Category: Funding Rounds

India’s 2019 Unicorns Count Now At Eight with Rivigo valued at US$1.05 billion

India now welcomes its eighth unicorn this year as Rivigo hits a valuation exceeding a billion dollars with the US$4.9 million funding from South Korea fund and KB Platform Fund, the investment arm of South Korea-based KB Financial Group Inc.

KB Global operates a fund size of US$190 million with a 40 percent allocation of its portfolio to Korea startups, with a primary focus to invest in fintech and biotech startups in Southeast Asia, The fund also invested in Singapore’s ride-hailing Grab earlier in July this year.

The news was confirmed according to the regulatory filings with the Ministry of Corporate Affairs which sees a total of 1,263 cumulative convertible preference shares (CCP) shares allotted to the KB Global Platform fund.

With this investment, Rivigo’s valuation is now at US$1.05 billion, from the US$950 million it was valued in February last year when it raised US$50 million from SAIF Partners and private equity major Warburg Pincus.

As a matter of fact, Rivigo has been out to raise fresh capital for more than a year now.

Based on a report by Mint in September 2018, the startup has been in talks to raise US$400 million for its Series E round to further strengthen its technology and network coverage, which is a key game changer for the larger logistics market in the country.

However, according to present developments, the startup has failed to meet the target and has only been received top-up investments by existing backers SAIF and Wrbug who made the US$65 million in July this year.

Launched in 2014, Rivigo uses a relay trucking model, under which a truck driver hands over the vehicle to another driver at a designated pit stop. This avoids long journeys for truck drivers, which are only behind the wheel for a maximum of four to five hours stretch while making sure that the truck is not idle at any point of the journey.

With a fleet of 3 000 trucks, Rivigo currently offers its transport services across ten industries, which includes clothing, eCommerce, automotive, frozen and processed foods, fast-moving consumer goods, and automobiles.

Adding up to the momentum, the Gurugam-based startup has also recently launched the National Freight Index (NFI) in order to bring transparency to the largely unorganized logistics space.

Gazal Kalra, the Co-founder of Rivigo said, “the amount of AI and blockchain you can use in logistics is unparalleled. We generate so much data, something as simple as driver routing can be made much more efficient with machine learning and AI.”

With this, there are now a total of 25 unicorns found in India. Other unicorns that emerged in 2019 also include:

  • Contract management software platform Icentis
  • Online grocery startup Bigbasket
  • Ecommerce and logistic startup Delhivery
  • Cloud data protection and management startup Druva
  • Fantasy gaming startup Dream11
  • IT healthcare firm CitrusTech
  • Ola Electric, an electric vehicle arm of ride-hailing startup Ola

Interestingly, this comes at a time when India’s economy is on a growth slowdown, and apparently the worse in these six years according to India Today.

But still the great news is that it seems like the country’s unicorn club is growing faster than ever, especially when you consider its unicorn count from 2018 where it has produced 15 unicorns, that’s 22 unicorns in two year.

Go-Jek’s Series F continues with the latest investment from Siam Commercial Bank

Ride-hailing giant Go-Jek has secured yet another investment in its ongoing late-stage Series F financing that started since October last year.

Its latest investor is Siam Commercial Bank, Thailand’s oldest homegrown lender that sees King Maha Vajiralongkorn as its biggest shareholder. The investment amount, however, has not been disclosed.

In a report from Bloomberg, people familiar with the matter said that the partnership will help this Indonesian tech startup boost is financial service, while Siam Commercial will benefit from the online growth that will help increase company revenue.

Previously, the startup has already raised over US$1 billion in its Series F first close in February from investors including Alphabet’s Google,, Tencent Holdings, and Provident Capital.

In fact, at the same week, Go-Jek has also announced additional investments from Mitsubishi Motors, Mitsubishi Corp. and Mitsubishi UFJ Lease & Finance as part of the Series F financing.

But these financings come with little surprise, as Go-Jek is rivaling competitor Grab.

To date, Grab has already raised up to US$4.5 billion in its ongoing Series H which sees investors such as Softbank, Tokyo Century, and Experian, among some.

As a matter of fact, both ride-hailing giants have moved toward digital payments through partnerships with local banks in Thailand.

Grab, the Singapore ride-hailing giant has also raised funds from a Thai Bank, Kasikornbank which has invested US$50 million and the pair together has introduced a co-branded mobile wallet called GrabPay by Kbank.

It’s a win-win situation for both banks and ride-hailing unicorns as the Thai banks, on one hand, can rely on these startups to offer financial services from digital payments to consumer loans. Meanwhile, the ride-hailing firms can have easier access into the region which the business is not fully-regulated.

Go-Jek, which debuted its app for hailing motorbike taxis in Jakarta in 2015, is expanding beyond Indonesia to cater to consumers across Southeast Asia, aiming to popularize an all-purpose consumer app similar to Tencent’s WeChat in China.

In Thailand, Go-Jek began its operations earlier this year under the name Get. The app offers motorcycle rides and food delivery, as well as GetPay, a wallet function that users can top up through Kasikornbank and Siam Commercial Bank’s apps.

It is valued at US$10 billion according to CB Insights, and hosts more than 20 on-demand services on its platform from food delivery to cab-hailing.

Australia’s Newest Tech Unicorn is Three-year-old Payment Startup AirWallex

AirWallex, a cross-border payments startup in Australia has become the next unicorn after raising a US$100 million Series C funding led by DST Global. A unicorn is indicative of having reached a milestone valuation exceeding US$1 billion.

This makes AirWallex the fourth unicorn, following the footsteps of graphic design company Canva, aerial imagery company Nearmap, and Sydney software company Atlassian which has been listed on NASDAQ in 2015.

DST Global, the investment firm which has led the new funding round, was known for having made investments in notable startups like Facebook, Airbnb, and Spotify, as well as fintechs like Nubank and Robinhood.

“We talked to a number of global funds we found interesting but we picked DST because our biggest priority is international expansion and the firm will help us opening doors and going after larger opportunities,” Jack Zhang, one of AirWallex’s co-founder said of the lead investor for the round.

But aside from DST Global, existing investors from Airwallex’s previous rounds including Sequoia Capital China, Tencent, Hillhouse Capital, Gobi Partners, Horizons Ventures, and Square Peg Capital also returned for the Series C fundraising.

Its Series C comes at the time when AirWallex’s Asia Pacific business had increased five to eight fold this year with billion dollars worth of transactions and as the startup was looking to take on more small businesses as clients.

“Very few companies are growing at this kind of rate,” Zhang said.

The new capital will be used to expand Airwallex’s suite of international collection and payment products, in addition to supporting global expansion into the United States, Europe, and Southeast Asia.

Looking back at the roots of this payments startup, the inspiration for the fintech platform started with a coffee cup dilemma.

In 2015, co-founders Jack Zhang and Max Li met with some obstacles when they were trying to buy coffee cups and labels for their cafe Tukk & Co in Melbourne’s Docklands.

“We were importing a lot of stuff from Hong Kong and China and other places because we wanted to do it really well and cost-effectively,” Zhang told the Sydney Morning Herald.

“However when we were making a payment using the traditional methods of either a bank or Western Union, the cost could be through the roof. We are talking a couple of percent and using multiple intermediaries.”

This then led the pair to join up with friends from Melbourne University – Xijing Dai, Ki-lok Wong, and Lucy Liu – to start AirWallex.

AirWallex founding team

From left: Max Li, Xijing Dai, Jack Zhang, Lucy Liu and Ki-lok Wong

AirWallex is not your Traditional Broker

“We started Airwallex because we knew there was a better way to make global payments,” said Zhang.

Unlike traditional brokers which adds on an ecommerce unit for SMEs, AirWallex is built from the ground up specifically for ecommerce. There’s no need to pay layers of brokers expensive fees which is why it can keep its costs low.

Much like the consumer-focused Transferwise, AirWallex provides an international payment service that lets marketplaces, merchants, and SMEs manage cross-border revenue and financing in their business.

“We wanted to be able to build something a lot more robust, a lot more real-time, cost-effective, as well as transparent in pricing to other customers so we could make the life of those businesses easier,” explained Zhang.

The startup currently supports a client base of internet giants including, Tencent, and Ctrip.

With a single know-your-customer check, an Airwallex client can open a local bank account in 50 different currencies, as well as instantly send and receive money internationally using lower interbank rates to more than 130 countries.

For example, an ecommerce seller that is importing from China using AirWallex would be able to make payment in real time at a cost that is comparatively lower from other international payment solutions which charge as much as three to four percent in currency fees.

Checking the Unicorn Mark

When asked its new unicorn status, Zhang said, “The status is a little bit strange, to be honest, but it is just giving us the credibility and reputation to service more customers.”

“Airwallex is proud to free business from many of the traditional barriers that have made international transactions so difficult.”

Despite its value, AirWallex’s reported revenues are modest. In its most recent financial records filed with the regulator for the year ending June 30, 2017, Airwallex had reported a revenue of US$14,803 and a loss of US$806,195.

However, Zhang explained that this figure did not include global revenue and the business is now tracking well beyond its forecast of US$20 million.

“For a company at our stage, revenue is not the key thing, it is all about the processing volume and we are on track to process tens of billions of dollars in 2019,” he said.

AirWallex China

Zhang said Airwallex’s vision continues to grow and it aims to become the fundamental infrastructure for online business to scale.

The startup has started focused on Asia, and China in particular. It is also looking to expand its presence in the United Kingdom and the United States through acquisitions, with the team actively seeking interesting payment startups.

Besides, Airwallex is also casting its eye on banking licenses in selected markets, which could mean it returns to raise additional capital at the end of this year or the start of 2020.

“We believe that there are huge opportunities for companies such as Airbnb and Amazon while SMEs need a true one-stop shop for their business to go from local to global. We know we have so many revenue streams we can get on the future, but for now we are focused on customer acquisition and helping our customers to scale,” he said.

Regarding IPO, Zhang said that given how easily the company is raising money privately, the company has no plans to go public for at least three years.

B2B Online Marketplace Udaan Becomes India’s Fastest Unicron after US$225 Million Series C Funding

The Flipkart Mafia has done it again. While Flipkart had made headlines earlier this year when acquired by Walmart at a US$16 billion deal, Bengaluru-based B2B online marketplace Udaan – founded by former Flipkart employees – has also become India’s latest unicorn.

The startup has recently raised a US$225 million Series C funding round co-led by Russian internet billionaire Yuri Milner’s DST Global and existing investor Lightspeed Venture Partners, which previously led its Series A and Series B funding.

This brings the total aggregated funding to US$285 million, with the startup jumping up to a US$1 billion valuation within just 26 months of its launch. This makes it one of the fastest company in India to reach the unicorn status.

Remarkably, the latest valuation has also seen a surge of almost five times since its last US$50 million Series B funding in February 2018 with its valuation worth only US$200 million.

Unicorns Pick Pace in India

In fact, the year 2018 can rightly be said as the year of unicorns, with as many as six new startups joining the unicorn club in India.

That is apart from Udaan, the remaining startups who reached a US$1 billion valuation in 2018 are BYJU’s, Paytm Mall, Swiggy, PolicyBazaar, and SaaS startup Freshworks.

However it is not just an increasing number of unicorns, Indian startup unicorns are also achieving the status quicker compared to past unicorns.

India’s most valued tech company Flipkart took five years to reach the unicorn status, while delivery app Zomato also garnered its US$1.4 billion valuation in 2017 after nearly 10 years in business.

In comparison, 3D printing company Desktop Metal crossed the threshold at 21 months old while Craiglist competitor Letgo also became a unicorn in just 2 years. Though Udaan also made a record of reaching unicorn status in 26 months, the reason lies in its development.

Udaan’s Growth in the Past 26 Months

Launched in 2016, Udaan is an end-to-end marketplace that connects small- and medium- businesses directly with manufacturers. It runs an online platform for businesses in consumer goods, fashion and electronics, and offer logistic services and loan services.

The startup was founded by three former Flipkart employees – Sujeet Kumar, Amod Malviya, and Vaibhav Gupta – who were previously Flipkart’s President of Operations, Chief Technology Officer and Senior Vice President of business finance and analytics.

In ecommerce space, the market opportunity has been huge and Udaan focuses on the wholesale business to retail market sector.

As of February 2018, the startup has accumulated 150,000 in their seller base across 80 cities and delivers to more than 500 cities, with an average order value between INR 6,000 to INR 7,000 (about US$83 to US$97).

As a whole to date, Udaan is hitting revenues of Rs 300 to Rs 400 crore (about US$47.8 to US$55.7 million) every month, which is said to contribute to the five-fold increase on their business valuation in less than a year.

Bejul Somaima, a managing director at Lightspeed India that’s been on the company board since Series A told TechCrunch.

“We have been fortunate to see the company scale very rapidly from close quarters. We’re drawn to the company’s first-principles approach to solving significant problems that are unique in the Indian context.”

That is Udaan helps businesses discover customers, suppliers and products across categories and connect directly with each other for the best deal, in addition to facilitating buying and selling with secure payments and logistics.

Udaan’s Next Phase for Growth

While right now electronics and consumer goods are for sale on the app, Udaan plans to expand into more verticals including industrial goods, home and kitchen, office supplies, and fresh fruits and vegetables.

The newly raised funds are also expected to be utilized for establishing its logistic pieces as it aims to offer first mile and last mile services to its customers, as well as launching their own supply-chain solution, which will involve creating massive warehouses to store inventory.

Freshworks becomes next unicorn with US$100 million funding led by Sequoia, Accel

If you haven’t been following the venture capital network in India, Freshworks is one of the larger SaaS providers you have probably never heard of… well, until now.

California and Chennai-based customer engagement software maker Freshworks has officially joined the country’s unicorn club, after raising US$100 million in a fresh round of funding co-led by Sequoia Capital and Accel Partners.

This new funding values the company at around $1.5 billion, doubling up from the valuation of $700 million it reached in late 2016.

Question, Who is Freshworks?

Founded in Chennai, India in 2010 as Freshdesk, the startup began as a helpdesk software providing a single cloud-based customer support solution for businesses.

In less than a decade, the firm grew exponentially, moving beyond customer service to offer a host of innovative product suites in ITSM and CRM domains.

From Freshdesk to Freshmarketer, the startup owns products ranging from sales CRM software to recruitment tools and IT streamlining software, and this ultimately drove the name change to Freshworks.

So, now if you ask what Freshworks does?


Image Source:

It provides organizations of all sizes with a series of SaaS solutions that make it easier for customer support, sales and marketing professionals to communicate efficiently with customers for better service and to collaborate with team members and resolve customer issues.

The startup has a workforce of more than 1,000 employees globally across five offices in India, United Kingdom, Germany, Australia and the United States.

To date, their software is being used by over 150,000 organizations around the world, counting established names like Bridgestone, Toshiba. Cisco, NHS, Rightmove, Hugo Boss, Honda, and Citizens Advice

Looking at the success of the startup today, Ramesh Ravishankar, the marketing Director of Freshworks said that the metrics and insights from Google have played a big part in understanding and continuing their growth.

“Google tools are the most sophisticated for measuring a channel’s effectiveness. We are well-armored when having to talk about the return on investment of Google products.”

Freshworks Google Marketing

Image Source:

From launch, Freshworks has been using Google Search advertising to build a customer base in mature markets across the United States and Europe.

The startup also adopted a unique global inside sales model that lowered the company’s cost of selling. This enabled Freshworks to put more into their digital marketing budget, and improve the customer on-boarding experience.

At the same time, as software products move from on-premise to a cloud-based model, the SaaS market in India has seen a rapid evolution. Instant decision making, cost-effectiveness, low risk, greater flexibility combined with an increasing mobile workforce and customers has been the driving force behind SaaS adoption.

“Freshworks has built the only customer engagement platform on the market that elegantly meets the needs of a business of any size with software that is modern, intuitive and affordable,” said Sameer Gandhi, a partner at Accel.

Today, Freshworks is a global powerhouse in cloud-based business software with a majority of revenue coming from North America, followed by Europe. They now have a customer base of over 130,000 with 60% of their business coming through Google products.

What’s next? Talks about IPO

With Freshworks riding on an incredible wave of growth and reaching the unicorn stage, many have started to ask when are the plans for IPO?

In fact, expectations for IPO in the near future has already sparked when the startup announced the appointment of Suresh Seshadri, former AppDynamics’ Vice President of Finance & Treasury as the Chief Financial Officer. Seshadri has previously helped prepare AppDyanmics for its IPO before it was acquired by Cisco in 2017,

“Coming on board to work with Girish and the rest of the executive team is an incredible opportunity and I am confident that we are well-positioned to reach the next phase of Freshworks’ expansion,” Seshadri said.

Freshworks CEO: Girish Marhrubootham

Image Source:

However, Freshworks CEO Girish Mathrubootham told TechCrunch we shouldn’t be holding our breath waiting for his company to IPO.

“Freshworks hasn’t started the IPO process but we do feel that we will eventually go public in the U.S.,” he said. “With that said, our primary focus right now is on growing the business and investing in our platform. When the timing is right, we’ll make that decision.”

At present, the startup will focus on expanding Freshworks’ worldwide expansion and continue investing in its integrated SaaS platform, especially at how it can use AI to bring innovations to its new tools.

“When we started Freshworks in 2010, we were a single-product company with a goal of offering better, easier-to-use customer service software than what was in the market,” said Girish.

“It’s been a long way but we’ve since scaled our company to US$100 million in annual recurring revenue and built a full SaaS platform where all of our products – such as Freshsales, Freshdesk, and Freshservice – work together seamlessly without requiring additional integration resources or consultants to make the software simply work,” he added.

Scroll to top