FedEx Invests $100M in Delhivery: Daily Crunch

Daily Crunch for July 16, 2021

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TechCrunch Discussions on Startup Funding

Greetings, and welcome to Daily Crunch for July 16, 2021. A note to our readers: several members of the TechCrunch team recently engaged in a discussion regarding funding rounds.

The conversation covered reporting on these rounds and strategies for startups to differentiate themselves. Interested parties can review the full discussion here.

Today's News

Now, let's move on to the day's headlines. — Alex

TechCrunch's Weekly Highlights

This week, TechCrunch covered several significant developments in the tech industry. These include the successful IPO of Zomato, potential acquisition news surrounding Intel, and future plans for Virgin Galactic.

Zomato's Initial Public Offering

Zomato, an Indian unicorn, experienced a positive IPO this week. The offering was notably oversubscribed and generated substantial capital.

TechCrunch investigated the implications of this first-time unicorn offering in India. The analysis focused on what this milestone could signify for other highly valued startups within the nation.

Detailed financial information regarding Zomato’s IPO can be found here.

Intel's Potential Acquisition of GlobalFoundries

In the United States, reports surfaced indicating that Intel is considering a $30 billion acquisition of GlobalFoundries.

This substantial investment could position Intel as a comprehensive chip manufacturer. The company would then be capable of producing silicon for a wide range of applications.

Increased manufacturing capacity is particularly relevant given the ongoing global chip shortage. More production capabilities would be a beneficial outcome.

Virgin Galactic's Future Trajectory

Devin Coldewey of TechCrunch recently had the opportunity to interview the president of Virgin Galactic.

The discussion centered on the company’s future direction following its recent spaceflight. It was revealed that Virgin Galactic anticipates reusing its space plane on hundreds of future missions.

This high rate of reuse is projected to create favorable economic conditions for the company. Attractive economics are expected as a result.

Startups and Venture Capital Updates

Blend has transitioned beyond startup status: The banking technology company, Blend, completed its initial public offering this week. Its current valuation is approximately $4 billion, exceeding the value established in its last private funding round.

Consequently, Blend is no longer classified as a startup, nor is it a privately held unicorn.

The company’s software facilitates mortgage applications within various platforms, potentially operating behind the scenes for users.

Halla Secures $4.5 Million in Funding

Halla has successfully raised $4.5 million to develop a predictive system for grocery purchases. The company aims to anticipate consumer food preferences.

Online grocery shopping represents a significant market, attracting investment from major players like Amazon and Instacart, as well as numerous European delivery services.

Halla intends to enhance sales for these companies by leveraging insights into consumer behavior, guiding shoppers towards desired items and encouraging the discovery of new products.

Rivian Faces Further Delays in EV Production

The ongoing global chip shortage – as previously discussed in relation to Intel – is impacting Rivian’s plans for electric vehicle production.

While other challenges contribute to the delays, the chip shortage presents a substantial obstacle for businesses across various sectors.

Yummy Aims to Create a Superapp for Venezuela

Yummy recently secured $4 million in funding with the ambitious goal of establishing a comprehensive superapp within Venezuela.

The platform will integrate services such as ride-hailing and delivery, mirroring the successful superapp model popularized in Asia.

However, achieving this vision will likely require additional funding rounds beyond the initial $4 million investment.

Expect further fundraising efforts if Yummy’s progress continues positively.

From our recent Early Stage event, we are pleased to share new insights: Cleo Capital’s Sarah Kunst provides guidance on preparing for your next funding round.

The Story Behind Outdoorsy: Expanding the Sharing Economy to Recreational Vehicles

Jen Young, formerly an advertising executive, and Jeff Cavins, a tech entrepreneur, established Outdoorsy seven years ago. Their vision was to create a marketplace focused on RV rentals.

Recently, the company revealed a collaboration with Collective Retreats, a provider of luxury camping experiences. This announcement coincided with a substantial funding round, securing $90 million in Series D funding alongside $40 million in debt.

This capital injection is intended to accelerate their already significant growth trajectory. Rebecca Bellan of Extra Crunch interviewed Young and Cavins to delve deeper into their company’s development.

The discussion centered on the effects of the COVID-19 pandemic, their core business strategies, and the rationale behind securing $30 million in debt financing.

Outdoorsy has successfully tapped into a growing desire for flexible travel options.

(Extra Crunch is a membership program designed to empower founders and startup teams. Registration is available here.)

Key Aspects of Outdoorsy's Growth

The co-founders discussed how they identified a gap in the market for RV rentals. They recognized the potential to apply the sharing economy model – popularized by companies like Airbnb – to the recreational vehicle industry.

Their strategy involved building a platform that connects RV owners with renters, providing a secure and convenient way to experience the outdoors. This approach has resonated with a diverse range of travelers.

The pandemic significantly boosted demand for RV travel, as people sought alternatives to traditional vacations. Outdoorsy was well-positioned to capitalize on this trend.

Strategic Financial Decisions

Taking on debt financing was a deliberate decision, allowing Outdoorsy to invest in key areas of the business. This includes technology development, marketing, and expansion of their service offerings.

The partnership with Collective Retreats is expected to enhance the overall customer experience, offering curated camping destinations and premium amenities. This collaboration aims to attract a more discerning clientele.

Jeff Cavins and Jen Young believe that the future of travel is increasingly focused on experiences and flexibility.

Big Tech Inc.

Recent investment activity highlights the growing importance of the Indian market for global technology companies. FedEx has made a substantial $100 million investment into Delhivery, an Indian logistics startup.

Delhivery Investment

The investment by FedEx in Delhivery is noteworthy. Rumors suggest Delhivery is preparing for an initial public offering (IPO) later this year.

This deal demonstrates India’s increasing significance, attracting investment not only from local sources but also from established international brands.

Paytm's Public Offering

Indian fintech leader Paytm has submitted its application for an IPO. The company intends to secure up to $2.2 billion through this offering.

The scale of Paytm’s planned IPO is considerable, exceeding the typical funding rounds seen by venture capital firms. Its size suggests Paytm has moved beyond the traditional startup phase.

Automattic Acquires Pocket Casts

Automattic, the company behind WordPress and Tumblr, is expanding its portfolio with the acquisition of Pocket Casts, a well-known podcasting platform.

The integration of a publishing platform like WordPress with a podcasting service such as Pocket Casts presents potential synergies.

Shifting Venture Capital Dynamics

Traditional venture capital firms are increasingly looking to emerging managers for access to new investment opportunities and potential partnerships, as reported by Connie Loizos.

This trend indicates a broadening of the venture capital landscape and a willingness to explore alternative sources of deal flow.

TechCrunch Experts: Growth Marketing

As part of the TechCrunch Experts program, interviews were conducted with Kathleen Estreich, whose previous roles included positions at Intercom, Box, Facebook, and Scalyr. Emily Kramer, formerly with Asana, Carta, and Astro (later acquired by Slack), also participated.

This discussion will be extended to a Twitter Spaces event on Tuesday, July 20th, at 5 p.m. EDT. Danny Crichton from TechCrunch and the MKT1 team will be present to explore current growth marketing trends in greater detail.