INDUSTRY NEWS

DiDi targets LatAm; New GPCA Mid-Year Industry Data

Global Tech Brief

Talking Shop

We are well-capitalized and ready to grow. That was DiDi Global’s message during last week’s investor meeting in São Paulo, Brazil hosted by LAVCA, the Latin American arm of GPCA.

Let’s recap: 

DiDi entered Brazil in 2018 with its USD1b acquisition of ride-sharing startup 99. Instead of consolidating the business, management decided to let 99 operate independently and maintain its brand – a key decision that has helped retain (and reportedly significantly grow) its user base since then. 

DiDi’s focused strategy in Latin America has been instrumental in competing in a market that was previously dominated by Uber and Cabify. DiDi describes its strategy as a three-pronged approach: forming alliances with local governments, offering differentiated products (i.e. lending facilities for drivers) and prioritizing safety through strict driver verification processes.

DiDi raised USD4.4b in its 2021 US IPO, but its life in public markets was short-lived as it was forced to delist from the NYSE just a year later amid a competitiveness and data security probe by the Chinese government. But past turmoil is no indicator of future results, and the company recently reported its fifth consecutive quarter of double-digit revenue growth.

Eyeing expansion:

DiDi is now doubling down on its efforts outside of China, earmarking an additional ~USD1b for deployment over the next two years in Brazil and Mexico. The capital will be allocated across investments, acquisitions and its own platform operations.

There is also an ongoing conversation about expanding its robotaxi initiative to Brazil in the medium term. DiDi recently partnered with EV manufacturer GAC Aion to form China’s first JV for mass-producing fully self-driving electric robotaxis. However, DiDi will likely not enjoy a first-mover advantage, as Chinese EV producer BYD has already announced plans to launch a manufacturing complex in Brazil that is expected to be operational within a year. 

Look out:

DiDi is now the largest ride-hailing company in the world, with 3m+ trips completed in the last quarter alone. The company is reportedly planning a comeback to public markets with a listing on the Hong Kong Stock Exchange either this year or next – a move anticipated to be well-received locally, especially given the 40% decline in domestic listings since the peak in 2021.

By the way: GPCA just launched its 2024 Mid-Year Industry Data & Analysis. GPCA Members can access it here. Ping us with any questions.

Deadline Approaching: Better Tech Award

GPCA Member investors are invited to nominate a portfolio company for GPCA’s 2024 Better Tech Award. 

The 2024 GPCA Better Tech Award seeks to identify a high-growth startup leveraging technology to provide breakthrough solutions and a measurable positive impact in Asia, Africa, Latin America, CEE and/or the Middle East. 

India-based LEAD School, nominated by Elevar Equity, won the 2023 GPCA Better Tech Award. LEAD School operates as an edtech software platform that targets affordable and low-fee K-12 private schools, offering an integrated digital solution for teacher training, student performance tracking and core curriculum delivery. 

DEADLINE IS WEDNESDAY | Interested GPCA Member investors are welcome to submit a nomination before 4 September or contact Carlos Ramos de la Vega and Alex Fichter with any questions.

Submit Nomination

The Big Tickets

  • PROPTECH | EQT Private Capital Asia (formerly BPEA EQT) agreed to acquire PropertyGuru, a Singapore-based digital property marketplace, in a take-private worth USD1.1b.
    • PropertyGuru went public on the NYSE in 2022 through a SPAC. TPG and KKR, who collectively own a 56% stake, plan to exit their holding to EQT.

  • AI | China-based AI platform Baichuan Intelligent Technology raised a ~USD691.4m Series A, with participation from Legend Star, Alibaba, Tencent, Xiaomi and others.

  • FOOD DELIVERY | General Catalyst & Mars Growth Capital led a USD340m Series G for Zepto, an India-based instant delivery startup, with follow-on from existing investors. The round valued Zepto at USD5b.
    • Just two months ago, Zepto closed its USD665m Series F at a USD3.6b valuation, led by Glade Brook, Nexus and StepStone Group.

  • AI | Moonshot, a China-based generative AI startup, raised a ~USD300m round at a reported USD3.3b valuation. The round included participation from Tencent, Gaorong Capital, Alibaba and others.

  • EDTECH | India-based edtech Eruditus is in advanced talks to raise USD150m in new funding, led by TPG.
    • The potential investment comes at a challenging time for India’s edtech sector, as Byju’s, once valued at USD22b, faces insolvency. Foreign investors in Byju’s, including General Atlantic, Sofina, Prosus and Peak VI, have submitted a briefing to India’s Supreme Court regarding alleged mismanagement at the startup.

  • MOBILITY | WestBridge Capital led a USD120m Series E for Rapido, an India-based bike taxi startup.
    • UNICORN | The round valued Rapido at USD1b, making it India’s third unicorn in 2024, following Perfios and Krutrim AI.

  • WOMEN-LED | Notable Capital (formerly GGV) led a USD105m round for Stori, a Mexico-based credit card issuer for the underbanked, with participation from ACE Startups, Redpoint Ventures and follow-on from General Catalyst, GIC, Goodwater, Lightspeed Ventures and Tresalia.

Deals

  • DEBT | Digitt, a Mexico-based credit card debt refinancing platform, secured a USD50m debt facility from CoVenture Management.  

  • BATTERIES | Ruicycle, a China-based lithium battery recycling operator, raised a USD42.5m+ Series C from Legend Capital, Hidden Hill Capital and Guo Xin Venture.

  • FINTECH | Pollen Street Capital led a ~USD38m funding round for Finbee Verslui, a Lithuania-based crowdfunding platform for small businesses.

  • FINTECH | Syfe, a Singapore-based wealth management platform, raised USD27m with follow-on from Valar Ventures and Unbound.

  • IoT | NewSpring Growth led a USD26.5m round for Trio Mobil, a Turkey-based enterprise software and IoT services provider, with follow-on from 212 and TIBAS Ventures.

  • FINTECH | Vayana, an India-based B2B trade financing platform, raised a ~USD20.5m Series D led by SMBC Rising Asia Fund, with participation from Chiratae Ventures, IFC, Jungle Ventures and others.

  • AI | Shorooq Partners led a USD20m Series A for Intelmatix, a Saudi Arabia-based AI platform for companies to improve their operations and data processing, with participation from Olayan Financing Company, Rua Growth Fund, Saudi Technology Ventures, Saudi Venture Capital Company, Sultan Holdings and Zain Ventures.

  • HEALTHTECH | Khosla Ventures led a USD20m round for Even Healthcare, an India-based subscription healthcare provider offering diagnostics and consultations, with participation from Pathfinder, Mercury Fund, DLB Ventures, Lex Italia, 8 VC and Rainmatter Capital.

  • ROBOTICS | Xiamen C&D and Unicorn Capital Partners led a ~16.9m Series A extension for Weibuild, a China-based construction robot maker, with participation from Linear Capital and RayVC.

  • AEROSPACE | Aereo, an India-based drone intelligence and analytics provider for large capital assets, raised a USD15m Series B led by 360 ONE, with participation from Navam Capital and StartupXseed Ventures.

  • MEDTECH | Sherpa Healthcare Partners and Oriza Seed led a ~USD14m Series A for AGIBOT, a China-based developer of humanoid robots for surgeries, with participation from Hengdian Capital Management.

  • HEALTHTECH | Sierra Ventures led a USD10m round for Eden, a Mexico-based AI-based medical diagnostics platform, with participation from KASZEK, YC, Khosla Ventures and Alt Capital.

  • AGTECH | Accion and Omnivore led a USD9.8m Series A for Agrizy, an India-based B2B agri-processing platform, with participation from Capria Ventures, Thai Wah Ventures and Ankur Capital.

  • FINTECH | Initialized Capital, the VC fund of Y Combinator President Garry Tan, led a USD8.5m pre-Series A for Caliza, a Brazil-based instant payments platform.
    • This is Initialized’s first known investment in a Latin American startup.

  • LOGISTICS | OTO, a Saudi Arabia-based integrated logistics platform, raised a USD8m Series A led by Sanabil Investments, with participation from Sadu Capital, Iliad Partners, Propeller and Soma Capital. The funding will be used to expand its operations in Saudi Arabia, UAE and Turkey.

  • LOGISTICS | Conjunction Capital led a USD7.3m pre-Series A for PostEx, a Pakistan-based logistics and fintech solutions provider, with participation from Dash Ventures and Sanabil 500, as well as follow-on from Zayn VC, VentureSouq and FJ Labs.

  • BIOTECH | Biomatter, a Lithuania-based platform providing enzyme optimization for sustainable manufacturing, biotherapeutics and agriculture, raised a ~USD7.1m seed round led by UVC Partners and Inventure, with participation from Practica Capital and Metaplanet.

  • FINTECH | Graphit Lifestyle led a ~USD7m seed round for Bourgeois Boheme, a Lithuania-based mobile banking and payments platform.

  • CROSS-BORDER | Conduit, a US-based cross-border payments platform, raised a USD6m seed extension from Helios Digital Ventures. The startup began offering payment solutions in Latin America last August and plans to expand into Africa following its most recent funding round.

  • FOOD DELIVERY | Mealplanet, a UAE-based meal plan delivery startup, raised a USD6m seed round led by Middle East Venture Partners, with participation from AlTouq Group, Sanabil 500, Faith Capital, Alturki Ventures, Marc Lore (Wonder) and Samih Toukan (Jabbar Internet Group).

  • E-COMMERCE | Algebra Ventures led a USD5.6m Series A equity extension for Cartona, an Egypt-based B2B e-commerce platform, with participation from SANAD Fund for MSME and follow-on from Silicon Badia.
    • DEBT | Camel Ventures and GlobalCorp provided USD2.5m in debt financing.
    • Cartona raised USD12m from Global Ventures, Kepple Africa Ventures, SANAD Fund for MSME, AB Accelerator, Silicon Badia and Sunny Side Ventures in 2022.

  • AEROSPACE | EtherealX, an India-based spacetech startup developing reusable launch vehicles, raised a USD5m round led by YourNest, with participation from BIG Global Investments, Bluehill Capital, Campus Fund and Green Sparrow Ventures.

  • ELECTRONICS | dotLumen, a Romania-based startup leveraging autonomous driving technology to develop glasses for the visually impaired, raised a ~USD5.5m round from the European Innovation Council, Seedblink and Venture to Future Fund.

  • HRTECH | Norrksen22 led a USD5m Series A round for Workpay, a Kenya-based HR, payroll and benefits solutions provider, with participation from Verod-Kepple Africa Ventures, Visa, Plug n Play, Y Combinator, Saviu Ventures, Axian and Acadian Ventures.

  • FINTECH | Elevation Capital led a USD5m round for Skydo, an India-based cross-border payments platform for MSMEs, with participation from angel investors. 

  • FINTECH | Mamo, a UAE-based mobile payments platform for SMEs, raised a USD3.4m round from 4DX Ventures, Dubai Future District Fund and Cyfr Capital, to support regional expansion.

  • BIOTECH | Fortera Capital led a Series A extension for Correctseq, a China-based gene editing system for therapeutic applications, with participation from Lilly Asia Ventures, Boyu Capital, Zoo Capital, HongShan and New Alliance Capital.

  • FINTECH | Waza, a Nigeria-based B2B payments infrastructure provider, raised a USD3m seed round from Y Combinator, Byld Ventures, Norrsken22 and others.
    • DEBT | Timon Capital provided USD5m in venture debt financing.

  • GAMING | Grand Games, a Turkey-based game studio, raised a USD3m pre-seed round led by Earlybird Digital East, with participation from Laton Ventures.

  • FINTECH | Presto Ventures led a USD2m seed round for Jeff App, a Latvia-based financial data provider for underwriting solutions, with participation from J12 and angel investors.

  • HEALTHTECH | Farmako, an India-based medicine delivery platform, raised a USD1.6m round from Goodwater Capital, Unpopular Ventures 535 West Capital, Bayhouse Capital and Jude Gomila.

  • CROSS-BORDER | Maalexi, a UAE-based risk management platform for cross-border SME agribusinesses, raised USD1m in venture debt financing from Stride Ventures.
    • This is India-based Stride Ventures’ first investment in the GCC.

  • CVC | Globant Ventures invested in Asteroid Technologies, an Argentina-based software of accessible software for consumers with hearing impairments.

  • FOODTECH | Founder One invested in The Good Wild, a Turkey-based producer of plant-based products.

  • ENERGY | Meridian Capital led an angel round for HHMAX, a China-based fusion energy system developer, with participation from MiraclePlus.

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

Funds

  • Earlybird Digital East is spinning off from Western European firm Earlybird Venture Capital and will rebrand in the coming months.
    • The firm’s strategy – backing early-stage startups in CEE – will remain unchanged, and the team will continue to operate as usual, given the minimal overlap in operations with the rest of the Earlybird family of funds. 
    • Earlybird Digital East is known for its prolific investment in UiPath among other investments. Read more about Earlybird’s investment in UiPath in GPCA’s Deal Book.
    • Cem Sertoglu, Earlybird Digital East’s Managing Partner, is a member of GPCA’s Global Tech Council. 

  • Xiaomi reached a ~USD1.4b final close for Beijing Xiaomi Intelligent Manufacturing Equity Investment Fund focused on new-generation information technology, intelligent manufacturing, new materials, artificial intelligence and display devices across China.

  • Vertex Ventures China reached a ~USD491m final close for its second RMB-denominated fund. The fund will focus on sectors such as semiconductors, robotics, LLM-related applications, new energy and medtech.
    • Vertex Ventures China previously held a USD390m final close for its fifth flagship USD-denominated fund in 2023.

  • Japanese financial services platform Credit Saison has committed USD200m to invest directly and through venture funds in Brazil and Mexico.
    • Direct investments will include a mix of equity and debt to support Latin American startups. 

  • Antler reached a USD72m final close of its second Southeast Asia fund to invest in pre-launch, pre-seed and seed-stage startups. The fund plans to invest in around 300 startups.
    • Antler SEA Fund II investments already include Farmio (Singapore), Zora Health (Singapore) and Clout Kitchen (Philippines).

  • HAVAÍC reached a USD15m first close for its African Innovation Fund 3, the firm’s third early-stage fund with a USD50m target to invest in startups across South Africa, Kenya and Nigeria. The fund plans to invest in around 15 startups.
    • HAVAÍC’s latest investments include RNR (South Africa), RapidDeploy (South Africa), hearX Group (South Africa) and AURA (South Africa). 

  • Acasia Ventures launched its second fund with a USD30m target. The fund will focus on pre-seed and seed-stage startups in Egypt, Nigeria, South Africa, the UAE and Saudi Arabia.
    • Acasia’s first fund raised USD3m in 2021, with investments in FlexPay (Kenya), QiDZ (UAE) and Sprints (Egypt). 

  • Thrive Capital reached a USD5b final close for Thrive IX, its ninth flagship fund.
    • Thrive IX will allocate USD4b to growth-stage investments and USD1b to early-stage deals. 
    • Thrive has been previously active in Latin America with investments in companies such as Nubank, Loft, Pipo Saúde and Oppa. 

  • FT on PIF: Saudi wealth fund brings era of easy money to an end
    “…as the kingdom reassesses its priorities and the $925bn Public Investment Fund shifts focus to huge domestic commitments, the era of Saudi Arabia being perceived as a source of easy money is drawing to a close.”

M&As, Listings and Exits

  • IPO | Ola Electric, an India-based e-scooter manufacturer raised ~USD734m in its IPO. Existing investors Z47 (previously Matrix Partners India), Tiger Global, SoftBank and Alpha Wave Global sold shares worth ~USD34m.

  • IPO | Bainbees Solutions, the operator of India-based online kids products retailer FirstCry, raised ~USD500m in its IPO. Existing investors SoftBank, ChrysCapital, PremjInvest and TPG sold shares worth ~USD220m. 

  • IPO | Black Sesame, a China-based automotive chip designer, raised ~USD133m in a Hong Kong listing.
    • Black Sesame counts NIO Capital, Northern Light Venture Capital, MSA Capital and Oceanpine Capital among its investors.

  • Jumia, a Nigeria-based e-commerce platform, raised USD99.6m through a secondary share sale on the NYSE. Jumia has previously secured funding from Summit Partners, Goldman Sachs, AXA and Rocket Internet. 

  • EXIT | US-based cross-border payment services provider Payoneer acquired Singaporean global HR and payroll startup Skuad for USD61m, facilitating exits for Anthemis, Argor Capital and Beenext.

  • IPO | YXT.com, a China-based corporate learning platform backed by Centurium Capital, MPCi, SIG China, HongShan and Yunfeng Capital, was listed on the NASDAQ and raised USD25m. The public offering valued YXT.com at USD661m.

  • M&A | African e-commerce platforms Wasoko and MaxAB have successfully completed their long-awaited merger of equals, following discussions that began in late December.
    • Investors in Wasoko include Tiger Global, Quona Capital, JAM Fund, Avenir and Breyer Capital. 
    • MaxAB’s investors include Beco Capital, Endeavor Catalyst, IFC, Silver Lake, 500 Global and Rise Capital.