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Singapore-based retail analytics company Trax raises $640M Series E led by SoftBank Vision Fund 2 and BlackRock

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A group photo of Trax's co-founders, Joel Bar-El (left) and Dror Feldheim (right), and Trax's CEO, Justin Behar (center)

Trax’s co-founders, Joel Bar-El (left) and Dror Feldheim (right), and Trax’s CEO, Justin Behar (center)

COVID-19 forced many retailers and brands to adopt new technologies. Retail analytics unicorn Trax expects that this openness to tech innovation will continue even after the pandemic. The Singapore-based company announced today that it has raised $640 million in Series E funding to expand its products, which combine computer vision and cloud-based software to help brick-and-mortar stores manage their inventory, merchandising and operations. The round included primary and secondary capital, and was led by SoftBank Vision Fund 2 and returning investor BlackRock. Other participants included new investors OMERS and Sony Innovation Fund by IGV.

Before this round, Trax had raised $360 million in primary funds. J.P. Morgan acted as a placement agent to Trax on its Series E, which brings its total funding so far to $1.02 billion. Trax did not disclose a new valuation, but reportedly hit unicorn status in 2019. Reports emerged last year that it is considering a public offering, but chief executive officer Justin Behar had no comment when asked by TechCrunch if Trax is planning for an IPO.

Founded in 2010 and headquartered in Singapore, Trax also has offices in Brazil, the United States, China, the United Kingdom, Israel, Mexico, Japan, Hungary, France, Russia and Australia. The company says it serves customers in more than 90 countries.

Behar told TechCrunch that the new funding will be used to “invest heavily in global [go-to-market] strategies and technology for our flagship Retail Watch solution, as we look for ways to make it easier for retailers and brands to continue their digitization journey. More specifically, we will use the capital to accelerate growth and triple-down on continued innovation across our core vision, machine learning, IoT and marketplace technologies.”

Launched last year, Retail Watch uses a combination of computer vision, machine learning and hardware like cameras and autonomous robots, to gather real-time data about the shelf availability of products. It sends alerts if stock is running low, corrects pricing errors and checks if planograms, or product display plans for visual merchandising, are being followed. Retail Watch currently focuses on center shelves, where packaged goods are usually stocked, but will expand into categories like fresh food and produce.

The funding will also be used to expand Trax’s Dynamic Merchandising, a partnership with on-demand work platform Flexforce, and Shopkick, the shopping rewards app Trax acquired in 2019, into new markets over the next one to two years.

“Finally, we see many opportunities to help retailers along their digitization journey and will be expanding into new use cases with products we develop internally and via potential acquisitions,” Behar said.

Early in the pandemic, retailers had to cope with surge buying, as customers emptied shelves of stock while preparing to stay at home. As the pandemic continued, buying patterns shifted dramatically and in April 2020, Forrester forecast COVID-19 would cause global retail sales to decline by an average of 9.6% globally, resulting in a loss of $2.1 trillion, and that it would take about four years for retailers to overtake pre-pandemic levels.

In a more recent report, Forrester found despite spending cuts, nearly 40% of retailers and wholesalers immediately increased their tech investment, in some cases implementing projects in weeks that would have otherwise taken years.

Behar said “the pandemic made it clear the retail industry was not prepared for a sudden change in demand, as consumers faced empty shelves and out-of-stocks for extended periods in key categories. These extreme shifts in consumer behavior, coupled with global supply chain disruptions, labor shortages, changing channel dynamics (such as e-commerce) and decrease in brand loyalty forced brands and retailers to develop new strategies to meet the evolving needs of their customers.”

He expects that willingness to adopt new technologies will continue after the pandemic. For example, to get shoppers back into brick-and-mortar stores, retailers might try things like in-store navigation, improved browsing, loyalty programs and new check out and payment systems.

Trax’s Retail Watch, Dynamic Merchandising and Dynamic Workforce Management solutions were in development before the pandemic, though “it has certainly expedited the need for innovative digital solutions to longstanding retail pain points,” Behar added.

For example, Retail Watch supports online ordering features, like showing what products are available to online shoppers and helping store associates fulfill orders, while Dynamic Merchandising lets brands find on-demand workers for in-store execution issues—for example, if new stock needs to be delivered to a location immediately.

Other tech companies focused on retail analytics include Quant Retail, Pensa Systems and Bossa Nova Robotics. Behar said Trax differentiates with a cloud-based platform that is “extensible, flexible and scalable and combines multiple integrated technologies and data-collection methods, optimized to fit each store, such as IoT-enabled shelf-edge cameras, dome cameras, autonomous robots and images taken from smartphones, to enable complete and accurate store coverage.”

Its proprietary computer vision technology was also designed specifically for use in retail stores, and identifies individual SKUs on shelves, regardless of category. For example, Behar said it can distinguish between near identical or multiple products, deal with visual obstructions like odd angles or products that are obscured by another item and recognize issues with price tags.

“Like many innovative solutions, our most meaningful competition comes from the legacy systems deeply entrenched in the world of retail and the fear of change,” he added. “While we do see an acceleration of interest and adoption of digital innovation as a result of the ‘COVID effect,’ this is by far our biggest challenge.”

In a press statement, SoftBank Investment Advisers director Chris Lee said, “Through its innovative AI platform and image recognition technologies, we believe Trax is optimizing retail stores by enabling [consumer packaged goods] brands and retailers to execute better inventory strategies using data and analytics. We are excited to partner with the Trax team to help expand their product offerings and enter new markets.”

Lyron Foster is a Hawaii based African American Musician, Author, Actor, Blogger, Filmmaker, Philanthropist and Multinational Serial Tech Entrepreneur.

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Vietnamese electric motorbike startup Dat Bike raises $2.6M led by Jungle Ventures

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Son Nguyen, founder and chief executive officer of Dat Bike on one of the startup's motorbikes

Son Nguyen, founder and chief executive officer of Dat Bike

Dat Bike, a Vietnamese startup with ambitions to become the top electric motorbike company in Southeast Asia, has raised $2.6 million in pre-Series A funding led by Jungle Ventures. Made in Vietnam with mostly domestic parts, Dat Bike’s selling point is its ability to compete with gas motorbikes in terms of pricing and performance. Its new funding is the first time Jungle Ventures has invested in the mobility sector and included participation from Wavemaker Partners, Hustle Fund and iSeed Ventures.

Founder and chief executive officer Son Nguyen began learning how to build bikes from scrap parts while working as a software engineer in Silicon Valley. In 2018, he moved back to Vietnam and launched Dat Bike. More than 80% of households in Indonesia, Malaysia, Thailand and Vietnam own two-wheeled vehicles, but the majority are fueled by gas. Nguyen told TechCrunch that many people want to switch to electric motorbikes, but a major obstacle is performance.

Nguyen said that Dat Bike offers three times the performance (5 kW versus 1.5 kW) and 2 times the range (100 km versus 50 km) of most electric motorbikes in the market, at the same price point. The company’s flagship motorbike, called Weaver, was created to compete against gas motorbikes. It seats two people, which Nguyen noted is an important selling point in Southeast Asian countries, and has a 5000W motor that accelerates from 0 to 50 km per hour in three seconds. The Weaver can be fully charged at a standard electric outlet in about three hours, and reach up to 100 km on one charge (the motorbike’s next iteration will go up to 200 km on one charge).

Dat Bike’s opened its first physical store in Ho Chi Minh City last December. Nguyen said the company “has shipped a few hundred motorbikes so far and still have a backlog of orders.” He added that it saw a 35% month-over-month growth in new orders after the Ho Chi Minh City store opened.

At 39.9 million dong, or about $1,700 USD, Weaver’s pricing is also comparable to the median price of gas motorbikes. Dat Bike partners with banks and financial institutions to offer consumers twelve-month payment plans with no interest.

“These guys are competing with each other to put the emerging middle class of Vietnam on the digital financial market for the first time ever and as a result, we get a very favorable rate,” he said.

While Vietnam’s government hasn’t implemented subsidies for electric motorbikes yet, the Ministry of Transportation has proposed new regulations mandating electric infrastructure at parking lots and bike stations, which Nguyen said will increase the adoption of electric vehicles. Other Vietnamese companies making electric two-wheeled vehicles include VinFast and PEGA.

One of Dat Bike’s advantages is that its bikes are developed in house, with locally-sourced parts. Nguyen said the benefits of manufacturing in Vietnam, instead of sourcing from China and other countries, include streamlined logistics and a more efficient supply chain, since most of Dat Bike’s suppliers are also domestic.

“There are also huge tax advantages for being local, as import tax for bikes is 45% and for bike parts ranging from 15% to 30%,” said Nguyen. “Trade within Southeast Asia is tariff-free though, which means that we have a competitive advantage to expand to the region, compare to foreign imported bikes.”

Dat Bike plans to expand by building its supply chain in Southeast Asia over the next two to three years, with the help of investors like Jungle Ventures.

In a statement, Jungle Ventures founding partner Amit Anand said, “The $25 billion two-wheeler industry in Southeast Asia in particular is ripe for reaping benefits of new developments in electric vehicles and automation. We believe that Dat Bike will lead this charge and create a new benchmark not just in the region but potentially globally for what the next generation of two-wheeler electric vehicles will look and perform like.”

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Binance Labs leads $1.6M seed round in DeFi startup MOUND, the developer of Pancake Bunny

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Decentralized finance startup MOUND, known for its yield farming aggregator Pancake Bunny, has raised $1.6 million in seed funding led by Binance Labs. Other participants included IDEO CoLab, SparkLabs Korea and Handshake co-founder Andrew Lee.

Built on Binance Smart Chain, a blockchain for developing high-performance DeFi apps, MOUND says Pancake Bunny now has over 30,000 daily average users, and has accumulated more than $2.1 billion in total value locked (TVL) since its launch in December 2020.

The new funding will be used to expand Pancake Bunny and develop new products. MOUND recently launched Smart Vaults and plans to unveil Cross-Chain Collateralization in about a month, bringing the startup closer to its goal of covering a wide range of DeFi use cases, including farming, lending and swapping.

Smart Vaults are for farming single asset yields on leveraged lending products. It also automatically checks if the cost of leveraging may be more than anticipated returns and can actively lend assets for MOUND’s cross-chain farming.

Cross-Chain Collateralization is cross-chain yield farming that lets users keep original assets on their native blockchain instead of relying on a bridge token. The user’s original assets serve as collateral when the Bunny protocol borrows assets on the Binance Smart Chain for yield farming. This allows users to keep assets on native blockchains while giving them liquidity to generate returns on the Binance Smart Chain.

In statement, Wei Zhou, Binance chief financial officer, and head of Binance Labs and M&A’s, said “Pancake Bunny’s growth and MOUND’s commitent to execution are impressive. Team MOUND’s expertise in live product design and servie was a key factor in our decision to invest. We look forward to expanding the horizons of Defi together with MOUND.”

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Battery Resourcers raises $20M to commercialize its recycling-plus-manufacturing operations

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As a greater share of the transportation market becomes electrified, companies have started to grapple with how to dispose of the thousands of tons of used electric vehicle batteries that are expected to come off the roads by the end of the decade.

Battery Resourcers proposes a seemingly simple solution: recycle them. But the company doesn’t stop there. It’s engineered a “closed loop” process to turn that recycled material into nickel-manganese-cobalt cathodes to sell back to battery manufacturers. It is also developing a process to recover and purify graphite, a material used in anodes, to battery-grade.

Battery Resourcers’ business model has attracted another round of investor attention, this time with a $20 million Series B equity round led by Orbia Ventures, with injections from At One Ventures, TDK Ventures, TRUMPF Venture, Doral Energy-Tech Ventures and InMotion Ventures. Battery Resourcers CEO Mike O’Kronley declined to disclose the company’s new valuation.

The cathode and anode, along with the electrolyzer, are major components of battery architecture, and O’Kronley told TechCrunch it is this recycling-plus-manufacturing process that distinguishes the company from other recyclers.

“When we say that we’re on the verge of revolutionizing this industry, what we are doing is we are making the cathode active material — we’re not just recovering the metals that are in the battery, which a lot of other recyclers are doing,” he said. “We’re recovering those materials, and formulating brand new cathode active material, and also recovering and purifying the graphite active material. So those two active materials will be sold to a battery manufacturer and go right back into the new battery.”

“Other recycling companies, they’re focused on recovering just the metals that are in [batteries]: there’s copper, there’s aluminum, there’s nickel, there’s cobalt. They’re focused on recovering those metals and selling them back as commodities into whatever industry needs those metals,” he added. “And they may or may not go back into a battery.”

The company says its approach could reduce the battery industry’s reliance on mined metals — a reliance that’s only anticipated to grow in the coming decades. A study published last December found that demand for cobalt could increase by a factor of 17 and nickel by a factor of 28, depending on the size of EV uptake and advances in battery chemistries.

Thus far, the company’s been operating a demonstration-scale facility in Worcester, Massachusetts, and has expanded into a facility in Novi, Michigan, where it does analytical testing and material characterization. Between the two sites, the company can make around 15 tons of cathode materials a year. This latest funding round will help facilitate the development of a commercial-scale facility, which Battery Resourcers said in a statement will boost its capacity to process 10,000 tons of batteries per year, or batteries from around 20,000 EVs.

Another major piece of its proprietary recycling process is the ability to take in both old and new EV batteries, process them and formulate the newest kind of cathodes used in today’s batteries. “So they can take in 10-year-old batteries from a Chevy Volt and reformulate the metals to make the high-Ni cathode active materials in use today,” a company spokesman explained to TechCrunch.

Battery Resourcers is already receiving inquiries from automakers and consumer electronics companies, O’Kronley said, though he did not provide additional details. But InMotion Ventures, the venture capital arm of Jaguar Land Rover, said in a statement its participation in the round as a “significant investment.”

“[Battery Resourcers’] proprietary end-to-end recycling process supports Jaguar Land Rover’s journey to become a net zero carbon business by 2039,” InMotion managing director Sebastian Peck said.

Battery Resourcers was founded in 2015 after being spun out from Massachusetts’ Worcester Polytechnic Institute. The company has previously received support from the National Science Foundation and the U.S. Advanced Battery Consortium, a collaboration between General Motors, Ford Motor Company and Fiat Chrysler Automobiles.

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