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Alex Mike

Thrasio, an early mover and leading player in the wave of startups emerging to consolidate and scale companies that sell their goods mainly via Amazon’s Marketplace, has raised some more funding and is making a key executive appointment to do some scaling of its own. The company, which to date has acquired and consolidated some 6,000 companies selling on Amazon, has picked up $100 million, and alongside that it’s announcing a new CFO, retail vet Bill Wafford, as it eyes up its next steps, including a public listing.

The $100 million is an extension to Thrasio’s Series C — a round that saw a $750 million injection only about 6 weeks ago, and a previous close of $260 million last July.

Josh Silberstein, who is the co-founder and co-CEO with Carlos Cashman, said Thrasio is not disclosing valuation except to note that it is 50% higher than the it was a month ago for Thrasio, which today is profitable.

For some context, when we reported on the $750 million round, we noted that the valuation was potentially between $3 billion and $4 billion. All a spokesperson would tell us at the time was that it was “less than $10 billion” although a debt round in January put the valuation at around $3 billion.

Silberstein said the latest $100 million is coming from previous backers that didn’t get the allocation they hoped for in the previous financing. The list of past backers includes Oaktree, Advent, Peak6, Western Technology Investment, and Jason Finger, the co-founder of one of the early players in food delivery startups, Seamless.

Giving insiders are little more of a share also seems to hint at the fact that the company looks to be preparing for its next steps as a business, which might include a public listing via a SPAC or a more traditional IPO route.

“We are engaged in conversations where valuation where may once again become a topic so holding off on additional commentary for now,” said Silberstein in response to the question. “We’ve reached a point that there are legal consequences to being anything other than vague.”

As part of that process, Wafford is coming on as CFO from a previous role as CFO at JC Penney and before that, CFO of Vitamin Shoppe, in a longer resume that also includes finance roles at retailers like Walgreens and Target. He is replacing Joe Falcao, a longtime employee of the company, who is taking a role as SVP, Finance and Treasurer, to scale the company’s treasury, tax, and international finance functions.

Wafford’s experience across a range of bigger brick-and-mortar retailers that work with and partner with smaller brands across a number of categories from fashion to health and household goods is notable, in that it’s an analogue of what Thrasio is essentially building in the online world, where its 6,000-plus brands run the gamut from a therapeutic sock maker, to a company that has developed a spray to remove pet odors and stains, to a high-end kitchen goods maker.

“Thrasio’s trajectory and the speed at which it has achieved growth is impressive to say the least, especially how they’ve capitalized on the market changes that have occurred over the last twelve months,” said Bill Wafford, CFO, in a statement. “I’ve been delighted to discover an energizing, team-minded culture that embraces experimentation and adaptability. I’m thrilled to take on the role to prepare the organization for its next phase of growth.”

By one estimate there are about 5 million third-party sellers on Amazon today, a number that appears to be growing exponentially, with more than 1 million sellers joining the platform in 2020 alone. Thrasio’s business model is based around the premise that most of them are not that well prepared to scale when and if the most successful of this lot see their products take off.

Silberstein and Thrasio estimate that there are probably 50,000 businesses selling on the Amazon platform with FBA (Fulfillment by Amazon) that are making $1 million or more per year in revenues.

“What happens when you get into that price range is that it gets hard to grow your business and manage it,” he said, citing SEO, marketing, and supply chain management as some of the challenges. “That means as you grow from $1 million to $10 million, the margins would decrease and it gets even harder to make returns. We simply observed that reality that all these great companies had reached a point between a lack of access to capital and simply not being able to keep doing what they do. We thought, if we acquire 10-20 of these we would have the scale to build best in breed supply chain, marketing, and so on. We would fix the problem.”

It realised quickly, though, that there was an opportunity to take that even further and make that the business itself. And so Thrasio has been building a huge analytics engine that digs into Amazon data and a lot more to determine which companies are interesting, how to help them sell better, and eventually to conceive of even bigger businesses outside of the Amazon ecosystem, covering other marketplaces, other sales channels and direct D2C sales.

It hasn’t been the only one. Possibly spurred by Thrasio’s success we’ve seen launches and major funding for a plethora of these roll-up plays. Branded launched its own roll-up business on $150 million in funding earlier this year, and others including Berlin Brands GroupSellerXHeydayHeroesPerch and more — collectively raising or committing from their own balance sheets well over $1 billion in aid of their own efforts to buy up small but promising third-party merchants.

With Amazon only getting bigger by the day, and the challenge of weeding out quality from quite a lot of me-too knock-offs also growing, there is a clear role for improving discoverability and connecting consumers to the most interesting products, and helping those products succeed. At the same time, it will be worth watching how the roll-ups themselves grow and if they manage to deliver on all that they are promising to the brands they are buying, and to their investors.

Alex Mike Apr 1 '21
Alex Mike

Meet Collabio Spaces: An office suite app with a cloudless co-authoring twist that looks helpful if you need to collaborate on documents without having to worry about losing control of your data or the thread of changes.

The p2p software lets multiple people co-edit a document locally — from a mobile device or desktop computer — without A) the risk of uploading sensitive information to the cloud (i.e. as you must if you’re using a shared document function of a service like Google Docs); or B) the tedium of emailing a text to multiple recipients and then having to collate and resolve changes manually, once all the contributions trickle back.  

There’s more coming down Collabio’s pipe too. Document collaborating will be possible from anywhere in the future, not only (as now) via a local network: A major release slated for next month will add p2p collaboration that works via the Internet — but still without the privacy risk of having a remote server in the loop.

Collabio’s app is MacOS and iOS only for now — but Android and Windows versions are in the works, slated for release this year.

Current supported text formats are DOCX, ODT, XLSX and ODS. Other features of Collabio’s office suite include the ability to scan and recognise texts and images using a camera; annotate and comment on PDFs (including via audio); e-sign text documents and PDFs; and view presentations.

Image credit: XCDS/Collabio

Its maker XCDS (aka “eXtended Collaboration Document Systems”), which is headquartered in London, UK with an R&D hub in Prague in the Czech Republic, has been in business for around a decade at this point — but working on office tools for some seven years, per CTO Egor Goroshko, who says they see Collabio as a startup in its own right.

The app is being funded by (an undisclosed amount of funding from undisclosed) private investors, with the team planning to take in further funding to continue development in the near future as they build momentum for the product.

With the coronavirus supercharging remote working over the past 12 months there is certainly opportunity to improve on the current crop of collaboration and productivity tools — and help to safely break down any unwelcome workflow barriers which have been erected as a result of scores of office workers no longer being co-located. Although the current version of Collabio is designed for nearby, rather than remote collaboration — so its next major release looks the most interesting from that perspective.

The early team behind Collabio included some devs who worked on Quickoffice but didn’t go to Google as part of that 2012 acquisition. Instead they focused on thinking about how to improve the user experience around documents — finally bringing their long-developed p2p document collaboration product to market last fall.

“When we started with Collabio we were ready for the long game,” Goroshko tells TechCrunch. “We knew that we would need to implement most of the features [office suite software] users were familiar with, before we could start developing our own ideas.”

“Long story short, our cloudless collaboration works exactly the same way as a cloud one. Of course there is some difference in the way you connect to the document but after that, you have exactly the same experience as if you work in the cloud,” he continues.

“We started with an iOS app in September 2020 and introduced a macOS version in October. With our early releases, we mainly concentrate on testing the app with real users and prove our ideas. Starting from our launch, we’ve got almost 15K of installs and valuable feedback on what users need and what can be improved. We pushed intensively on the market starting in February 2021 this year and got more than one thousand users during this month.”

There are some key differences between Collabio’s p2p cloudless collaboration and the (more typical) upload-to-a-server flavor that are worth flagging.

Notably, the lack of constant access to the document that you’re co-authoring/co-editing. Although that limitation may also be desirable if you want to tightly manage collaborative access to your data.

“In Collabio we call cloudless collaborative editing ‘Ad-Hoc collaboration’, because without a cloud your peers have no constant access to the document, so this thing is essential for occasional document discussion and updates,” Goroshko notes.

Another important difference he points to is that a shared document remains on the owner host devices only — and a copy can only be saved by the owner (at least for now).

“Other peers have session document access but the application does not upload/transfer files to collaborators’ devices,” he explains. “[The] session lasts til the host keeps the document open. As soon as you close the document, peers lose their access and can’t save the document locally. This is made for reasons of privacy but we are now considering giving users the option to allow connected peers to save a copy of the document.”

Given that all document work is done on devices on a local network there’s no need for an Internet connection to be able to collaborate via Collabio — which the team argues can itself be pretty useful, such as in situations like business travel (remember it?) when a stable Internet connection may not be readily available.

For this local p2p connectivity Goroshko says Collabio uses both wi-fi and Bluetooth — “to achieve better discovering quality”. “This is a common approach used, for example, in AirDrop technology. When peers’ addresses are identified, the application establishes connection via WiFi to achieve better speed and the quality of data exchange,” he says.

“All work is done only on devices in the local network so our Ad-Hoc collaboration does not need the Internet, the same way as you do not need the Internet to exchange files via AirDrop,” he goes on. “Just like with AirDrop, you do not need any specific configuration for Collabio Spaces, everything is done automatically. You start a session and peers see it on their devices, they simply connect to a selected document, and if they know the code, they can edit the document.”

Goroshko says Collabio’s team has been inspired by Apple’s technology — and the tech giant’s ‘it just works’ philosophy. But are committed to bringing the product to non-Apple platforms, aiming for a release later this year.

“It is a large, complex and ambitious project but we believe we can introduce game-changing approaches,” he continues. “The Office software market is quite conservative and market expectations from new software are really high. This is the reason why it has taken so much time to get to a public release stage. But with such a high entrance threshold and with slow innovations in the area of office document management and editing, this creates great opportunities.”

He argues that Collabio has been able to get efficiency gains vs office suites that had to bolt collaboration onto a legacy product exactly because it was being developed from scratch — with “collaborative editing in mind from the first step of proof of concept”. Hence its implementation of collaborative editing algorithms can work “with minimal resources consumption even on mobile phones”.

Goroshko says a Collabio user can have up to five peers simultaneously connected if they launch a collaboration session via a mobile device — with all participants able to edit the document. (Desktops support more connections.)

“You launch a collaboration session with a honeycomb icon, and any nearby devices with [the] Collabio Spaces app show shared documents,” he explains. “Under the hood, it works the similar way as sharing files through AirDrop or streaming audio/video through AirPlay. People nearby can join editing, if they know the security code assigned to the session.”

These p2p connections are encrypted with “standard end-to-end encryption”, according to Goroshko — who admits to “some tricks to allow trusted connections in the local network without access to the Internet”, adding: “We believe that this is enough for the start but in the future we will probably improve this approach.”

So — as with any nascent and non-independently security-tested product — prospective users should approach with caution, weighing up the sensitivity of any data they might wish to share for co-editing purposes before trusting it to Collabio’s novel implementation.

The startup, meanwhile, sees plenty of potential growth coming from frustrated office workers trying to find smarter ways to work remotely.

“Our goal is to create an editor specifically for team work, to help people get the most from collaboration,” says Goroshko. “Working together with others gives you a lot of advantages but requires more effort to sync with others. Planning, tracking, discussions, reviews — currently most of this work is performed separately from the document or locked inside the document. We want to cover this gap and give our users the most from collaboration with each other.”

“We consider two main types of competitors on the market,” he adds. “Classical office document editing suites like MS Office, Google Docs and Libre Office. We do not consider direct competition with them because their features set is enormous. However, many people simply do not use most of these features!

“And now a few newcomers have appeared on the market like Notion or Airtable, introducing smart ways how the document editing process can be integrated into your business. We see ourselves somewhere in between these products and classical office suites.”

A subscription payment is required to use Collabio Suites but a free trial version is available for up to a week.

We’re also told there’s an option for free of charge usage where the user is able to view and edit documents as a peer but can’t be the host of a collaboration session.

The major release that’s coming in May looks set to expand Collabio’s utility greatly — enabling it to tap into the remote work boom — by adding the ability to do p2p collaboration from anywhere via the Internet, also without the need for a remote server sitting in the loop.

How will that forthcoming functionality work? In a word: Math. Goroshko says the implementation will rely on an Operations Transformation algorithm keeping the document consistent “at any moment” during co-editing — avoiding the need for true real-time operations.

“It does not matter what co-editors type for in the end they all have absolutely the same content,” he says. “The algorithm does not guarantee that the result will be meaningful. If several people type in the same place, they will get an abracadabra. But this will be exactly the same abracadabra after all changes have been synced between all participants. This is the point. Operations Transformation does not require true real-time operations, changes can come early or later, even after sufficient delays. In either case they will be transformed to become inline with other changes. So regardless of cloud or cloudless collaboration mode, you do not need specific infrastructure or high speed processing to support collaborative editing.”

Alex Mike Apr 1 '21
Alex Mike

Launched in only November last year, the Craft Docs app — which was built from the ground up as an iOS app for collaborative documents — has secured an $8 million Series A round led by Creandum. Also participating was InReach Ventures, Gareth Williams, former CEO and co-founder of Skyscanner, and a number of other tech entrepreneurs, many of whom are ex-Skyscanner.

Currently available on iOS, iPadOS and MacOS, Craft now plans to launch APIs, extended integrations, and a browser-based editor in 2021. It has aspirations to become a similar product to Notion, and the founder and CEO Balint Grosz told me over a Zoom call that “Notion is very much focused around writing and wikis and all that sort of stuff. We have a lot of users coming from Notion, but we believe we have a better solution for people, mainly for written content. Notion is very strong with its databases and structural content. People just happen to use it for other stuff. So we are viewed as a very strong competitor by our users, because of the similarities in the product. I don’t believe our markets overlap much, but right now from the outside people do switch from Notion to us, and they do perceive us as being competitors.”

He told me this was less down to the app experience than “the hierarchical content. We have this structure where you can create notes within notes, so with every chunk of text you add content and navigate style, and add inside of that – and notion has that as well. And that is a feature which not many products have, so that is the primary reason why people tend to compare us.”

Craft says it’s main advantages over Notion are UX; Data storage and privacy (Craft is offline first, with real-time sync and collaboration; you can use 3rd party cloud services (i.e. iCloud); and integrations with other tools.

Orosz was previously responsible for Skyscanner’s mobile strategy after the company acquired his previous company, Distinction.

Fredrik Cassel, General Partner at Creandum, said in a statement: “Since our first discussions we’ve been impressed by both the amount of love users have for Craft, as well as the team’s unique ability to create a product that is beautiful and powerful at the same time. The upcoming features around connectivity and data accessibility truly set Craft apart from the competition.”

Craft ipad app

Craft ipad app

Roberto Bonazinga, Co-founder at InReach Ventures, added: “We invested in Craft on day zero because we were fascinated by the clarity and the boldness of Balint’s vision – to reinvent how millions of people can structure their thoughts and write them down in the most effective and beautiful way.”

The launch and funding of the Craft startup suggests there is something of a “Skyscanner Mafia” emerging, after its acquisition by Trip.com Group (formerly Ctrip), the largest travel firm in China, $1.75 billion in 2016.

Other backers of the company include Carlos Gonzalez (former CPO at Skyscanner, CTPO at GoCardless), Filip Filipov (former VP Strategy at Skyscanner), Ross McNairn (former CEO at Dorsai, CPO at TravelPerk), Stefan Lesser (former Technology and Partnership Manager at Apple) and Akos Kapui (Former Head of Technology at Skyscanner, VP of Engineering at Shapr3D).

Alex Mike Apr 1 '21
Alex Mike

Two weeks ago, TPG’s Rise Fund invested $200 million in Airtel Mobile Commerce BV (AMC BV) — the mobile money business of telecom Airtel Africa. After closing the deal, the Bharti Airtel subsidiary noted that it was still in discussions to sell additional minority stake (25% of the issued share capital) to more potential investors.

Today, it has announced a new investor — global payments provider Mastercard in a deal that will see Airtel Africa receive an additional $100 million for its mobile money business. AMC BV — which operates one of the largest financial services in the continent, giving users access to mobile wallet, support for international money transfer, loan, and virtual credit card — is valued at $2.65 billion.

The two firms are no stranger to one another. In 2019, they inked a deal that enabled Airtel Africa’s 100 million subscribers in 14 nations access to Mastercard’s global network. (That partnership didn’t see any money exchange between Mastercard and Airtel Africa.)

Airtel Africa and Mastercard said today they have “extended commercial agreements and signed a new commercial framework which will deepen their partnerships across numerous geographies and areas including card issuance, payment gateway, payment processing, merchant acceptance and remittance solutions, amongst others.”

AMC BV’s $2.65 billion valuation on a cash and debt-free basis remains unchanged from the last time. This means TPG’s Rise Fund and Mastercard will own 7.55% and 3.775.% stake respectively upon the completion of their deals. For Mastercard, the transaction will close in two tranches — $75 million invested at first close (which will be finalized in the next four months), and $50 million to be invested at the second close.

By selling off a minority stake in the mobile money business to The Rise Fund, Mastercard and other potential investors, the telecom operator believes it can raise enough cash to monetize its mobile money business and pursue a possible listing in four years.

In addition to receiving investments from TPG’s Rise Fund and Mastercard, Airtel Africa has begun selling off some assets as well. Last week, the company sold 1,424 telecommunications towers companies in Madagascar and Malawi to Helios Towers for $119 million. Both Helios and Airtel Africa also agreed to trade tower assets in Chad and Gabon, although the details remain undisclosed.

These efforts are geared towards the company’s pursuit of strategic asset monetisation, investment opportunities, and, ultimately, debt reduction.

“With today’s announcement, we are pleased to welcome Mastercard as an investor in our mobile money business, joining The Rise Fund, which we announced two weeks ago,” CEO of Airtel Africa, Raghunath Mandava said of the investment.

“This is a continuation of our strategy to increase the minority shareholding in our mobile money business with the further intention to list this business within four years. We are significantly strengthening our existing strategic relationship with Mastercard to help us realise the full potential from the substantial opportunity to improve financial inclusion across our countries of operation.”

Alex Mike Apr 1 '21
Alex Mike

Two weeks ago, TPG’s Rise Fund invested $200 million in Airtel Mobile Commerce BV (AMC BV) — the mobile money business of London-listed telecom Airtel Africa. After closing the deal, the Bharti Airtel subsidiary noted that it was still in discussions to give up more minority stake (25% of the issued share capital) to more potential investors

Today, it has announced another investor — global payments provider Mastercard in a deal that will see Airtel Africa receive an additional $100 million for its mobile money business.

From the statement released, Airtel Africa and Mastercard have “extended commercial agreements and signed a new commercial framework which will deepen their partnerships across numerous geographies and areas including card issuance, payment gateway, payment processing, merchant acceptance and remittance solutions, amongst others.”

AMC BV’s $2.65 billion valuation on a cash and debt-free basis remains unchanged from the last time. And like the deal with The Rise Fund, Mastercard will hold a minority stake in AMC BV upon the completion of the transaction which will close in two tranches — $75 million invested at first close (which will be finalized in the next four months), and $50 million to be invested at the second close.

By selling off a minority stake in the mobile money business to The Rise Fund, Mastercard and other investors, the telecom believes it can raise enough cash to monetize its mobile money business and pursue a possible listing in four years

In addition to receiving investments from TPG’s Rise Fund and Mastercard, Airtel Africa has begun selling off some assets as well. Last week, the company sold 1,424 telecommunications towers companies in Madagascar and Malawi to Helios Towers for $119 million. Both Helios and Airtel Africa also agreed to trade tower assets in Chad and Gabon, although the details remain undisclosed.

These efforts are geared towards the company’s pursuit of strategic asset monetisation, investment opportunities, and, ultimately, debt reduction.

“With today’s announcement, we are pleased to welcome Mastercard as an investor in our mobile money business, joining The Rise Fund, which we announced two weeks ago,” CEO of Airtel Africa, Raghunath Mandava said of the investment. “This is a continuation of our strategy to increase the minority shareholding in our mobile money business with the further intention to list this business within four years. We are significantly strengthening our existing strategic relationship with Mastercard to help us realise the full potential from the substantial opportunity to improve financial inclusion across our countries of operation.” 

Alex Mike Apr 1 '21
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