has picked up $25 million — money that it will be using to continue growing its customer base and the functionality across its app.

The funding is being led by Insight Partners, with previous backers Kleiner Perkins and Quiet Capital also participating, alongside Uncorrelated Ventures; Jeremy Stoppelman, CEO of Yelp; David Glazer, CFO of Palantir; and Michael Ovitz, co-founder of CAA and Owner of Broad Beach Ventures. Pathlight has now raised $35 million.

Pathlight today provides users with a range of tools to visualize team and individual performance across various parameters set by managers, using data that teams integrate from other platforms like Salesforce, Zendesk and Outreach, among others.

Using that data and specific metrics for the job in question, managers can then initiate conversations with individuals to focus in on specific areas where things need attention, and provide some coaching to help fix it. It can also be used to provide team-wide updates and encouragement, which sits alongside whatever other tools a person might use in their daily customer-facing work.

[gallery ids="2135006,2135007,2135008,2135009,2135010"]

Since launching in March 2020, the startup has picked up good traction, with customers including Twilio, Earnin, Greenhouse, and CLEAR. But perhaps even more importantly, the pandemic and resulting switch to remote work has underscored how necessary tools like Pathlight’s have become: the startup says that engagement on its platform has shot up 300% in the last 12 months.

Alexander Kvamme, the CEO of Pathlight, said that he first became aware of the challenges of communicating across customer-facing teams, and having transparency on how they are doing as individuals and as a group, when he was at Yelp. Yelp had acquired his startup, reservations service SeatMe, and used the acquisition to build and run Yelp Reservations.

He was quick to realize that there weren’t really effective tools for him to see how individuals in the sales team were doing, how they were doing compared to goals the company wanted to achieve and based on the sales data they already had in other systems, how to work more effectively with people to communicate when something needed changing, and how to tailor all that in line with new variations in the formula — in their case, how to sell new products like a reservations service alongside advertising and other Yelp services for businesses.

“Whether it’s five or 3,000 people, the problem doesn’t go away,” he said. “Everyone uses their own systems, and it hurts front line employees when they don’t know how they are doing, or don’t get recognition when they are doing well, or don’t get coaching when they are not. Our thesis was that if software is eating the world, and you as a company are buying more software and analytics, over time managers will be more like data analysts. So we are providing a way for managers to be more data-driven.”

Five years down the line, Kvamme got the bug again to start a company and decided to return to that problem, teaming up with co-founder Trey Doig, the engineer who designed SeatMe and then turned it into Yelp Reservations and is now Pathlight’s CTO.

As they see it, the challenge has still not really been addressed. That’s not to say that there are not a number of companies — competitors to Pathlight, looking to fill that gap as well. Another people management platform called Lattice last year picked up $45 million  (I’m guessing it will be raising money again around about now); HubSpot, Zoho, SalesLoft and a number of others also are taking different approaches to the same challenge: front-line customer-facing people spend the majority of their time and attention on interacting with people, and so there need to be better tools in place to help them figure out how to make that communication more effective, figure out what is working and what is not.

And all of this, of course, is not at all new: it’s not like we all woke up one day and suddenly wanted to know how we are doing at work, or managers suddenly felt they needed to communicate with staff.

What has changed, however, is how we work: many of us have not seen the inside of our offices for more than a year at this point, and for a large proportion of us, we may never return again, or if we do it will be under different circumstances.

All of this means that some of the more traditional metrics and indicators of our performance, praising, management relationships, and learning from team mates simply is not there anymore.

In customer-facing areas like sales, support and field service, that lack of contact may be even more acute, since many of the teams working in these environments have long relied on huddles and communication throughout the day, week and month to continuously tweak work and improve it. So while tools like Pathlight’s will be useful as data analytics provision for teams regardless of how we work, it can be argued that they are even more important right now.

“I think people have started to realize that if you can empower front line to be more independent, your numbers will go up and do better,” Kvamme said.

This is part of what went into the investment decision made here.

“With the acceleration of digital transformation across the enterprise, it’s not enough to rethink the way we work—we must also rethink the way we manage,” said Jeff Lieberman, MD at Insight Partners. “Pathlight is ushering in a new age of data-driven management, an ethos that we believe every enterprise will need to embrace—quickly. We are excited to partner with the Pathlight team as they bring their powerful platform to companies across the world.”

Polestar, the Swedish electric vehicle brand spun out of Volvo Car Group, set on Wednesday a “moonshot goal” of creating the first climate neutral car by 2030. But instead of getting there through more widely-practiced offsetting measures, such as planting trees, the company said it’s going to fundamentally change the way the new EV is made.

That means rethinking every piece of the supply chain, from materials sourcing through to manufacturing, and even by making the vehicle more energy efficient.

“We’re going to do it by reducing emissions, eliminating emissions, rather than offsetting, like many are relying on today, because we see that offsetting is a worrying strategy,” Fredrika Klarén, Polestar’s Head of Sustainability, said in an interview with TechCrunch. “The science is not actually backing it up in terms of its capability of offsetting emissions from producing products.”

While the direct outcome will be a new car – what the company is calling Polestar 0 – it will require a total overhaul of the manufacturing process that could eventually extend to Polestar’s other models. Klarén said that although Polestar’s entire fleet will not be climate neutral by 2030, the company and its parent Volvo have already set targets of being climate neutral across their operations, including Polestar, by 2040.

Both of Polestar’s current models, Polestar 1 and 2, are manufactured in China. Klarén said while much about the Polestar 0 has yet to be determined, the company hopes that it, too will be Chinese-made. Although the country still has a strong reliance on coal, there’s massive development in sustainable technology and manufacturing, she pointed out.

“If I get to vote, we will continue producing in China, but that being said, the Polestar 0, the solutions we will use are not identified yet and we’re going to need to think in new ways we didn’t think was possible prior – where it will be produced, what materials will go in [it],” said Klarén.

Nor are any of the internal systems settled. Geely AG, the parent company of Volvo Cars and Polestar, has been developing its own internal computer-and-battery platform, but it hasn’t been decided whether the new Polestar model will use this system.

She said the most challenging parts of the EV manufacturing process to transition to climate neutral are the materials, specifically aluminum, steel, and battery components.

“We need to tackle the production-related emissions,” she explained. The environmental impact of producing steel, aluminum and the basic materials found in lithium-based batteries is still significant.

Along with the new vehicle, Polestar also launched a product sustainability declaration that clearly lists the carbon footprint of Polestar 2 and all coming models.

“Offsetting is a cop-out,” Polestar CEO Thomas Ingenlath said in a statement. “By pushing ourselves to create a completely climate-neutral car, we are forced to reach beyond what is possible today.  We will have to question everything, innovate and look to exponential technologies as we design towards zero.”

TechCrunch is coming to Detroit — virtually, at least. On April 15, TechCrunch is hosting a small online event with local venture capitalists, founders and those curious about the growing ecosystem. There will also be a small pitch-off event where Detroit-based startups have three minutes to pitch their companies to Detroit-based VCs.

TechCrunch just published a feature on Detroit-darling StockX and this meetup will feature those involved in producing that content. The EC-1 can be found here.

Everyone is welcome to attend the event, but we’re looking for startups based in Michigna’s southeast region to pitch at this event. TechCrunch has a long history of hosting small pitch-offs and we’re excited to revive this tradition despite the need to do it virtually.

Not in Michigan? No worries. We’re spinning up similar events in other regions too. Spoiler: Pittsburgh is next.

Qualifications

• Early-stage startup (Series A or earlier)
• Startups based in the Detroit region will be given priority
• Pitch decks are highly recommended
• Apply for the pitch-off here

The event is online and free, but space is limited. Register early. We hope you can make it.

Apple is sharing more details today about its upcoming App Tracking Transparency feature, which will allow users to control, on an app-by-app level, whether their data is shared for ad-targeting purposes.

In a sense, anyone using the current version of iOS can see App Tracking Transparency in action, since iOS already includes a Tracking menu in the Privacy settings, and some apps have already started asking users for permission to track them.

But when iOS 14.5 (currently in developer beta) is released to the general public sometime in early spring, Apple will actually start enforcing its new rules, meaning that iPhone users will probably start seeing a lot more requests. Those requests will appear at various points during the usage of an app, but they’ll all carry a standardized message asking whether the app can “track your activity across other companies’ apps and websites,” followed by a customized explanation from the developer.

Once an app has asked for this permission, it will also show up in the Tracking menu, where users can toggle app tracking on and off at any time. They can also enable app tracking across all apps or opt out of these requests entirely with a single toggle.

One point worth emphasizing — something already stated on Apple’s developer website but not entirely clear in media reports (including our own)— is that these rules aren’t limited to the IDFA identifier. Yes, IDFA is what Apple controls directly, but a company spokesperson said that when a user opts out of tracking, Apple will also expect developers to stop using any other identifiers (such as hashed email addresses) to track users for ad targeting purposes, and not to share that information with data brokers.

This does not, however, stop developers from tracking users across multiple apps if all those apps are operated by a single company.

The Apple spokesperson also said that Apple’s own apps will abide by these rules — you won’t see any requests from Apple, however, since it doesn’t track users across third-party apps for ad targeting purposes. (As previously noted, there’s a separate Personalized Ads option that determines whether Apple can use its own first-party data to target ads.)

Facebook has been particularly vocal in criticizing the change, arguing that this will hurt small businesses who use targeting to run effective ad campaigns, and that the change benefits Apple’s bottom line.

Apple has pushed back against criticism in privacy-focused speeches, as well as in a report called A Day in the Life of Your Data, which lays out how users are actually tracked and targeted. In fact, the report has just been updated with more information about ad auctions, ad attribution and Apple’s own advertising products.

Popular saving and investing app Acorns has acquired Pillar, an AI-powered startup built to help manage student loan debt, in its second acquisition of 2021.

New York-based Pillar helps consumers optimize their debt payments by focusing first on student loans. It launched in May 2019 with $5.5 million in seed funding led by Kleiner Perkins. The companies declined to reveal the financial terms of the deal, only noting that within six months of launching, Pillar managed over $500 million worth of student loan debt of more than 15,000 borrowers. 

Michael Bloch dropped out of Stanford Business School and co-founded Pillar after he and his wife had amassed more than $500,000 of student loan debt after she graduated from law school. Prior to that, he had led the Strategy & Operations division for DoorDash, growing it to $100 million in revenue. The problem Pillar has aimed to tackle is massive. Student loan debt is the second-largest type of consumer debt in the U.S., with 45 million borrowers collectively owing nearly $1.7 trillion in student loans.

Notably, Acorns was apparently one of several companies that had courted Pillar.

“We were in a pretty lucky position to have a lot of interest from many of the top fintech companies that are out there,” Bloch told TechCrunch. “We had multiple offers on the table and Acorns was really our top choice just given how the business has been doing and the team, the culture and the mission.”

The deal marks the second acquisition this year and third overall for Acorns, which says it notched its strongest quarter in its history the first three months of this year. In March, Acorns also acquired Harvest, a fintech that helped customers reduce more than $4 million in debt in 2020.

The Pillar and Harvest teams will help Acorns accelerate its product roadmap of helping customers pay down debt, “an essential part of the financial wellness system,” said CEO and founder Noah Kerner.

Over time, Pillar will become part of one of Acorns’ monthly subscription tiers. 

“The IP and technology that the Pillar team created in debt management is really interesting to us when we think about how we scale our Smart Deposit feature,” Kerner said.

With Smart Deposit, when a customer’s paycheck hits the Acorns bank account, the app automatically allocates a percentage of that paycheck into an individual’s different investment accounts. 

“From a behavioral perspective, the best way to get somebody to save and invest is to enable them to set aside a piece of their paycheck as soon as it hits the account so that they don’t spend it. That feature has been really well adopted by our direct deposit customers,” Kerner said. “And so Michael and his team are coming in to manage that feature, and also our bank accounts product. I think their past experience is going to be really useful for us to take what we have and help the team catalyze it further.”

With its latest acquisition, Irvine, California-based Acorns now has more than 350 employees. In 2017, the company acquired Vault, now called “Acorns Later.” As a result of that acquisition, the company has seen its number of retirement accounts grow to 1.2 million from 500.

As mentioned above, Acorns has had a good year so far. In the first six weeks of 2021, the company added nearly 600,000 new accounts, reaching a total of more than 9 million users having saved and invested a total of $7.5 billion.

“The first quarter was our biggest growth quarter on record,” Kerner told TechCrunch. “In particular we crossed the $4.3 billion in dollars in assets under management, which is a really exciting milestone when you think about the fact that these are customers that are saving small amounts of money in the relative scheme of money invested typically.”

Trax’s co-founders, Joel Bar-El (left) and Dror Feldheim (right), and Trax’s CEO, Justin Behar (center)

COVID-19 forced many retailers and brands to adopt new technologies. Retail analytics unicorn Trax expects that this openness to tech innovation will continue even after the pandemic. The Singapore-based company announced today that it has raised $640 million in Series E funding to expand its products, which combine computer vision and cloud-based software to help brick-and-mortar stores manage their inventory, merchandising and operations. The round included primary and secondary capital, and was led by SoftBank Vision Fund 2 and returning investor BlackRock. Other participants included new investors OMERS and Sony Innovation Fund by IGV.

Before this round, Trax had raised $360 million in primary funds. J.P. Morgan acted as a placement agent to Trax on its Series E, which brings its total funding so far to $1.02 billion. Trax did not disclose a new valuation, but reportedly hit unicorn status in 2019. Reports emerged last year that it is considering a public offering, but chief executive officer Justin Behar had no comment when asked by TechCrunch if Trax is planning for an IPO.

Founded in 2010 and headquartered in Singapore, Trax also has offices in Brazil, the United States, China, the United Kingdom, Israel, Mexico, Japan, Hungary, France, Russia and Australia. The company says it serves customers in more than 90 countries.

Behar told TechCrunch that the new funding will be used to “invest heavily in global [go-to-market] strategies and technology for our flagship Retail Watch solution, as we look for ways to make it easier for retailers and brands to continue their digitization journey. More specifically, we will use the capital to accelerate growth and triple-down on continued innovation across our core vision, machine learning, IoT and marketplace technologies.”

Launched last year, Retail Watch uses a combination of computer vision, machine learning and hardware like cameras and autonomous robots, to gather real-time data about the shelf availability of products. It sends alerts if stock is running low, corrects pricing errors and checks if planograms, or product display plans for visual merchandising, are being followed. Retail Watch currently focuses on center shelves, where packaged goods are usually stocked, but will expand into categories like fresh food and produce.

The funding will also be used to expand Trax’s Dynamic Merchandising, a partnership with on-demand work platform Flexforce, and Shopkick, the shopping rewards app Trax acquired in 2019, into new markets over the next one to two years.

“Finally, we see many opportunities to help retailers along their digitization journey and will be expanding into new use cases with products we develop internally and via potential acquisitions,” Behar said.

Early in the pandemic, retailers had to cope with surge buying, as customers emptied shelves of stock while preparing to stay at home. As the pandemic continued, buying patterns shifted dramatically and in April 2020, Forrester forecast COVID-19 would cause global retail sales to decline by an average of 9.6% globally, resulting in a loss of $2.1 trillion, and that it would take about four years for retailers to overtake pre-pandemic levels.

In a more recent report, Forrester found despite spending cuts, nearly 40% of retailers and wholesalers immediately increased their tech investment, in some cases implementing projects in weeks that would have otherwise taken years.

Behar said “the pandemic made it clear the retail industry was not prepared for a sudden change in demand, as consumers faced empty shelves and out-of-stocks for extended periods in key categories. These extreme shifts in consumer behavior, coupled with global supply chain disruptions, labor shortages, changing channel dynamics (such as e-commerce) and decrease in brand loyalty forced brands and retailers to develop new strategies to meet the evolving needs of their customers.”

He expects that willingness to adopt new technologies will continue after the pandemic. For example, to get shoppers back into brick-and-mortar stores, retailers might try things like in-store navigation, improved browsing, loyalty programs and new check out and payment systems.

Trax’s Retail Watch, Dynamic Merchandising and Dynamic Workforce Management solutions were in development before the pandemic, though “it has certainly expedited the need for innovative digital solutions to longstanding retail pain points,” Behar added.

For example, Retail Watch supports online ordering features, like showing what products are available to online shoppers and helping store associates fulfill orders, while Dynamic Merchandising lets brands find on-demand workers for in-store execution issues—for example, if new stock needs to be delivered to a location immediately.

Other tech companies focused on retail analytics include Quant Retail, Pensa Systems and Bossa Nova Robotics. Behar said Trax differentiates with a cloud-based platform that is “extensible, flexible and scalable and combines multiple integrated technologies and data-collection methods, optimized to fit each store, such as IoT-enabled shelf-edge cameras, dome cameras, autonomous robots and images taken from smartphones, to enable complete and accurate store coverage.”

Its proprietary computer vision technology was also designed specifically for use in retail stores, and identifies individual SKUs on shelves, regardless of category. For example, Behar said it can distinguish between near identical or multiple products, deal with visual obstructions like odd angles or products that are obscured by another item and recognize issues with price tags.

“Like many innovative solutions, our most meaningful competition comes from the legacy systems deeply entrenched in the world of retail and the fear of change,” he added. “While we do see an acceleration of interest and adoption of digital innovation as a result of the ‘COVID effect,’ this is by far our biggest challenge.”

In a press statement, SoftBank Investment Advisers director Chris Lee said, “Through its innovative AI platform and image recognition technologies, we believe Trax is optimizing retail stores by enabling [consumer packaged goods] brands and retailers to execute better inventory strategies using data and analytics. We are excited to partner with the Trax team to help expand their product offerings and enter new markets.”

A new UK public body that will be tasked with helping regulate the most powerful companies in the digital sector to ensure competition thrives online and consumers of digital services have more choice and control over their data has launched today.

The Digital Markets Unit (DMU), which was announced in November last year — following a number of market reviews and studies examining concerns about the concentration of digital market power — does not yet have statutory powers itself but the government has said it will consult on the design of the new “pro-competition regime” this year and legislate to put the DMU on a statutory footing as soon as parliamentary time allows.

Concerns about the market power of adtech giants Facebook and Google are key drivers for the regulatory development.

As a first job, the unit will look at how codes of conduct could work to govern the relationship between digital platforms and third parties such as small businesses which rely on them to advertise or use their services to reach customers — to feed into future digital legislation.

The role of powerful intermediary online gatekeepers is also being targeted by lawmakers in the European Union who proposed legislation at the end of last year which similarly aims to create a regulatory framework that can ensure fair dealing between platform giants and the smaller entities which do business under their terms.

The UK government said today that the DMU will take a sector neutral approach in examining the role of platforms across a range of digital markets, with a view to promoting competition.

The unit has been asked to work with the comms watchdog Ofcom, which the government named last year as its pick for regulating social media platforms under planned legislation due to be introduced this year (aka, the Online Safety Bill as it’s now called).

While that forthcoming legislation is intended to regulate a very wide range of online harms which may affect consumers — from bullying and hate speech to child sexual exploitation and other speech-related issues (raising plenty of controversy, and specific concerns about associated implications for privacy and security) — the focus for the DMU is on business impacts and consumer controls which may also have implications for competition in digital markets.

As part of its first work program, the government said the secretary of state for digital has asked the DMU to work with Ofcom to look specifically at how a code would govern the relationships between platforms and content providers such as news publishers — “including to ensure they are as fair and reasonable as possible”, as its press release puts it.

This suggests the DMU will be taking a considered look at recent legislation passed in Australia — which makes it mandatory for platforms to negotiate with news publishers to pay for reuse of their content.

Earlier this year, the head of the UK’s Competition and Markets Authority (CMA), which the DMU will sit within, told the BBC that Australia’s approach of having a backstop of mandatory arbitration if commercial negotiations between tech giants and publishers fail is a “sensible” approach.

The DMU will also work closely with the CMA’s enforcement division — which currently has a number of open investigations into tech giants, including considering complaints against Apple and Google; and an in-depth probe of Facebook’s Giphy acquisition.

Other UK regulators the government says the DMU will work closely with include the data protection watchdog (the ICO) and the Financial Conduct Authority.

It also said the unit will also coordinate with international partners, given digital competition is an issue that’s naturally globally in nature — adding that it’s already discussing its approach through bilateral engagement and as part of its G7 presidency.

“The Digital Secretary will host a meeting of digital and tech ministers in April as he seeks to build consensus for coordination on better information sharing and joining up regulatory and policy approaches,” it added.

The DMU will be led by Will Hayter, who takes up an interim head post in early May following a stint at the Cabinet Office working on Brexit transition policy. Prior to that he worked for several years at the CMU and also Ofcom, among other roles in regulatory policy.

Avant, an online lender that has raised over $600 million in equity, announced today that it has acquired Zero Financial and its neobank brand, Level, to further its mission of becoming a digital bank for the masses.

Founded in 2012, Chicago-based Avant started out primarily as an online lender targeting “underserved consumers,” but is evolving into digital banking with this acquisition. The company notched gross revenue of $265 million in 2020 and has raised capital over the years from backers such as General Atlantic and Tiger Global Management.

“Our path has always been to become the premier digital bank for the everyday American,” Avant CEO James Paris told TechCrunch. “The massive transition to digital over the last 12 months made the timing right to expand our offerings.” 

The acquisition of Zero Financial and its neobank, Level (plus its banking app assets), will give Avant the ability to offer “a full ecosystem of banking and credit product offerings” through one fully digital platform, according to Paris. Those offerings include deposits, personal loans, credit cards and auto loans.

Financial terms of the deal weren’t disclosed other than the fact that the acquisition was completed with a combination of cash and stock.

Founded in 2016, San Francisco-based Zero Financial has raised $147 million in debt and equity, according to Crunchbase. New Enterprise Associates (NEA) led its $20 million Series A in May of 2019.

Level was unveiled to the public in February of 2020, created by the same California-based team that founded the “debit-style” credit card offering Zero, according to this FintechFutures piece. The challenger bank was created to target millennials dissatisfied with the incumbent banking options.

Zero Financial co-founder and CEO Bryce Galen said that Avant shared his company’s mission “to challenge the status quo by bringing innovative financial services products to consumers who might otherwise be unable to access them.”

Avant, notes Paris, uses thousands of AI-driven data points to determine credit risk. With this acquisition, that lens will be expanded with data, such as a deposit customer’s cash flow, how they manage their finances and whether they pay their bills on time. 

“This will allow us to make credit decisions faster and deliver personalized options to help underbanked consumers gain financial freedom, at any and every stage of their financial journey,” Paris told TechCrunch. “It will also build long-term engagement and loyalty and help grow our reach beyond the 1.5 million customers we’ve served to date.”  

Like a growing number of fintechs, Avant operates under the premise that a person’s ability to get credit shouldn’t be dictated by a credit score alone.

“A significant amount of Americans have poor, bad or no credit at all. For these people, accessing credit isn’t exactly easy and often comes with extra fees,” Paris said. That’s why, he added, Avant has focused on providing options for such consumers with “transparent, rewards-driven products.”

Level’s branchless, all-digital platform offers things such as cashback rewards on debit card purchases, a “competitive APY” on deposits, early access to paychecks and no hidden fees, all of which are especially beneficial for consumers on the path to financial freedom, according to Paris.

Since its inception in 2012, Avant has connected more than 1.5 million consumers to $7.5 billion in loans and 400,000 credit cards. The company launched its credit card in 2017 and over the past two years alone, it has grown its number of credit card users by 170%.

More than 200 million people in India transact money digitally, but fewer than 30 million invest in mutual funds and stocks.

An Indian startup that is attempting to change this figure by courting millennials announced a new financing round on Wednesday and turned into the newest unicorn in the world’s second largest internet market.

Bangalore-based Groww has raised $83 million in its Series D financing round, which valued the Indian startup at more than $1 billion, up from $250 million in $30 million Series C in September last year.

Tiger Global led the new round, and existing investors Sequoia Capital India, Ribbit Capital, YC Continuity and Propel Venture Partners participated in it, the five-year-old Indian startup said, which has raised $142 million to date.

On a side note, Groww is the eighth Indian startup to attain the unicorn status this year — and fourth this week. Social commerce Meesho turned a unicorn on Monday, fintech firm CRED on Tuesday, and earlier today epharmacy firm PharmEasy announced a new financing round that valued the firm at about $1.5 billion.

Groww allows users to invest in mutual funds, including systematic investment planning (SIP) and equity-linked savings, gold, as well as stocks, including those listed at U.S. exchanges. The app offers every fund that is currently available in India.

The startup has amassed over 8 million registered users, two-thirds of whom are first-time investors, Lalit Keshre, co-founder and chief executive of Groww, told TechCrunch in an interview.

Keshre said the startup will deploy the fresh funds to accelerate its growth, and hire more talent. “We now have fuel for longer-term thinking and faster growth,” he said.

More than 60% of Groww users come from smaller cities and towns of India and 60% of these have never made such investments before, said Keshre. The startup said it has conducted workshops in several small cities to educate people about the investment world. The coronavirus pandemic has also accelerated the startup’s growth as youngsters explore new hobbies.