Alerzo Raises $10.5M Series A to Digitize Nigerian Retail

Daily Crunch: August 20, 2021

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Welcome to Daily Crunch

Greetings and a warm welcome to Daily Crunch for August 20, 2021. While the workweek concludes, our commitment to compiling the latest technology, startup, and venture capital news remains steadfast.

Today's Highlights

Today’s news includes software firms making investments in the hospitality sector, the profitability of scooter businesses, advancements in at-home fitness with rowing machines, and the emergence of radio platforms on TikTok. Furthermore, reports indicate that Elon Musk is developing a robotic system.

This collection represents a diverse and compelling set of stories!

— Alex

TechCrunch's Top 3 Developments

Here's a rundown of the three most significant stories recently covered by TechCrunch, offering insights into investment, business model adjustments, and evolving regulatory landscapes.

Microsoft's Investment in OYO

Previously reported by TechCrunch, speculation regarding a potential investment by Microsoft in the Indian hospitality company OYO has materialized. The initial announcement seemed unexpected to some observers.

Microsoft has now committed $5 million to OYO, valuing the company at $9.6 billion. This valuation represents a modest decrease compared to OYO’s previous $10 billion assessment.

An Initial Public Offering (IPO) is anticipated as the next major step for OYO.

Bird's Enhanced Financial Performance

Bird, the American electric scooter company, is preparing to become publicly traded through a Special Purpose Acquisition Company (SPAC). Details regarding the company’s recent financial results have been released.

A restructuring of its operational strategies has led to improvements in Bird’s financial performance, although sustained profitability remains a future goal.

Changes to China's Data Privacy Regulations

China is implementing significant changes to its data privacy regulations, impacting how companies handle personal information.

The new Personal Information Protection Law, effective November 1, mandates that application developers provide users with greater control over their data.

Specifically, users will have options to opt-out of targeted marketing and personalization based on their personal characteristics. It’s important to note that these regulations primarily apply to companies, not the Chinese government itself.

Startups/VC

Alerzo secures $10.5M in funding to advance Nigeria’s digital economy: A recent investment round has provided a significant lift to Nigeria’s growing startup ecosystem. Alerzo, a “B2B e-commerce retail” platform, is focused on integrating the nation’s informal economic sector into the digital landscape.

TechCrunch reports that this segment of the Nigerian economy represents a substantial $100 billion market.

Brazil's QuintoAndar Continues Expansion

QuintoAndar, based in São Paulo, demonstrates strong growth in the Brazilian market: Following a $300 million funding round, the Brazilian property technology company has secured an additional $120 million in investment.

This new funding values QuintoAndar at an impressive $5.1 billion. The company facilitates connections between renters and property owners, as well as buyers and sellers, within the Brazilian real estate market.

For further insights into Africa’s startup landscape, explore this resource. Additional information regarding Brazil’s startup activity is also available here.

Breef Facilitates Agency-Brand Connections

Breef aims to bridge the gap between brands and marketing agencies: The Greycroft-backed startup recently raised $3.5 million to connect boutique agencies with extended, stable contracts from prominent brands.

This platform offers opportunities beyond those typically found on freelance marketplaces.

Cardiomatics Automates ECG Analysis

Cardiomatics delivers automated electrocardiogram interpretation: As its name suggests, Cardiomatics specializes in automating the analysis of electrocardiograms. The company has recently received $3.2 million in funding.

TechCrunch highlights that Cardiomatics empowers “GPs and smaller practices to provide ECG analysis to patients without the necessity of specialist referrals.”

Rutter Develops a Unified E-commerce API

Rutter is creating a comprehensive data API for e-commerce: API-driven startups are currently experiencing significant traction. Rutter, which recently raised $1.5 million, is building a “unified e-commerce API” designed to connect businesses with data from various e-commerce platforms.

This initiative sits at the convergence of the growing e-commerce sector and the trend of API-based service integration.

For a more comprehensive overview of recent startup news, tune into this week’s Equity podcast.

Addressing Common Compensation Challenges for Hybrid Workforces in Startups

Recent data indicates a significant shift in employee expectations, with 58% of professionals stating they would consider leaving their current position if remote work options are not provided.

For startups, failing to embrace work-from-home flexibility can create a substantial competitive disadvantage. However, determining equitable compensation strategies for hybrid teams presents a unique and multifaceted challenge.

Key Considerations for Hybrid Worker Pay

Several critical questions arise when establishing pay scales for employees with varying work arrangements:

• Should compensation be adjusted to reflect the cost of living in different geographic locations?
• What is the appropriate method for remunerating employees performing identical roles, one working remotely and the other in the office?
• Is there sufficient clarity and openness regarding the factors influencing employee compensation?

Maintaining fairness and transparency is paramount when navigating these issues.

Effective communication about compensation policies can significantly improve employee morale and retention.

(Access to exclusive insights and resources for founders and startup teams is available through Extra Crunch. Registration can be completed here.)

Big Tech Inc.

Several noteworthy developments have recently emerged from prominent technology companies.

Peloton's Expansion into Rowing

Peloton is reportedly developing a rowing machine, extending its fitness equipment offerings beyond stationary bikes.

This move is logical, considering the growing popularity and health benefits associated with erging, particularly among individuals with disposable income.

There is hope that this new machine will avoid the safety concerns that plagued the earlier Peloton treadmill release.

SiriusXM's TikTok Strategy

SiriusXM, a well-established satellite radio provider in the United States, has launched a dedicated radio station featuring music trending on TikTok.

This initiative appears to be an attempt to appeal to a younger demographic and capitalize on the platform’s influence.

However, it may be perceived as a somewhat awkward effort to connect with current youth culture.

Spotify's Share Repurchase Program

Spotify is undertaking a $1 billion share repurchase program, acquiring its own stock from the public market.

This action demonstrates the company’s strong financial position and its ability to generate substantial cash flow.

The repurchase is occurring despite a recent decline in the value of Spotify’s stock.

Tesla's Humanoid Robot Demonstration

Tesla showcased a prototype of its future humanoid robot, albeit in a somewhat unconventional manner.

A person was dressed in a costume resembling the anticipated robot design, presenting a visual representation of the technology.

While the underlying technology is not disputed, the presentation has been met with skepticism, given Elon Musk's history of delayed or unfulfilled product announcements.

The demonstration raises questions about the timeline for the actual robot’s release.

Growth Marketing Insights from TechCrunch Experts

Startup founders are being contacted to identify their go-to resources for current growth marketing strategies.

Participation in a survey to gather these insights is available through this link.

A sample testimonial from those surveyed is presented below.

Expert Profile

Marketing Professional: Fernando Vitti of Nexforce.

Referral Source: Raphael Freitas, representing Intuit.

Testimonial

“Fernando demonstrates a highly strategic approach to marketing challenges.

He is a dedicated professional, consistently leveraging data and maintaining a strong focus on the customer.

His contributions were instrumental in fostering the expansion of our organization,” according to Freitas.

• Fernando is known for his analytical skills.
• His work ethic is highly regarded.
• A customer-centric perspective guides his strategies.

These qualities were key to driving company growth.

Community Engagement

Danny Crichton will be hosting a Twitter Spaces interview on Tuesday, August 24th. The event is scheduled to begin at 3 p.m. PDT, which corresponds to 6 p.m. EDT.

Featured Author

The guest for this discussion will be Eric Dean Wilson, the author of “After Cooling: On Freon, Global Warming, and the Terrible Cost of Comfort.” His work explores critical environmental issues.

Image Credits: Simon and Schuster provide the visual materials associated with this event and the author’s publication.

This Twitter Spaces interview offers an opportunity to learn more about the book and the important topics it addresses. It’s a chance to engage directly with the author and discuss the implications of his research.