Pinterest’s AR shopping feature expands to include furniture and home décor

A new Pinterest feature will allow consumers to see what furniture or other home décor items will look like in their own home, using augmented reality (AR). Similar technology has already been put into place by major retailers, like Amazon, IKEA or Wayfair, as well as others in the home design space, like Houzz. In Pinterest’s case, it’s working with a select group of U.S. retailers including Crate & Barrel, Walmart, West Elm and Wayfair, to allow online shoppers to virtually place items in their home using the Pinterest app’s “Lens camera.” If the user then likes what they see, they can proceed to purchase the item directly from the retailer.

This virtual shopping experience for home décor is launching in the U.S. across more than 80,000 shoppable Pins, which makes it Pinterest’s largest AR shopping investment to date.

It’s also the third “Try On” product Pinterest has launched over the past two years. Its first efforts were in the beauty market, with Try On features that allowed consumers to virtually experiment with different lipstick shades and eyeshadows, totaling 14,000 shoppable Pins. Pinterest had not yet worked with placing items directly in a room, in other words — only on users’ faces. While not quite the same technology as before, all of Pinterest’s Try On experiences have the same goal of turning product inspiration into purchases.

To use the feature on iOS or Android, users in the U.S. can click supported home décor Pins then click “Try in your Space” to see the virtual product through the camera lens. Users can adjust the product in their own space and browse the product information, including pricing. To purchase, they just click the Pin again to be directed to the checkout page on the retailer’s website.

Image Credits: Pinterest

This attempt to funnel consumers’ more casual browsing into retail transactions has been Pinterest’s larger focus over the years. But the company has been slow to adapt to various market shifts, including the move away from static images to video as shopping inspiration, for example — at least until more recently. Last year, the company belatedly entered this space with the launch of its debut video-first product, Idea Pins, and has since invested in creator tools that would allow online influencers to make money from their content.

Pinterest is also clearly not the first to market with its new AR feature for shopping furniture and décor. But the AR shopping market is still early. Here, initial adoption has been limited by the tools available to AR developers, like Apple’s ARKit, which has steadily improved over time to make the end-user experience less cumbersome and clunky. And app makers are still figuring out how to make AR shopping appealing to consumers. Just last week, for instance, Snapchat upgraded its own AR features which now include a shopping Lens that lets consumers browse multiple products in one place with real-time pricing.

While some of the early experiments in AR shopping have felt more gimmicky, there are some indications that using AR can help retailers increase conversions when done well. And there may be some consumer demand for this type of experience. For example, a Google survey from 2019 indicated consumer interest in AR, with 66% of people saying they wanted to use AR for help when shopping. But real-world research and data on conversions have been more limited. However, e-commerce platform Shopify shared that merchants who were adding 3D content to their stores were seeing a 94% conversion lift, on average, citing its own internal data. And some merchants who used 3D models in AR had increased conversion rates by up to 250%, Shopify said. It also cited 2020 research by Vertebrae which found that conversion rates increase by 90% for customers who engage with AR, versus those who don’t.

Pinterest, meanwhile, noted that its own users are 5 times more likely to purchase from a “Try On”-enabled Pin than a standard Pin. It also said that home décor is the top category on its site, with 3.37 billion search clicks in 2021. That makes this latest AR initiative one with a potentially larger audience than its AR beauty shopping features. The company touted its visual search feature, where usage increased by 126% year-over-year, but didn’t offer hard numbers in terms of total searches.

“Since the pandemic began, we’re seeing more digitally savvy shoppers than ever before, as millions of people now expect virtual and mobile options to try before they buy, see personalized recommendations, and gather information as part of their decision-making process,” said Jeremy King, SVP of Engineering at Pinterest, in an announcement. “These behaviors are happening across Pinterest every day, which is why we’re continuing to advance technologies like AR Try On and make Pinterest a full-funnel shopping destination that takes people from inspiration to purchase anywhere in the app.”

The company told TechCrunch it’s not currently monetizing its AR shopping feature. But its retail partners on the efforts are brands who have already seen both organic and paid advertising success on Pinterest, and are now taking advantage of another way to allow consumers to discover products organically.

The AR shopping feature is U.S.-only on iOS and Android at launch, but will later roll out to global markets, Pinterest said.



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New capital fuels Purely Elizabeth’s next natural food phase

It’s been a 12-year journey for Purely Elizabeth founder Elizabeth Stein, and based on her plans for the company’s next phase, she is just getting started.

Stein, who began her career as a holistic nutrition counselor, started the company in 2009 after going back to school and learning about superfood ingredients and food as medicine, a concept that wasn’t as popular then as it is now.

“It felt like an opportunity in the market for products to help people,” she told TechCrunch. “What we put in our mouths is one of the most important things we can do.”

As Stein, CEO, worked with clients, she saw the need for specialized foods, like gluten-free, and what started as a side project — a blueberry muffin mix — was the catalyst for Purely Elizabeth and became her first product before moving into granola, which is what the company is known for today.

Fast-forward to today, and Purely Elizabeth, which has since added pancake/waffle mix and oatmeal, is one of the top brands in the breakfast category. Products are non-GMO and include ingredients like ancient grains, coconut sugar, probiotics and MCT oil.

The company is going after an increasingly crowded global health and wellness food market that was valued at $733.1 billion in 2020 and is poised to reach $1 trillion by 2026. Consumer interest for this space is also attracting capital. Last week, I reported on smoothie company Kencko raising a $10 million Series A, and Athletic Greens, which created a daily nutrition beverage, announcing $115 million on a $1.2 billion valuation.

Stein says the market has changed a lot since Purely Elizabeth launched. She recalls going to her first trade show in 2010 and having to educate retailers on ingredients like chia seeds, coconut sugar and coconut oil. Today, these ingredients are readily available on grocery shelves thanks in part to consumers being more educated on better-for-you foods and demanding they taste good also.

Over the last five years, Stein has led the company’s growth to a 55% compound annual growth rate and into 15,000 retailer doors at the end of 2021, up from 8,000 in 2018, she said.

The company raised its first round of funding, a $3 million round, in 2016, and has now closed on $50 million in Series B co-led by the new SEMCAP Food & Nutrition division (this investment marks its launch), and joined by co-investors Swander Pace Capital and SEMCAP’s partner, Fresh Del Monte. This gives the company $53 million in total funding.

Stein plans to use the capital to expand the company’s team of 30 to be around 40 by the end of 2022. Purely Elizabeth will also be investing in new product innovation and will also be launching into a new category later this year with its oatmeal, and debuting a brand refresh in coming months as it leans into digital marketing to build brand awareness.

“We are at a super exciting point where we had incredible growth and now we are at an inflection point and looking at the next phase of growth,” Stein said. “We wanted to bring in the capital and partners to accelerate that and take the brand to the next level by further evolving the brand to add more fun elements to bring it to life.

John Haugen, formerly with General Mills, joined Purely Elizabeth’s board while as founder and managing director of General Mills’ venture arm, 301 Inc., which led Purely Elizabeth’s initial investment. He is now the SEMCAP Food & Nutrition managing partner.

He agrees with Stein that consumers are looking for their food to work harder, but are no longer willing to make the trade-off of better ingredients over taste.

“Elizabeth is showing what can be done to introduce trend-forward ingredients to consumers while also making products that taste better than anything on the market,” Haugen added.



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Walmart expands its home services offerings via new partnership with Angi

Walmart is expanding into home services. The retailer today announced a new partnership with Angi (previously Angie’s List), which will make service professionals available to Walmart customers in nearly 4,000 stores across all 50 states. When Walmart customers shop in-store or online, they’ll be able to also book an Angi professional for any of 150 common home projects, including flooring, painting, fence installation as well as smaller jobs like furniture assembly or mounting a big-screen TV.

In 2018, Walmart had taken its initial further steps into the home services market when it teamed up with Handy to sell in-home installation and assembly services in over 2,000 stores, and then later online. The idea was that when customers were purchasing items, like furniture, they could also immediately purchase an installation appointment to help them get the new item set up in their home. The move had followed rival Amazon’s own entry into home services, which had included the launch of a dedicated Home Services hub on its retail website in 2015.

Shortly after Walmart announced its partnership with Handy, the company was acquired by Angi Homeservices. And last year, Handy co-founder Oisin Hanrahan became the CEO of the combined organization. It was expected that Walmart could also capitalize on this arrangement by later expanding its own deal to include Handy’s full range of home services at some point, given the potential market.

Walmart today explains that now Angi, not Handy, will become its home services partner. This will allow the retailer to link its customers to Angi’s network of over 250,000 professionals. Handy will no longer have its brand showcased on Walmart’s website as a result, Walmart told TechCrunch. Instead, only Angi’s branding will be found both in-store and online. This also builds on Angi’s rebrand and launch in 2021, when the company decided that “Angie’s List” no longer accurately described its offerings as it was no longer just “a list” but rather a site where customers could research, book, schedule and pay service pros and other home contractors.

Image Credits: Walmart

In comparison with the Handy partnership, Walmart’s new deal with Angi will see a much broader number of SKUs than the previous integration, correlating to the larger number of services offered. Handy’s partnership had primarily focused on in-home installation and assembly services on smaller-scale projects, like TV or furniture installation, which start at $45 and $79, respectively. But the Angi partnership goes further to include new and more complex services like painting, flooring and fencing. And it’s working to expand into additional, complex services as well, Walmart says.

Walmart declined to share the details about the financial nature of the partnership nor its impact on revenues, when asked. It wouldn’t disclose, for example, what sort of commission it may take on the Angi services booked through its site. However, Walmart will be Angi’s first, limited-time exclusive retailer to offer its services.

Image Credits: Walmart

Customers will be able to book Angi’s services both online and in-store alongside any eligible item or from Angi’s dedicated landing page at Walmart.com, which goes live in mid-February. (The URL itself has yet to be finalized, we’re told). After purchase, Angi will reach out to coordinate the booking. For larger services, a dedicated project advisor provides the customer with a custom quote, finds a pro, and handles the work to make sure the project is successful.

“We could not be more excited to launch Angi with Walmart, a leading global retailer, as our first retail integration,” Angi CEO Oisin Hanrahan, in a statement about the launch. “Since the start of the pandemic, the home is in focus and people across the U.S. are doing more home improvement, maintenance and repair work and they are often turning to Walmart to find the tools and materials needed to start those projects. Things like sprucing up an entertaining space by installing a new smart TV, painting a nursery for a family addition, and transforming an outdoor space and adding a patio are now projects that Walmart customers can get done seamlessly with the help of an Angi pro as part of the Walmart shopping experience,” he said.

“Angi brings experience and highly-rated pros to our customers to help them get jobs done around the home,” added Darryl Spinks, Senior Director of Retail Services at Walmart. “We’re thrilled to bring the convenience and ease of Angi’s services to our customers.”



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D2C performance boost Dr. Martens Q3 Trading

D2C (direct to consumer) is becoming an ever more important channel to market for brands and the pandemic increased the urgency to sell direct to the consumer whilst retail outlets were closed for months on end. British shoe manufacturer Dr. Martens is one riding the D2C trend and it’s paying massive dividends with record sales over the peak period running to to Christmas 2021.

Group Revenues at Dr. Martens was up 11% year on year for their third quarter (to 31st Decemeber 2021), with very strong D2C revenue growth of 33%. A planned prioritisation of inventory into D2C, due to the impact of Covid on both manufacturing and global shipping, led to a lower performance of wholesale but this didn’t impact their overall record quarter.

Ecommerce remained strong with revenue growth of 16%. Q3 retail revenue accelerated on the prior quarters, up 72% year-on-year (up 16% LY-1) with strong in-store conversion and improved footfall. The emergence of the Omicron Covid variant curtailed the improving trends through December, with increased trading restrictions, although these were fewer than the previous year.

D2C isn’t detracting from Dr. Martens commitment to bricks and mortar retail, with 11 new own stores opened in Q3, including 2 stores in Italy (in Verona and Milan) and 4 stores in USA. At the end of Q3 Dr. Martens had 158 own stores globally, having opened 24 so far this financial year.

We delivered a good performance during our largest quarter, with Direct to Consumer revenues growing 33% versus Q3 last year to 64% revenue mix. We continued to put our long-term custodian approach at the heart of decision making and proactively managed the business against a changing Covid backdrop, prioritising the higher margin Direct to Consumer channels in line with our strategy. We remain confident in achieving market expectations for the full year and I would like to thank everyone at Dr. Martens for their exceptional hard work and dedication

– Kenny Wilson, CEO, Dr. Martens

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Egyptian social commerce startup Brimore raises $25M led by IFC and Endure Capital

The Egyptian social e-commerce market will be worth over $14.8 billion by 2024. The opportunity in the market can be attributed to the growth in online social sellers in the country, over 1.25 million them, helping little-known brands sell and distribute their goods via different networks.

Brimore–a market leader in the country and, to an extent, Africa–off the back of witnessing impressive growth in the last three years, has raised $25 million in a Series A round. The company was founded by Mohamed Abdulaziz and Ahmed Sheikha in 2017.

While working in the FMCG business, both founders witnessed how difficult it was for emerging brands to get their products to the mass market due to the dominance of established brands, who, for the most part, had built distribution infrastructure for themselves over the years.

On the other end, thousands of individuals, particularly women and stay-at-home moms, wanted to start their e-commerce shops but had no clue how to go about it, nor did they have products to sell.

“We started working on Brimore with the mindset of actually manufacturing products ourselves. However, producing our products wasn’t the wisest decision at that time as it was a very asset-heavy model,” said CEO Abdulaziz to TechCrunch in an interview.

“So we started scaling with listing different products. And at the same time, it was very insightful to see how the network formed on the other side. From a seller perspective, we started onboarding more and more sellers. Most of them happen to be women.”

Brimore connects both worlds via an app as an omnichannel social commerce platform. So, small and medium-sized suppliers could give these individuals–who double as sellers and word-of-mouth marketers–access to these emerging products. This way, these manufacturers have advertising and marketing on lock while these sellers start their e-commerce businesses and earn extra cash.

Image Credits: Brimore

Over the past three years, Brimore claims to have grown around 400x in revenue. More than 300 suppliers with approximately 8,000 different SKUs from packaged foods, personal care, and household goods are on the platform. The social commerce platform has also built a network of 75,000 sellers (74% of them are women) covering 27 cities, primarily rural and remote areas, in Egypt.

Brimore, in a statement, said it uses “its unique infrastructure–which is an ecosystem of supply, demand, logistics and finance– and proprietary technology to avail market penetration opportunities to emerging brands owners.”

“We are building a smart and reliable infrastructure and a full ecosystem that enable masses to do commerce. So anyone– with a shop or a stay at home mom–can do commerce business with Brimore either online or offline,” said Ahmed Sheikha, the company’s chief business and investment officer.

When sellers register on the platform, they see various product images from different manufacturers. They share these pictures on their socials: Facebook, Instagram, WhatsApp, Telegram, generate orders and place them on the app. Once Brimore confirms, its delivery process depends on where the sellers want their products delivered: to them or their end consumers. The founders say that while sellers often want the products at their doorsteps, the availability and flexibility of both options differentiate Brimore from similar social commerce platforms such as Taager.

Brimore gets a margin from the difference between the suppliers and sellers’ prices. The company runs its warehousing and last-mile and fulfilment infrastructure through a spin-off called Milezmore; before last year, third-party logistics handled those operations.

Abdulaziz, highlighting how beneficial Brimore has been to its sellers, said that 24% of them report signal ‘significant improvement’ in their lifestyle and 88% report an increase in income since they began using the platform.

The next phase for Brimore would be to “grow in Egypt by 50x within the next couple of years,” the chief executive said in a statement. Other use of funds entails expanding its logistics and operational infrastructure, doubling its staff size, triple product catalogues and quadrupling its sellers and suppliers network.

Abdulaziz, on the call, also mentioned Brimore’s plans to introduce financial products, particularly credit and replicate its Egyptian efforts across other African markets.

“We want to crack the concept of go to market in Africa. We know that Africa is like 54 different markets with distinct dynamics of every market,” he said. “Our vision is if we crack the concept of go-to-market through people and reaching the online and offline and the component of trust all together, towards the new age of commerce, the cross border trade will be our next thing. Anyone can produce anything can sell anywhere because we enable the hard part about market access.”

The International Finance Corporation (IFC) and Endure Capital led the new financing round. Walid Labadi, IFC’s country manager for Egypt, said this is the corporation’s largest direct investment in the social commerce space globally.

Other investors include fintech giant Fawry, Flourish, Endeavor Catalyst Fund. Existing investors who participated in its $800,000 seed round and $3.5 million Series A, such as Algebra Ventures (led both rounds), Disruptech and Vision Ventures, participated.



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M&S launch Livestream shopping: Is this the future of ecommerce?

If you joined us for Tamebay Live yesterday, you might have caught Alibaba’s own Zarina Kanji discussing how mass-streaming is set to shape the future hybrid world of retail. Ironically this morning M&S announced a new Livestream shopping service called ‘M&S LIVE’ where customers can join a live broadcast to hear more about a product range and pose live questions to an M&S expert.

Livestreaming and ecommerce

The beauty of live streaming is it’s ability to replicate an experience that we witness in physical stores. By having an expert walk a consumer base through a product line in real-time people are getting an experience that they could be missing when they browse an online store. For instance, a customer browsing handbags on a store page could want a more detailed look at the straps, pockets and buckles but are limited to the existing listing images. On a Livestream, the consumer would have a more detailed and personalised experience that could translate into a sale.

The last few years have seen a rapid shift to social commerce, with our research showing TikTok alone saw a phenomenal 553% increase in shopping during the pandemic. This has been largely driven by younger consumers, with 43% of Gen Z using social media to purchase products in 2021. Brands and retailers that have realised this opportunity have already seen success, as consumers are now more likely to see – and be influenced by – brand advertising, user generated content (UGC) and influencer posts on social media. Within this, live shopping has really taken off. A trend that is already well-established in Asia, we’ve recently seen TikTok, Instagram and Facebook each adopt and test live shopping features in the west, and the trend has already seen a huge growth in popularity amongst Gen Z shoppers. And it’s clear to see why – the interactive nature of live shopping helps brands and retailers bring consumers together with other consumers, in an experience which goes beyond ‘just shopping’.

Ed Hill, SVP EMEA at Bazaarvoice

Social commerce is certainly something that brands should be looking to do if they can. TikTok and Instagram are a couple of platforms already facilitating the concept. I predict we will see more marketplaces also picking up on this Livestream shopping trend in the near future, allowing brands to stream to their audiences and capture more sales whilst promoting brand value and trust.

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Zapp snaps up $200M to supersize its instant grocery play

Zapp, the instant grocery delivery startup that launched in 2020 in London, has picked up a substantial round of funding to go head-to-head with Getir, GoPuff, Jiffy, Deliveroo and the many others hungry for a share of the on-demand convenience market. It has raised $200 million, a Series B round of funding that Zapp said it will use both to beef up its presence in its home market, and to expand into what co-founder and COO Joe Falter describes more “mega cities”. In addition to London, Zapp is currently live in Manchester, Cambridge, Bristol, Amsterdam, Rotterdam and is running a soft launch in Paris.

Zapp said the round is being co-led by Lightspeed, 468 Capital, and BroadLight Capital, with Atomico, Burda and Vorwerk Ventures — all previous backers — also participating, alongside Sir Lewis Hamilton, the Formula One champion (and thus, I guess, a pretty apt piece of branding for a company that sells itself on “super fast” service).

But that is not all that has been reported about this round. PitchBook noted that when the first tranche of this investment closed last month in December, “rival Gorillas” was also a part of it. Then last week, Sky News reported that a “Singaporean state fund” was also among the backers. Neither is mentioned in Zapp’s announcement today; we’ve asked the company to confirm if either is actually involved and will update as we learn more.

Update: PitchBook is “plain wrong,” Zapp VP of strategy Steve O’Hear tells us. (Note: O’Hear was a longtime writer for TechCrunch before joining Zapp; this had no impact on how we reported this story.) A Zapp spokesperson declined to comment one way or the other on the Singaporean investor.

(But I’ll add that Gorillas would not be an unlikely name to appear behind a delivery startup. The Berlin-based Gorillas, which also focuses on fast-delivery of groceries and essentials, raised $1 billion last autumn and like its rival out of Turkey, Getir, has been using some of that cash to buy up or invest in would-be competitors in other markets, for example Frichti in Paris. More generally delivery companies have a track record of investing in each other, perhaps the first moves ahead of what might be yet more consolidation. Delivery Hero has backed Gorillas; DoorDash has invested in another German startup, Flink; and so on.)

Zapp is not disclosing its valuation, nor is it talking about how many customers or orders it has processed to date. It has now raised $300 million.

The appetite among startups and more established grocery players to be major players in the convenience market is strong, and considering how big it is — in the UK alone the convenience grocery sector was estimated to be worth some £43 billion in 2021 — there’s likely room for more than one winner in it.

A lot of questions still hang in the balance over how this story will play out. How many consumers will ultimately use these services, and for how long? How many customers would a typical instant grocery company need to make a profit? And how many of these delivery companies can a single city sustain?

Nonetheless, investors remain very hungry to back the more interesting plays in the space. In addition to this round for Zapp and Gorilla’s $1 billion raise last year, Flink raised $750 million in December; Zepto in India raised $100 million; Jokr raised $260 million; GoPuff and Getir have both raised billions; and these are just a few of the biggest deals: there have been many more.

Among all of this, Zapp believes that it’s found a formula that balances customer service; a strategically-placed network of smaller dark stores (“Zappstores”) combined with a massive distribution center to fill out orders; a mix of products that are both deep (50 varieties of ice cream; 21 brands of tequila) but also speak to what its users actually might want at the last minute (tomatoes get only two varieties); and a supply chain that connects directly with brands — not just wholesalers. Zapp believes this will keep it in the quick delivery space for the long haul.

This is in contrast to, say GoPuff or Flink, which have built out their businesses on the belief that mass-market consumers can be convinced to switch to shop in more frequent, smaller bursts of instant groceries than larger, weekly baskets. Many of the players have also been playing the costly game of direct marketing.

“We’re focused on customer experience. That is what is going to win here,” Falter said in an interview. He said he found it “funny” how its competitors have chosen to go after market share by effectively subsidizing orders by offering users multiple discounts to customers. “We don’t offer vouchers or discount products,” he said, qualifying quickly, “except for the first order, which is 50% off, but nothing like the repeat vouchering you’ve seen. We believe in customer experience, a supply chain that delivers much better products and on time, and an assortment that is relevant to convenience, more than trying to disrupt the weekly shop.”

Zapp’s average order, he said, in the region of “mid-£20”, compared to “sub-£15” per order for Gorillas for others (a figure Zapp provided). He also noted that two-thirds of Zapp’s orders are profitable.

“I’d be feeling a little nervous if I were them,” he said of those with lower average order sizes, and those pursuing customer loyalty through multiple discounts. “It’s not a sustainable foundation.”

A lot of instant grocery companies emerged and came into their own as the Covid-19 pandemic took a grip on the world, so this round is about Zapp gearing up to show that it has a life beyond that.

“Convenience retail is one of the last segments of retail to move fully online, but is really having its moment post-lockdown,” said Rytis Vitkauskas, a partner at Lightspeed Venture Partners, in a statement. “As people return to their busy lives, rapid delivery allows them to ‘live in the moment’ and Zapp has been built from the ground up to harness this consumer behaviour and is seeing exceptional customer loyalty as a result. We’re thrilled to be part of the company’s journey as it brings a totally new experience to customers in the convenience grocery market and continues to invest for the long term.”

Updated with comment on the investors, and to clarify that the £15/order figure was a general reference, not to any single or specific company.



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India’s Moglix valued at $2.6 billion in $250 million funding

Moglix has more than doubled its valuation to about $2.6 billion from $1 billion just eight months ago as the Indian industrial business-to-business marketplace aggressively scales its offerings in many parts of the world.

Alpha Wave Global (formerly called Falcon Edge Capital), which led the seven-year-old startup’s previous funding, has returned alongside Tiger Global to co-lead a $250 million Series F financing round, the startup said.

Hong Kong-based Ward Ferry also participated in the round, bringing its all-time raise to about $470 million. As part of the new financing round, Moglix has given an 80x exit to some of its early seed-stage investors, it said Friday.

Founded by IIT Kanpur and ISB alumnus Rahul Garg, Moglix operates a B2B marketplace and procurement platform for manufacturing goods that could be anything from a centrifugal pump to a fan to routers and pulse oximeters.

“We are happy to have the continued support and faith of our investors, customers, suppliers and team. We are excited to welcome Ward Ferry onboard. We are focused on our mission to enable creation of a $1 trillion manufacturing ecosystem in India,” said Garg in a statement.

“We will continue to invest in building technology and supply chain capabilities to enable growth of the manufacturing and infrastructure sector. Moglix will increasingly focus on growth driven by supply chain financing, acquisition of the right partners and global expansion.”

The startup says it serves 500,000 small, medium-sized businesses and enterprises.

It has established over 3,000 manufacturing plants across India, Singapore, the UK and the UAE and counts manufacturing giants such as Hero MotoCorp, Vedanta, Tata Steel, Unilever and Air India and NTPC among its customers.

The startup, which counts Sequoia Capital India among its backers, runs a supply chain network of 16,000 suppliers, over 40 warehouses and logistics infrastructure. With close to 700,000+ SKUs on its platform, the startup claims to be the largest e-commerce platform of industrial goods in India.

News outlet DealStreetAsia first reported about the round, citing regulatory filing.

This story was updated to add confirmation and additional details from the startup.



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Tamebay Live Jan 22 – It’s a wrap

Tamebay Live Jan 22 is over, but never fear, if you missed a session or want to rewatch a session then they will be available on demand in just a couple of days time. We’re already working on the videos and getting them ready to publish and we’ll give you a heads up when they are available.

As always, a huge thanks to the people that made Tamebay Live possible, from our title Sponsor Amazon, our day sponsors Avalara, GFS and AVAST and especially Sacha, Bobbie and Mike who cohosted each day. Plus of course all of the Tamebay Live partners who made the event possible from marketplaces such as eBay, Fruugo, Alibaba, EnableAll and of course Amazon who provided expert speakers to lead the masterclasses over the three days of Tamebay Live.

Presenting Retailers at Tamebay Live Jan 22

A special thanks has to go to the retailers who gave up their time to share their experiences at Tamebay Live. In order of appearance they included:

  • Robin Phillips, CEO, WatchShop
  • Shahin Sacki, Managing Director, Rex Brown Ltd
  • Al Shariat, Director, Coconut Merchant Ltd
  • Patrick Gore, Managing Director, Hampers.com
  • Hannah Lia, Operations Director, Hampers.com
  • Eric Finkelman, Founder & CEO, Cali Weights
  • Arjun Sofat, CEO, Free Soul
  • Louise Cheadle, Co-founder, teapigs
  • Benji Lamb, Director of China, Vitabiotics

These are some of the top retailers in their fields and their expertise in selling on channels is second to none.

Finally, we have to recognise Ellie Hanson from AVAST, who with barely half an hour’s notice when a speaker was taken ill at short notice, stepped in to deliver a masterclass on EPR (Extended Producer Responsibility), a new eco tax already implemented in France and coming soon to Germany. This is vital information for cross border sellers so make a mental note of this masterclass to watch on demand if you sell into the EU.

From tomorrow, the Tamebay team will all be back out our desks bringing you the latest channel retailing and marketplace news, but we’re already planning future events, and for the first time in two years we’ll be able to invite you to attend in person so watch this space! We’re already looking forward to the Ecommerce Cup, which returns this June, after an enforced two year break – if you want to enter a team there’s still time to get involved.

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Visual Merchandising demo Mon 31st Jan

Attendees at Tamebay Live, watching the Advanced Commerce masterclass on Visual Merchandising were promised a live demo of the solution – and if you’re interested then you too can attend this coming Monday afternoon at 4pm.

The paradox of choice states the more choice we have, the harder it is to make a decision. As we have entered the digital age there has been an explosion of choice – the boundaries and constraints of floor space in a shop are removed online and more and more choice has been offered making it harder for consumers to make decisions.

Online merchandising is about controlling the product display sequence, it’s a retailer’s way of helping shoppers navigate the paradox of choice by showing relevant products instead of trying to show every product in the catalogue – shoppers attention spans are short, so the decisions we make about what to show first in every part of our online stores is increasingly important.

This type of merchandising happens constantly in brick-and-mortar stores. They are carefully laid out making sure the right blend of products based on price, stock level, popularity etc are displayed throughout, and the last 18 months have really emphasised the need for this kind of merchandising online. Retailers are also finding as they merchandise their online store and take control of their product curation it has a waterfall effect on metrics like conversion, AOV, volume of orders, and even things like returns and canceled orders.

Our platform allows retailers to use a blend of attributes such as popularity, margin, availability, trending, price etc. to determine their product sequencing. It gives retailers the tools they need to visually merchandise their online store and provide a curated product display sequence, which in turn has a waterfall effect on increasing conversions, AOV and revenue.

We have built GrapheneHC to become the gold standard for online merchandising, see a live demo on Monday the 31st of January at 4pm.

Register here to attend.

The post Visual Merchandising demo Mon 31st Jan appeared first on Tamebay.



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Amazon must pay $2M and end program after price-fixing investigation by Washington AG

Amazon must pay $2.25 million and permanently shut down a previously suspended sales program, following an investigation and lawsuit by the attorney general of Washington alleging it was essentially price fixing.

“Sold By Amazon” basically worked like this. Amazon would contact a third-party seller and they would agree on a minimum price for an item. If Amazon sold the item for more, they would split the profits. In a way it’s not so different from buying a bunch of stuff wholesale and reselling it. But due to how Amazon dynamically prices and presents items in the store, that’s not quite what happened.

As the AG’s office explains, Amazon ended up increasing the price of the items to match other retailers, and prevented sellers from offering discounts. As a result, buyers were frequently driven to purchase Amazon’s own brands, which it could price however it chose:

Prices for the vast majority of the remaining products enrolled in the “Sold by Amazon” program stabilized at artificially high levels.

…When prices increased, some sellers experienced a marked decline in the sales and resulting profits from products enrolled in the program. Faced with price increases, online customers sometimes opted to buy Amazon’s own branded products — particularly its private label products. This resulted in Amazon maximizing its own profits regardless of whether consumers paid a higher price for sales of products enrolled in the “Sold by Amazon” program or settled for buying the same or similar product offered through Amazon.

Sounds like a bad deal for sellers, but more fundamentally, Washington AG Bob Ferguson alleged that the practice was in violation of state antitrust laws. Amazon may be a store, but it also sells its own goods, making it a competitor with the third-party sellers in question. And two competitors making a secret agreement controlling the cost of goods is pretty much the definition of price fixing.

Amazon disputed the AG’s characterization, saying it was all for the good of the customer and completely on the level. It also claimed to have shut down the program for “business reasons unrelated to the AG’s investigation.” “While we strongly believe the program was legal, we’re glad to have this matter resolved,” the company said in a statement to TechCrunch.

It’s an extraordinary coincidence, then, that a program that had been expanding since 2018 would shut down almost immediately after antitrust authorities started sniffing around. “We launched the investigation in March 2020 and Amazon suspended the program in June,” said the AG office’s Dan Jackson. Perhaps it was just time.

At any rate, rather than fight the lawsuit in court, Amazon agreed to a consent decree requiring the $2.25 million payment (which will go directly to funding the AG’s antitrust division) and prohibiting Amazon from reactivating the program in any way, shape or form.

“Consumers lose when corporate giants like Amazon fix prices to increase their profits. Today’s action promotes product innovation and consumer choice, and makes the market more competitive for sellers in Washington state and across the country,” said Ferguson.



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Tottenham Hotspur partners with BigCommerce to modernise online store

BigCommerce have announced Tottenham Hotspur has selected their platform to optimise their online store and drive expansion into international markets. Launching on BigCommerce will enable Tottenham Hotspur to further improve ecommerce functionality including frictionless checkout, personalized shopping and a seamless experience across online and offline channels.

BigCommerce’s leading Open SaaS approach was a deciding factor for us. Their flexible ecommerce platform combined with their curated ecosystem of integration partners create endless opportunities for us to modernize our online store, offer amazing features for our fans and support our continued growth throughout the world.

– Duncan Pass, head of retail, Tottenham Hotspur

Tottenham Hotspur will leverage BigCommerce’s platform to further enhance its popular online store’s capabilities and fan experience not only at home in the UK, but also in APAC and North America where the club has a significant and growing fanbase. 

Tottenham Hotspur partnered with BigCommerce because of the platform’s internationalization features such as multi-store front and price lists, flexibility and its integrated partnerships with payment and checkout solutions like Fast and Global-e. 

Having worked with Tottenham Hotspur on their existing digital retail for the last 12 months, the chance to reimagine their online store was an exciting one. We’re excited and proud to be a preferred BigCommerce partner chosen by Tottenham Hotspur to deliver an engaging retail experience to its fans online.

– James Greenwood, director, digital retail agency partner Strawberry

BigCommerce adds Tottenham Hotspur to its roster of sports brands such as Club Deportivo Guadalajara S.A. de C.V. (Chivas) and Utah Jazz all of whom benefit from software-as-a-service capabilities to deal with peak traffic. 

Retail is a critical revenue driver for any sports brand. As teams continue to expand their reach beyond their home cities, they want a powerful ecommerce platform that can grow with them and make it easy for their fan bases to support the team regardless of where they live, what currency they use or what language they speak.

– Jim Herbert, senior vice president and general manager of EMEA, BigCommerce.

The post Tottenham Hotspur partners with BigCommerce to modernise online store appeared first on Tamebay.



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Glossier just laid off one-third of its corporate employees, mostly in tech

Glossier, the popular beauty brand led by former blogger Emily Weiss, let go of 80 of its corporate employees today, according to an internal email obtained by Modern Retail. The cuts, which amount to around one-third of Glossier’s corporate workforce, will primarily impact the company’s technology team.

“[W]e are shifting our technology strategy to leverage external partners for parts of our platform that we’re currently maintaining internally,” Weiss wrote in the email announcing the layoffs to staff.

The email recounts some of the company’s recent mistakes, including prioritizing strategic projects that “distracted” the company from its core beauty business and that executives “got ahead of ourselves on hiring.”

The tech team layoffs are notable for a beauty retailer that has often described it as a technology company. In numerous interviews throughout the past two years, Weiss and other executives have emphasized the company’s focus on its direct-to-consumer online shipping model and obsession with iterating the customer experience based on feedback.

The company built its own point-of-sale system and commerce APIs in-house, allowing them to deliver a “seamless” customer experience, former Glossier CTO Bryan Mahoney said in 2018.

Founded in 2014, Glossier is widely touted as one of the earliest breakout successes of the DTC model, and raised its Series E last July at a $1.8 billion valuation from Lone Pine Capital, Sequoia, Forerunner Ventures, and others. E-commerce sales typically account for 80% of Glossier’s revenue, the Business of Fashion reported last July. 

Despite its fundraising success, Glossier’s ascent has oftentimes been far from smooth. The company laid off its entire retail staff and closed all its physical locations, including its flagship New York City store, in August 2020. It also grappled with the fallout from an open letter written by some of its employees of color sharing their experiences of enduring racism from managers in its stores, prompting a public apology from Weiss.

Nearly a year later, the company seemed to change course on its decision to double down on e-commerce alone, saying it planned to use the Series E funding to open three new permanent physical stores in Seattle, Los Angeles, and London – as well as reopen its New York City location. It hoped to use the retail locations to build brand awareness and encourage customers to create content, areas Glossier became well-known for in its early days through its distinctive, millennial-pink aesthetic and clever use of social media marketing.

The company’s website currently says customers should “stay tuned” for more retail store openings this year.



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Snap upgrades its AR Shopping features with real-time pricing, more product details

Snapchat is upgrading its AR shopping experience today with updates to both to the Shopping Lenses inside its social app as well as to the analytics shared with Snap’s brand and retail partners. For consumers, the AR shopping features become more practical to use, as they’ll now display key product information, updated in real-time, like the current product pricing and color details, alongside product descriptions and unique links to make purchases on new Lens Product Cards that appear as users virtually try on products.

For brands, the updates are focused on providing more data about how their AR shopping features are performing.

These analytics are now provided in real-time as the AR Shopping Lense are linked directly to the company’s product catalog, Snap explains. This allows brands and marketers to gain more immediate insights that can help them with their R&D plans, as well as to determine which types of products are resonating best with Snapchat’s younger, Gen Z and millennial audience. Brands can then incorporate that data when making decisions about ad targeting and future product development. Snap notes the data can also help the brands to optimize the delivery of their Shopping Lens to the app’s users who are most likely to make a purchase.

Before today’s public launch, Snap beta-tested the new AR Lens with a handful of brands, including Ulta Beauty and MAC Cosmetics. Using these “catalog-powered” Shopping Lenses, as they’re called Ulta reported $6 million in incremental purchases on Snapchat and over 30 million product try-ons within a two-week time period. MAC, meanwhile, saw 1.3 million try-ons at a cost of 0.31 cents per product trial and reported a 17x higher lift in purchases among women, 2.4x lift in brand awareness, and 9x light in purchase intent.

Users can swipe and use gestures to move through different AR product options when shopping with AR, in order to see what makeup, clothing, jewelry and accessories would look like on themselves. The experience is meant to offer a tech-powered alternative to trying on items in a retailer’s store, which serves a growing number of brands that are online-only without a brick-and-mortar footprint as well as traditional retailers looking to reach a younger audience that frequently shops online.

Image Credits: Snap

Snap is also making the AR Shopping Lenses easier to create. Although it launched a free web creation tool last year for brands building AR experiences, it hadn’t included easy-to-use AR shopping templates. Now, the company promises AR Shopping Lens creation can be accomplished in just 2 minutes time with a few clicks. This is made possible through an update to the Lens Web Builder, but initially, only for beauty brands. In the months ahead, Snap will offer similar updates to other shopping categories. In the meantime, any brand can continue to use Snap’s Lens Studio to build their AR lenses.

The company has been heavily investing in its AR shopping business in recent months, with the goal of making shopping a deeper part of the overall Snapchat experience. Last year, it upgraded its computer vision-powered Scan product, which lets users “scan” an item with their phone’s camera to learn more about the product — like an article of clothing. The feature can also be used to scan ingredients then be connected to recipes where they can be used. It also spent $124 million to acquire Fit Analytics, a startup that helps consumers find clothes and shoes that properly fit from online retailers. Last October, Snap also announced the launch of a creative studio, Arcadia, which helps commercialize its AR tech further by helping brands develop AR experiences that can be used across platforms, including web and apps outside of Snapchat itself.

Image Credits: Snap

AR try-on seems to resonate with Snap’s younger demographic, according to data Snap has shared. In a beta test with 30+ brands, Snapchat users virtually tried on products over 250 million times. AR try-on has also led to 2.4x higher purchase intent and a +14% sales lift over video spend, the data indicates. Including non-shopping AR features, over 200 million Snapchat users engage with AR on the app daily.

“Augmented reality is changing the way we shop, play, and learn, and transforming how businesses tell their stories and sell their products,” said Snap’s Chief Business Officer, Jeremi Gorman, in a statement. “Starting today, our revamped AR Shopping Lenses will mean a more engaging experience for our Snapchat community, and enable a faster, easier way to build Lenses for businesses — directly linking Lenses to existing product catalogs for real-time analytics and R&D about which products resonate with Gen Z and Millennial audiences.”

The AR improvements could also give Snap a way to better compete with larger social media companies, which haven’t as heavily focused on AR-enabled shopping in favor of other experiences, like live video shopping, influencer marketing powered by brand deals, and in-app shopping experiences which allow users to transact from within the social app they’re using, like Shop on Instagram. And Snap also hopes its Lens targeting features will help the company boost its ad revenues — figures that have been impacted by Apple’s new privacy features, causing Snap to miss on Wall Street’s revenue expectations during last quarter’s earnings. It brought in $1.07 billion in revenue in Q3 2021, versus the $1.10 billion forecast, sending the stock down 22% after earnings were reported. Snap will report its Q4 and full-year 2021 earnings on Feb. 3, 2022.

 



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FTC fines online shop $4M for hiding reviews below 4 stars

We all know online reviews must be taken with a grain of salt, but generally you’d like to think that a product with a 4.5-star average is better than one with a 3.5-star average. You might be wrong, since the site you’re looking at might not even permit bad reviews to appear — like Fashion Nova, which just incurred a $4.2 million settlement order from the FTC.

What happened was this: Fashion Nova used a third-party review management tool, which is surely a common thing for anyone running a site that lets users review the items they buy. But then they did a bad thing: from 2015 to 2019, they had 4- and 5-star reviews appear automatically on the site, while anything lower than that would require approval. And they didn’t approve hundreds of thousands of them, artificially inflating the perceived quality of the goods on the site.

“Fashion Nova misrepresented that the reviews on its website accurately reflected the views of all purchasers who submitted reviews to the website. The proposed settlement puts provisions in place to address Fashion Nova’s deceptive practice and orders Fashion Nova to pay $4.2 million for harm consumers incurred,” wrote the FTC in a blog post explaining the situation.

You can see the various documents related to the case here.

It seems the agency caught the scent of other scams like this being perpetrated under the auspices of third party review platforms, since it has since sent letters of warning to 10 other (like the original, unnamed) companies that operate them. And it made a broader “watch yourself” announcement back in October regarding fake reviews and deceptive endorsements.

In case you’re worried Fashion Nova is just an innocent victim here, it is worth noting that this isn’t the company’s first brush with the feds, as back in 2020 it agree to pay $9M over shady cancellation and return policies. Caveat emptor! (Sadly, it’s anyone’s guess whether these fines will be paid in full.)

Separately, but probably timed to harmonize with this announcement, the FTC updated its guidelines for marketers looking to pay for or solicit online reviews. There are ways to to do it right, like being transparent and allowing both positive and negative reviews to appear once they have been solicited. And there are… other ways. And it issued new guidance for platforms publishing reviews that they should think twice about manipulating the source, incentives, or visibility of reviews to their own advantage.

Fake reviews are a plague on the online economy, but so far either no one has solved the problem or the cure is — for retailers — worse than the disease, like it requires lots of work or the collapse of various lucrative arrangements. Perhaps this little flex by the FTC will help nudge them in the right direction.



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Daily Crunch: Google dumps FloC plan, proposes new Topics API for ad targeting

To get a roundup of TechCrunch’s biggest and most important stories delivered to your inbox every day at 3 p.m. PST, subscribe here.

Hello and welcome to Daily Crunch for January 25, 2022! Today our cup overflows with news. There’s simply too much going on to cover in a single newsletter, so I’ve tried to fit as much as possible below. Some sections are condensed, but you’ll see why. No more delay, the news! – Alex

The TechCrunch Top 4

  • Google proposes Topics to replace cookies: The American search giant’s idea of building Federated Learning of Cohorts, or FLoCs is over. The company is instead proposing Topics. What are they? Per our own Frederic Lardinois, the idea behind Topics is that “your browser will learn about your interests as you move around the web,” storing around three weeks of data, focused on 300 different thematic groupings. This is a big deal, if it comes to be.
  • Nvidia could walk away from ARM deal: With regulatory progress slow, the huge chip deal between Nvidia and ARM could be off. Will ARM instead go public? What does SoftBank think of the changing regulatory winds? We’ll find out.
  • VCs fell in love with Europe last year: While the global venture capital market was hectic last year, few regions can boast similar gains as Europe managed during 2021. TechCrunch dug into the data, looking at individual countries that stood out from the bloc, and asked what’s coming next.
  • YouTube considers NFTs: According to YouTube CEO Susan Wojcicki, the online video giant could be looking at blockchain technologies as a way for its creators to make money. Precisely how NFTs will work for the platform is not clear, but what is plain at this juncture is that nearly every major digital brand is going to at least try NFTs out in case they work for their users.

Startups/VC

TechCrunch Disrupt Startup Battlefield startup Cellino Bio raises $80M: This is the leading story from startup-land today, I reckon. Just a few months after winning our own startup pitch competition – and $50,000 of our money, sans equity cost – Cellino has raised a massive Series A that should provide the startup with plenty of runway. For more on what the startup does, head here.

And now, highlights from the day’s startup news:

  • Substack hits play: No, the popular publishing platform is not pivoting to video, but it is working to allow its creators use video as part of their subscription offerings. Users will be able to put videos behind the paywall, of course, perhaps helping them drive more revenue – and thus more income for Substack itself.
  • $32M for carbon honesty: Startup Sylvera is back in the news, raising a huge Series A after closing a $5.8 million Seed round last year. What does the company do? It “uses machine learning technology to analyze a variety of visual data like satellite imagery and lidar with the goal of boosting accountability and credibility around carbon offsetting projects,” TechCrunch reports.
  • The future of autonomy is grass: With the iRobot self-driving lawn mower not yet in the market, there is perhaps space for another company to build such a device. Electric Sheep Robotics wants to be that company, and it just raised $21.5 million for its work. Given the hours I spent mowing the lawn growing up, I resent the fact that future kids won’t have to endure similar punishment.
  • Billion-dollar green drink: Athletic Greens has raised $115 million in a round that values its business at $1.2 billion, TechCrunch writes. The company sells AG1, a “powdered beverage designed to provide daily nutrition,” per our reporting. The company has scaled to a nine-figure run rate, but we’re always curious when non-software companies are valued along similar lines. Perhaps the margins are high and the revenue recurring?
  • There’s still room for more salestech: Devtools, designer support, and marketing automation are all big niches, and the salespeople of the world desire their own tooling, too. And VCs are stepping up to finance it. Enter Scratchpad, which just raised a $33 million Series B. The company’s product helps sales folks get data into their CRM, and to their larger org as well.
  • Cybersecurity co raises rapid-fires Series C: After raising last August, Hunters has taken down another funding round. My knowledge of cybersecurity is minute, so I simply have to trust Frederic when he writes that the startup wants to help “enterprises replace traditional Security and Information Event Management (SIEM) solutions with its own tools.” If that makes sense to you, excellent. All I know is that Crowdstrike sponsored the F1 safety car last season.
  • Bokksu raises at $100M valuation for Asian grocery delivery: There are a few companies working on providing Asian foodstuffs to various markets. HungryPanda, for one. Bokksu is another, focusing its efforts on grocery in particular. The company started life as a Japanese snack subscription service way back in 2016, and has since expanded greatly. Now with $22 million in new capital, it can grow even faster.
  • Tunisian startup raises $100M: We don’t hear about startups from Tunis, so the InstaDeep round caught our eye. The company “creates decision-making systems for solving real-world problems,” TechCrunch writes, and just raised from Google, among others.
  • A great host of other things happened, so give the front page a scroll if you want to learn even more about what’s happening in startup-land.

To close out our early-stage coverage, Greg Kumparak takes a look at the 29th batch of startups from the Alchemist Accelerator, which has an enterprise focus.

Crypto pioneer David Chaum says web3 is ‘computing with a conscience’

Founder and CEO of the privacy protecting transaction platform Elixxir David Chaum holds a conference on the impact of tech on our privacy, during the Web Summit in Lisbon on November 6, 2019. - Europe's largest tech event Web Summit is held at Parque das Nacoes in Lisbon from November 4 to November 7. (Photo by PATRICIA DE MELO MOREIRA / AFP) (Photo by PATRICIA DE MELO MOREIRA/AFP /AFP via Getty Images)

Image Credits: PATRICIA DE MELO MOREIRA (opens in a new window) / Getty Images

In 1982, computer scientist David Chaum wrote a dissertation that described a blockchain protocol, along with the code for implementing it.

Since then, his cryptologic research has led to developments like digital cash and anonymous communication networks. Today, he launched xxmessenger, which the company describes as the first “quantum-resistant” messaging app.

When we asked him what has changed in the past few years, Chaum said, “Seems to me that Bitcoin and the like have created something that could no longer be ignored. Now the question is: How can it be brought to the general public in a way that they can readily adopt this next generation of information technology?”

Big Tech Inc.

  • The pride of Rhode Island says chip shortage end not in sight: The United States Department of Commerce’s boss Gina Raimondo – former governor of the Ocean State before being tapped for her new role – says that “we aren’t even close to being out of the woods as it relates to the supply problems with semiconductors.” So that’s bad news, but at least we know where we stand.
  • IBM’s growth wins investor plaudits: Yesterday IBM reported its best growth results in some time. Its stock went up. Then the company said that it wasn’t going to provide per-share profit guidelines. And its stock went down. Today, however, investors weighed the balance and pushed the company’s value up by more than 5%.
  • From BigTech -> Blockchain: There is something of a talent shuffle going on in tech as folks leave major concerns for younger, smaller, crypto-related efforts. The head of YouTube Gaming appears to be the latest defector.
  • Old man shouts at Joe: There’s more drama in the Spotify world, with musician Neil Young trying to use his influence to get the music streaming service to stem vaccine misinformation via its podcast host Joe Rogan. I don’t know how this shakes out, but it’s an interesting place for the European company to find itself.
  • And finally today, GM has big plans for its electric vehicle production.

TechCrunch Experts

dc experts

Image Credits: SEAN GLADWELL / Getty Images

TechCrunch wants to know which software consultants you’ve worked with for anything from UI/UX to cloud architecture. Let us know here.

ICYMI, check out this interview Miranda Halpern did with Georgina Lupu-Florian last week: “How should nontechnical founders collaborate with software developers?”



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Kencko takes in new capital to shake up how we consume our fruits, vegetables

Kencko, the plant-based, blender-free smoothie company, raised $10 million in Series A funding to expand into new categories.

Existing investor Siddhi Capital led the round and was joined by both current and new investors, including Next View Ventures, Riverside Ventures, Silas Capital, Cheyenne Ventures, Shilling Capital, Indico Capital, Mission Point, Gather Ventures and Nextblue Ventures. The latest investment brings Kencko’s total funding to over $13.5 million.

We last checked in on Kencko — which means health in Japanese — back in 2019 when the company raised a $3.4 million seed round. At the time, it was selling its fruit drink with six flavor options and was poised to launch two new products.

Today, the company has over a dozen flavor options for its organic smoothies and four flavors for its gumdrops. Its freeze-dried technology provides a way for people to get 2.5 servings of fruits and vegetables, while its gumdrops have one serving. None of the products have refined sugars, sweeteners or artificial ingredients.

Kencko is carving out its niche in a crowded global health and wellness market that is poised to be worth $7 billion by 2030. Other companies are also attracting venture capital, for example, Athletic Greens, which created AG1, a powdered beverage designed to provide daily nutrition, announced $115 million Tuesday in new funding that boosts its pre-money valuation to $1.2 billion.

With the news of the investment, Kencko unveils its newest bowls product, a heated product which will be available later in February.

Tomás Froes, co-founder and CEO, Kencko

Tomás Froes, co-founder and CEO, Kencko

Kencko is also all about diverting fruits and vegetables from landfills and was able to ship over 10 million freeze-dried smoothies in the past year which the company says is the equivalent of around 660 tons of fresh produce. The brand is also on track to be completely carbon neutral in 2022.

The company has been growing on average over 500% per year, after just three years in business, Tomás Froes, co-founder and CEO, told TechCrunch via email. At the end of the year, Kencko had nearly 360,000 members, a growth of 173% over 2020.

Froes expects to deploy the new funds into scaling and optimizing Kencko’s supply chain and in-house manufacturing. The company just passed 100 employees, and he plans to double the team in the next 12 months.

“With this raise, we’re poised to increase what we like to call ‘Kencko moments’ for our members: to offer hassle-free nutrition throughout the day,” Froes added. “We’ll continue to be focused on helping more people transition to healthier habits by increasing their day-to-day intake of fruit and vegetables. We have a number of exciting new products we are working on, and you should expect us to begin dipping our toes in brick-and-mortar retail this upcoming year.”



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New Government – Labour Small Business Agenda

We’ve are all waking up to a new Government today, with the Labour party about to take control of the country and what should be top of your...