Market Insights

The IPO-Palooza Edition: Friday Dealbook for 8/30/2019

August 30, 2019

August is winding down and, in spite of cooler temperatures, all signs point to hot fourth quarter. This week, Megvii, the Chinese facial recognition unicorn, filed to go public in Hong Kong for a whopping $1 billion offering price, while BharatPe and Axonius raised $50 million and $20 million, respectively. The final quarter of 2019 will be marked by a series of IPOs (recent notable announcements include Ping Identity, the We Company (aka WeWork), and Cloudflare), and venture capital firms are raising funds for investment in strong international markets (see: Kaszek Ventures and F2 Capital). We’ll be keeping a close eye on the activity and facilitating conversations through our forums – join us as we explore topics such as Cybersecurity and Government, Blockchain and Distributed Ledger Technologies, and Biometrics for IAM.

The Top Deals Covered by OWI this Week

 

BharatPe \ bharatpe.com \ Founded in 2018

Developer of payments application intended to promote digital payment. The company’s application provides interoperable UPI QR codes for accepting all payments from UPI on banks, enabling merchants to accept payments in a smooth and inexpensive manner.

The company raised $50 million of Series B venture funding in a deal led by Ribbit Capital and Steadview Capital Management on August 26, 2019, putting the company’s pre-money valuation at $175 million. Insight Partners, Sequoia Capital India and Beenext also participated in the round. The funds will be used to add about 3.5 million merchants in the next 12 months as well as finance the loans on the platform and build new solutions.

 

Megvii \ megvii.us \ Founded in 2011

Developer of a facial recognition technology aimed at providing compact, powerful and cross-platform vision services. The company’s technology uses computer vision and data mining to provide detection, recognition and analysis of faces, enabling users to easily add leading, deep learning-based image analysis recognition technologies into the application.

The company filed to go public on the HKG on August 26, 2019. The expected offering amount is $1 billion. Previously, the company raised $750 million of Series D venture funding from Alibaba Group, Boyu Capital Advisory Company and Bank of China Group Investment on May 8, 2019, putting the company’s pre-money valuation at $3.5 billion. GGV Capital, Macquarie Group, ICBC Financial Asset Investment and Abu Dhabi Investment Authority also participated in the round. The funding will be used to strengthen Megvii’s technology capabilities in deep learning, accelerate the commercialization of its AI-enabled solutions, recruit talent and finance global expansion.

 

Axonius \ axonius.com \ Founded in 2017

Provider of a cybersecurity asset management platform designed to secure and manage connected devices in use by businesses. The company’s platform delivers a unified, extensible, and open system that integrates information from networked devices and existing device-specific standalone management service, creating a single visibility and control environment, enabling Information Technology and security operations teams to safely engage device adoption and usage at scale.

The company raised $20 million of Series B venture funding in a deal led by OpenView Venture Partners on August 27, 2019, putting the company’s pre-money valuation at $90 million. YL Ventures, Vertex Ventures Israel, Emerge, Bessemer Venture Partners and WTI also participated in the round. The funding will be used to continue to accelerate demand for its Cybersecurity Asset Management Platform, which leverages existing security investments to gain unmatched visibility into an organization’s asset inventory.

 

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Investor Highlight

 

Ribbit Capital \ ribbitcap.com \ Founded in 2012

Description of Investor

Ribbit Capital is a venture capital firm based in Palo Alto, California and was founded in 2012. The firm invests in companies operating in the technology sector.

Active Portfolio – 48

Investments (TTM) – 21

Med. Round Amount – $28.00M 

Med. Valuation – $165.55M

# of Exits – 9

Deal History

In the past year, Ribbit Capital has invested in the following 6 identity companies:

Affirm

BharatPe

Bonify

Brex

Uala

Viva Republica

 

*Source: PitchBook Data Inc. with proprietary keyword searches set by OWI Analysts