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PayPal Ventures donates $20 million to Gynger, which offers companies a “buy now, pay later” option to purchase technology

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PayPal Ventures leads $20M round into Gynger, which offers companies ‘buy now, pay later’ for technology purchases

Gynger, a platform that lends capital to companies to purchase technology, has raised $20 million in a Series A round led by PayPal Ventures, TechCrunch reported exclusively.

The financing brings the New York startup’s total enterprise capital to $31.7 million and includes participation from Gradient Ventures (Google’s AI-focused enterprise fund), Velvet Sea Ventures, BAG Ventures and Deciens Capital.

In addition to increasing equity capital, Swings finalized a $25 million loan from Community Investment Management (CIM) under an agreement that enables it to borrow up to $100 million in total.

Gynger was incubated in June 2021 with m)x(v Capital, an early-stage enterprise capital fund from New York founded by Mark Ghermezian. Ghermezian also previously founded Braze, a cloud-based customer engagement platform for omnichannel marketing. There, as he told TechCrunch throughout the company’s last raise, he saw how difficult it was to sell software and, then again, how difficult it was for buyers to buy software.

Gynger works with each buyers and sellers of technology. It claims to help companies “finance, pay and manage” all expenses related to purchasing technology, including software, hardware, cloud and infrastructure. It does this by giving companies access to unsecured lines of credit, which Ghermezian says gives them the chance to extend their runway and save money.

Gynger says it uses advanced artificial intelligence and data analytics to underwrite and approve loans for patrons. According to Ghermezian, it mechanically detects technology expenses and recommends financing options that best meet the needs of each buyers and sellers.

The company claims that the appliance process takes lower than 10 minutes and that companies receive credit decisions as soon as the following day “and immediate access to funds once approved” with a number of payment term options. Gynger pays its customers’ suppliers on their behalf, and the shoppers pay them back later. Think of it as a “buy now, pay later” service for companies purchasing technology.

Gynger, then again, offers technology vendors a way to offer built-in financing through its receivables platform, which provides “flexible” payment terms, Ghermezian said.

“This gives suppliers an extremely effective tool for accelerating sales, increasing revenues and reducing key financial indicators,” added Ghermezian. Sellers receive an annual payment from Gynger upfront, while their customer pays Gynger “however they want.”

The market is large, Ghermezian said, pointing to a recent Forrester research report that found global technology spending is anticipated to reach USD 4.7 trillion in 2024

All of those expenses translate into growth for Gynger. According to Ghermezian, revenues increased by greater than 700% 12 months over 12 months. However, sales didn’t start until the second quarter of 2023, so growth is ranging from a small base. Ghermezian said the corporate also increased its customer base fivefold from the previous 12 months. He declined to release hard revenue numbers, saying only the corporate was on a “clear near-term path to profitability.” To date, Gynger has enabled 1000’s of payments for its customers from lots of of providers, including AWS, Google Cloud, Okta, Cisco, Salesforce, HubSpot, Oracle, GitHub, Snowflake, and Amplitude.

Like all companies operating on the BNPL business model, the corporate charges interest on its loans and likewise earns money from buyers from loan origination fees in addition to interchange fees under its card program. It also generates revenue from vendors in the shape of service fees, and plans to generate revenue from SaaS/platform fees later this 12 months, according to Ghermezian.

Image credits: Swings

At the time of the corporate’s latest raise, Ghermezian told TechCrunch that he saw Gynger competing closely with fintechs like Pipe and Capchase, which started off by providing companies with financing beyond equity and enterprise debt. For its part, Capchase expanded its offer to “buy now, pay later” in May 2023 after the launch of Capchase Pay. But today, Ghermezian said he not sees the companies as competitors. There are companies that do a few of what Gynger does. Some of them, like Tropic, Zip and Vendr, have gone the SaaS procurement route, Ghermezian also noted. There are also companies like Brex and Ramp that supply corporate expense cards to use for purchases, including technology. However, he believes that Gynger’s most important competitor is Bill.com.

The company currently employs 25 employees, up from 13 a 12 months ago.

Gynger will use its recent capital to scale its operations and finance loans.

“As we mature, we see our customer base growing, from early-stage startups to more mature companies, from Series A to pre-IPO,” Ghermezian said. “We also tap into other industries outside of technology, such as real estate, retail, healthcare and artificial intelligence.”

PayPal Ventures managing partner James Loftus believes Gynger’s model gives it a “unique advantage.”

“We believe that embedding payments and financing in both the buying and selling process for SaaS will allow Gynger to create tremendous network effects and create deep relationships that will ultimately enable the company to realize its goal of becoming the next big AR (accounts receivable)/ AP (accounts with suppliers),” he said. “Access to built-in financial solutions that ‘work’ for both buyers and sellers simply didn’t exist at scale until Gynger.”

This article was originally published on : techcrunch.com
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MIT Develops Recyclable 3D-Printed Glass Blocks for Construction Applications

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MIT develops recyclable 3D-printed glass blocks for construction

The use of 3D printing has been praised as an alternative choice to traditional construction, promising faster construction times, creative design and fewer construction errors, all while reducing the carbon footprint. New research from MIT points to an interesting latest approach to the concept, involving the usage of 3D-printed glass blocks in the form of a figure eight, which may be connected together like Lego bricks.

The team points to glass’s optical properties and “infinite recyclability” as reasons to pursue the fabric. “As long as it’s not contaminated, you can recycle glass almost infinitely,” says assistant professor of mechanical engineering Kaitlyn Becker.

The team relied on 3D printers designed by Straight line — is itself a spin-off of MIT.

This article was originally published on : techcrunch.com
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Introducing the Next Wave of Startup Battlefield Judges at TechCrunch Disrupt 2024

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Announcing our next wave of Startup Battlefield judges at TechCrunch Disrupt 2024

Startup Battlefield 200 is the highlight of every Disrupt, and we will’t wait to search out out which of the 1000’s of startups which have invited us to collaborate can have the probability to pitch to top enterprise capitalists at TechCrunch Disrupt 2024. Join us at Moscone West in San Francisco October 28–30 for an epic showdown where everyone can have the probability to make a major impact.

Get insight into what the judges are in search of in a profitable company as they supply detailed feedback on the evaluation criteria. Don’t miss the opportunity to learn from their expert insights and discover the key characteristics that result in startup success, only at Disrupt 2024.

We’re excited to introduce our next group of investors who will evaluate startups and dive into each pitch in an in-depth and insightful Q&A session. Stay tuned for more big names coming soon!

Alice Brooks, Partner, Khosla Ventures

Alicja is a partner in Khosla’s ventures interests in sustainability, food, agriculture, and manufacturing/supply chain. She has worked with multiple startups in robotics, IoT, retail, consumer goods, and STEM education, and led mechanical, electrical, and application development teams in the US and Asia. She also founded and managed manufacturing operations in factories in China and Taiwan. Prior to KV, Alice was the founder and CEO of Roominate, a STEM education company that helps girls learn engineering concepts through play.

Mark Crane, Partner, General Catalyst

Mark Crane is a partner at General Catalysta enterprise capital firm that works with founders from seed to endurance to assist them construct corporations that may stand the test of time. Focused on acquiring and investing in later-stage investment opportunities equivalent to AuthZed, Bugcrowd, Resilience, and TravelPerk. Prior to joining General Catalyst, Mark was a vice chairman at Cove Hill Partners in Massachusetts. Prior to that, he was a senior associate at JMI Equity and an associate at North Bridge Growth Equity.

Sofia Dolfe, Partner, Index Ventures

Sofia partners with founders who use their unique perspective and private understanding of the problem to construct corporations that drive behavioral change, powerful network effects, and transform entire industries, from grocery and e-commerce to financial services and healthcare. Sofia can also be one of Index projects‘ gaming leads, working with some of the best gaming corporations in Europe, making a recent generation of iconic gaming titles. He spends most of his time in the Nordics, but works with entrepreneurs across the continent.

Christine Esserman, Partner, Accel

Christine Esserman joined Acceleration in 2017 and focuses on software, web, and mobile technology corporations. Since joining Accel, Christine has helped lead Accel’s investments in Blackpoint Cyber, Linear, Merge, ThreeFlow, Bumble, Remote, Dovetail, Ethos, Guru, and Headway. Prior to joining Accel, Christine worked in product and operations roles at multiple startups. A native of the Bay Area, Christine graduated from the Wharton School at the University of Pennsylvania with a level in Finance and Operations.

Haomiao Huang, Founding Partner, Matter Venture Partners

Haomiao from Venture Matter Partners is a robotics researcher turned founder turned investor. He is especially obsessed with corporations that bring digital innovation to physical economy enterprises, with a give attention to sectors equivalent to logistics, manufacturing and transportation, and advanced technologies equivalent to robotics and AI. Haomiao spent 4 years investing in hard tech with Wen Hsieh at Kleiner Perkins. He previously founded smart home security startup Kuna, built autonomous cars at Caltech and, as part of his PhD research at Stanford, pioneered the aerodynamics and control of multi-rotor unmanned aerial vehicles. Kuna was part of the Y Combinator Winter 14 cohort.

Don’t miss it!

The Startup Battlefield winner, who will walk away with a $100,000 money prize, can be announced at Disrupt 2024—the epicenter of startups. Join 10,000 attendees to witness this breakthrough moment and see the next wave of tech innovation.

Register here and secure your spot to witness this epic battle of startups.

This article was originally published on : techcrunch.com
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India Considers Easing Market Share Caps for UPI Payments Operators

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phonepe UPI being used to accept payments at a road-side sunglasses stall.

The regulator that oversees India’s popular UPI rail payments is considering relaxing a proposed market share cap for operators like Google Pay, PhonePe and Paytm because it grapples with enforcing the restrictions, two people accustomed to the matter told TechCrunch.

The National Payments Corporation of India (NPCI), which is regulated by the Indian central bank, is considering increasing the market share that UPI operators can hold to greater than 40%, said two of the people, requesting anonymity because the knowledge is confidential. The regulator had earlier proposed a 30% market share limit to encourage competition within the space.

UPI has change into the most well-liked option to send and receive money in India, with the mechanism processing over 12 billion transactions monthly. Walmart-backed PhonePe has about 48% market share by volume and 50% by value, while Google Pay has 37.3% share by volume.

Once an industry heavyweight, Paytm’s market share has fallen to 7.2% from 11% late last yr amid regulatory challenges.

According to several industry executives, the NPCI’s increase in market share limits is more likely to be a controversial move as many UPI providers were counting on regulatory motion to curb the dominance of PhonePe and Google Pay.

NPCI, which has previously declined to comment on market share, didn’t reply to a request for comment on Thursday.

The regulator originally planned to implement the market share caps in January 2021 but prolonged the deadline to January 1, 2025. The regulator has struggled to seek out a workable option to implement its proposed market share caps.

The stakes are high, especially for PhonePe, India’s Most worthy fintech startup, valued at $12 billion.

Sameer Nigam, co-founder and CEO of PhonePe, said last month that the startup cannot go public “if there is uncertainty on regulatory issues.”

“If you buy a share at Rs 100 and value it assuming we have 48-49% market share, there is uncertainty whether it will come down to 30% and when,” Nigam told a fintech conference last month. “We are reaching out to them (the regulator) whether they can find another way to at least address any concerns they have or tell us what the list of concerns is,” he added.

This article was originally published on : techcrunch.com
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