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Memrise, a UK startup whose eponymous language-learning app employs machine learning and localised content to adapt to users& needs as they progress through their lessons, has raised another $15.5 million in funding to expand its product. The funding comes after a period of strong growth: Memrise has now passed 35 million users globally across its 20 language courses, and it tipped into profitability in Q1 of this year. Ed Cooke, who co-founded the app with Ben Whately and Greg Detre, told TechCrunch that this places it as the second-most popular language app globally in terms of both users and revenues.
(Duolingo has more signups, Babbel more revenue.)
This round, a Series B, was led by Octopus Ventures and Korelya Capital, along with participation from existing investors Avalon Ventures and Balderton Capital. (Previous investors have included the likes of Matt Mullenweg, Lerer Ventures and more.)
Memrise is not disclosing its valuation — it has raised a relatively modest $22 million to date — but Cooke (who is also the CEO) said the plan will be to use the funding to expand its AI platform and add in more features for users.
And also to move into bigger digs. He described the companycurrent offices in the East End of London as in a &ne&er-do-well& kind of building. But the step up won&t be giant. &Funding makes me more frugal,& he told me.
The company originally started out as a general learning platform in 2010 before honing in on how to apply its principles of memorization and native content to get people to learn languages specifically. &We saw the importance of focus,& Cooke said.
The company uses several modern hooks in its approach to a very old problem: learning to speak different languages. They include building the service around both online and mobile versions, using &crowdsourced& native speakers to give people a sense of how people actually use the language (which can often be different from how ittaught in classes), and by employing artificial intelligence to customise the product to each individualprogress.
Memrisemachine learning, in fact, has been a key factor in helping to raise a little more awareness of the app: during WWDC Apple showed off Memrise on stage in its presentation of Create ML, a new product that lets non-technical people train machine learning services using their own custom data on a Mac (which also cuts down the time needed to do so). Itnot an Apple-only shop: Google named Memrise an app of the year in 2017.
The crowdsourced content, meanwhile, had an interesting fillip, too, when Memrise ran a Kickstarter campaign in 2015 to fund a &Membus,& a double-decker bus that toured through Europe collecting clips of &tens of thousands& of native speakers. &Learning from native speakers is a popular feature of the app,& Cooke said, as it gives users more than &just a computerised version of how you say something.&
The clips in turn populate the lessons to give users examples of regular people saying things:
Cookebackground is in psychology and philosophy, and he holds a distinction as a &Grand Master of Memory&. And memory indeed comes into the fabric of how the app works, as there is repetition and other devices used to help you not just ingest information but actually retain it. I actually have a personal connection to this: my daughter Eveschool uses Memrise to supplement in-class learning, and well before this funding story came along, Eve had told me that her Memrise training has been a huge help in growing and remembering German vocabulary and how to use words correctly. (Thatat least her excuse for staring at a computer screen on a school night…)
The companyservices are based around a freemium model, where a free version lets you learn any language from any language (there are 200 combinations possible across the base), along with a review feature; and a paid tier starting at $4.90/month to add on other features like a &grammarbot&, pro chats, difficult words, speed review, listening skills, learning stats and more.
The company today is seeing the most growth inthe 25-40 age group, but has a lot of younger (like my daughter) and older people using it as well. When raising the funding, Cooke said one regular question was about how likely it would be that a Google might wade in simply to improve its Translate app to obviate the need to learn anything at all.
&We believe that this is a misunderstanding about language learning,& Cooke said. &People don&t want to learnlanguages for pragmatic reasons but to be socially credible. You have to engage as a human being and be interested.& And Memrise things that if they can create an engaging enough experience for that base, its growth can expand even more.
&We&re in love with Memrisevision for language learning, and have been deeply impressed with the high engagement levels and tangible learning among their millions of users. We look forward to supporting this exceptionally diverse and talented team in their mission to enrich human consciousness through learning,& said Eyal Rabinovich, of Octopus Ventures, in a statement.
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Read more: Memrise raises $15.5M as its AI-based language-learning app passes 35M users
Write comment (92 Comments)Those not looking at the Bitcoin markets lately will either gasp or smile. Bitcoin, down from its all time high of around $19,000, is now floating at $6,785 as of this writing. To many this means that either the Bitcoin experiment is over or, to many more, that it has just begun.
There are plenty of folks who will have been hurt by this crash. I was speaking with a Romanian entrepreneur about his friend who bought BTC on a credit card only to find that he is wildly underwater. The volatility is also frightening to folks who might have gotten in on the last run up only to find themselves back at the start. I pity the poor waiter who a friend saw making Bitcoin trades at $18,000 during his shift. I hope he sold.
But there are no signs that the cryptocurrency train is stopping. Startups around the world are all examining & and doing & ICOs. Plenty of early crypto miners and buyers still have enough cash to play around in all sorts of ways. Bitcoin naysayers like R3 are figuring out that bankers didn&t want to hear &blockchain, not bitcoin& after all once they realized that bitcoin, like their beloved equities and commodities, was just another place for them to play.
And people are still active in the market. Thatimportant. As this Coindesk analysis notes, the markets will be deeply volatile during this stretch and could remain so as risk-taking buyers snap up coin on the downswing.
Don&t believe me This is the seven-day trading volume for almost all of the exchanges.
Ultimately these moves make up one of the most interesting forms of intergenerational and international wealth transfer we&ve ever seen. Whereas this wealth transfer once came in the form of inheritances and joint ventures, cryptocurrencies enable an almost instantaneous partners ship between the old and young and the near and far. Ita fascinating economic time and I doubt it will let up any time soon.
Sometimes the price goes up, sometimes it goes down. Thatthe best advice any smart person can give anyone in any market. However, the signs point less to a flatline and more to a gut-wrenching EKG full of ups and downs. The patient, however, is not dead yet.
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Read more: Bitcoin price falls but doesn’t flatline
Write comment (90 Comments)India is a major part of Googleglobal focus. The companylaunched a new product in India last week as its program to bring free WiFi to the public registered its 400th railway station. Now, the U.S. tech giant is continuing to deepen its focus after CapitalG — itsventure arm formerly known as Google Capital — made its first investment in India by backing micro-loan startup Aye Finance.
CapitalG led the $21.5 million Series C round which also included participation from existing investors SAIF Partners and LGT, who were part of a $10.5 million investment in 2016. Since that round, Aye Finance has raised over $30 million via a series of debt investment-baseddeals, according to data from Crunchbase.
Aye Finance offers micro-loans to small businesses in India that are not on the radar of banks and traditional financing companies, and also don&t qualify for programs run by the likes of Flipkart and Amazon. The firm aims to digitize the market of informal money lending and loan sharking. Its disbursements are typically used as working capital for SMEs.
Over its four years of operations, the startup claims it has paid out more than 60,000 loans. Today, it claims to cover 10 states in India through a network of 72 branches. The firm touts its use of technology, and in particular data, which helps keep operating costs low and efficiency high.
In particular, it targets industry ‘clusters& — aka industry verticals — which allows it not only to develop more accurate metrics for analyzing the potential of a business than the general criteria that traditional financiers follow, but it also helps generate new leads through word of mouth.
&We have used insightful data models and technology to provide affordable business loans to the financially excluded micro enterprises across India [and] CapitalGaccess to Google expertise in scaling businesses using analytics and technology will strongly supplement our approach. We are at an exciting juncture, where the business model has been proven and is also scaling well,&Sanjay Sharma, Aye Finance founder and managing director, said in a statement.
Googlepreviously made its first direct investment in an Indian startup when it backed Dunzo, a startup that operates a concierge app, in December 2017. NowCapitalG is catching up with its first deal on Indian soil.
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Read more: CapitalG leads $21.5M investment in Aye Finance, its first deal in India
Write comment (96 Comments)As London Tech Week launches today to talk-up the capitalprospects, over 100 UK tech founders, directors and investors are calling on the Government to back a meaningful vote &by the people& on the actual terms of Brexit. The tech leaders are signatories to the aims of new tech business group Tech For UK which is backing anti-Brexit campaign group Best For Britain in its fundraising campaign for a meaningful vote on the terms of Brexit and the option to &Remain and lead in the EU&. Over 50 other tech industry players have also signed up.
Tech For UK represents the founders of many of the most innovative businesses in the UK including Martha Lane Fox (co-founder of Lastminute.com and Doteveryone), Gareth Edwards (Founder, travel player Deckchair.com), Ben Whitaker (Founder of Masabi, the smart cities ticketing startup), Bernhard Niesner (Founder of the language learning giant Busuu), Giles Andrews (Cofounder - Chairman, of P2P lending pioneer Zopa), and George Bevis (founder of small business banking provider Tide), among many others.
The list also includes Tech community leaders outside of the so-called ‘London bubble& including Dr Sue Black OBE, Founder, TechMums and Bletchley Park campaigner; Elena Sinel, Acorn Aspirations, which teachers teenagers coding and entrepreneurship; and Nuala Murphy (CEO, Moment Health) a leading entrepreneur based in Belfast, Northern Ireland.
The group said the loss of access to European funds, the flight of talent which powers UK tech companies due to the uncertainty and scandal around immigration, the loss of access to the Digital Single Market, which the Uk tech industry was never consulted over — all of these factors are adversely affecting the UK Tech industry, says Tech For UK.
Funding from the European Investment Fund has collapsed since the Brexit vote, and a replacement scheme has yet to be assured long-term by the government. The European Investment Bank, which backs a majority of the United KingdomVC funds, has slashed deals with UK VCs and private equity groups by more than two-thirds, with scant equivalent funding from the UK government in sight. Even a government-backed report cited Brexit as a top challenge for tech companies in the UK.
The technology sector has consistently grown faster than the UK economy in recent years, employing over two million people and attracting billions in foreign investment.
&Collectively, Tech For UK supporters have raised hundreds of millions of pounds, put hundreds of millions back into the UK economy and employed thousands of people. This is why Tech For UK is lobbying for this vote,& said co-founder Josh Russell, partner of Resolve.
&The ongoing uncertainty along with declining growth is a hard one to take. We went from the fastest growing (before Brexit) to the lowest-growing in the EU with the economy expected to grow a mere 1% in 2018. While the government argues about the Customs Union for goods, it is Services make up the bulk of the UK economy and they&ve cut off the tech sectoraccess to the Digital Single Market. Ittime the people of the UK had a say on what Brexit actually is,& said Madhuban Kumar, Founder/CEO, Metafused, and co-organiser of Tech For UK.
Brexit has not happened yet and appears to be already having an effect on the UK economy. The Bank of England recently released figures that showed &the UK economy is currently 1% smaller than expected two years ago&.
Here are some quotes from Tech For UK supporters, which is continuing to call for new supporters, while there is a growing Facebook group here.
&The Brexiteers admit they can&t deliver the Brexit they promised so we deserve a vote on the one they&ve got us instead.&George Bevis, CEO, Tide.
&The greatest sadness of Brexit is that those who voted for it will suffer the most. What was sold to them as a vote for national freedom and prosperity is only going to lead to a poorer and more divided society. The rise in racist hate crimes is just one of the signs of this. We urgently need to reconsider the path we are on and not walk blindly into the darkness.&Hephzi Pemberton, Founder of Kiteka and Angel Investor
&We now had 2 years of due diligence on Brexit and the British people deserve a vote on this deal. Anything else would be highly irresponsible and undemocratic.&Bernhard Niesner, CEO - Co-founder of Busuu
&‘Lies run sprints, but the truth runs marathons& & itbecoming increasingly clear that the fiction that was promised by the Leave campaign was just that, and now the truths of the damage being done to our economy and our standing in the world are laid bare. The people deserve the chance to vote on the truth & the final terms of the agreement that will decide the future of this country. Anything less would be a travesty of democracy.&Glenn Shoosmith Founder/CEO Booking Bug
&Having been deeply involved in the U.K. and global technology ecosystem for the past 20 years and most recently as an Advisor to the EU Innovation Minister as a member of the European Innovation Council, I firmly believe that we cannot work in a vacuum. A tech company born in the UK is global from almost day one, and I fear not having a say on the final terms of Brexit will have a meaningful impact on UKcapability to maintain its global lead in the tech sector.&Bindi Karia, Innovation Expert + Advisor
&Once the details are visible, we can truly vote on Brexit. Will it actually allow us to build the next generation of world-beating companies or is it shifting red tape from Brussels to London and increasing the cost of trading and working with Europe&Riaz Kanani, MD - Founder, Radiate B2B
&The UK and especially London has become a vibrant and globally successful centre for technology innovation. Many of the most exciting startup businesses here have been founded by immigrant entrepreneurs and grown with UK and European employees joining the companies as they grow rapidly. Any Brexit which does not keep the UK in the single market and customs union would in my view considerably dampen the prospects for tech start-ups here in the UK & there would be less of them and they would find it harder to grow as rapidly. We need a meaningful vote on the terms of Brexit.&Simon Murdoch, Managing Partner, Episode 1 Ventures
&As technology entrepreneurs and investors, we are working in global markets. Access to talent and low barriers to market entry are key to secure the momentum of our industries. Brexit is the most important decisions for generations and it would be irresponsible not to let people have a decision on the exact term of the world they will live in&Volker Hirsch, Angel investor and co-founder of Tech North Advocates
&As a Northern Ireland native, I&ve seen first hand the difficulty that division can cause, just as I can see the major and needless impact that Brexit is having on bringing back the divisions on that island. Isolation and protectionism has never proven to be a positive long-term strategy, and that is becoming clear in this case too. And with more in the tech industry, and in the UK as a whole, considering themselves citizens of the world, we risk closing our doors and driving away a diverse set of people that help make us all better.&Rob Elkin, Busuu
&Our world-leading digital industry is being led into a back water of mediocrity by a crop of leaders who don&t even know what Brexit they want and why they want it. By keeping the best talent in the world out with central government quotas on immigration they&ve pulled down the shutters. Digital leaders will simply start up elsewhere. Letend this nonsense now, reopen our borders to Europe and the world, and bring back the experts!&Toby Beresford, Rise
&I spent 12 years working in China & living over there I came to appreciate the value, and leverage, that comes with size. We are a small nation of 65m and I do not believe we are strong or powerful enough to go it alone in a rapidly globalising world. We are European and can&t pretend otherwise. We already have clients making London-based teams redundant as they move whole divisions to Ireland. I catch myself thinking &well itok I&m sure the government know what they&re doing…& and instantly remember they clearly do not. A peoplevote is the common sense choice now that we all really understand what is at stake.&Ed Dean, CEO, Woodseer Global
&Brexit affects everything from our relationships with family to our global standing, even potentially the Peace Process and Scottish Independence, so I was disappointed to see the campaigns be so divisive, muddied, vague, and in many cases inaccurate. We punch above our weight, which means we have a lot to lose. The country of Magna Carta and the Mother of Parliaments deserves a meaningful debate on concrete options, and a vote based on considered strategic goals. The young people of the UK are the ones who will have to deliver those goals. Right now they don&t want Brexit at all, so if itto succeed they need to feel heard and their concerns addressed.&Richard Marr, CEO, BeApplied
&Once the government has negotiated the final terms for Brexit, it must give the electorate the opportunity to vote on whether to agree to those terms or not. Given the gravity of impact on our lives, businesses and the future prosperity of our children; it would, in my humble opinion, be both undemocratic and immoral not to do so. If we believe it is better to remain part of the EU as an alternative to that proposal, we should be given the chance to vote for that as an option too.&Peter Ward, Co-founder, Humanity Inc
&Britons voted for Brexit in the initial referendum with inadequate and often wholly spurious information on both sides of the argument. For a decision which will impact our childrenlives across the decades and our commercial lives within a matter of months, it is incomprehensible not to give it the scrutiny it deserves: from parliament at least, and ideally the voting public.&Nick Saalfeld, Director, Wells Park Communications
&London is Europeleading tech hub fuelled by talent from across the continent. A bad deal threatens to undermine the most dynamic part of our economy. If the government strikes a deal that lets us continue to thrive then they have no reason to fear a peoplevote on the terms of Brexit.&Andy Cockburn, CEO - Co-founder, MentionMe
&We employ a bunch of highly skilled people and 70% of our staff don&t have a UK passport. Finding and attracting great team members is a major challenge and is the single biggest constraint on our growth. Anything we can do to make it easier for smart people to come to the UK is a bonus. Doing the opposite is frankly economic suicide.&Adam Fudakowski, CEO, Switchee
&If the chief objective of the original Brexit vote is about ensuring that the people have their say, then a positive endorsement by the people is the only logical form of ratification that can be conceived in order to commit our great nation to the most material economic and social decision itmade since entering World War II.&Alex Hoye, Co-founder, The Faction Collective
&Our research on the Top500 multichannel retailers in Europe shows the UK as an admired leader in retail, logistics and the underlying technologies and skills. The market for talent, customers and capability requires frictionless access, a consistent and open commercial framework, and an appropriate regulatory framework. Harnessing the talents of the technology, digital and commercial sectors will help the UK chart the best course for its future, and we call upon Parliament to be free to engage in an open debate while retaining its constitutional obligation to act in the interest of the countryfuture.&Ian Jindal, Founder, Pencil / InternetRetailing
&As a growing tech business in the UK we&re already seeing the brexit effect, restricting access to the best talent and holding back advertisers from investing in brand growth. If these corrosive economic effects weren&t clear before the referendum, they are now & and we think people should have the opportunity to vote for the first time with a clear idea of how damaging brexit will be for jobs, growth and innovation.&Andrew Walmsley, Chairman, Inskin Media
A partial list of backers to date is reproduced below:
Adam Fudakowski, CEO, Switchee Adam Price, Founder, VouchedFor - Hatch Alex Hoye, Co-founder, The Faction Collective Andrea Tricoli, Co-Founder, Expressly Andrew Walmsley, Non Exec Chairman, Inskin Media Andy Cockburn, CEO - Cofounder, Mention Me Ben Evans, Co-Founder, jClarity Ben Farren, CEO, SPOKE Ben Whately, Co-founder and COO, Memrise Ben Whitaker, Founder, Masabi Benjamin A. Falk, Founder, Yo-Da (your data) Benjamin Redford, Co-founder, Mayku Benji Lanyado, Founder - CEO, Picfair Bernhard Niesner, CEO, Busuu Bindi Karia, Innovation Expert - Advisor, Blaine Cook, Principal Architect, Condé Nast Carlos Oliveira, Founder - CEO, Shaping Cloud Cassandra Stavrou, Founder, Propercorn Cécile Baird, Founder, Decentrl.Agency Charlie Dobres, CEO, Busking It Productions Chris Greening, CTO, Managed Respone Marketing Ltd Chris Pointon, Co-founder, Racefully Chris Tolmie, Director, Catacoms Colin Pyle, CEO - Founder, CRU Kafe Conor Graham, Cofounder, #HackTheHub Courtney Glymph, Product and Solutions Communications, CA Technologies Damien Tanner, Investor, Daniel Appelquist, Director of Web Advocacy - Open Source, Samsung Research UK Daniel Murray, Co Founder, Grabble David Batey, Founder, Nickelled Ltd David Coveney, Director, interconnect/it David Tenemaza Kramaley, CEO, Chessable Dimitar Stanimiroff, CEO - Co-founder, Heresy Dominic Campbell, CEO, Futuregov Dr Sue Black OBE, Founder, TechMums Ed Dean, CEO, Woodseer Global Ed French, CEO, GameSessions Ed Lascelles, Partner, Albion Capital Elena Sinel, Acorn Aspirations Ethar Alali, Managing Director, Axelisys Limited Fabrice Bernhard, Co-Founder, Theodo Frank Kelcz, Partner, Collider VC Gareth Edwards, Founder, Deckchair.com Gareth Quinn, Founder, Digital DNA George Bevis, CEO, Tide Gianluca Gindro, Senior Data Scientist, Geophy Gilbert Corrales, CEO, Leaf.fm Ltd Giles Andrews, Cofounder - Chairman, Zopa Glenn Shoosmith, Founder - CEO, Bookingbug Guy Morris, Managing Director, Quiz the Nation Guy Podjarny, Founder - CEO, Snyk Hephzi Pemberton, Founder, Kiteka Hilary Anne Stephenson, Managing Director, Sigma Hoi Lam, Head of Wear OS Developer Relations, Google Hywel Carver, CEO/CTO, Multiple Ian Jindal, Founder, Pencil / InternetRetailing Ilicco Elia, Head Of Mobile, Deloitte Digital Irfon Watkins, Founder, Dovu Ivan Mazour, CEO and Founder, Ometria Jack Huang, Director, TrulyExperiences.com James Evans, Managing Director, Bluespot.io Ltd James Whatley, Planning Partner, Ogilvy UK Jana Hlistova, Founder, Diversity Hacks Janna Bastow, Cofounder, ProdPad Jason Trost, CEO / founder, Smarkets Jessica Kennedy White,, UCL Educate Joanna Goodman, Tech Journalist, John Stevenson, VP Equity Derivatives, Citi Jon Atkinson, Technical Director, FARM Digital Ltd. Jonathan Grubin, Founder - CEO, SoPost Jonathan Petrides, Founder, allplants Josh Feldberg, Head of Digital, 89up Josh Russell, Partner, Resolve Joshua Wöhle, CTO, SuperAwesome Julio Alejandro, CEO - Founder, Jada Consulting & &Taming Disruptive Technologies& Kaj Wik Siebert, CTO, Social Finance Katie Moffat, Head Of Digital, The Audience Agency Kevin Schmidt, CTO, Century Tech Laure Claire Reillier, Co-Founder and COO, Launchworks - Co Laurence Kemball-Cook, Founder - CEO, Pavegen Madhuban Kumar, CEO, Metafused Marc Roberts, CTO, HiyaCar Marc Sloan, Co-Founder - CEO, Context Scout Marcus Greenwood, CEO, Ubio Martha Lane-Fox, Founder, doteveryone Martijn Verburg, CEO, jClarity Martin Goodson, CEO, Evolution AI Marty Neill, Founder, Airpos Matthew Gardiner, Founder, Catch London Matthew Painter, Founder CTO, Import.io Melanie Moeller, Product Lead, Sky Spain Merje Shaw, MD, Path59 Michele Cuccovillo, Partner, Rock Mission Natasha Guerra, CEO, Runway East Neil Cocker, CEO, Ramptshirts.com Nic Brisbourne, Managing Partner, Forward Partners Nicholas Katz, CEO, Acasa Nick Patterson, Founder, Movemeon Nick Saalfeld, Director, Wells Park Communications Nuala Murphy, CEO, Moment Health Oisin Lunny, Chief Evangelist, OpenMarket Osvaldo Spadano, Founder - CEO, Akoova Paul Dempsey, Founder/Director, The Curation Company Paul Dyson, CTO, Singletrack Peter Ward, Founder, WAYN Pilgrim Beart, CEO, DevicePilot Priya Prakash, Founder, D4SC Raj Anand, CEO - Cofounder, Goodman Lantern Raph Crouan, CEO - Founder, Startupbootcamp IoT Riaz Kanani, MD - Founder, Radiate B2B Richard Marr, Cofounder, Be Applied Rob Elkin, CTO, Busuu Rob O&Donovan, Ceo, Charlie HR Rob Prevett, Co Founder - CEO, D/SRUPTION Robin Grant, Chairman - Co-founder, We Are Social Roger Nolan, Founder, The Culture Trip Roger Nolan, SVP Tech, Culture Trip Rupert Baines, CEO, UltraSoC Sachin Dev Duggal, Founder, Engineer.ai Simon Bennett, Founding Director, Roll7 Simon Murdoch, Founder, Episode1 Partners St John Deakins, Founder - CEO, CitizenMe Stephen Johnston, Founder, Fordcastle Stephen Roberts, Founder, Vigilant Research Sue Keogh, Founder, Sookio Sultan Saidov, Co Founder, CPO, Beamery Sundar Venkitachalam, Co-founder - CTO, nkoda Tamara Sword, Founder, TRM-C Thanasis Polychronakis, CTO, Alacrity Law Thomas Power, Board Member, 9Spokes Tim Boughton, CTO, Mention Me Ltd Tim Fernando, CEO, Esplorio Tim Hampson, Co Founder, SalesSeek Tim Parlett, Co-Founder of Zopa, N/A (ex Zopa) Timothy Brownstone, CEO, KYMIRA Toby Beresford, CEO, Rise.global Tom Adeyoola, CEO - Founder, Metail Tom Alisi, Director, deep.ventures Tom Bradley, Partner, Oxford Capital Partners Tom de Grunwald, Creative Director, Microclimate Tom Watson, Co-Founder - CTO, Hubble Tristan Palmer, CEO - Cofounder Tushar Agarwal, Co-Founder - CEO, Hubble Uma Rajah, Cofounder - CEO, CapitalRise Volker Hirsch, Founder, Blue Beck / Tech North Advocates William Reeve, CEO, Goodlord William Roberts, Founder, Loyalty Bay
(Interest declared, I am also a signatory).
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Read more: Over 100 UK tech leaders back new call for a people’s vote on Brexit
Write comment (92 Comments)Forty-seven and a half million dollars is a big commitment to African technology companies — even with the recent uptick in VC investment on the continent.
But for the Kenyan-based fintech firmCellulant,whose digital payments platform processed 7 million transactions worth $350 million across 33 African countries in the last month alone, raising that amount in a series C round led byTPG GrowthRise Fundjust makes sense.
In 2017, the company processed $2.7 billion in payments, saidchief executive, Ken Njoroge.
Clients include the continentlargest banks: Barclays Bank, Standard Chartered, Standard Bank, and Ecobank. Cellulant also has multiple revenue streams and is EBITDA positive, according to its CEO.
So what does an African technology company do with $47.5 million &The round is to accelerate our growth of around 20 percent…north of 50 percent,& said Njoroge. &Most of the investment is to scale out our existing platform in Africa and build usage on our existing network.&
Founded in 2004, Cellulant offers Person-to-Business,B2B, and P2B services on its Mula and Tingg products. Italso developing a blockchain basedAgrikoreproduct for agriculture related market activity.
On Africadigital payments potential, &We&ve built internal value models that estimate the size of the market at somewhere between $25BN and $40BN,& said Njoroge.
He differentiates Cellulantfocus fromSafaricomM-Pesa &one of Africa most recognized payment products — by transaction type and scope. &KenyaM-Pesa is optimized as a P2P platform in a few African countries. We&re optimized as a P2B platform and single pipe into multiple countries across Africa,& he said.
One of those countries is economic and population powerhouse Nigeria — where Cellulant offers both itsTing and Agrikore apps. Nigeria is also home to notable digital payment companiesPagaand Interswitch, the latter of which has expanded across Africa and is considered acandidate for a public offering.
On a future Cellulant initial public offering, &ittoo early,& said Njoroge. But he doesn&t rule it out. &When you look at the size of the payments business, you could say we have fairly strong prospects to go in that direction.&
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TONY KARUMBA/AFP/Getty Images
Meanwhile, the Nigerian investment startupPiggybank.ngclosed $1.1M in seed funding and announced a new product — Smart Target, which offers a more secure and higher return option forEsusuorAjogroup savings clubs common across West Africa.
The financing was led by a $1 million commitment fromLeadPath Nigeria, withVillage CapitalandVentures Platformjoining the round.
Founded in 2016, Piggybank.ng offers online savings plans — primarily to low and middle-income Nigerians — for deposits of small amounts on a daily, weekly, monthly, or annual basis. There are no upfront fees.
Savers earn interest rates of between 6 to 10 percent, depending on the type and duration of investment, Piggybank.ngSomto Ifezue explained in thisTechCrunch exclusive.
The startup generates returns for small-scale savers (primarily) through investment in Nigerian government securities, such as bonds and treasury bills.
Piggybank.nggenerates revenue through asset management and fromthe floatits balances generate at partner banks.
The Lagos based startup will use its $1.1M in new seed funding for &license acquisition and product development,& according to company COO Odunayo Eweniyi.
Piggybank.ng looks to grow clients across younger Nigerians and the countryinformal saving groups and has taken preliminary steps to launch in other African countries.
Lead investor andLeadPath Nigeriafounder Olumide Soyombo was attracted to Piggybank.ng as an acquisition target.
&The banks have been slow to try new things in this savings space. Piggybank is coming in…and filling a particular need, so they are in a very acquisitive space.&
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PIUS UTOMI EKPEI/AFP/Getty Images
More Africa Related Stories @TechCrunch
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- French President Emmanuel Macron Launches a USD$76M Africa Startup Fund
- Uber Eats launches in Kenya
- Seedstars launches call for African tech startups to enter pitching competition
- Africamost tech friendly governments
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Read more: Africa Roundup: African startup investments turn to fintech this winter season
Write comment (99 Comments)
In the wake of E3 2018, Lenovo has revealed an overhaul to its Legion brand of gaming PC hardware, including brand new laptops and desktops. These new pieces of hardware drop the extreme gamer aesthetic in favor of something more widely palatable.
Starting with Lenovo’s new gaming laptops – the Legion Y530 (pictured above), Y730 and Y7000 – the fir
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Read more: Lenovo reinvents Legion gaming line with new laptops and desktops
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