Technology
Once profitable, carpooling platform BlaBlaCar secures a $108 million debt line
BlaBlaCar is an iconic name within the French startup ecosystem. The carpooling and bus ticketing company has been in the marketplace for thus long that it might probably not be considered a startup. Still, BlaBlaCar is an especially interesting company today due to its unique trajectory.
What began as a vibrant online community of hitchhikers was a startup that raised a whole lot of tens of millions and achieved unicorn status. It then expanded its operations to many countries on several continents before scaling back its ambitions and beginning to take into consideration profitability.
Today, the corporate proclaims that it has obtained a secured revolving credit facility in the quantity of €100 million ($108 million at today’s exchange rates). This will provide it with a latest war chest with which to plan for the longer term and proceed to grow, including through acquisitions.
“Debt is a tool that is relatively attractive, non-dilutive and at the same time very flexible,” Brusson told us. The €100 million credit line is obtainable to several large banks in France, the UK and the US
BlaBlaCar doesn’t pay interest for now since it has not yet used the debt limit. Brusson, nonetheless, said he plans to make use of the debt facility to amass smaller corporations. As many startups struggle to boost one other round of funding, BlaBlaCar will have the ability to step in and acquire these smaller corporations.
Profit from the last 24 months
Although BlaBlaCar isn’t a public company, it’s slowly accepting that it could share some data publicly. In this manner, BlaBlaCar can reveal for the primary time that it has achieved profitability – in actual fact, it has been profitable since April 2022.
This milestone must come as a huge relief, as 2023 has been a difficult 12 months for French startups – aside from working on AI-based products, after all.
“The whole business is profitable. We have been profitable for almost two years,” co-founder and CEO Nicolas Brusson told TechCrunch. “2022 was the primary almost full 12 months after Covid-19, except possibly the primary two months. We recorded revenues of EUR 195 million. We ended the 12 months mainly within the red, but that was often because the primary quarter was terrible.
“But starting in the second quarter of 2022 and beyond, we were profitable. Then in 2023 our revenues increased to over 250 million euros. So we’re seeing a little less than 30% revenue growth and yet we’re still profitable.”
Profitability can mean various things to different people. Many corporations like to say that they’re profitable although they speak about it EBITDA — a financial measure that doesn’t keep in mind the prices related to a company’s assets. And Brusson is a bit fed up with corporations pretending to be profitable but actually losing money yearly.
In the case of BlaBlaCar, the corporate was profitable on an EBITDA basis, however it also generates a net profit when the whole lot is taken under consideration – BlaBlaCar doesn’t own passenger cars or buses anyway.
In 2023, 80 million passengers booked a bus or ride with BlaBlaCar. The excellent news is that BlaBlaCar users are all around the world – not only in France.
“Brazil is larger than France in terms of number of users. “I think India will be bigger than France in terms of ridesharing next year,” Brusson said.
The company has not yet began monetizing its users in India, Brazil, Mexico or Turkey – it doesn’t apply any cuts to travel-sharing transactions. It will regularly add booking fees, which will even help increase the corporate’s revenue.
One wrinkle is Russia. When the war in Ukraine broke out, BlaBlaCar had tens of millions of users in Russia. Although many technology corporations have decided to sell their Russian subsidiaries, BlaBlaCar’s Russian business has been completely separated from the remainder of the business, but BlaBlaCar has no plans to sell it. Brusson argues that this might be counterproductive because it will essentially mean handing it over to its Russian owner.
“Today it is less than 5% of revenue, so it is quite small. It is still part of the group but is completely isolated and independently managed… The company is completely separate from the group. But if you want to sell it, in the current context, it’s like giving it away.”
Adding train tickets
In Europe, BlaBlaCar desires to aggregate all ground transportation methods. In addition to rideshare and bus rides, the corporate plans so as to add train tickets. Users will have the ability to buy tickets sometime next 12 months.
– Our idea is to mix it with carpooling. So we are going to have the ability to supply train travel and shared travel – almost door to door,” Brusson said.
Even in case you don’t book one other BlaBlaCar train ride, the corporate can also be experimenting with last-mile carpooling. “Then we now have one other model for barely shorter distances. The idea is to attach train stations to your destination. Typically, in case you arrive at Vannes Station, you frequently must get to Grandma’s house, holiday home or weekend getaway. You still have 10 to 40 km to go,” he noted.
Since many BlaBlaCar users are already traveling on this direction, the corporate will ping these drivers to see in the event that they can pick up a group of individuals from the train station and drop them off at their destination.
In non-European markets, the largest opportunity is bus travel. “The good news for us in these markets is that the bus industry remains a very fragmented and inactive industry,” Brusson said. He emphasized that in India and Brazil, people spend billions of dollars on bus tickets, which once more suggests that BlaBlaCar has a likelihood to grow.
Technology
The company is currently developing washing machines for humans
Forget about cold baths. Washing machines for people may soon be a brand new solution.
According to at least one Japanese the oldest newspapersOsaka-based shower head maker Science has developed a cockpit-shaped device that fills with water when a bather sits on a seat in the center and measures an individual’s heart rate and other biological data using sensors to make sure the temperature is good. “It also projects images onto the inside of the transparent cover to make the person feel refreshed,” the power says.
The device, dubbed “Mirai Ningen Sentakuki” (the human washing machine of the longer term), may never go on sale. Indeed, for now the company’s plans are limited to the Osaka trade fair in April, where as much as eight people will have the option to experience a 15-minute “wash and dry” every day after first booking.
Apparently a version for home use is within the works.
Technology
Zepto raises another $350 million amid retail upheaval in India
Zepto has secured $350 million in latest financing, its third round of financing in six months, because the Indian high-speed trading startup strengthens its position against competitors ahead of a planned public offering next yr.
Indian family offices, high-net-worth individuals and asset manager Motilal Oswal invested in the round, maintaining Zepto’s $5 billion valuation. Motilal co-founder Raamdeo Agrawal, family offices Mankind Pharma, RP-Sanjiv Goenka, Cello, Haldiram’s, Sekhsaria and Kalyan, in addition to stars Amitabh Bachchan and Sachin Tendulkar are amongst those backing the brand new enterprise, which is India’s largest fully national primary round.
The funding push comes as Zepto rushes so as to add Indian investors to its capitalization table, with foreign ownership now exceeding two-thirds. TechCrunch first reported on the brand new round’s deliberations last month. The Mumbai-based startup has raised over $1.35 billion since June.
Fast commerce sales – delivering groceries and other items to customers’ doors in 10 minutes – will exceed $6 billion this yr in India. Morgan Stanley predicts that this market shall be value $42 billion by 2030, accounting for 18.4% of total e-commerce and a pair of.5% of retail sales. These strong growth prospects have forced established players including Flipkart, Myntra and Nykaa to cut back delivery times as they lose touch with specialized delivery apps.
While high-speed commerce has not taken off in many of the world, the model seems to work particularly well in India, where unorganized retail stores are ever-present.
High-speed trading platforms are creating “parallel trading for consumers seeking convenience” in India, Morgan Stanley wrote in a note this month.
Zepto and its rivals – Zomato-owned Blinkit, Swiggy-owned Instamart and Tata-owned BigBasket – currently operate on lower margins than traditional retail, and Morgan Stanley expects market leaders to realize contribution margins of 7-8% and adjusted EBITDA margins to greater than 5% by 2030. (Zepto currently spends about 35 million dollars monthly).
An investor presentation reviewed by TechCrunch shows that Zepto, which handles greater than 7 million total orders every day in greater than 17 cities, is heading in the right direction to realize annual sales of $2 billion. It anticipates 150% growth over the following 12 months, CEO Aadit Palicha told investors in August. The startup plans to go public in India next yr.
However, the rapid growth of high-speed trading has had a devastating impact on the mom-and-pop stores that dot hundreds of Indian cities, towns and villages.
According to the All India Federation of Consumer Products Distributors, about 200,000 local stores closed last yr, with 90,000 in major cities where high-speed trading is more prevalent.
The federation has warned that without regulatory intervention, more local shops shall be vulnerable to closure as fast trading platforms prioritize growth over sustainable practices.
Zepto said it has created job opportunities for tons of of hundreds of gig employees. “From day one, our vision has been to play a small role in nation building, create millions of jobs and offer better services to Indian consumers,” Palicha said in an announcement.
Regulatory challenges arise. Unless an e-commerce company is a majority shareholder of an Indian company or person, current regulations prevent it from operating on a listing model. Fast trading corporations don’t currently follow these rules.
Technology
Wiz acquires Dazz for $450 million to expand cybersecurity platform
Wizardone of the talked about names within the cybersecurity world, is making a major acquisition to expand its reach of cloud security products, especially amongst developers. This is buying Dazzlespecialist in solving security problems and risk management. Sources say the deal is valued at $450 million, which incorporates money and stock.
This is a leap within the startup’s latest round of funding. In July, we reported that Dazz had raised $50 million at a post-money valuation of just below $400 million.
Remediation and posture management – two areas of focus for Dazz – are key services within the cybersecurity market that Wiz hasn’t sorted in addition to it wanted.
“Dazz is a leader in this market, with the best talent and the best customers, which fits perfectly into the company culture,” Assaf Rappaport, CEO of Wiz, said in an interview.
Remediation, which refers to helping you understand and resolve vulnerabilities, shapes how an enterprise actually handles the various vulnerability alerts it could receive from the network. Posture management is a more preventive product: it allows a company to higher understand the scale, shape and performance of its network from a perspective, allowing it to construct higher security services around it.
Dazz will proceed to operate as a separate entity while it’s integrated into the larger Wiz stack. Wiz has made a reputation for itself as a “one-stop shop,” and Rappaport said the integrated offering will proceed to be a core a part of it.
He believes this contrasts with what number of other SaaS corporations are built. In the safety industry, there are, Rappaport said, “a lot of Frankenstein mashups where companies prioritize revenue over building a single technology stack that actually works as a platform.” It could be assumed that integration is much more necessary in cybersecurity than in other areas of enterprise IT.
Wiz and Dazz already had an in depth relationship before this deal. Merat Bahat — the CEO who co-founded Dazz with Tomer Schwartz and Yuval Ofir (CTO and VP of R&D, respectively) — worked closely with Assaf Rappaport at Microsoft, which acquired his previous startup Adallom.
After Rappaport left to found Wiz together with his former Adallom co-founders, CTO Ami Luttwak, VP of Product Yinon Costica and VP of R&D Roy Reznik, Bahat was one in all the primary investors. Similarly, when Bahat founded Dazz, Assaf was a small investor in it.
The connection goes deeper than work colleagues. Bahat and Rappaport are also close friends, and she or he was the second family of Mickey, Rappaport’s beloved dog, referred to as Chief Dog Officer Wiz (together with LinkedIn profile). Once the deal was done, the 2 faced two very sad events: each Bahat and Mika’s mother died.
“We hope for a new chapter of positivity,” Bahat said. The cycle of life does indeed proceed.
Rumors of this takeover began to appear earlier this month; Rappaport confirmed that they then began talking seriously.
But that is not the one M&A conversation Wiz has gotten involved in. Earlier this 12 months, Google tried to buy Wiz itself for $23 billion to construct a major cybersecurity business. Wiz walked away from the deal, which might have been the biggest in Google’s history, partly because Rappaport believed Wiz could turn into a fair larger company by itself terms. And that is what this agreement goals to do.
This acquisition is a test for Wiz, which earlier this 12 months filled its coffers with $1 billion solely for M&A purposes (it has raised almost $2 billion in total, and we hear the subsequent round will close in just a few weeks). . Other offers included purchasing Gem security for $350 million, but Dazz is its largest acquisition ever.
More mergers and acquisitions could also be coming. “We believe next year will be an acquisition year for us,” Rappaport said.
In an interview with TC, Luttwak said that one in all Wiz’s priorities now’s to create more tools for developers that have in mind what they need to do their jobs.
Enterprises have made significant investments in cloud services to speed up operations and make their IT more agile, but this shift has include a significantly modified security profile for these organizations: network and data architectures are more complex and attack surfaces are larger, creating opportunities for malicious hackers to find ways to to hack into these systems. Artificial intelligence makes all of this far more difficult when it comes to malicious attackers. (It’s also a chance: the brand new generation of tools for our defense relies on artificial intelligence.)
Wiz’s unique selling point is its all-in-one approach. Drawing data from AWS, Azure, Google Cloud and other cloud environments, Wiz scans applications, data and network processes for security risk aspects and provides its users with a series of detailed views to understand where these threats occur, offering over a dozen products covering the areas, corresponding to code security, container environment security, and provide chain security, in addition to quite a few partner integrations for those working with other vendors (or to enable features that Wiz doesn’t offer directly).
Indeed, Wiz offered some extent of repair to help prioritize and fix problems, but as Luttwak said, the Dazz product is solely higher.
“We now have a platform that actually provides a 360-degree view of risk across infrastructure and applications,” he said. “Dazz is a leader in attack surface management, the ability to collect vulnerability signals from the application layer across the entire stack and build the most incredible context that allows you to trace the situation back to engineers to help with remediation.”
For Dazz’s part, once I interviewed Bahat in July 2024, when Dazz raised $50 million at a $350 million valuation, she extolled the virtues of constructing strong solutions and this week said the third quarter was “amazing.”
“But market dynamics are what trigger these types of transactions,” she said. She confirmed that Dazz had also received takeover offers from other corporations. “If you think about the customers and joint customers that we have with Wiz, it makes sense for them to have it on one platform.”
And a few of Dazz’s competitors are still going it alone: Cyera, like Dazz, an authority in attack surface management, just yesterday announced a rise of $300 million at a valuation of $5 billion (which confirms our information). But what’s going to he do with this money? Make acquisitions, after all.
Wiz says it currently has annual recurring revenue of $500 million (it has a goal of $1 billion ARR next 12 months) and has greater than 45% of its Fortune 100 customers. Dazz said ARR is within the tens of hundreds of thousands of dollars and currently growing 500% on a customer base of roughly 100 organizations.
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