Twiga Foods Secures $50M Series C Funding

Daily Crunch: November 1, 2021

A daily digest of TechCrunch's most significant and impactful stories is delivered to inboxes each day at 3 p.m. PDT. You can subscribe to this service here.

Greetings and a Halloween Recap

Welcome to the Daily Crunch for November 1st. TechCrunch extends wishes for a pleasant Halloween to all who observed the holiday.

Indeed, the author of this newsletter indulged in some remaining Halloween candy this morning. Unfortunately, this decision has not been met with positive physical results.

Upcoming Event Announcement

With the arrival of November, TechCrunch’s two-day event centered around space exploration is now scheduled for next month. Further details regarding the event can be found here.

— Alex

TechCrunch's Leading Three Stories

Here's a summary of the top three tech stories as reported by TechCrunch.

Nubank's IPO Filing

Nubank, a prominent Brazilian digital bank, has officially submitted its paperwork for an initial public offering (IPO). TechCrunch has released initial analysis of the company’s financial details.

The analysis highlights Nubank’s remarkably efficient customer acquisition costs. It also points to the company’s success in generating sustained revenue from its customer base.

Notably, Nubank’s expenditure on sales and marketing remains comparatively low when measured against its overall revenue. Further detailed examination of its business model is forthcoming.

Epic Games and Fortnite in China

The ongoing trend of economic separation between China and the rest of the world is manifesting in various ways.

A key indicator is the increasing difficulty for companies outside of China to introduce their products within the Chinese market.

Following LinkedIn’s departure, Epic Games has announced it will cease development of a customized Fortnite version specifically for China. This decision comes despite Tencent holding a significant stake in Epic Games.

Decline in Chromebook Sales

Global personal computer (PC) sales experienced a 2% decrease during the third quarter, as reported by Ron Miller.

Despite this decline, overall PC sales remain higher than pre-pandemic figures.

However, Google’s Chromebook line has been disproportionately affected by this downturn. Its market share has plummeted from 18% to just 9%, representing a substantial loss. This shift is expected to benefit Windows.

Startups and Venture Capital Updates

Prior to delving into the latest startup news, let's consider developments in satellite technology. The formation of an Indian subsidiary by SpaceX’s Starlink, a substantial private enterprise, wasn't unexpected. However, the simultaneous announcement of Amazon’s Project Kuiper intending to launch two prototype satellites within the next year garnered attention.

We are observing continued advancement in space technology from American companies, even as a heightened level of space competition emerges between China and the United States.

Recent Funding Rounds and Acquisitions

OctoML Secures $85M: The processes involved in building and deploying machine learning (ML) models represent a significant market. Companies like Mage and Spice AI are innovating within comparable technological domains. Ultimately, we anticipate a proliferation of tools enabling organizations of all sizes – and varying technical expertise – to effectively implement ML at scale, reducing the need for extensive, in-house data science teams.
Zendesk and Twilio: A Convergence in Customer Data? The ownership of customer data is a key objective for many businesses. Last year, Twilio announced a multi-billion dollar acquisition of Segment, expanding its reach into the customer data landscape. More recently, Zendesk revealed a similar investment in SurveyMonkey, aiming to enhance its understanding of customer behavior. While direct competition isn't immediate, the trend of tech giants acquiring competitors suggests a growing overlap in their respective spheres of influence.
$550M Fund for Challenging Ventures: Investing $50 million in a growth-stage software company nearing an IPO is a relatively straightforward strategy, provided key SaaS metrics are favorable. Walden Catalyst has recently established a substantial fund dedicated to investing in more complex technological solutions addressing difficult problems. This approach should yield greater returns from successful investments. (TechCrunch also reported on a new fund from White Star over the weekend.)
Mosaic Raises $44M for Construction Technology: Mosaic aims to reduce the costs associated with residential construction projects through automation of specific processes. Considering the housing crises affecting numerous countries globally, any initiative that facilitates increased home construction is viewed positively.
When I Work Streamlines Shift Management: Traditional shift-based work organization often relies on text messages and phone calls – a rather outdated method. When I Work provides a modern messaging platform for shift workers, enabling improved shift swapping, absence reporting, and work assignment. The company recently secured $200 million in funding.
Twiga Scales Food Logistics with $50M Investment: Finally, Twiga has raised $50M to expand its food logistics operations in Kenya and neighboring countries. As noted by Tage Kene-Okafor, African households allocate a larger proportion of their income to food compared to those in other regions. The company intends to disrupt this pattern and increase access to affordable food options.

Determining the Optimal Time for B2C Startup Market Expansion

While a courageous approach is often lauded by entrepreneurs, Louis Pasteur, the French microbiologist, highlighted a crucial point: success is more closely linked to preparedness.

Taking calculated steps is preferable to simply being bold, particularly when a B2C startup considers expanding its reach. Entering a new market, encompassing both customers and regulatory bodies, presents a multitude of challenges.

Jim Mann, director of acquisitions at Thrasio, a consumer goods firm, notes that success achieved in a domestic market with limited marketing investment isn't automatically transferable internationally.

A business may have flourished domestically through a combination of chance and innovation, but replicating that success in a foreign market is not assured.

(Access to exclusive insights and resources for founders and startup teams is available through TechCrunch+, our membership program. Registration can be completed here.)

Big Tech Inc.

A recent investigation by Natasha Lomas reveals the strategies employed by leading American technology firms to influence the scope of European privacy regulations.

It may come as a surprise to learn that numerous affluent corporations actively lobbied to shape legislation in a manner that prioritized their interests over consumer protections.

Industry Updates

Snap and NBCUniversal Collaboration: Snap is partnering with NBCUniversal to expand its audio offerings.
This move follows the demonstrated success of TikTok in monetizing the combination of music and video content.
Pinterest's Live Shopping Feature: Pinterest is introducing a live shopping service, enabling users to make purchases directly through video streams.
The platform aims to enhance the online shopping experience and encourage increased consumer spending.
Tesla Charging Network Expansion: Tesla has begun opening its charging network to vehicles from other manufacturers.
Initially, this access is available in the Netherlands at select charging stations.
Wider implementation of this change is highly anticipated.

The initial rollout allows "non-Tesla electric vehicles" access for the first time.

Further expansion of this accessibility is widely desired within the electric vehicle community.