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How one company reached revenues of $200M without VC money – TechCrunch

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Welcome back to The TechCrunch Exchange, a weekly startups-and-markets newsletter. It’s broadly based on the daily column that appears on Extra Crunch, but free, and made for your weekend reading. Want it in your inbox every Saturday? Subscribe here

Ready? Let’s talk money, startups and spicy IPO rumors.

So very much happened this week. If you are just catching up, the Equity crew spent good time this week parsing through a host of recent early-stage venture capital rounds; if that’s your jam, head here. Today for the newsletter The Exchange is digging into later-stage news, though smaller startups will still make an appearance.

We begin with notes on a company that was net-new to me when I met it earlier this week: Nextiva. Now north of $200 million in revenue, the company is a quiet giant and, notably, has not taken venture capital funding along its path to scale.

Given how frequently conversation in the tech press concerns funding news it was a refreshing break to talk to Nextiva about how it managed to scale without leaning on high-burn growth and external capital.

Chatting with CEO and co-founder Tomas Gorny, I got to dig a little under the skin of the company’s history. It goes a little something like this: After moving to California in 1996 at the age of 20, Gorny eventually founded a web hosting company in 2001 after working for tech companies during the dot-com boom. The web hosting company wound up selling to another company called Endurance International in 2007, which sold as a combined entity for around a billion dollars in 2011, later going public before being taken private last month for $3 billion — you can read this TechCrunch piece that mentions Endurance from 2010 for a bit of the historical record.

Gorny founded Nextiva in 2008, focused on what it describes today as “UcaaS,” or unified communications as a service. The startup grew to about $40 million in annual recurring revenue (ARR), at which point it ran into issues with a third-party system that would integrate hardware, and support and services software, which sparked a shift in its thinking. The company set out to build a platform.

Nextiva expanded horizontally, adding CRM software, analytics and other functionality to its broader suite as it scaled. And it grew efficiently; starting with money from its founding team, Gorny told TechCrunch that even if he had used someone else’s money, he would have built the company in the same manner.

The platform switch was expensive, with Nextiva calculating that it spent $100 million on the project, telling TechCrunch that it might have been able to grow more quickly in the short-term if it had only focused on its original offerings.

The platform work that Nextiva has spent so much time and money on is now in the market, and after scaling from $100 million ARR in 2016 to $200 million this year, the company now considers itself to have completed the evolution to platform status. Which raised my hackles slightly, as quite literally every company wants to be a platform. And nearly none of them are.

Gorny, however, swayed me somewhat with his thinking on the matter. Nextiva built a suite of products, he explained, but wasn’t a platform at that point. Correct. However, he argued that the company became one when it built a system that created a shared pool of customer data for all its apps and services, allowing Nextiva to build faster on top of its foundational layer. By the definition of platform that precedes tech’s abuse of the word, that seems fair.

What’s next for Nextiva? Growing at more than 30% a year, it could go public. Given that it is self-funded, it cannot have horrorshow cash burn by definition and meet requisite benchmarks for an IPO. Even more, while Gorny did highlight that being private allowed his company to accelerate and decelerate growth when it wanted to focus more on product work, I got the impression that Nextiva wants to be better-known. And an IPO would help with that.

2021 is said to be a coming ground for a stampede of unicorn IPOs. Perhaps some of those debuts will be dark horses as well.

Market Notes

We have three themes this week for our discussion of the broader startup market that warrant discussion: AI fundraising, fintech and private-market liquidity.

On the AI front, it’s been a busy sector of late, especially amongst the later-stages. Ohio-based healthcare AI company Olive raised $225.5 million, or about half of the $456 million that it has raised to date. Olive is a unicorn, to boot, with PitchBook pegging its new valuation at $1.50 billion on a post-money basis.

It’s nice to see a win for the Midwest. But Olive was hardly alone. Scale AI also raised a huge chunk of money, this time $155 million at a $3.5 billion valuation. Last year it raised $100 million at a valuation north of $1 billion. And elsewhere in the AI startup realm, Versatile raised $20 million, and ultimate.ai raised $20 million. Busy!

Scooting along. Stripe dropped a host of banking-as-a-service tooling, shifting the richly valued payments company from its initial niche into a much broader — and potentially lucrative — domain.

So, doom for smaller startups working in the same problem space? Not if they have anything to say about. Chris Dean, the CEO of Treasury Prime, a startup that I’ve written about that offers banking services via an API, wrote in to The Exchange, saying that the “most significant signal [from the Stripe news] is to banks” that they “need an open banking API to stay relevant.”

And Dean reckons that as every fintech has multiple vendors for different things, there will be room for many vendors per major fintech served by banking-via-an-API services, noting that Treasury Prime has “clients who use Marqeta, Galileo, and Stripe” for their banking needs.

Let’s see; but the Stripe news is big news all the same. And the new updates explain the IPO wait, I reckon. Better to go public when it has these new pieces driving growth. So much for our notes last week that were censorious concerning its IPO lag.

Finally, Carta X. I am bursting with excitement about this bit of news. Carta, which helps startups manage their cap table and employees handle their equity stakes, is building an exchange of sorts that should bring more liquidity — and therefore more pricing signal, and, pray, transparency — to the private markets. It’s coming early next year. More here.

Various and Sundry

We’re low on room, so just three final things to close out this week:

And, to close, The Exchange caught up with Yext CEO Howard Lerman about its recent earnings report, which bested near-term expectations regarding its Q3 results, but left investors wanting more when it came to Q4 guidance.

Chatting with Lerman — who joined TechCrunch for an Extra Crunch Live the other week — I got the lay of the land. On one hand, Yext’s push into offering search services is working, driving new logo lands, and helping it trim costs in its sales process. On the other, the world is reentering a shutdown, which means that the company is seeing upsell weakness in certain geographies, denting its near-term net retention results, a key driver of growth for software companies.

Now, Yext is a single public SaaS company, so I don’t want to over-index on its results too much, but the company’s honest assessment of the uncertainties that it faces in terms of near-term growth cannot be unique to its operations — something to consider as we ask startups about their Q4 growth in a few weeks’ time.

For what it’s worth, Yext appears in the midst of an intelligent product expansion while parts of the market it sells into struggle with a macro hangover. This is the situation that startups say is best to weather while private. Perhaps Yext will become a working case for how to navigate the same circumstance while public.

Hugs, and thank golly for the weekend’s respite,

Alex

 





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VLC-developer VideoLAN sends legal notice to Indian ministries over ban • TechCrunch

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VideoLAN, the developer and operator of popular media player VLC, has filed a legal notice to India’s IT and Telecom ministries, alleging that the Indian bodies failed to notify the software developer and did not afford it a chance for an explanation.

Indian telecom operators have been blocking VideoLAN’s website, where it lists links to downloading VLC, since February of this year, VideoLan president and lead developer Jean-Baptiste Kempf told TechCrunch in an earlier interview. India is one of the largest markets for VLC.

“Most major ISPs [internet service providers] are banning the site, with diverse techniques,” he said of the blocking in India. The telecom operators began blocking the VideoLan website on February 13 of this year, when the site saw a drop of 80% in traffic from the South Asian market, he said.

Now, VideoLAN, in assistance with local advocacy group Internet Freedom Foundation, is using legal means to get answers and redressal. It has sought a copy of the blocking order for banning VideoLAN website in India and an opportunity to defend the case through a virtual hearing.

In the notice, VideoLAN argues that the way Indian ministries have enforced the ban on the website, they violate their own local laws. The letter adds:

As per Rule 8 of the Information Technology (Procedure and Safeguards for Blocking for Access of Information by Public) Rules, 2009 (‘Blocking Rules’) and the ruling of the Supreme Court in Shreya Singhal v. Union of India (2015) 5 SCC 1, government officers responsible for issuing a blocking order are required to: (i) make all reasonable efforts to identify the originator or intermediary hosting the information to be blocked, (ii) issue a notice to such person, (iii) provide a hearing to such person before the concerned authority, and (iv) provide a copy of a reasoned blocking order to the person concerned prior to the hearing. Despite this, the URL, which allows users to download VLC was blocked by the DoT without any prior notice, or an opportunity of hearing to VideoLAN.

Indian telecom operators have not explained why they have blocked the VideoLan website, but some speculate that it could be because of a misinterpretation of a security warning from earlier this year.

Security firm Symantec reported in April this year that the hacker group Cicada, which has ties with the Chinese government, was exploiting VLC Media Player as well as several other popular applications to gain remote access to the victim’s computers. Kempf said he or his firm had not been contacted by any Indian government agency and the block is likely a result of a misunderstanding of the Chinese security issue.

But by blocking the website, India is pushing its citizens to “shady websites that are running hacked version of VLC. So they are endangering their own citizens with this ban,” Kempf said earlier.

In the legal notice, VideoLAN warns that failure to comply with its request will compel the open source firm to initiate legal proceedings. “Any such proceedings, if initiated, shall be solely at your risk, cost, and for breach of your own rules,” the notice adds.



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Twitter expands access to its experimental Status feature…but not to its paid subscribers • TechCrunch

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Twitter’s throwback feature, Twitter Status, is today expanding its list of potential status updates to choose from, in a continuation of tests that began this July. The feature, which is something of a cross between MySpace moods and a Facebook status, allows users to tag posts with an additional expression beyond the tweet itself — like “shower thoughts,” “spoiler alert” or “picture of the day.” Now, the company is adding common Twitter slang to its list, allowing users to tag their tweets with things like “Don’t @ me,” “Tweeting it into existence,” or “That’s it, that’s the Tweet,” and more.

The expansion was first spotted by app researcher Jane Manchun Wong, and Twitter confirmed the addition began rolling out to Twitter Status testers on Monday.

Other new status options now available include “Breaking news,” “Gaming,” “Pet of the day,” “So wholesome,” “Then and now,” “To whom it may concern,” “Touching grass,” “Twitter do your thing,” “Watching cricket,” “Watching football,” “Watching rugby,” and “Winning.”

The experiment, however, is not one of the “early access” features provided to Twitter’s paying customers as part of their Twitter Blue subscription.

Until today, the option to add a status to a tweet has been available to a select group of users in the U.S. With the update, Twitter says it’s now bringing on users in Australia, as well.

“As part of this expansion, those with access to the status feature will see a new set of potential statuses to choose from. Additionally, more people in Australia will also receive access to the experiment today,” a Twitter spokesperson told TechCrunch. They added that, with today’s update, the “majority of people in Australia” will now be able to use the feature.

One group that doesn’t necessarily have the ability to use the Twitter Status feature is the group of power users who pay for a Twitter Blue subscription. Though Twitter marketed Blue to those who wanted an expanded range of features — like a better news reading experience, personalization options, and early access to experiments — it hasn’t made all its new product tests available to its paid subscribers.

For instance, when Twitter began rolling out the addition of podcasts to its revamped “Audio” tab, Twitter Blue users weren’t the first group to gain access to the feature. Instead, Twitter made podcasts visible to a random group within its English-speaking mobile audience in August before later rolling out podcasts to paid subscribers the following month.

Similarly, Twitter Status isn’t listed among the experiments offered to Twitter Blue subscribers at this time.

Asked why Twitter isn’t prioritizing its paid subscriber base when it comes to trialing its new products first, as promised, a spokesperson clarified that it will only offer some of its experiments to subscribers while others will be tested with the broader public.

This seems to be a poor strategic decision on Twitter’s part, as those who are actually paying for Twitter have to stand by and watch other users get to play around with new features first — a perk they were promised. Though it’s understandable that some features may need to be tested among a larger group, at the very least, paid customers should be within that group.

The spokesperson clarified that Twitter Blue subscribers will have access to what the company considers “higher-impact” features first — like NFT profile pictures and, notably, the new Edit Tweet option.

The latter also today rolled out to Blue subscribers in Canada, Australia, and New Zealand after Twitter teased the editing feature last week. But the launch does not yet include Twitter Blue’s largest market, the U.S., which Twitter said would be “coming soon.”

Again, this strategy seems to be off the mark. While it’s one thing to test a small experiment within select geographies, it’s disheartening to see Twitter prioritize select markets and non-subscribers over its paying customers when it comes to some of its most fun and in-demand features.



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Geely’s Europe expansion continues, Argo robotaxis on the Lyft app and Tesla AI Day takeaways • TechCrunch

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The Station is a weekly newsletter dedicated to all things transportation. Sign up here — just click The Station — to receive the full edition of the newsletter every weekend in your inbox. This is a shorter version of The Station newsletter that is emailed to subscribers. Want all the deals, news roundups and commentary? Subscribe for free

Welcome back to The Station, your central hub for all past, present and future means of moving people and packages from Point A to Point B. 

The week capped off with Tesla AI Day, a recruitment slash roadshow that ended up lasting three hours. Yeah.

What did we learn and see? Tesla has made progress on its Tesla bot, also called Optimus. It is no longer a human dressed in a robot suit, but an actual robot. Will it make Boston Dynamics or Serve Robotics shake in their boots? Probably not. But it was a robot that moved, albeit briefly.

A few takeaways:
1. The event was somehow simultaneously very dense and lacking basic details that would help establish baselines and progress.
2. Tesla made a point to put employees from the AI and hardware teams on stage (this is unusual for the typical Elon-centric reveals and events)
3. There was an incredible emphasis on how the bot was equipped with components and tech used in Tesla vehicles, notably Autopilot. There is an efficiency that comes from shared parts and technology, but it also can come at great risk. Especially when said tech — ahem Autopilot — is controversial and coming under increased scrutiny by regulators.
4. Musk was asked if Tesla was still a sustainable energy company and he responded “I think the mission effectively does somewhat broaden with the advent of Optimists to you know, I don’t know, making the future awesome.” He also said that he believed that Tesla could provide a meaningful contribution to artificial general intelligence.
5. Tesla employees provided other updates, including its auto-labeling technology and the Dojo supercomputer. While Tesla employees explained these, Musk was off-stage tweeting” “Naturally, there will be a catgirl version of our Optimus.”

You can always email me at [email protected] to share thoughts, criticisms, opinions, or tips. You also can send a direct message to @kirstenkorosec

Micromobbin’

There wasn’t too much micromobility news this week, so we’ll keep this brief. Here’s what you need to know in the world of tiny electric vehicles.

Climate change is killing bees, and that’s a big problem, because bees kind of help regulate the effects of climate change. What’s this got to do with micromobility? Well, Cake launched a limited edition Kalk model bike called Flower Power that’s available in seven different color options. The company said that 5% of profits from the bikes will be donated to the World Bee Project, which is dedicated to saving the planet’s bee population.

Delfast unveiled a smaller electric moped that it’s calling the Delfast California, which has a 750W motor and reach a max speed of 28 mph, making it slightly less intense than Delfast’s more badass bike the Top 3.0.

Pure Electric is teasing a folding scooter that is expected to launch in early October. Is that a fat tire we detect, or just a play of the light?

You’re reading an abbreviated version of micromobbin’. Subscribe for free to the newsletter and you’ll get a lot more.

Deal of the week

money the station

When news broke that Chinese carmaker Geely Holding Group acquired a 7.6% share of British luxury automaker Aston Martin Lagonda Global Holdings, one of my co-workers (and an international reporter who covers China) exclaimed: Geely owns everyone!

It sure seems like it.

Geely was aiming to own all of Aston Martin. Instead, it settled for a small stake. Geely didn’t even get a board seat out of the deal. But no matter, Geely has squeezed a lot out of seemingly empty juice vesicles before.

Geely, which owns Lotus and is the largest shareholder of Polestar and Volvo Cars, took a 10% stake valued at $9 billion in Mercedes-Benz parent Daimler in 2018. Geely didn’t have a board seat either, but managed to exert its influence over the company, including a joint venture with the German automaker that gave it partial control of the Smart car brand.

Aston Martin also announced that it raised $732 million from investors that included Mercedes-Benz and Saudi’s Public Investment Fund participating. Yew Tree Consortium holds 19% of Aston Martin following the raise. The Public Investment Fund has become a new anchor shareholder with a 18.7% stake in the company.

Other deals that got my attention this week …

Faraday Future, the struggling EV SPAC, secured up to $100 million in funding through $40 million in convertible notes and warrant exercise payments and up to $60 million in convertible notes from Hong Kong holding company Senyun International.

Gogoro signed a $345 million five-year credit facility agreement in order to increase liquidity amid uncertain economic conditions. The loan comes from a group of 10 syndicated banks led by Mega International Commercial Bank Co., according to a regulatory filing.

Harley Davidson’s electric motorcycle division spinoff, LiveWire, raised less than planned and was valued below expectations when it went public this week through a SPAC combination. Shocking! LiveWire brought in $295 million in net proceeds, which is short of the $545 million anticipated when the deal was announced in December.

Want more deals? A whole list of them, including info on Aptiv, TerraWatt and TruckSmarter were in the subscription version this week. Subscribe for free here. 

Notable reads and other tidbits

Autonomous vehicles

Argo AI’s robotaxis are now operating on the Lyft network in Austin, Texas. This is a public service and the second city in which Lyft and Argo are operating a commercial robotaxi operation after Miami, which launched in December.

Aurora announced its 4th generation Driver, which can now detect and maneuver around a variety of objects and debris on the road and detect repainted lines in complex construction zones.

In a series of simulated tests, Waymo’s driver avoided crashes better than a virtual representation of a hyper-attentive driver.

Electric vehicles, batteries & charging

Arrival produced its first battery-electric van at the company’s Microfactory in Bicester, U.K., which uses autonomous mobile robots instead of a traditional assembly line. The remaining vans built this year will be earmarked for testing, validation and quality control, rather than customer delivery.

ChargerHelp has partnered with Tesla improve reliability and consumer confidence in charging access.

New York follows California and mandates that all new passenger cars, pickup trucks and SUVs sold in New York state must be zero emissions by 2035.

People

Airbnb co-founder and billionaire Joe Gebbia has joined Tesla’s board as an independent director.

Charly Mwangi, the former executive vice president of manufacturing at Rivian, who previously worked at Tesla, is now a partner at Eclipse Ventures.

Lyft has canceled job interviews and issued a hiring freeze in the U.S., according to anonymous professional network Blind.

Treepz CEO Onyeka Akumah talks to TechCrunch’s Rebecca Bellan about how to succeed in transportation in the latest edition of our founder’s Q&A series.

Want to read more of the notable reads plus other bits of news from the week? The Station’s weekly emailed newsletter has a lot more on EVs and AVs, future of flight, insider info and more. Click here and then check “The Station” to receive the full edition of the newsletter every weekend in your inbox.



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24 hours left to apply to volunteer at TechCrunch Disrupt and attend for free • TechCrunch

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It takes a veritable army to make TechCrunch Disrupt — which takes place October 18–20 in San Francisco — the well-oiled experience that savvy startuppers have come to know and love. And we couldn’t do it nearly as well without our incredible volunteers.

If you’re looking for a no-budget way to experience Disrupt up close and personal, sign up to volunteer for work exchange. Not only will you get a behind-the-scenes look at how to produce events, but you’ll also earn a free pass ($1,995 value) to experience the event. The deadline to apply is tomorrow, October 3 at 11:59 p.m. PDT.

You’ll work hard, play hard and get free access to all three days of Disrupt. Whether you dream of becoming a startup founder, marketer or event coordinator, this is a great way to see what it takes to produce a world-renowned tech startup conference.

Plus, your free pass gives you access to the full Disrupt experience — the main stage, the TechCrunch+ stage, the expo floor — where you’ll find the Startup Battlefield 200 — and the Startup Battlefield competition.

Volunteers handle a variety of tasks to help make this startup conference an epic experience for everyone. At any given time, you might help with registration, wrangle speakers, direct attendees, stuff goodie bags, place signage, scan tickets or help with pre-marketing activities.

We need volunteers on October 17–20. If you can meet the following criteria, we want to hear from you:

  • Attend a mandatory orientation on Monday, October 17 at Moscone Center.
  • Work a minimum of 10 hours during the entire conference, starting from October 17 (the day before the conference starts) to October 20. You’ll find volunteer shift availability in the application. We might select you for some pre-event opportunities, which would count toward your hours.
  • You may be scheduled for an 8- to 9-hour shift or you may be scheduled with two separate shifts of 4 to 5 hours each. Shifts can start as early as 6:30 a.m. PDT or end as late as 8:30 p.m. PDT.
  • You must provide your own housing and transportation.
  • Due to the high volume of applications, we will notify only the selected applicants.

Read the volunteer FAQ for more information.

Lend us a helping hand, and we’ll hand you a free pass. Save money, gain valuable experience and still have plenty of time to take in all the startup goodness that TechCrunch Disrupt has to offer. Apply to volunteer by October 3 to get your free pass, and we’ll see you in October!



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Meta plans hiring freeze, NASA shoots an asteroid, and Elon’s texts about Twitter are made public • TechCrunch

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Hi all! Welcome back to Week in Review, the newsletter where we quickly sum up some of the most read TechCrunch stories from the past seven days. The goal? Even when you’re swamped, a quick skim of WiR on Saturday morning should give you a pretty good understanding of what happened in tech this week.

Want it in your inbox? Get it here.

most read

  • Elon’s texts: As part of the ongoing Musk vs. Twitter trial, a big ol’ trove of Twitter-related texts between Elon and various key figures/executives/celebrities has been made public. Amanda and Taylor look at some of the most interesting bits, with appearances from people like Gayle King, Joe Rogan, and Twitter founder Jack Dorsey (or, as he seems to be named in Elon’s contacts, “jack jack”.)
  • Instagram bans PornHub’s account: “After a weeks-long suspension,” writes Amanda, “Pornhub’s account has been permanently removed from Instagram.” Why? PH says they don’t know, as they insist everything they put on Instagram was totally “PG” while calling for “full transparency and clear explanations.”
  • Interpol issues a red notice for Terra’s founder: “Interpol has issued a red notice for Do Kwon,” write Manish and Kate, “requesting law enforcement agencies worldwide to search for and arrest the Terraform Labs founder whose blockchain startup collapsed earlier this year.”
  • Google Maps’ new features: A bunch of new stuff is coming to Google Maps, and Aisha has the roundup. There’s a new view style meant to help you “immerse” yourself in a city before you visit, a “Neighborhood vibe” feature that aims to capture an area’s highlights, and augmented reality features that use the view from your camera to show exactly where ATMs and coffee shops are.
  • Meta’s hiring freeze: The era of explosive hiring at Meta/Facebook is over, it seems. The company will freeze hiring and “restructure some groups” internally, Zuckerberg reportedly announced during an internal all-hands this week.
  • Hacker hits Fast Company, sends awful push notifications: If you got a particularly vulgar push notification from Fast Company by way of Apple News this week, it’s because a hacker managed to breach the outlet’s content management system. The hacker also apparently published a (now pulled) post on Fast Company outlining how they got in.
  • NASA hits an asteroid: If we needed to hit an asteroid from millions of miles away — to, say, change its course and steer it away from Earth — could we do it? NASA proved they could do just that this week, smashing a purpose-built spacecraft into an asteroid at 14,700 mph. The asteroid in question was never believed to be a threat to Earth, but these are the kinds of things you want tested before they’re necessary.
  • Microsoft confirms Exchange vulnerabilities: “Microsoft has confirmed two unpatched Exchange Server zero-day vulnerabilities are being exploited by cybercriminals in real-world attacks,” writes Carly. Even worse? There’s no patch yet, though MSFT says one has been put on an “accelerated timeline” and offers temporary mitigation measures in the meantime.

audio roundup

Didn’t have time to tune in to all of TechCrunch’s podcasts this week? Here’s what you might’ve missed:

  • Evernote and mmhmm co-founder Phil Libin joined us on Found to share what he’s learned about remote work and why he’ll “never go to work in the metaverse.”
  • The Chain Reaction crew went deep on why crypto exchange FTX bid billions on a bankrupt company’s assets.
  • Amanda joined Darrell on the TechCrunch Podcast to explore whether Tumblr was reversing its controversial porn ban (spoiler: no), and Devin hopped on to talk all about NASA’s wild anti-asteroid test mission.

techcrunch+

What hides behind the TechCrunch+ paywall? Lots of really great stuff! It’s where we get to step away from the unrelenting news cycle and go a bit deeper on the stuff you tell us you like most. The most-read TC+ stuff this week?

  • Is Silicon Valley really losing its crown?: A provocative question, one asked all the more after COVID flipped the switch on widespread remote work pretty much overnight. Alex dives into the investor data to see where the money is going, and whether or not that’s changed.
  • Investors hit the brakes on productivity software: It’s an Alex Wilhelm double feature this week! After a few quarters of consistent investment growth, it seems investor interest in productivity tools might be waning. Why? Alex looks at why/how investment in the vertical has shifted.



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Telegram cuts subscription cost by more than half in India • TechCrunch

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Telegram has cut the monthly subscription fee for its premium tier by more than half in India, just months after introducing the offering as it attempts to aggressively cash in on a large user base in one of its biggest markets.

In a message to users in India on Saturday, Telegram said it was making the subscription available in the country at a discount. The monthly subscription now costs customers 179 Indian rupees ($2.2), down from 469 Indian rupees ($5.74) earlier. The app’s monthly subscription, called Telegram Premium, costs between $4.99 to $6 in every other market.

Users who have not received the message are also seeing the new price in the settings section of the app, they said and TechCrunch independently verified.

India is one of the largest markets for Telegram. The instant messaging app has amassed over 120 million monthly active users in the country, according to analytics firm data.ai. (An industry executive shared the figures with TechCrunch.) That figure makes the app the second most popular in its category in the country, only second to WhatsApp, which has courted over half a billion users in the South Asian market.

Telegram, which claims to have amassed over 700 million monthly active users globally, introduced the optional subscription offering in June this year in a move it hopes will improve its finances and continuing to support a free tier. Premium customers gain access to a wide-range of additional features such as the ability to follow up to 1,000 channels, send larger files (4GB) and faster download speeds.

The Dubai-headquartered firm joins a list of global tech firms that offer their services for lower cost in India. Apple’s music app charges $1.2 for the individual monthly plan in the country, whereas Netflix’s offerings starts at as low as $1.83 in the country.



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Welcome to spooky season in startups • TechCrunch

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Welcome to Startups Weekly, a fresh human-first take on this week’s startup news and trends. To get this in your inbox, subscribe here.

A multibillion dollar acquisition, IPO projections and some good ol’ VC and billionaire drama?

It would be unfair to say that this week in tech and startups felt like 2021’s boom cycle; especially when you look at layoffs coming from Truepill, its fourth this year, and Meta announcing that it will freeze hiring. At the same time, it does feel like there’s a new feeling in the air. Heck, NFT marketplaces are still raising money. 

The market is not dull, but it’s not loud; and the mood among my sources is certainly closer to spooky than it is to savage. Besides the fact that, yes, I did grow up writing poetry about fall foliage before deciding that I wanted to be a journalist, I’m saying all this to validate the nuance of this moment.

The ideas that I’m looking toward throughout the end of the year are as follows:

  • What happened to the black swan memos? In the early innings of the economic downturn, investors turned to portfolio companies to warn of an increasingly volatile environment. That conversation hasn’t disappeared, but it has certainly gotten quieter, with many investors now telling me that there’s a super surge of financing on the way. So, what’s the new guidance that is being sent to portfolio companies?
  • What’s the human side of the layoff story? My colleagues Mary Ann and Christine gave us all an important lesson this week, which is that stories about workforce reductions should not revolve around the employer. The duo wrote about the human cost of Better.com’s layoff spree — full story here — and I’m not-so-subtly going to steal this idea. I want to talk to people impacted by tech’s 2022 layoff wave and hear what next steps look like. I hear it’s a lot more complicated than “you should’ve known your company was overhyped to begin with.”
  • Finally, what are startups preparing to actually do differently? I’m guilty of this, but we often speak about startups and tech with generalizations, slightly hedged by explaining that it’s useful for directional purposes. I want to know what startups learned this year and are tactically doing differently. Spending with more discipline or focusing on the product doesn’t count; give me specifics, and better yet, tell me what you are disagreeing with your investors on.

Do let me know what yours are by tweeting at me or responding to this post. If you missed last week’s newsletter, read it here: “Tiger Global, fickle checks and the difficulty of acceleration.” We also recorded a companion podcast, here: “Building startups in public has an end date.”

In today’s newsletter, we’ll talk about the beauty of pivots, a creative way to prove that your startup hires entrepreneurial people and the latest from 500 global.

If you like this newsletter, do me a quick favor? Forward it to a friend, share it on Twitter and tag me so I can thank you for reading myself!

A reminder that pivots work

TC’s Rebecca Szkutak wrote about how a pivot helped HopSkipDrive win a difficult pitch to parents: Trust your kids with our ride-sharing services.

Here’s why it’s important: As we discussed in our latest Equity podcast, sometimes we’re all just a Hop, Skip and a Drive away from success. The “Uber for X” model has been MIA for a few years now, so the story behind HopSkipDrive and its trusty partner stands out to me. Who said schools weren’t experimental!

Image Credits: Ivan Bajic (opens in a new window) / Getty Images

A different version of CVC, I guess

News broke this week that Cloudflare gathered $1.25 billion in financing for startups that use its own platform. Well, kind of.

Here’s why it’s important: The security, performance and reliability company didn’t raise a corporate venture fund, typical of other companies looking to breed entrepreneur attention. Instead, Cloudflare just got dozens of venture firms to offer to invest up to $1.25 billion to companies in their existing funds. It’s a little softer than a traditional investment vehicle, given that we don’t know how formal those offers of support are, and the fact that Cloudflare is not providing any funding or making any funding decisions.

To me, the commitment just tells us that Cloudflare wants to show startups that it doesn’t just make sense to use their software, it makes cents.

Image Credits: Getty Images

The follow-up

I’m experimenting with a new section in Startups Weekly, where each week we follow up with an old story or trend to see what’s changed since our first look. This week, we’re following up on our conversation about accelerator and demo days with a look at how 500 Global, formerly 500 Startups, thinks about it.

Here’s what’s new: It’s been a little over a year since accelerator 500 Startups rebranded to 500 Global in an attempt to reposition itself as a venture firm. In my latest for TechCrunch+, I spoke to Clayton Bryan, partner and head of 500 Global’s accelerator program, about how they keep up with competition. Excerpt down below!

The investor highlighted the effectiveness of rolling admissions, which its two main accelerator competitors, Y Combinator and Techstars, don’t do. Three years ago, 500 Global said it would decide on investments all year instead of just twice yearly. Demo days will still happen biannually, but startups can choose which demo day they want to be a part of.

“That change has really resonated with founders,” Bryan said. He compared the previous version of 500 Global to a school with an annual schedule: There are times when you’re doing homework, times when you sit back and recruit, and summer vacation. Now, it’s year-round, and he admits it’s more challenging to manage, “but at the same time, much more appreciated by the founders.”

“I do think it makes us more competitive,” he said. “We can more frequently talk to founders and they can start our program at different points in time. They don’t have to wait for that application to open or that deadline. Whereas [with] some other programs, they might say, ‘Hey, wait for a couple more months so we’re accepting applications again.’ I think that openness and flexibility gives us a bit of an advantage.”

Startups employees should keep an eye on tax rules

Image Credits: bestdesigns / Getty Images

A few notes

We’re less than one month away from TechCrunch Disrupt, and I’m already emotional. It’s going to be a blast, a pep talk, a realization and a week not to miss. Here’s the full agenda, and here’s where you can get your tickets.

  • First up, use code “STARTUPS” for a special reader discount for Disrupt tickets. We’re less than one month away!
  • We also have a special for those impacted by layoffs. If you were laid off, go here to get a free ticket to TechCrunch Disrupt’s Expo.

While I have you, let’s talk some more. As you know, I co-host Equity, which goes out thrice a week and is TC’s longest-running podcast. We have some besties to listen to, too, including our crypto-focused show that goes by Chain Reaction and founder-focused show that goes by Found. The TechCrunch Podcast is also a can’t miss, so pay attention to all the good shows that they’re putting out. 

Seen on TechCrunch

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Crypto platform Nexo sued by New York, California and six other US regulators 

Seen on TechCrunch+

Treepz founder Onyeka Akumah on how to succeed in transportation tech

What can the 2000 dot-com crash teach us about the 2022 tech downturn? 

Europe’s inaugural Women in VC Summit is the first step in a long climb toward equity

Venture investors hit the brakes on productivity software

Same time, same web page, next week?

N

Image Credits: Bryce Durbin / TechCrunch



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