INDUSTRY NEWS

Africa’s latest billion-dollar startup; USD9b+ in data center monies

Global Tech Brief

Talking Shop

Some say fund size determines firm strategy. 

Peak XV, out of India, is the latest firm to recalibrate its strategy by releasing USD465m in LP obligations from the USD2.85b vintage it closed two years ago. While partners cite a lack of venture-scale opportunities and market frothiness in the Indian market, the right-sizing move comes at a time when LPs are increasingly interested in backing investors who demonstrate broader alignment and strong market awareness. 

While it’s uncommon to adjust a fund’s size post-close, Peak XV is not the only firm to have recently taken this step. For instance, US-based CRV decided to return USD275m of the USD500m raised for its opportunity fund, choosing instead to focus on deploying the USD1b raised for its core early-stage vehicle. CRV has invested globally in companies such as Jeeves and Belo (Latin America), Postdot and Webaroo (India) and Lokalise (Latvia). 

Others have found creative ways to maintain LP relationships while limiting the potential return dampening in current funds. We already have some examples of this, with Founders Fund redirecting USD1b in LP commitments to Fund IX in 2023 and only writing checks from the remaining pool of USD900m committed to Fund VIII. 

As the investment landscape evolves–and the power law for returns steepens in this environment–the spread between a good and great investor has never mattered more. Consequently, strategy differentiation and LP/GP alignment have become top priorities. 

Expect to see other funds in-market follow suit.

The Big Tickets

  • DATA CENTERS | Coatue led a USD1b investment in GDS International, the Singapore-based holding company for GDS’s data center assets outside mainland China, with participation from The Baupost Group.
    • GDS International currently operates 480 MW of data center capacity, with an additional 590 MW planned for future developments across Hong Kong, Singapore, Malaysia, Indonesia and Japan.
    • GDS International last raised USD587m in March 2024 from Hillhouse, Boyu, Princeville Capital, Tekne and others.

  • E-COMMERCE | TPG led a ~USD367m secondary investment in Vinted, a Lithuania-based second-hand C2C marketplace, with participation from Hedosophia, Baillie Gifford, Moore Strategic Ventures and others. The transaction values Vinted at USD5.4b.

  • E-COMMERCE | Purplle, an India-based beauty marketplace, raised a USD180m Series F led by ADIA, with participation from Blume Ventures, Premji Invest and Sharrp Ventures.

  • EDTECH | TPG led a USD150m Series F for Eruditus, an India-based online provider of executive education programs, with follow-on from Softbank Vision Fund 2, Accel, CPP Investments, Leeds Illuminate and the Chan Zuckerburg Initiative at a reported valuation of USD3.1b.
    • In August 2021, Eruditus raised a USD650m Series E from Accel, Softbank Vision Fund 2 and CPP Investments at a USD3.2b valuation.
    • Eruditus joins a growing list of India-founded startups redomiciling to India ahead of upcoming IPOs, including Pine Labs, Udaan, Meesho and Groww.

  • FINTECH | BOND led a ~USD146m Series C for Asaas, a Brazil-based payment management platform, with participation from SoftBank, Endeavor Catalyst and 23S Capital.

  • E-COMMERCE | Warburg Pincus acquired a minority stake in Contabilizei, a Brazilian accounting automation platform, for USD125m.
    • EXIT | The deal included a secondary piece that provided an exit for KASZEK.
    • SoftBank led a ~USD63m Series C in 2022.

  • UNICORN | Moniepoint, a Nigeria-based SME lending platform, raised a USD110m Series C led by Development Partners International, with participation from Verod Capital, Lightrock and Google’s Africa Investment Fund. The round reportedly values the startup at more than USD1b.
    • Moniepoint raised USD50m in August 2022 from QED Investors, Lightrock, BII and Novastar Ventures.

  • BIG DATA | Peak XV and Craft Ventures led a USD80m Series C for Supabase, a Singapore-based open-source developer platform and Postgres database service, with participation from Avra Capital, Coatue, Felicis Ventures and Y Combinator.

Deals

  • GROCERY DELIVERY | General Atlantic led a USD50m round for Jüsto, a Mexico-based grocery delivery platform.

  • BIOTECH | TenNor Therapeutics, a China-based biotech addressing infectious diseases, raised a ~USD42.2m+ Series E led by AMR Action Fund and Zhongshan Venture Capital.

  • ROBOTICS | Crystal Stream Capital, Vision Plus Capital and Alibaba led a ~USD42.1m pre-Series A for Robot Era, a China-based humanoid robotics manufacturer, with participation from Lenovo Capital, Jinding Capital and Orinno Capital.

  • ROBOTICS | Creaegis led a USD38m Series C for Haber, an India-based industrial robots manufacturer, with participation from BEENEXT and Accel.

  • CRYPTO | Blockchain Capital led a USD33m Series C for Yellow Card, a Nigeria-based stablecoin exchange platform.
    • Yellow Card last raised USD40m in a Series B round in September 2022, led by Polychain Capital, reaching a USD200m valuation.
    • This is Blockchain Capital’s second known investment in an African startup after BitPesa (Kenya).

  • FINTECH | KASZEK led a USD32.6m Series A for CXC (aka Tecnologia en Cuentas por Cobrar), a Mexico-based provider of specialized information and compliance assurance services provider for structured finance facilities, with participation from Quona Capital, Mercado Libre, Daedalus Ventures, Saison Capital and Actyus.

  • AI | Neysa, an India-based AI cloud and platform-as-a-service startup, raised a USD30m Series A from Z47 (fka Matrix Partners India), Nexus Venture Partners and NTTVC.
    • Neysa closed a USD20m seed round from Z47, Nexus Venture Partners and NTTVC earlier this year.

  • FINTECH | Salmon, a Phillipines-based consumer lending platform, raised a USD30m Series A2 from IFC and Lunate.

  • FINTECH | Giva, an India–based digital jewelry retailer, raised a ~USD30m Series B from Premji Invest, Epiq Capital and Edelweiss.

  • BATTERIES | Temasek led a pre-Series A for Hytzer, a China-based solid-state battery startup, with participation from Primavera and Sinopec Capital.

  • AGTECH | Stellapps, an India-based end-to-end dairy supply chain management platform, raised a USD26m equity and debt Series C from Blume Ventures, Omnivore, Bill & Melinda Gates Foundation, Miledeep Capital and others, with debt financing from DFC.

  • FINTECH | Openspace Ventures led a USD25m Series A+ for Broom, an Indonesia-based auto-financing startup for used car dealers, with participation from Quona Capital, AC Ventures, PKSHA Capital and MUFG Innovation Partners.

  • EV | Africa50 led a USD24m Series A for BasiGo, a Kenya-based manufacturer of electric buses, with participation from Novastar Ventures, CFAO Kenya, Mobility54, SBI Investment, Trucks VC, Moxxie Ventures and Susquehanna Foundation.
    • DEBT | BII and DFC also provided USD17.5m in debt financing.

  • E-COMMERCE | Ovoko, a Lithuania-based e-commerce platform selling used auto parts, raised a ~USD22m Series B funding round led by Smash Capital to support its expansion into new markets.

  • AGTECH | Chickin, an Indonesia-based startup that integrates IoT technology and data management to improve small-scale poultry farming, raised a USD20m equity and debt Series A from Granite Asia, Integra Partners, ADB, 500 Global, East Ventures and Aksara Ventures.

  • DIGITAL SECURITY | Peak XV led a USD19m Series A for watchTowr, a Singapore-based cybersecurity startup, with participation from Prosus Ventures and Cercano Management.

  • FINTECH | Shorooq Partners and Amplify Growth Partnership provided USD15m in debt financing to Abhi, a Pakistan-based earned wage access platform.
    • Abhi raised a USD17m Series A in April 2022 led by Speedinvest, with participation from Global Ventures, VentureSouq, VEF, Sturgeon Capital, Rallycap, FJ Labs, Fatima Gobi, Sarmayacar and i2i Ventures. 

  • PROPTECH | Ejari, a Saudi Arabia-based rent now, pay later solution, raised USD14.7m in an equity and debt seed round led by BECO Capital, with participation from anb seed, Rua Ventures, Alinma Pay, Vision Ventures, Aqar and Salica’s Oryx Fund. The debt portion was led by Partners for Growth.

  • BIOTECH | Tailong Capital led a USD14m+ Series B1 for XellSmart, a China-based biotech focused on neurological diseases, with participation from Lilly Asia Ventures, Qiming, HongShan and FreesFund.

  • DATA MANAGEMENT | Oxla, a Poland-based provider of database creation solutions, raised a USD11m seed round from Warsaw Equity Group, TQ Ventures, Lead Ventures and 4growth VC.

  • HEALTHTECH | Left Lane Capital led a USD7.3m Series A for Koltin, a Mexico-based telehealth platform for older adults.

  • FINTECH | Mala, a Saudi Arabia-based B2B platform offering SMEs a “procure now, pay later” solution, raised a USD7m pre-seed round led by VentureSouq, with participation from Shorooq Partners, M Capital, BECO Capital, Access Bridge Ventures, Waad Investment, Palm Ventures and D Global Ventures. 

  • AGTECH | Edaphon led a USD6m Series A for BioPrime, an India-based agri-biological developer, with participation from existing investors Omnivore and Inflexor Ventures.
    • This marks Belgian impact investor Edaphon’s first investment in Asia.

  • CLEANTECH | Octavia Carbon, a Kenya-based direct air capture (DAC) startup, raised a USD3.9m seed round led by Lateral Frontiers and E4E Africa, with participation from Catalyst Fund, Launch Africa, Fondation Botnar and Renew Capital. 

  • ADTECH | RedTrack, a Lithuania-based adtech startup, raised a USD3.2m Series A led by Lead Ventures, with participation from Iron Wolf Capital and InstaVC.

  • LEGAL TECH | AMLYZE, a Lithuania-based risk assessment and transaction monitoring platform for anit-money laundering compliance, raised ~USD2.5m seed round led by Practica Capital, with participation from FIRSTPICK, Coinvest Capital and angel investors. 

  • FINTECH | OCTA, a UAE-based automated payment collection platform, raised a USD2.3m pre-seed round led by Quona Capital and Sadu Capital, with participation from Sukna Ventures, Plus VC, 500 Global and angels Pawel Iwanow (Fresha) and Dom Monhardt (Tap Payments). 

  • MOBILITY | Rabbit Mobility, an Egypt-based electric bike and scooter rental platform, raised a USD1.3m seed round led by 500 Global and Untapped Global. 

/ For more Latin American deal activity, subscribe to LAVCA’s LatAm Venture Bulletin. 

Funds

  • General Catalyst reached a USD8b final close across three firm strategies.
    • This is one of the largest fundraising closes on record. 
    • General Catalyst raised USD4.5b for its seed and growth equity strategy, USD1.5b for its newly launched “creation strategy” aimed to support repeat founders and USD2b in separately managed accounts. 
    • General Catalyst’s recent investments in GPCA’s markets include Zepto (India), Stori (Mexico), Genial Care (Brazil), Berry Health (Ghana), Moment (South Africa) and Nord Security (Lithuania) among others. 

  • MindWorks Capital reached a USD220m final close for its fourth early-stage fund to invest across Greater China and Southeast Asia.

  • Avaana Capital reached a USD135m final close for its Climate & Sustainability Fund to invest in early-stage startups targeting the energy transition, supply chain innovation and decarbonization.
    • The fund received commitments from the Green Climate Fund, DFC, UK-India Development Cooperation Fund, Self Reliant India Fund and Azim Premji Trust.

  • Endeavor South Africa held a ZAR190m (~USD11m) first close for its third early-stage fund, which aims to raise ~USD28m to invest in South African startups. The fund has received commitments from the SA SME Fund, Standard Bank and Allan Gray.

  • Oman Investment Authority committed USD150m to ewpartners Technology Innovation Fund II, which aims to raise USD1b and strengthen the local venture ecosystem.

  • Saudi Venture Capital committed USD15m to Vision Ventures’ Saqr Fund II, an early-stage fund targeting USD90m to support startups across the Middle East.

  • EBRD committed USD3m to Ibtikar Fund II, which is dedicated to supporting seed-stage startups in Palestine and Palestinian founders across the Middle East and North Africa.
    • This marks EBRD’s first equity investment in a venture capital fund in the West Bank.

  • Agility Global has committed to Global Ventures Fund III to support early-stage startups across the Middle East and Africa.
    • Recent investments from Global Ventures include Paymob (Egypt), iyris (Saudi Arabia), OneOrder (Egypt), Maalexi (UAE) and Helium Health (Nigeria).

  • Vietnam-based conglomerate Vingroup has launched VinVentures to further support the local tech ecosystem. The firm will manage USD150m in assets, comprising an inherited portfolio of USD100m from Vingroup and an additional USD50m earmarked for new investments.

M&As, Listings and Exits

  • IPO | Horizon Robotics, a China-based autonomous driving solution provider, raised USD695.8m in its Hong Kong listing. The company counts 5Y Capital, Hillhouse, HongShan, EQT Private Capital Asia and Yunfeng Capital among its investors.

  • IPO | China-based autonomous driving startup WeRide raised USD440.5m through its listing on the NASDAQ, alongside a private placement. WeRide has previously received backing from Qiming, IDG Capital, Carlyle and others.

  • EXIT | 8i Ventures fully exited M2P Fintech, an India-based custom financial API provider, through a secondary sale during its USD102m Series D in September 2024, achieving a reported 12x return.
    • 8i Ventures initially invested in M2P Fintech’s USD4.5m Series A in April 2020.

  • M&A | Matrixport, a Singapore-based crypto financial services firm, acquired Swiss crypto asset manager Crypto Finance.
    • Matrixport’s backers include IDG Capital, Lightspeed Ventures, Tiger Global and Qiming Venture Partners.

  • M&A | Janus Henderson completed its acquisition of Victory Park Capital, a global private credit manager.
    • Victory Park Capital has provided debt financing to startups such as Klar (Mexico), Habi (Colombia) and Kredivo (Indonesia).

  • M&A | Kaspi.kz, a Kazakhstan-based marketplace and payments platform, acquired a majority stake in Hepsiburada, a NASDAQ-listed e-commerce platform from Turkey, for ~USD1.1b.
    • Kaspi raised USD1b through an IPO on the NASDAQ in January.

News

  • AI | Corporate investment for cloud computing and AI is heating up in Malaysia and Thailand:

  • CHIPS | Taiwan Semiconductor Manufacturing and Samsung are in talks to build a megafactory in the UAE to bolster their global supply efforts. 

  • POLICY | Brazil’s Administrative Council for Economic Defense has issued a new ruling requiring FIPS (Fundos de Investimento em Participacoes) to disclose the potential impact of new investments on shareholder control dynamics.
    • The ruling also applies to funds considering new investments where they would receive less than 20% ownership in the entity. 

  • Forbes reviews the latest AI global portfolio from Saudi Arabia’s Public Investment Fund.
    “The tech arm of the Public Investment Fund (PIF) seems to be one of the few entities with a checkbook large enough to underwrite the continued growth of some of the world’s largest AI startups.”