Connect with us

Techcrunch

A trove of imported console games vanish from Chinese online stores – TechCrunch

In the world’s largest gaming market, China, console games play a relatively small part as their revenue has been meager compared to mobile and PC games for years — at least by the official numbers (more on this later). There remains a community of hardcore console lovers, but they are finding it harder to get […]

Published

on

In the world’s largest gaming market, China, console games play a relatively small part as their revenue has been meager compared to mobile and PC games for years — at least by the official numbers (more on this later). There remains a community of hardcore console lovers, but they are finding it harder to get hold of devices and cartridges recently.

A handful of grey market videogame console vendors on Taobao stopped selling and shipping this week, according to checks by TechCrunch and online posts by gamers. Before we examine what might be happening here, a bit of industry history is needed.

In 2000, China banned the sale and import of videogame consoles as concerns over addiction in teenagers grew. Even with the ban, imported consoles still existed in the grey market targeting a group of loyal players. Meanwhile, the online PC and mobile gaming industry flourished, in part thanks to their affordability and the social experience built into their mechanics.

When China finally lifted its restriction on consoles in 2015, giants like Sony and Microsoft quickly responded by releasing Chinese editions of their products through local partners. Nintendo Switch hit the Chinese shelves in 2019 via a much-anticipated partnership with Tencent, which itself is the world’s largest gaming firm. But the grey market largely persisted because mainland Chinese versions of the consoles are subject to strict regulatory oversight, which limits users’ choice to a small friendly range approved by censors.

Many Chinese players thus resort to brick-and-mortar electronics bazaars and online marketplaces to find imported editions of PlayStation, Xbox, and Nintendo Switch, along with their games. These products normally enter China through parallel trading, the import of legitimate goods through unauthorized channels. The games that are brought in normally lack a Chinese gaming license, which is hard to obtain even by local publishers.

Several major videogame console importers on Taobao have suspended business. Screenshot: TechCrunch

It’s unclear how many imported consoles and console games were taken down from Taobao and what triggered the purge. Tgbus, one of the largest console game sellers on Taobao with 462,000 followers, currently has zero product listing. When asked by TechCrunch, a customer service staff said the store has temporarily halted shipping due to “a water leak in the warehouse.” When we pressed further, the person said it was due to “an electrical-equipment failure.”

Other vendors keep their responses vague, citing “special reasons” for the suspended services. One seller named the “Shanghai Gaming Console Store” said it suspended its business at the request of Taobao, without elaborating further.

Alibaba could not be immediately reached for comment.

The incident appears to inflict mostly console sellers with a sizable business at this moment. Imported cartridges and console devices can still be found on smaller Taobao stores and alternative platforms like Pinduoduo by searching the right keyword.

Some users see the move as China further tightening its grip on what gamers get to play. Over the past year, Apple’s China App Store removed thousands of games to wipe out games without China’s official greenlight. Other motives are politcal. Animal Crossing was pulled from grey market stores on Taobao and Pinduoduo after one of Hong Kong’s most well-known pro-democracy activists used the game as his protest ground.

Other users point out that customs officers regularly clamp down on parallel trading, which is designed to evade import tax because goods are carried by traders who appear as regular travelers. This isn’t the first time the console grey market has been hit, either. Some grey goods manage to fly under the radar before they attract critical sales. There are signs that the new Monster Hunter Rise, a Nintendo-Switch exclusive which isn’t available on the Chinese console edition, is stoking much interest among local players in recent weeks and may have driven some imports.

Many Chinese players thus resort to brick-and-mortar electronics bazaars and online marketplaces to find imported editions of PlayStation, Xbox, and Nintendo Switch, along with their games. These products normally enter China through parallel trading, the import of legitimate goods through unauthorized channels. The games that are brought in normally lack a Chinese gaming license, which is hard to obtain even by local publishers.

Source: https://techcrunch.com/2021/03/30/console-game-china-pulled-ecommerce/

a-trove-of-imported-console-games-vanish-from-chinese-online-stores-–-techcrunch

Techcrunch

Tiger Global in talks to back BharatPe at $2.5 billion valuation – TechCrunch

Indian fintech startup BharatPe is in advanced stages of talks to raise about $250 million in a new financing round led by Tiger Global, two sources familiar with the matter told TechCrunch. The new round, a Series E, is valuing the three-year-old New Delhi-headquartered firm at a pre-money valuation of $2.5 billion, sources said, requesting […]

Published

on

Indian fintech startup BharatPe is in advanced stages of talks to raise about $250 million in a new financing round led by Tiger Global, two sources familiar with the matter told TechCrunch.

The new round, a Series E, is valuing the three-year-old New Delhi-headquartered firm at a pre-money valuation of $2.5 billion, sources said, requesting anonymity as the matter is private. The round hasn’t closed, so terms may change, sources cautioned.

BharatPe, which prior to the new round had raised about $233 million in equity and $35 million in debt, was valued at about $900 million in its Series D round in February this year, and $425 million last year.

Indian news outlet the CapTable first reported about the talks between Tiger Global and BharatPe and said the round would value the startup at over $2 billion. BharatPe declined to comment.

BharatPe operates an eponymous service to help offline merchants accept digital payments and secure working capital. Even as India has already emerged as the second-largest internet market, with more than 600 million users, much of the country remains offline.

Among those outside of the reach of the internet are merchants running small businesses, such as roadside tea stalls and neighborhood stores. To make these merchants comfortable with accepting digital payments, BharatPe relies on QR codes and point of sale machines that support government-backed UPI payments infrastructure.

The startup, which serves more than 6 million merchants, said it had deployed over 50,000 PoS machines by November of last year, and enables monthly transactions worth more than $123 million. It does not charge merchants for universal QR code access, but is looking to make money by lending. Grover said the startup’s lending business grew by 10x in 2020.

On Friday, India’s central bank RBI granted an in-principle licence to Centrum Financial Services to set up a small finance bank. Centrum Financial Services has collaborated with BharatPe for the license, according to local media.

This is a big one! @bharatpeindia and Centrum at the final leg of a its Small Finance Bank license after receiving its ‘in-principle’ license.

First fintech in the offing to get a banking license in India! Changing face of fintech!https://t.co/d84GEM4NzH

— Osborne Saldanha (@os7borne) June 18, 2021

The startup is additionally also working to launch two new B2C apps, one of which will enable credit on QR UPI, another source familiar with the matter told TechCrunch. The new products will launch as soon as this month, the source said.

BharatPe operates an eponymous service to help offline merchants accept digital payments and secure working capital. Even as India has already emerged as the second-largest internet market, with more than 600 million users, much of the country remains offline.

Source: https://techcrunch.com/2021/06/18/tiger-global-in-talks-to-back-bharatpe-at-2-5-billion-valuation/

tiger-global-in-talks-to-back-bharatpe-at-$2.5-billion-valuation-–-techcrunch

Continue Reading

Techcrunch

Golden Gate Ventures forecasts a record number of exits in Southeast Asia – TechCrunch

Despite the pandemic’s economic impact, Southeast Asia’s startup ecosystem has proven to be very resilient. In fact, a new report from investment firm Golden Gate Ventures predicts a record number of exits will happen in the region over the next couple of years, thanks to factors like a maturing ecosystem, more secondary buyers and the […]

Published

on

Despite the pandemic’s economic impact, Southeast Asia’s startup ecosystem has proven to be very resilient. In fact, a new report from investment firm Golden Gate Ventures predicts a record number of exits will happen in the region over the next couple of years, thanks to factors like a maturing ecosystem, more secondary buyers and the emergence of SPACs.

The firm’s comprehensive “Southeast Asia Exit Landscape Report 2.0,” is a followup to a previous report published in 2019.

Here are some highlights from the latest report, along with additional insight from Golden Gate Ventures partner Michael Lints, its lead author. For both reports, Golden Gate Ventures partnered with business school INSEAD to survey general and limited partners in the region. It also draws on Golden Gate Ventures’ proprietary database, which dates back to 2012 and tracks information like the time between funding rounds and fundraising success rates, as well as public databases, reports and expert commentary from the New York Stock Exchange.

The overall exit landscape

Despite the pandemic’s economic impact, tech proved to be resilient globally (for example, there were a number of initial public offers in the United States at record prices). While Southeast Asia’s tech ecosystem is relatively younger, Lints told TechCrunch its resiliency was driven by companies founded years ago that suddenly saw an increase in demand for their services because of the pandemic.

“We’ve built infrastructure over the past eight to nine years, when it comes to e-commerce, logistics, some on the healthcare side as well, and when the pandemic happened, people were suddenly stuck at home,” Lints said. He added “If you look at the pickup for most of the e-commerce companies, they at least doubled their revenue. For last-mile logistics companies, they’ve increased their revenue. There was a lot of pickup on the digital healthcare side as well.”

While tech fared well compare to many other industries, one downside was that the COVID-19 pandemic caused overall global venture capital investment to decline. Southeast Asia’s startup ecosystem was not immune, and had less exits, but it still did relatively well, with $8.2 billion invested in 2020, according to a report by Cento Ventures and Tech In Asia.

It’s important to note that more than half of that funding was raised in very large rounds by unicorns like Grab, Go-jek and Traveloka, but Cento Ventures found there was also an increase in investments between $50 million to $100 million for other startups. These are usually Series B and C rounds, which Golden Gate Ventures says creates a strong pipeline for potential exits over the next three to four years.

“If you go back even just two years, the amount of B rounds that are happening now, I’ve never seen that number before. It’s a definite increase,” said Lints.

Investments are also continuing to flow into Southeast Asia. According to the report, there was $6 billion of funding in just the first quarter of 2021 (based on data from DealStreet Asia, PWC and Genesis Ventures), making it the strongest start to a year in the region’s history.

This bodes well for the possibility of mergers and acquisitions in 2021. The report found that there were less exits in 2019 and 2020 than in 2018, but not just because of the pandemic—many startups wanted to remain venture-backed for longer. Golden Gate Ventures expects M&A activity will pick up again. In 2021, it forecasts acquisition deals worth more than $30 million, large mergers and an increase in SPACs.

What’s in the pipeline

Golden Gate Ventures predicts that a total of 468 startup exits will happen between 2020 and 2022, compared to the 412 forecast in the previous edition of its report. This is due to more late-stage private equity investors, including secondary buyers, SPACs and a welcoming public market.

Lints said secondary buyers will include a mix of family offices, conglomerates and venture funds that want a higher allocation in a company or to pre-empt a forthcoming round.

“What I think is interesting is some of the later-stage funds, so private equity funds, and not only ones that are in Southeast Asia, but even foreign ones, are now looking to get a position in companies that they assume will be able to raise a Series D or Series E over the next few years. That’s something I haven’t seen before, it’s relatively new in the market,” he added.

Golden Gate Ventures expects M&A activity to continue being the main way Southeast Asian startups exit, potentially accounting for up to 80% of deals, followed by secondary sales (15%) and IPOs (5%).

In fact, there was a record number of M&A deals in 2020, despite the pandemic. Golden Gate Ventures estimates that 45 deals happened, especially in e-commerce, fintech, media, adtech and social networking, as larger companies acquired startups to grow their tech stacks.

More companies going public will create a cascading effect through Southeast Asia’s ecosystem. The report forecasts that companies like Gojek and Trax, who have already made several high-profile acquisitions, will continue buying startups if they list publicly and have more liquidity.

Series B and C deals

While there will be more exits, there are also more opportunities for companies to raise larger later-stage rounds to stay private, if they want to—a sign of Southeast Asia’s maturing ecosystem, said Lints.

As the pandemic unfolded in 2020, the number of pre-seed and seed deals fell. On the other hand, the report found that it became quicker for startups to raise Series B or C rounds, or less than 21 months on average.

“If you look at typical exits between 2015 to 2017, you could argue that some of those exits might have been too early because the company was still in a growth trajectory, but there was hardly any follow-on funding for them to expand to a new country, for instance, or build out a new product,” said Lints. “So their only revenue to raise money was to be acquired by a larger company so they could keep building the product.”

“I think now you’re able to raise that Series C round, which allows you to expand the company and stay private, as opposed to having to drive towards an exit,” he added. “I think that shows the maturity of the ecosystem now and, again, it’s a huge advantage because founders have these amazing things they want to build, and now actually have the capital to do so and to really try to compete, and that has definitely been a big change.”

Another good thing is that the increase in later-stage funding does not appear to be creating a pre-seed and seed funding gap. This is partly because early employees from mature companies that have raised massive rounds often branch out and become founders themselves. As they launch startups, they have the benefit of being familiar with how fundraising works and a network. For example, a significant number of alumni from Grab, Gojek and Lazada have gone on to found companies.

“They seem to be raising a lot faster, and I think the second thing that’s happening across the board is we’re seeing more scouts putting really early checks into companies,” said Lints. “My assumption is if you look at the Series A pipeline, which is still pretty long, that has to come from a large number of pre-seed and seed deals.”

Funds want to cash out

Another factor that may drive an increase in exits—especially M&A deals—are funds that have reached the point where they want to cash out. Golden Gate Ventures’ 2019 report forecast that the first batch of institutional venture funds launched in 2010 to 2012 will start reaching the end of their lifecycle in 2020. This means the general partners of these funds are exploring exit opportunities for their portfolios, leading to an increase in secondary and M&A deals.

This in turn will increase the number of secondary markets, which have typically been low in Southeast Asia. The original investors won’t necessarily push for portfolio companies to sell themselves, but instead look at secondary buyers who might be keen on mergers and M&A deals.

“The thing we’ve seen over the last 18 months is there’s been a larger pickup in the secondary markets, where later-stage investors, in some cases family-owned businesses or family offices, are looking to get access to deals that were started eight, nine or 10 years ago. You’ll see the cap tables of these companies change, and that does mean the founders will have different shareholders,” said Lints.

“These are typically for companies that are performing well, where you can foresee that they will be able to fundraise within the next 12 months. For the ones that are in a more difficult position, I think it’s going to be tricky,” he added. “When you have a portfolio of companies as a fund, that doesn’t necessarily mean that you can sell all 20 of them, so I think for some founders, the impact will be that they will need to make a decision to continue the business and buy back the shares their investors are holding, or are they going to liquidate the business or look for a trade sale.”

SPAC opportunities

The biggest SPAC news in Southeast Asia was Grab’s announcement it will go public in the United States following a $40 billion SPAC deal. Lints expects more Southeast Asian companies to take the SPAC route when going public. Not only does the process give them more flexibility, but for startups that want to list in the U.S., working with a SPAC can help them.

“My guess is with New York allowing direct listings, I think more and more people will shy away from the traditional IPO route and look at what is the fastest and most flexible way to list on a stock exchange. For Southeast Asia, listing has never been easy, so I think SPACs will definitely open the floodgates,” said Lints.

Barriers not only include regulatory filings, pre-IPO roadshows and high costs, but also “concern whether the international retail investor or public markets actually understand these companies in Southeast Asia,” he added. “If you have a very strong sponsor team that is running the SPAC, they can be super helpful in positioning the company, doing the marketing and getting interest from the market as well.”

Both the Singapore Exchange and Indonesian Stock Exchange are preparing to allow SPACs in an effort to attract more tech listings.

Lints said this will allow companies to consider a dual listing in Southeast Asia and the U.S. for larger returns. “A dual listing would be an amazing option and I think through the avenue of SPACs, that makes a lot of sense.”

While tech fared well compare to many other industries, one downside was that the COVID-19 pandemic caused overall global venture capital investment to decline. Southeast Asia’s startup ecosystem was not immune, and had less exits, but it still did relatively well, with $8.2 billion invested in 2020, according to a report by Cento Ventures and Tech In Asia.

Source: https://techcrunch.com/2021/06/15/golden-gate-ventures-forecasts-a-record-number-of-exits-in-southeast-asia/

golden-gate-ventures-forecasts-a-record-number-of-exits-in-southeast-asia-–-techcrunch

Continue Reading

Techcrunch

Jeff Bezos’ Blue Origin auctions off seat on first human spaceflight for $28M – TechCrunch

Blue Origin has its winning bidder for its first ever human spaceflight, and the winner will pay $28 million for the privilege of flying aboard the company’s debut private astronaut mission. The winning bid came in today during a live auction, which saw 7,600 registered bidders, from 159 countries compete for the spot. This was […]

Published

on

Blue Origin has its winning bidder for its first ever human spaceflight, and the winner will pay $28 million for the privilege of flying aboard the company’s debut private astronaut mission. The winning bid came in today during a live auction, which saw 7,600 registered bidders, from 159 countries compete for the spot.

This was the culmination of Blue Origin’s three part bidding process for the ticket, which included a blind auction first, followed by an open, asynchronous auction with the highest bid posted to the company’s website whenever it changed. This last live auction greatly ramped up the value of the winning bid, which was at just under $5 million prior to the event.

This first seat up for sale went for a lot more than what an actual, commercial spot is likely to cost on Blue Origin’s New Shepard capsule, which flies to suborbital space and only spends a few minutes there before returning to Earth. Estimates put the cost of a typical launch at someone under $1 million, likely closer to $500,000 or so. But this is the first, which is obviously a special distinction, and it’s also a trip that will allow the winning bidder to pretty much literally rub elbows with Blue Origin founder Jeff Bezos, who is going to be on the flight as well, along with his brother Mark, and a fourth passenger that Blue Origin says it will be announcing sometime in the coming “weeks,” ahead of the July 20 target flight date.

As for who won the auction, we’ll also have to wait to find that out, since the winner’s identity is also going to be “released in the weeks following” the end of today’s live bidding. And in case you thought that $28 million might represent a big revenue windfall for Blue Origin, which has spent years developing its human spaceflight capability, think again: The company is donating it to its Club for the Future non-profit foundation, which is focused on encouraging kids to pursue careers in STEM in a long-term bid to help Bezos’ larger goals of making humanity a spacefaring civilization.

You can re-watch the entire live bidding portion of the auction via the stream below.

As for who won the auction, we’ll also have to wait to find that out, since the winner’s identity is also going to be “released in the weeks following” the end of today’s live bidding. And in case you thought that $28 million might represent a big revenue windfall for Blue Origin, which has spent years developing its human spaceflight capability, think again: The company is donating it to its Club for the Future non-profit foundation, which is focused on encouraging kids to pursue careers in STEM in a long-term bid to help Bezos’ larger goals of making humanity a spacefaring civilization.

Source: https://techcrunch.com/2021/06/12/jeff-bezos-blue-origin-auctions-off-seat-on-first-human-spaceflight-for-28m/

jeff-bezos’-blue-origin-auctions-off-seat-on-first-human-spaceflight-for-$28m-–-techcrunch

Continue Reading

Title

CNBC1 hour ago

Explaining the volatile stock and bond market moves this week following the Fed’s update

The Fed unleashed a huge repositioning in markets, as investor reacted to a world where the central bank no longer...

ZDNET4 hours ago

How to build business credit

Business credit is vital for businesses that need to borrow money to grow. Building business credit is not impossible; it...

Blockchain news6 hours ago

Global Financial Indexes Provider MSCI Plans to Launch Crypto Indexes

Global securities index publisher MSCI is considering launching cryptocurrency indexes. Yet, Henry Fernandez, CEO of the MSCI did not disclose...

Business insider17 hours ago

Artificial Organs Market | $ 10.90 billion growth expected during5 | Technavio

NEW YORK, June 18, 2021 /PRNewswire/ -- The artificial organs market is expected to grow by USD 10.90 billion during...

Crunchbase20 hours ago

Curate Brings In $1.25M Seed For Small Business Sales, Operations Platform

The company's platform provides back office functions so that small businesses can focus on building clientele and maximizing profits.

Entrepreneur22 hours ago

3 Simple Things You Can Do to Build a Healthy, Thriving Email List

Your list is only as good as the number of real people on it.

Techcrunch1 day ago

Tiger Global in talks to back BharatPe at $2.5 billion valuation – TechCrunch

Indian fintech startup BharatPe is in advanced stages of talks to raise about $250 million in a new financing round...

Reuters1 day ago

Largest Boeing 737 MAX model set for maiden flight -source

Boeing Co (BA.N) was readying the largest member of its 737 MAX family for its maiden flight on Friday, a...

Entrepreneur2 days ago

Free Webinar | June 22: How to Grow & Thrive in an Evolving Business Landscape

SurveyMonkey CEO, Zander Lurie, shares how he's embraced change over his 20-plus year career.

CNBC2 days ago

The Fed moves up its timeline for rate hikes as inflation rises

However, the central bank gave no indication as to when it will begin cutting back on its aggressive bond-buying program.

Review

    Select language

    Trending