<span>Monthly Archives</span><h1>July 2019</h1>
    Tech News

    T-Mobile and Sprint get DOJ approval for $26 billion merger deal

    July 26, 2019

    The U.S. Department of Justice this morning gave the green light to T-Mobile US and Sprint for their proposed $26 billion merger. The deal, which would combine the nation’s third and fourth largest carriers (by subscriber number) has been green lit on the condition that Sprint sell its prepaid assets (including Boost Mobile) to Dish Network.

    As part of the deal, some nine million prepaid subscribers will move over to Dish, which will also have access to T-Mobile/Sprint’s network for a period of seven years.

    The proposed merger has been under regulatory scrutiny for some time now, as the deal will leave three major wireless carriers accounting for more than 95% of U.S. mobile phone customers. Last month, a group of attorneys general led by New York and California sued to block the deal over concerns that limiting competition would ultimately drive up prices for consumers.

    “The promises made by Dish and T-Mobile in this deal are the kinds of promises only robust competition can guarantee,” New York Attorney General Letitia James said in a statement offered to TechCrunch. “We have serious concerns that cobbling together this new fourth mobile player, with the government picking winners and losers, will not address the merger’s harm to consumers, workers, and innovation.”

    A spokesperson for California’s AG tells TechCrunch that the office is currently reviewing the settlement. As it stands, the lawsuit could still present a hurdle for the deal.

    “The reported deal would eliminate Sprint, an established competitor in the wireless marketplace, and replace it with Dish, an unproven newcomer that has no experience in building its own wireless network, which it will need to build essentially from scratch,” George Slover, senior policy counsel for Consumer Reports said in a statement. “The deal reportedly gives DISH some of the building blocks it will need to make a go of it. But it could take years for DISH to get to the point where Sprint is now — if it ever gets there.”

    Proponents of the deal, meanwhile, have argued that the merger will actually make a combined T-Mobile/Sprint more competitive with category leaders Verizon and AT&T. Under the deal, T-Mobile (as it will be known) will represent around 80 million consumers in the U.S., making it a much closer third place to the around 100 million subscribers both top carriers currently have. They have argued separately that a deal would make it easier to compete with AT&T and Verizon in the push to deploy 5G, a sentiment with which the DOJ appears to agree.

    “With this merger and accompanying divestiture, we are expanding output significantly by ensuring large amounts of currently unused or underused spectrum are made available to American consumers in the form of high quality 5G networks,” DOJ antitrust chief Makan Delrahim told The Wall Street Journal.

    T-Mobile has been particularly aggressive in its lobbying attempts, after years of suggesting a proposed merger. Notably, its CEO John Legere and other executives have spent a combined $195,000 at D.C.’s Trump International Hotel since last April.

    Source: Tech Crunch Mobiles | T-Mobile and Sprint get DOJ approval for billion merger deal

    Startups

    FeaturePeek wants to put an end to last-minute, front-end design reviews

    July 26, 2019

    FeaturePeek, a member of the Y Combinator Summer 2019 cohort, wants to change the way companies review front-end interfaces. Instead of kludging together reviews with screenshots or involving product managers and marketing people at the last minute, they want to make it easy to carry out reviews throughout the development cycle.

    “FeaturePeek allows product teams and designers to give feedback on new front-end work as the developers are working on it, and as a pull request is open. So that while it is still top of mind for the engineer, you can make critical changes, and then really focus on actual QA during your QA cycle,” co-founder Eric Silverman told TechCrunch

    Like so many startups, the two co-founders, Silverman and long-time friend and former college roommate Jason Barry, started the company after experiencing first-hand the pain of last-minute reviews.

    “We both started our careers at Apple, and then we were both at a SaaS startup a few years ago, and noticed that every night or two before the release, the product team and designers start chiming in on our staging environments, saying, ‘Oh, this isn’t really what I meant,’ ” Silverman explained. This created frustration and a lot of last-minute changes just as the site was supposed to go live.

    They understood that this system was fundamentally flawed through nobody’s fault. It’s just the way the process had developed over time, but they also knew everyone would benefit if they could get the product and marketing teams involved much sooner in the design cycle. “There wasn’t really good tooling to do these kind of reviews earlier in the cycle. Engineers have code review tools. [Others] have their own QA and staging environment, but those don’t really solve the right time to review new front-end implementations,” he said.

    Being engineers, the founders built the tool right into GitHub. Once installed, after engineers commit their front-end code to GitHub, FeaturePeek automatically spins up a review environment in the background. Once complete, any stakeholders can go in and comment on the design as the design is happening, and is still front of mind for the engineers, instead of at the last minute.

    Silverman and Barry began developing the product in January after the company they had been working at shut down. They were encouraged by some Y Combinator alum to apply to YC and were pleasantly surprised to get an interview. They were even happier to be invited to join the Summer 2019 class.

    As engineers, they are used to spending their days coding, but that’s not always the case anymore. As startup founders, they have to worry about sales, marketing and networking, and so many more responsibilities beyond the coding side of things. They say YC has really helped them understand those new roles.

    They have been thinking about this project for over a year, and they say being in Y Combinator has helped them move beyond their own ideas and start to put together a viable business.


    Source: Tech Crunch Startups | FeaturePeek wants to put an end to last-minute, front-end design reviews

    Startups

    Muzmatch adds $7M to swipe right on Muslim-majority markets

    July 26, 2019

    Muzmatch, a matchmaking app for Muslims, has just swiped a $7 million Series A on the back of continued momentum for its community-sensitive approach to soulmate searching for people of the Islamic faith.

    It now has more than 1.5 million users of its apps, across 210 countries, swiping, matching and chatting online as they try to find “the one.”

    The funding, which Muzmatch says will help fuel growth in key international markets, is jointly led by U.S. hedge fund Luxor Capital and Silicon Valley accelerator Y Combinator — the latter having previously selected Muzmatch for its summer 2017 batch of startups. 

    Last year the team also took in a $1.75 million seed led by Fabrice Grinda’s FJ Labs, YC and others.

    We first covered the startup two years ago when its founders were just graduating from YC. At that time there were two of them building the business: Shahzad Younas and Ryan Brodie — perhaps an unlikely pairing in this context, given Brodie’s lack of a Muslim background. He joined after meeting Younas, who had earlier quit his job as an investment banker to launch Muzmatch. Brodie got excited by the idea and early traction for the MVP. The pair went on to ship a relaunch of the app in mid 2016, which helped snag them a place at YC.

    So why did Younas and Brodie unmatch? All the remaining founder can say publicly is that its investors are buying Brodie’s stake. (While, in a note on LinkedIn — celebrating what he dubs the “bittersweet” news of Muzmatch’s Series A — Brodie writes: “Separate to this raise I decided to sell my stake in the company. This is not from a lack of faith — on the contrary — it’s simply the right time for me to move on to startup number 4 now with the capital to take big risks.”)

    Asked what’s harder, finding a steady co-founder or finding a life partner, Younas responds with a laugh. “With myself and Ryan, full credit, when we first joined together we did commit to each other, I guess, a period of time of really going for it,” he ventures, reaching for the phrase “conscious uncoupling” to sum up how things went down. “We both literally put blood, sweat and tears into the app, into growing what it is. And for sure without him we wouldn’t be as far as we are now, that’s definitely true.”

    “For me it’s a fantastic outcome for him. I’m genuinely super happy for him. For someone of his age and at that time of his life — now he’s got the ability to start another startup and back himself, which is amazing. Not many people have that opportunity,” he adds.

    Younas says he isn’t looking for another co-founder at this stage of the business, though he notes they have just hired a CTO — “purely because there’s so much to do that I want to make sure I’ve got a few people in certain areas.”

    The team has grown from just four people seven months ago to 17 now. With the Series A the plan is to further expand headcount to almost 30.

    “In terms of a co-founder, I don’t think, necessarily, at this point it’s needed,” Younas tells TechCrunch. “I obviously understand this community a lot. I’ve equally grown in terms of my role in the company and understanding various parts of the company. You get this experience by doing — so now I think definitely it helps having the simplicity of a single founder and really guiding it along.”

    Despite the co-founders parting ways, there’s no doubting Muzmatch’s momentum. Aside from solid growth of its user base (it was reporting ~200,000 two years ago), its press release touts 30,000+ “successes” worldwide — which Younas says translates to people who have left the app and told it they did so because they met someone on Muzmatch.

    He reckons at least half of those left in order to get married — and for a matchmaking app, that is the ultimate measure of success.

    “Everywhere I go I’m meeting people who have met on Muzmatch. It has been really transformative for the Muslim community where we’ve taken off — and it is amazing to see, genuinely,” he says, suggesting the real success metric is “much higher because so many people don’t tell us.”

    Nor is he worried about being too successful, despite 100 people a day leaving because they met someone on the app. “For us that’s literally the best thing that can happen because we’ve grown mostly by word of mouth — people telling their friends ‘I met someone on your app.’ Muslim weddings are quite big, a lot of people attend and word does spread,” he says.

    Muzmatch was already profitable two years ago (and still is, for “some” months, though that’s not been a focus), which has given it leverage to focus on growing at a pace it’s comfortable with as a young startup. But the plan with the Series A cash is to accelerate growth by focusing attention internationally on Muslim-majority markets versus an early focus on markets, including the U.K. and the U.S., with Muslim-minority populations.

    This suggests potential pitfalls lie ahead for the team to manage growth in a sustainable way — ensuring scaling usage doesn’t outstrip their ability to maintain the “safe space” feel the target users need, while at the same time catering to the needs of an increasingly diverse community of Muslim singles.

    “We’re going to be focusing on Muslim-majority countries where we feel that they would be more receptive to technology. There’s slightly less of a taboo around finding someone online. There’s culture changes already happening, etc.,” he says, declining to name the specific markets they’ll be fixing on. “That’s definitely what we’re looking for initially. That will obviously allow us to scale in a big way going forward.

    “We’ve always done [marketing] in a very data-driven way,” he adds, discussing his approach to growth. “Up til now I’ve led on that. Pretty much everything in this company I’ve self taught. So I learnt, essentially, how to build a growth engine, how to scale and optimize campaigns, digital spend, and these big guys have seen our data and they’re impressed with the progress we’ve made, and the customer acquisition costs that we’ve achieved — considering we really are targeting quite a niche market… Up til now we closed our Series A with more than half our seed round in our accounts.”

    Muzmatch has also laid the groundwork for the planned international push, having already fully localized the app — which is live in 14 languages, including right-to-left languages like Arabic.

    “We’re localized and we get a lot of organic users everywhere but obviously once you focus on a particular area — in terms of content, in terms of your brand etc. — then it really does start to take off,” adds Younas.

    The team’s careful catering to the needs of its target community — via things like manual moderation of every profile and offering an optional chaperoning feature for in-app chats — i.e. rather than just ripping out a “Tinder for Muslims” clone, can surely take some credit for helping to grow the market for Muslim matchmaking apps overall.

    “Shahzad has clearly made something that people want. He is a resourceful founder who has been listening to his users and in the process has developed an invaluable service for the Muslim community, in a way that mainstream companies have failed to do,” says YC partner Tim Brady in a supporting statement. 

    But the flip side of attracting attention and spotlighting a commercial opportunity means Muzmatch now faces increased competition — such as from the likes of Dubai-based Veil: A rival matchmaking app that has recently turned heads with a “digital veil” feature that applies an opaque filter to all profile photos, male and female, until a mutual match is made.

    Muzmatch also lets users hide their photos, if they choose. But it has resisted imposing a one-size-fits-all template on the user experience — exactly in order that it can appeal more broadly, regardless of the user’s level of religious adherence (it has even attracted non-Muslim users with a genuine interest in meeting a life partner).

    Younas says he’s not worried about fresh faces entering the same matchmaking app space — couching it as a validation of the market.

    He’s also dismissive of gimmicky startups that can often pass through the dating space, usually on a fast burn to nowhere… though he is expecting more competition from major players, such as Tinder-owner Match, which he notes has been eyeing up some of the same geographical markets.

    “We know there’s going to be attention in this area,” he says. “Our goal is to basically continue to be the dominant player but for us to race ahead in terms of the quality of our product offering and obviously our size. That’s the goal. Having this investment definitely gives us that ammo to really go for it. But by the same token I’d never want us to be that silly startup that just burns a tonne of money and ends up nowhere.”

    “It’s a very complex population, it’s very diverse in terms of culture, in terms of tradition,” he adds of the target market. “We so far have successfully been able to navigate that — of creating a product that does, to the user, marries technology with respecting the faith.”

    Feature development is now front of mind for Muzmatch as it moves into the next phase of growth, and as — Younas hopes — it has more time to focus on finessing what its product offers, having bagged investment by proving product market fit and showing traction.

    “The first thing that we’re going to be doing is an actual refreshing of our brand,” he says. “A bit of a rebrand, keeping the same name, a bit of a refresh of our brand, tidying that up. Actually refreshing the app, top to bottom. Part of that is looking at changes that have happened in the — call it — ‘dating space’. Because what we’ve always tried to do is look at the good that’s happening, get rid of the bad stuff, and try and package it and make it applicable to a Muslim audience.

    “I think that’s what we’ve done really well. And I always wanted to innovate on that — so we’ve got a bunch of ideas around a complete refresh of the app.”

    Video is one area they’re experimenting with for future features. TechCrunch’s interview with Younas takes place via a video chat using what looks to be its own videoconferencing platform (correction: it was using a video room powered by appear.in), though there’s not currently a feature in Muzmatch that lets users chat remotely via video.

    Its challenge on this front will be implementing richer comms features in a way that a diverse community of religious users can accept.

    “I want to — and we have this firmly on our roadmap, and I hope that it’s within six months — be introducing or bringing ways to connect people on our platform that they’ve never been able to do before. That’s going to be key. Elements of video is going to be really interesting,” says Younas teasing their thinking around video.

    “The key for us is how do we do [videochat] in a way that is sensible and equally gives both sides control. That’s the key.”

    Nor will it just be “simple video.” He says they’re also looking at how they can use profile data more creatively, especially for helping more private users connect around shared personality traits.

    “There’s a lot of things we want to do within the app of really showing the richness of our profiles. One thing that we have that other apps don’t have are profiles that are really rich. So we have about 22 different data points on the profile. There’s a lot that people do and want to share. So the goal for us is how do we really try and show that off?

    “We have a segment of profiles where the photos are private, right, people want that anonymity… so the goal for us is then saying how can we really show your personality, what you’re about in a really good way. And right now I would argue we don’t quite do it well enough. We’ve got a tonne of ideas and part of the rebrand and the refresh will be really emphasizing and helping that segment of society who do want to be private but equally want people to understand what they’re about.”

    Where does he want the business to be in 12 months’ time? With a more polished product and “a lot of key features in the way of connecting the community around marriage — or just community in general.”

    In terms of growth, the aim is at least 4x from where they are now.

    “These are ambitious targets. Especially given the amount that we want to re-engineer and rebuild but now is the time,” he adds. “Now we have the fortune of having a big team, of having the investment. And really focusing and finessing our product… Really give it a lot of love and really give it a lot of the things we’ve always wanted to do and never quite had the time to do. That’s the key.

    “I’m personally super excited about some of the stuff coming up because it’s a big enabler — growing the team and having the ability to really execute on this a lot faster.”


    Source: Tech Crunch Startups | Muzmatch adds M to swipe right on Muslim-majority markets

    Startups

    Why the hell is Robinhood worth $7.6B?

    July 26, 2019

    Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.

    This was a special week for us because Danny was back in the office, which meant we cornered him into coming on the show. Danny, of course, is an Equity regular. Also aboard this week were our regular hosts, Kate and Alex.

    We were relieved to have three hosts, because there was a lot of news to get through, from IPOs to late-stage financings to little seed fundings, and, we shit you not, camping!

    Up first was the rapidly approaching WeWork IPO. WeWork, also known as The We Company, filed to go public some time ago. So we weren’t terribly surprised to learn the company is plotting a September listing. Though that’s earlier than we’d been expecting, we’re not complaining. If the sooner-than-anticipated IPO is due to market timing, or the company simply being ready, we don’t know yet. But we will when we see the numbers. Bring on the S-1 filing.

    Next, Alex took us through a few recent and upcoming IPOs. He promised to be brief, so we’ll mirror the feat here. Last week Phreesia, Medallia and DouYu went public (notes here), Livongo got out this week (S-1 review here) and 9F and CloudMinds have filed. Expect more IPO news in time, whether you want it or not.

    Leaving the public markets, Kate had words concerning the forthcoming Bird round that has yet to close. The company is raising its Series D led by Sequoia at a $2.5 billion valuation. Listen to the episode for your weekly scooter rant.

    Next, Danny took us through the Robinhood round, which brought us to a discussion point. Alex wanted to compare Robinhood to Slack, when the latter company was worth about the same amount as Robinhood is now. Kate objected to the comparison; one’s an enterprise software business and the other a fintech giant. Still, Alex had lots of great points.

    We then turned to HipCamp. The company, known as Airbnb for camping, raised a nice round of funding at a $127 million valuation. Andreessen Horowitz was involved via new general partner Andrew Chen, who recently announced another deal in the email subscription platform Substack. We’re betting Airbnb gobbles up HipCamp at some point.

    We also touched on Gusto’s $200 million raise (and its constituent new valuation), before closing with the now-very-probable Vision Fund 2.0 and its Microsoft connection.

    All that and we left even more material on the floor due to time. Make sure to check out Equity on Spotify if you haven’t seen us over there before. Click here to find the show.

    Equity drops every Friday at 6:00 am PT, so subscribe to us on Apple PodcastsOvercast, Spotify, Pocket Casts, Downcast and all the casts.


    Source: Tech Crunch Startups | Why the hell is Robinhood worth .6B?

    Tech News

    WhatsApp reaches 400 million users in India, its biggest market

    July 26, 2019

    WhatsApp has amassed more than 400 million users in India, the instant messaging app confirmed today, reaffirming its gigantic reach in its biggest market.

    Amitabh Kant, CEO of highly influential local think-tank NITI Aayog, revealed the new stat at a press conference held by WhatsApp in New Delhi on Thursday. A WhatsApp spokesperson confirmed that the platform indeed had more than 400 million monthly active users in the country.

    The remarkable revelation comes more than two years after WhatsApp said it had hit 200 million users in India. WhatsApp — or Facebook — did not share any India-specific users count in the period in between.

    The public disclosure today should help Facebook reaffirm its dominance in India, where it appears to be used by nearly every smartphone user. According to research firm Counterpoint, India has about 450 million smartphone users. (Some other research firms peg the number to be lower.)

    It’s worth pointing out that WhatsApp also supports KaiOS — a mobile operating system for feature phones. Millions of KaiOS-powered JioPhone handsets have shipped in India. Additionally, there are about 500 million internet users, according to several industry estimates.

    As WhatsApp becomes ubiquitous in the nation, the service is increasingly mutating to serve additional needs. Businesses such as social-commerce app Meesho have been built on top of WhatsApp. Facebook backed Meesho recently in what was its first investment of this kind in an Indian startup. Then, of course, WhatsApp has also come under hot water for its role in the spread of false information in the nation.

    As ByteDance and others aggressively expand their businesses in India, Facebook’s perceived dominance in the country has come under attack in recent months. ByteDance’s TikTok, which has amassed 120 million users in India, has been heralded by many as the top competitor of Facebook.

    A WhatsApp spokesperson also told TechCrunch that India remains WhatsApp’s biggest market. In 2017, Facebook said its marquee service had about 250 million users in India — a figure it has not updated in the years since.

    WhatsApp, which has about 1.5 billion monthly active users worldwide, does not really have any major competitor in India. The closest to a competitor it has in the country is Messenger, another platform owned by Facebook, and Hike, which millions of users check everyday. Times Internet — an internet conglomerate in India that runs several news outlets, entertainment services and more — claims to reach 450 million users in the country each month.

    At the aforementioned press conference, WhatsApp global chief Will Cathcart said WhatsApp also plans to roll out WhatsApp Pay, its payment service, to all its users toward the end of the year — something TechCrunch reported earlier.

    Its arrival in India’s burgeoning payments space could create serious tension for Google Pay, Flipkart’s PhonePe and Paytm. For Facebook, WhatsApp Pay’s success is even more crucial as the company currently has no plans to bring cryptocurrency wallet Calibra to the country, it told TechCrunch on the sidelines of the Libra and Calibra unveil.

    In a series of announcements this week, WhatsApp also unveiled a tie-up with NITI Aayog to promote women’s entrepreneurship. “By launching ‘gateway to a billion opportunities’ and our digital skills training program, we hope to shine a light on the amazing work already happening and build the next generation of entrepreneurs and change makers,” said Cathcart.

    At a conference in Mumbai on Wednesday, Cathcart announced a partnership with the Indian School of Public Policy — India’s first program in the theory and practice of public policy, product design and management — to bring a series of privacy design workshops to future policy makers. These workshops will explore “the importance and practice of privacy-centric design to help technology make a positive impact on society,” the Facebook-owned platform said.

    Source: Tech Crunch Mobiles | WhatsApp reaches 400 million users in India, its biggest market