Jumbotail, an online wholesale marketplace for grocery and food items, said on Friday it has raised an additional $14.2 million as the Bangalore-based startup chases the opportunity to digitize neighborhood stores in the world’s second largest internet market.
The five-year-old startup said the new tranche of its Series B financing round was led by VII Ventures, with participation from Nutresa, Veronorte, Jumbofund, Klinkert Investment Trust, Peter Crosby Trust, Nexus Venture Partners, and Discovery Ventures.
The startup told TechCrunch that the new tranche concludes its Series B round, which it kickstarted in 2019 with $12.7 million in funding. It ended up raising about $44 …
If, as I suspect many of you have, you have worked your way through baking every type of cookie, bread and cake under the sun over the last year, Google has a surprise for you: a pair of AI-generated hybrid treats, the “breakie” and the “cakie.”
The origin of these new items seems to have been in a demonstration of the company’s AutoML Tables tool, a codeless model generation system that’s more spreadsheet automation than what you’d really call “artificial intelligence.” But let’s not split hairs, or else we’ll never get to the recipe.
Eat Just, a food startup from San Francisco making chicken-less eggs, has ambitions to crack the Chinese market where consumer appetite for plant-based food is growing and other Western vegan substitute brands like Beyond became available in recent quarters.
The startup said this week it will be suppling to fast-food chain Dicos, a local rival to McDonald’s and KFC in China. The agreement will see Eat Just add its plant-based eggs to the restaurant’s breakfast items across more than 500 locations. The eggs are derived from a legume called mung beans, which have long been a popular ingredient for …
The stunning debut of the food delivery company DoorDash on the public market this week has plenty of people puzzled. While undeniably fast-growing, the unprofitable delivery company has come under fire numerous times over its employment practices, and its IPO, like that of other gig-economy companies, leaves a lot of economic issues unresolved.
So why is a company that lost $667 million in 2019 and $149 million in the first nine months of 2020 — during a period of hypergrowth because of the pandemic — being valued at $55.8 billion by public market investors? Have they lost their minds?
Saar Gur thinks he has answers to such …
Around the same time, the industry was staggering back to life. In Chicago, the Michelin-starred Elske, known for its moderately priced tasting menu, began opening three days a week to offer takeout. “Our first meal was Swedish meatballs, mashed potatoes and cucumber salad,” said David Posey, the chef who co-owns Elske with his wife. “We thought we’d go through that in a week. It was enough for one day.”In Nashville, Tony Galzin, the co-owner and chef at Nicky’s, revved up his coal-fired oven and sold housemade pizzas and fresh pasta to go. In Washington, Cork Wine Bar, …
Investors have not lost their appetite for growth shares
DoorDash filed a fresh S-1/A, providing the market with a new price range for its impending IPO.
The American food delivery unicorn now expects to debut at $90 to $95 per share, up from a previous range of $75 to $85. That’s a bump of 20% on the low end and 12% on the upper end of its IPO range.
The Exchange explores startups, markets and money. Read it every morning on Extra Crunch, or get The Exchange newsletter every Saturday.
DoorDash still anticipates 317,656,521 shares outstanding after its IPO, giving the company …
Eat Just will start offering lab-grown chicken meat in Singapore after gaining regulatory approval from the Singapore Food Agency (SFA). The cell-cultured chicken will eventually be produced under Eat Just’s new GOOD Meat brand through partnerships with local manufacturers and go on sale to restaurants before it is available to consumers.
No chickens were killed to obtain the cell line used to produce Eat Just’s cultured meat, global head of communications Andrew Noyes told TechCrunch. Instead, the process starts with cell isolation, where cells are sourced through methods that can include a biopsy from a live animal. After …
FoodBoss aims to be something like Kayak for online food ordering — the place where you can search across different service and apps to find the lowest prices and fastest delivery times.
One limitation, however, is the fact that the service was limited to third-party services like Uber Eats and Postmates, with no way to order from the restaurant itself — until recently, with the launch of a new feature called Restaurant Direct.
FoodBoss co-founder and CEO Michael DiBenedetto said that restaurants are placing an increasing emphasis on accepting delivery and pickup orders directly, both to save on the fees they pay to third-party services, and also to have a direct relationship with their customers.
“The main problem is they spent all this money to build out the [ordering] infrastructure, but they don’t necessarily know that they have to spend marketing dollars to drive consumers to their site or app,” DiBenedetto said. “That’s where we’re really helping.”
Image Credits: FoodBoss
Restaurant Direct may present some additional technical hurdles, because it will require FoodBoss to integrate with a variety of ordering systems. DiBenedetto said the company will be connecting through APIs in some cases and can also work directly with restaurant IT departments.
He emphasized that FoodBoss will remain agnostic about how you order — the goal is just to show you all the options, and to highlight the ordering method that best matches your priorities.
“At FoodBoss, we’re focused on making sure we’re helping third parties and [restaurants] have a lower overall marketing cost,” DiBenedetto continued. “Everybody wants to be profitable on delivery.”
The first restaurant available through Restaurant Direct is Lou Malnati’s in Chicago, with plans to add Sbarro in multiple markets next year. In a statement, Lou Malnati’s president, Heather Stege, said, “The challenge for restaurants is being able to serve customers through the users preferred channels, while still providing them with exceptional food. FoodBoss helps simplify that by offering multiple options, including our own, to attract customers.”
Farmstead, a startup that operates an online grocery business while also selling software to other grocers, is announcing that it has raised $7.9 million in Series A funding.
While there’s been plenty of demand for grocery delivery this year, the major players like Instacart are making purchases and deliveries from existing supermarkets. Farmstead co-founder and CEO Pradeep Elankumaran said that this model puts a big constraint on the number of possible deliveries, which is why you may be struggling to get a delivery slot.
There have been fewer success stories around the Farmstead approach, where a company sells groceries from its own warehouse (and in Farmstead’s case, employs its own warehouse staff and drivers).
In fact, Elankumaran said that when the company started in 2016, “The warehouse model was incredibly unattractive to everyone else,” because of the operational headaches and expenses.
To address these issues, Elankumaran said Farmstead has built software to “re-orchestrate” warehouse operations and make them more efficient. The startup says it’s been able to reduce food waste by 3-4x, while also serving thousands of orders per day across a 50-mile radius, with no delivery fees, from each warehouse “hub.” In fact, in the startup’s first market of San Francisco, Farmstead is supposedly “marching towards profitability, and we’re very close at this point.”
Image Credits: Farmstead
Next up: Geographic expansion, starting in North Carolina, with Charlotte and Raleigh-Durham (where Farmstead just opened its wait list). Elankumaran said he’s hoping to launch between 15 and 30 new markets in the next 12 months.
“A better way of putting it is: Two years ago we were not ready [to expand], and right now we are ready,” he said.
In addition, Farmstead has started selling its Grocery OS software to other grocery businesses that want to move online. Elankumaran said that in some cases, the grocer may simply buy the software, while in others, Farmstead could also work with them to operate the warehouse. Either way, he said the key is the need to “fork the demand,” so that offline shoppers are going to one store, while online orders are being fulfilled from a separate location.
“You cannot get this industry online unless the capacity increases,” he said.
Elankumaran also said that while it can cost $10 million of dollars to open a new supermarket location, Farmstead can launch a hub in four to six weeks, at a cost of $100,000.
As for whether grocery stores have any hesitation about buying software from a potential competitor, Elankumaran said that the opposite is true — they trust Farmstead more because of “the fact that we’re not a B2B software company that has not operated a grocery store.”
Farmstead has now raised a total of $14.7 million. The Series A was led by Aidenlair Capital, with participation from Y Combinator, Gelt VC, Duro, Maple VC, Heron Rock, 19 York, Red Dog Capital and others.
Our all-hands-on-deck coverage of DoorDash’s S-1 is a good illustration of Extra Crunch’s mission: timely analysis of current and future technology trends that serves founders and investors. We have a talented team, and as today’s coverage shows, they’re just as good as they are fast.
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“Error number one (and two) is to raise the wrong amount of money and to do it at the wrong time,” he says. “They can also put all their eggs in one basket too early. I made that mistake.”
You can find business writing that explores best practices anywhere, which is why we hunt down stories that are firmly rooted in data or personal experience (which includes success and failure).
How COVID-19 accelerated DoorDash’s business
Image Credits: DoorDash
The coronavirus pandemic looms large in DoorDash’s S-1 filing.
According to the food-delivery platform, “58% of all adults and 70% of millennials say that they are more likely to have restaurant food delivered than they were two years ago,” and “the COVID-19 pandemic has further accelerated these trends.”
As in other sectors, the pandemic didn’t wave a magic wand — instead, it hastened trends that were already in play: consumers love convenience, which means DoorDash’s gross order volume and revenue were tracking well before the virus started to shape our lives.
“It’s your call on how to balance the factors and decide whether or not to buy into the IPO, but this one is going to be big,” writes Alex Wilhelm in a supplemental edition of today’s The Exchange.
The VC and founder winners of DoorDash’s IPO
SAN FRANCISCO, CA – SEPTEMBER 05: DoorDash CEO Tony Xu speaks onstage during Day 1 of TechCrunch Disrupt SF 2018 at Moscone Center on September 5, 2018 in San Francisco, California. (Photo by Kimberly White/Getty Images for TechCrunch)
None of us knew DoorDash would release its S-1 filing today, but Danny Crichton jumped on the story “so we can see who is raking in the returns on the country’s delivery startup champion.”
After estimating the value of the respective ownership stakes held by DoorDash’s four co-founders, he turned to the investors who participated in rounds seed through Series H.
Some growth funds are about to look very good after this IPO, and each founder is looking at hundreds of millions, he found.
But even so, their diminished haul of about $1.3 billion is “a sign of just how much dilution the co-founders took given the sheer amount of capital the company fundraised over its life.”
Fintech VC keeps getting later, larger and more expensive
Investors sent stacks of cash to late-stage fintech companies in Q3 2020, but these sizable rounds may also point to shrinking opportunities for early-stage firms, reports Alex Wilhelm in this morning’s edition of The Exchange.
2020 could be a record year for fintech VC in Europe and North America, but are these “huge late-stage dollars” actually “a dampener for new fintech startups trying to get off the ground?”
Accelerators embrace change forced by pandemic
Devin Coldewey interviewed the leaders of three startup accelerators to learn more about the adaptations they’ve made in recent months:
David Brown, founder and CEO, Techstars
Cyril Ebersweiler, founder HAX, venture partner at SOSV
Due to travel bans, shelter-in-place orders and other unknowns, they’ve all shifted to virtual. But accelerators are intensive programs designed to indoctrinate founders and elicit brutally honest feedback in real time.
Despite the sudden shift, that boot-camp mindset is still in effect, Devin reports.
“Cutting out the commute time in a busy city leaves founders with more time for workshops, mentor matchmaking, pitch practice and other important sessions,” said Fernandez. “Everybody just has more flexibility and tranquility.”
Said Ebersweiler: “People are for some reason more participative and have more feedback than physically — it’s pretty strange.”
Greylock’s Asheem Chandna on ‘shifting left’ in cybersecurity and the future of enterprise startups
Image Credits: Greylock
In a recent interview with Greylock partner Asheem Chandna, Managing Editor Danny Crichton asked him about the buzz around no-code platforms and what’s happening in early-stage enterprise startups before segueing into a discussion about “shift left” security:
“Every organization today wants to bring software to market faster, but they also want to make software more secure,” said Chandna.
“There is a genuine interest today in making the software more secure, so there’s this concept of shift left — bake security into the software.”
Square and PayPal earnings bring good (and bad) news for fintech startups
In California, non-competition agreements can’t be enforced and a court has ruled that customer contact lists aren’t trade secrets.
That doesn’t mean salespeople who switch jobs can start soliciting their former customers on their first day at the new gig, however.
Before you jump ship — or hire a salesperson who already has — read this overview of California’s trade secret laws.
“Even without litigation, a former employer can significantly hamper a departing salesperson’s career,” says Nick Saenz, a partner at Lewis & Llewellyn LLP, who focuses on employment and trade secret issues.
As public investors reprice edtech bets, what’s ahead for the hot startup sector?
Image: Bryce Durbin / TechCrunch
News of a highly effective COVID-19 vaccine appeared to drive down prices of the three best-known publicly traded edtech companies: 2U, Chegg and Kahoot saw declines of about 20%, 10% and 9%, respectively after the report.
Are COVID-19 tailwinds dissipating, or did the market make a correction because “edtech has been categorically overhyped in recent months?”
Dear Sophie: What does a Biden win for tech immigration?
Image Credits: Sophie Alcorn
What does President-elect Biden’s victory mean for U.S. immigration and immigration reform?
I’m in tech in SF and have a lot of friends who are immigrant founders, along with many international teammates at my tech company. What can we look forward to?