Flipkart Raises $3.6 Billion: Record Funding for Indian Startups

Daily Crunch: July 12, 2021

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A Day of Events

Greetings, and welcome to the Daily Crunch for July 12, 2021. It's probable that much of yesterday was dedicated to observing a football match, or perhaps a spaceplane launch, or even both.

Today’s newsletter features additional details regarding the spaceplane, but a consensus can be reached by all, irrespective of whether support was given to England or Italy yesterday.

— Alex

TechCrunch's Top 3 Updates

Here's a rundown of the most significant tech news as reported by TechCrunch.

Flipkart's Valuation Soars

Flipkart has secured a substantial investment of $3.6 billion, propelling its valuation to $37.6 billion. This significant funding round represents a major vote of confidence in the Indian e-commerce market.

The investment is expected to pave the way for a potential public offering for the company in the near future.

Virgin Galactic's Spaceflight and Funding

Virgin Galactic recently completed a spaceflight, attracting considerable public attention. While the broadcast experienced some minor issues and included moments of self-promotion, the mission was largely successful.

Following this achievement, the company, which went public via a SPAC merger, announced plans to raise an additional $500 million. However, the stock price did not experience a corresponding increase upon the news.

The Billionaire Space Race

A debate has emerged surrounding the competition among billionaires investing in space exploration. The focus is on their pursuit of milestones in space travel.

While discussions about wealth distribution continue, the current perspective suggests allowing these individuals to continue their rivalry in the realm of space exploration. A potential solution proposed is increased taxation of high-net-worth individuals.

Startups and Venture Capital

We will present the latest funding news shortly, but we begin today’s startup coverage with this recent announcement: “Elevate Brands secures $250M to acquire third-party sellers operating on Amazon’s marketplace.”

This news echoes similar reports we’ve previously covered concerning other companies. As Ingrid Lunden details, ventures like Thrasio, The Razor Group, Branded, SellerX, and Perch have pursued comparable strategies. The acquisition of smaller Amazon businesses represents a potentially highly profitable investment, attracting substantial capital. The key question now is determining how many of these ventures will ultimately succeed.

Let’s now return to our standard funding updates:

• Gembah Aims to Simplify Product Development: The Austin-based company has received $11 million in funding to advance its goals. Its approach involves creating a platform and marketplace designed to assist users throughout the product creation process. Is there a genuine need for more products? Perhaps. Gembah intends to facilitate their development.
• India’s Upcoming Tech IPO: MobiKwik, a mobile wallet startup, is preparing for a $255 million initial public offering. Financial data indicates that its revenue decreased to $40.5 million in the last fiscal year. While a relatively smaller company, we welcome IPOs of any size.

Concluding today’s startup news, consider novelty toys. Many Twitter users have shared images of toys resembling unsuccessful tech products if you’ve been active on the platform today. Examples include a replica of Theranos’ device or the Juicero machine.

TechCrunch’s Matthew Panzarino explains that MSCHF, described as an “idea factory and art house,” is highlighting the challenges of hardware development through its “Dead Startup Toys” made of vinyl.

This concept is surprisingly appealing. Consider the appeal of having a miniature, non-functional Juicero on your desk for occasional stress relief. Many would find such an item desirable.

Time to First Call: The Critical API Metric

Simply launching an API isn't sufficient for startups; building and nurturing a developer community is the subsequent, and often more challenging, phase.

Joyce Lin, Head of Developer Relations at Postman, authored a guest article for Extra Crunch detailing research focused on boosting API adoption through the use of public workspaces.

Lin’s research highlighted time to first call (TTFC) as the most significant metric for public APIs. This finding is logical, as a quicker TTFC enables developers to integrate and test new tools with greater efficiency.

Consequently, optimizing TTFC directly translates to a broader potential market comprised of more informed users as your developer ecosystem matures, according to Lin.

This insight isn't solely for developers; product and growth teams should also prioritize TTFC as a key performance indicator.

Enhancements to TTFC effectively expand the addressable market, even when targeting a niche segment within the developer community.

• Key Takeaway: Reducing the time it takes for a developer to make their first successful API call is paramount.

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

Big Tech Inc.

Significant developments unfolded today within the realm of major technology corporations. Let's examine the key events.

Android Enhancement

A subtle, yet beneficial, update is coming to Android 12. Users will soon have the capability to initiate gameplay of new titles prior to their complete download.

This functionality, already present in some PC gaming environments, is now extending to the mobile space. However, it's becoming increasingly apparent that the current generation of smartphones is nearing the peak of its innovative potential.

Microsoft's Cybersecurity Acquisition

Microsoft has officially confirmed its acquisition of RiskIQ, as previously reported. While the financial details remain undisclosed, sources indicate a cash transaction exceeding $500 million.

Discussions on this morning’s podcast highlighted that this represents a relatively modest investment for Microsoft, given the company’s substantial interest in bolstering overall user security.

Defense of the SolarCity Acquisition

Today’s focus on Elon Musk centers around a past transaction: the Tesla-SolarCity merger valued at $2.6 billion. Certain shareholders have characterized the deal as a financial rescue operation.

Musk attributed any shortcomings within Tesla’s solar energy division to a variety of contributing factors.

WhatsApp Faces European Scrutiny

Facebook’s ongoing regulatory challenges are not limited to any single region. The company is currently facing accusations of “multiple breaches of European Union consumer protection law.”

These allegations stem from attempts to mandate WhatsApp users to accept revised terms of service, as reported by TechCrunch.

• Key Takeaways:
• Android is improving game launch speeds.
• Microsoft is expanding its cybersecurity portfolio.
• Elon Musk is defending a past deal.
• WhatsApp is under fire in Europe.

TechCrunch Experts: Growth Marketing

Startup founders are being contacted to identify their preferred sources for current growth marketing strategies.

Participation in the survey can be completed through this link.

A sample recommendation received is presented below.

Marketer Spotlight

Marketer: Maya Moufarek, Marketing Cube.

Recommender: Nikki O’Farrell, www.KatKin.club.

Recommendation Details

Recommendation: Moufarek provides valuable insights derived from experience within the startup and scaleup ecosystems.

Her pragmatic and focused methodology facilitates rapid implementation and demonstrable outcomes.

She offers a keen and informed perspective on growth initiatives.