Daily Crunch: India's BYJU'S Acquires Epic for $500M

Daily TechCrunch Update – July 21, 2021

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Welcome to Extra Crunch

Greetings, and welcome to today’s edition of Extra Crunch, dated July 21, 2021. Positive developments have been observed within the cryptocurrency market today, as leading cryptocurrencies have begun to rebound from recent price declines.

Despite this recovery, both Bitcoin and Ether are still exhibiting lower values when assessed over the past week. Simultaneously, the stock market has experienced gains today.

A Wednesday Roundup

Considering these positive indicators, what more could be desired on a Wednesday? The answer is a comprehensive collection of startup and technology news, which we are prepared to deliver.

— Alex

TechCrunch's Top 3 Updates

Here's a rundown of the most noteworthy developments in the tech landscape, as highlighted by TechCrunch.

Clubhouse Exits Beta Phase

Clubhouse, the live-audio platform that gained significant traction earlier in the year, has officially moved beyond its beta testing period.

While the timing may seem slightly delayed considering Twitter's development of its Spaces feature, this release is still a positive step.

Current data suggests a surge in Clubhouse's popularity within India, a strategically important technology market, as frequently discussed by Daily Crunch.

Tumblr Embraces Monetization

Tumblr appears to be experiencing a resurgence in relevance.

Following its acquisition by Yahoo for $1.3 billion, and subsequent inclusion within Verizon's portfolio, the platform was later sold to Automattic at a considerably lower price.

Now, Tumblr is aiming to capitalize on the growing creator economy by enabling users to implement subscription-based paywalls for their content. This move is viewed favorably, as a thriving Tumblr would contribute to a more vibrant internet ecosystem.

Byju’s Expands into the U.S. Market

Byju’s, a leading edtech company originating from India, is extending its reach to the United States.

This expansion follows a recent $500 million acquisition of Epic, a reading platform based in California, as previously reported by TechCrunch.

The edtech sector remains highly competitive, evidenced by Duolingo's recent IPO and a $24 million funding round secured by Sololearn, a startup focused on gamified coding education.

Startups and Venture Capital Updates

A significant amount of activity is currently unfolding within the startup ecosystem, fueled by robust venture capital investment globally. Recent developments concerning the Robinhood IPO are detailed in our latest analysis. Let's now turn our attention to emerging tech companies and private capital, beginning with updates in the fintech sector.

Fintech Innovations

• Upgrade Integrates Cryptocurrency: In 2019, TechCrunch highlighted Upgrade, a consumer lending platform established by Renaud Laplanche, formerly of LendingClub. The company has now launched a credit card offering bitcoin rewards. This presents an opportunity for individuals seeking to accumulate bitcoin while simultaneously building their credit history.
• WhenThen: No-Code Payments Gain Traction: WhenThen’s no-code payments platform is demonstrating strong investor appeal, as evidenced by its recent $6 million funding round. According to TechCrunch, the service empowers users to “autonomously orchestrate, monitor, improve and manage all customer payments and payments operations.” The no-code aspect makes it particularly accessible to those without extensive development expertise. We consider this concept highly promising.
• Spendesk Secures $118M for Corporate Spend Management: In the United States, the competitive landscape for corporate spend management includes companies like Ramp, Airbase, and Brex. However, the model of combining corporate cards with software for comprehensive fund management remains an evolving area, particularly on a global scale. Spendesk has recently received €100 million in funding to expand its presence in the European market. It will be interesting to observe the tools utilized for tracking these expenditures.

Software Developments

• Outplay Receives Backing from Sequoia Capital India: A new investment of $7.3 million will support Outplay’s initiatives to “help outbound sales teams scale their campaigns.”
• Spreadsheet.com: Reimagining Spreadsheet Functionality: Spreadsheet.com aims to redefine how spreadsheets are used by integrating app functionality directly within the spreadsheet environment. Rather than adapting spreadsheets for specific applications, the startup intends to embed apps into spreadsheets themselves. General availability is scheduled for October.
• Okendo Assists D2C Brands in Reducing Big Tech Dependence: Based in Sydney, Okendo has secured $5.3 million in new funding to help “brands scale the quality of their first-party data and lessen their reliance on major technology companies for customer acquisition and engagement.” Success in this endeavor would be a notable achievement.

Concluding our startup coverage, a few additional points. Pangaea has secured $68 million to support its portfolio of men’s personal care brands. It’s important not to confuse this with Pangea, a recent graduate of Y Combinator based in Providence, Rhode Island, which is preparing to announce new developments shortly. Further details will be shared soon.

For those interested in a more in-depth discussion of recent business literature, the Equity team recently interviewed one of the authors of “The Cult of We” to discuss the story of WeWork.

Determining Startup Scalability: Key Metrics to Watch

Early-stage startups often prematurely assert the full functionality of their go-to-market strategy. However, successful GTM execution is fundamentally driven by quantifiable data. Even a well-defined plan can be undermined by issues such as internal conflicts and ineffective communication.

Achieving GTM fit represents a significant achievement for any startup, potentially triggering actions like expanding the engineering department or initiating the first advertising campaign. But identifying the precise moment of readiness can be challenging.

Tae Hea Nahm, co-founder and managing director of Storm Ventures, emphasizes the importance of three key metrics: gross churn rate, the magic number, and gross margin.

A high churn rate indicates customer dissatisfaction, while low gross margins signal unfavorable unit economics. The “magic number” serves as another crucial indicator.

According to Nahm, the magic number is calculated by dividing new Annual Recurring Revenue (ARR) by total marketing and sales expenditure. It’s important to recognize, however, that this metric is a trailing indicator, and a positive trend may require several quarters to emerge.

It's essential to consistently monitor these figures to accurately assess scalability.

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

Big Tech Inc.

The landscape of technology continues to evolve, with major players making significant moves.

Amazon and the Future of Alexa

Alexa, Amazon’s voice assistant, remains a key focus for the company. Amazon is actively seeking to encourage further development on its platform.

A range of new features have recently been introduced to the service in an effort to attract more developers.

However, considering the relatively gradual advancements in artificial intelligence seen with voice assistants like Alexa, Siri, Cortana, and Google Assistant, a degree of caution is warranted.

The Pursuit of Self-Driving Taxis

The development of autonomous vehicle technology is progressing, with several companies collaborating to bring self-driving taxis to market.

It’s worth noting that Google’s Waymo already offers a taxi service, though its scale is currently limited compared to established ride-sharing networks.

Ford, Argo, and Lyft have announced plans to deploy up to 1,000 self-driving vehicles on Lyft’s network over the next five years.

Initial deployments are scheduled to begin in Miami and Austin.

This collaboration represents a significant step toward the widespread adoption of autonomous ride-hailing services.

TechCrunch Seeks Top Growth Marketing Professionals

TechCrunch is currently soliciting recommendations for skilled growth marketers. Expertise in areas like SEO, social media marketing, and content creation is highly valued.

Growth marketers are encouraged to share a survey with their clients. We aim to gather feedback on positive client experiences and the value provided.

Learn More About Survey Impact

Interested in understanding how these surveys influence TechCrunch’s reporting? An interview with Maya Moufarek, founder of Marketing Cube, provides valuable insights.

The interview, conducted by Miranda Halpern, details Moufarek’s lessons for startups prioritizing a customer-centric approach. You can find it here: ”Marketing Cube founder Maya Moufarek’s lessons for customer-focused startups.”