Economy
31 October 2022
Dealboard: $100M for autonomous stores, $265M cross-border deal
On this week's Dealboard, sustainability startups get a boost from big names, and Perfect Corp. goes public.
Welcome to Dealboard. In this weekly feature, The Current is providing a look at the mergers, acquisitions and venture capital deals making waves in ecommerce, CPG and retail.
Elon isn't the only one making deals lately. This week in commerce, sustainability is gaining new venture funding, as startups are raising funding for new products, packaging materials and resale that centers circular practices. Plus, a nine-figure cross-border commerce deal and a beauty tech firm's NYSE debut highlight this week’s M&A news.
FUNDING
Trigo cofounders Michael and Daniel Gabay. (Courtesy photo)
Trigo raises $100M for frictionless shopping
Trigo, a computer vision company that makes technology to power fully autonomous digital stores, raised $100 million to deploy to supermarkets in the US and Europe.
The funding was led by Singapore-based investment firm Temasek and 83North. The round included participation from new investors including SAP SE, who will also help commercialize Trigo’s solution. Existing investors also joined the round, including Hetz Ventures, Red Dot Capital Partners, Vertex Ventures, Viola, and supermarket giant REWE Group.
Trigo’s technology allows stores to set up an environment where customers can pick items, and leave a store without having to go through a physical checkout. The company’s systems analyze feeds from ceiling-mounted cameras and shelf sensors to create a “digital twin” of a store, then use computer vision algorithms to analyze interactions between humans and merchandise.
With the funding, Trigo will expand into full-sized urban supermarket and new geographies. It will also further develop its store and inventory management platform, called StoreOS.
Cruz Foam raises $18 million for plastic foam alternative
Cruz Foam, a circular materials company developing sustainable packaging materials, raised $18 million in a Series A round.
The financing was led by Helena, with participation from One Small Planet, Regeneration.VC, At One Ventures and SoundWaves. Matthew Saunders of Helena and Will Peterffy of One Small Planet will join the company’s board.
Founded in 2017, Cruz Foam is developing materials that are designed to help supply chains transition away from single-use plastics for packaging. The company’s first product is designed as a replacement for plastic foam.
With the new funding, the company also said it transitioned its structure to a benefit corporation.
mason raises $7.5M for commerce engine
mason cofounders Barada Sahu and Kausambi Manjita.(Courtesy photo)
Mason raised $7.5 million to grow a commerce engine that is designed to bring Amazon-like infrastructure to ecommerce stores.
The funding was led by Accel and Ideaspring Capital, with participation from Lightspeed India Partners, as well as Mana VC, Gaingels, Core91 and VH Capital.
Cofounders Barada Sahu and Kausambi Manjita met at Myntra, which is Walmart’s fashion arm in Asia. They built a no-code platform that is designed to bring selling tools to a direct-to-consumer website that bring efficiency that is akin to what is offered by Amazon. The company said it has 1,000 customers, and powers more than 8,000 brands. Now, it will be doubling investment into AI-based playbooks to help brands grow.
“The previous generation of commerce has helped brands set up their stores online and have great systems for storing business information,” Manjita said, in a statement. “What brands now need is a technology layer that helps convert this information in action.”
Kudos raises $7M for smart wallet
Kudos Technologies, which makes a smart wallet to manage funds and rewards, raised $7 million in a seed round.
The round was led by Patron, with participation from QED Investors, SciFi VC, SV Angel, Precursor Ventures, Newtype Ventures, Chingona Ventures and over 40 angel investors.
With the financing, Kudos said it launched a mobile and desktop extension to the public. The company’s product supports checkout at more than 1 million websites. The smart wallet autofills card details, and helps users identify rewards, as well as purchase protection and travel insurance.
The funding will help the company further develop a smart wallet that is designed to help simplify checkout and maximize credit card rewards. It will also be allocated toward future initiatives, including the launch of cashback boosts across 12,000 merchant partners.
Loci raises $4.5M, led by Leonardo DiCaprio
Loci, a vegan sneaker brand, raised $4.5 million in a seed round, according to Footwear News.
The round was led by actor Leonardo DiCaprio, with participation from former adidas executives Martin Ott and James Carnes.
Founded in 2021 by Emmanuel Eribo and Philippe Homsy, UK-based Loci makes sneakers from recycled, renewable and biodegradable materials. With the investment, it will expand its team and supply chain network.
Nourie raises $2.5M for plant-based hair extensions
Nourie, a plant-based braiding hair extensions brand, raised $2.5 million in seed funding to support its launch.
The round was led by Impact America Fund, Better Ventures, and SOSV’s accelerator IndieBio, according to Business Insider.
Founded by Osahon Ojeaga and Mary Ellen Moore, the brand is led by a team of Black women scientists, and developed its hair extension to deliver nutrients to the hair and scalp, BeautyMatter reported.
Mango invests in textile reseller
European fashion retailer Mango invested in Recovo, a recommerce platform that resells textile waste.
Recovo is a participant in the Mango StartUp Studio, which provides an opportunity to learn about Mango’s operation up-close, and receive mentoring from the company. Through the agreement, Recovo will receive a convertible equity loan. Terms were not disclosed.
Founded in 2021, Recovo’s platform is designed to provide companies with an avenue to resell textile, yarn and production material waste. “Recovo presents a business model which contributes to a circular future through technology, traceability and community action,” Mango said in a statement.
Recovo's team at Mango. (Courtesy photo)
MERGERS AND ACQUISITIONS
MyUS acquired by Aramex for $265M
MyUS, a shipping company that facilitates orders for international customers shopping from US and UK stores, was acquired by UAE-based courier firm Aramex for approximately $265 million in cash, the companies said.
With the deal, MyUS will integrate into Aramex, while retaining its own brand. Founded in 1982, Aramex offers a variety of services, including express courier delivery, freight forwarding, logistics, supply chain management, ecommerce and record management services.
Florida-based MyUS was founded in 1997. It offers package consolidation services that allow international customers to shop from US stores, and have packages delivered. Going forward, MyUS will be complementary to Aramex’s subscription-based, last-mile ecommerce platform.
"We are ready to take our products and solutions to new markets by leveraging Aramex’s extensive global network, scale, knowledge, and expertise in markets exhibiting very attractive characteristics, such as the MENA region, the UK, and Australia,” said Ramesh Bulusu, CEO of MyUS, in a statement. “Together with Aramex, we will work on developing a joint business plan to unlock revenue and operational cost synergies to help grow the cross-border ecommerce business and bring customers the best solutions and services.”
Kibo spins out personalization business Monetate
Omnichannel commerce platform Kibo sold its personalization business to investment firm Centre Lane Partners.
Operating as Monetate, the spinout business will be led by Kibo Chief Operating Officer Brian Wilson. Kibo acquired Monetate in 2019. The business allows organizations to use data for testing and experimentation, recommendations and automated 1-to-1 experiences. With the spinout, Monetate will be able to expand beyond retail into verticals such as financial services, travel and hospitality and telecommunications, the companies said.
Terms of the deal were not disclosed.
Perfect Corp. goes public
Perfect Corp., which provides augmented reality and AI software for beauty and fashion, debuted Monday as a public company on the New York Stock Exchange.
The company completed a merger with Provident Acquisition Corp., a special purpose acquisition company (SPAC). Under the deal, the merger of the companies took Perfect Corp. public. It will now be listed under the ticker symbol "PERF."
The merger values Perfect at $1.02 billion. It will provide Perfect with $119 million to fund growth. Investors in the Private Investment in Public Equity (PIPE) that backed the IPO included Chanel, CyberLink, Shiseido and Snap.
"We are thrilled to continue Perfect’s evolution, now as a public company, by reaching this significant milestone," said Alice Chang, the CEO and founder of Perfect Corp. "Leveraging our access to the global capital market, we plan to extend our industry coverage from beauty and fashion to tangential sectors, augment our innovative AR and AI SaaS solutions, and empower more enterprises around the world to deliver transformative virtual product try-on experiences to consumers.”
Perfect works with over 400 beauty brands, powering virtual try-ons in cosmetics, skincare, hair colors and fashion accessories. It also makes the YouCam family of photo editor and selfie camera apps, which integrate AR technology.
Trending in Economy
r.e.m. beauty has new investment. (Courtesy photo)
FUNDING
Ariana Grande’s r.e.m. beauty announces new investment
r.e.m. beauty, the viral brand founded by singer Ariana Grande, raised new funds through a strategic investment deal.
The financing was led by Sandbridge Capital, with participation from Strand Equity, HYBE America, Live Nation Entertainment and Universal Music Group.
Founded in 2021, r.e.m. beauty recently appointed Michelle Shigemasa as CEO. The deal comes after Grande took the brand independent following the bankruptcy of previous licensee Forma Brands.
"r.e.m. beauty has earned the trust of the beauty community and consumers alike by creating an impressive best-in-class line of products inspired by Ariana's compelling mission driven brand vision," said Ken Suslow, Sandbridge Capital founder and managing partner, in a statement. "We are thrilled to come together with Ariana and her stellar r.e.m. team in support of the brand's strong growth trajectory through our global industry network and brand building expertise."
Checkmate raises $15M from a slate of celebrity investors
Checkmate, a mobile app providing automated savings for ecommerce, raised $15 million in a Series A round.
The financing was led by GV (Google Ventures), with new support from Mantis VC (The Chainsmokers), Common Metal, BDuck Capital, Black Angels Group and continued support from Wischoff Ventures, Fuel Capital, Blackbird Ventures, F7 Ventures, Night Capital & Scribble Ventures.
Angels supporting the round include Paris Hilton, Carter Reum of M13 Ventures, DST Global Partner Saurabh Gupta, Tim Kendall of Meta and Pinterest, Grindr and Yahoo vet Jeff Bonforte James & Geraldine Chin Moody of Sendle, Alex & Anthony Zaccaria of LinkTree, Trevor Neff of Ashton Kutcher’s Sound Ventures, and Arthur Levy & Michael Tannenbaum of Brex.
Checkmate said its app can find savings at over 40,000 stores. It does this by finding codes online, extracting codes from email and partnering with brands to create new codes.
Going forward, Checkmate wants to personalize the end-to-end shopping experience through new tools including package tracking and centralizing order updates.
Laced raises $12M for sneaker marketplace
Laced, a U.K.-based ecommerce platform for sneakers, raised $12 million in new funding, according to Footwear News.
Talis Capital led the Series A round, with participation from H&M Group Ventures, which is the investment arm of H&M Group. Participants also included BY Venture Partners and Truesight Ventures, as well as angel investors.
Founded in 2018 by Chris Gibbons, Laced provides a marketplace for buying and selling sought-after sneakers and luxury goods.
“We are thrilled to back Chris and the dedicated team behind Laced as they embark on the next stage of their journey,” said Nanna Andersen, head of new growth & ventures at H&M Group, in a statement. “In building an impressive online marketplace, they are not only providing consumers with a specially curated selection of in-demand sneakers, but also an important platform to extend the lifecycle of products. This investment is exactly the type of company and entrepreneur that we are delighted to support.”
Asos raises £75 million in equity
Fast fashion retailer Asos raised £75 million (or $93 million) as it pursues a turnaround effort, Bloomberg reported. The raise included participation from Danish fashion outfit Bestseller and US-based Camelot Capital Partners.
The move comes after Asos revealed losses of £290m for the six months ended in February. The new funds will help the company change its approach to buying and merchandising.
Prime Roots raises $30M for plant-based deli meats
Prime Roots, a maker of plant-based deli-style meats made from koji mycelium, raised $30 million in a Series B funding round.
The financing was led by True Ventures, Pangaea Ventures, Prosus Ventures, Top Tier Capital, Diamond Edge Ventures, SOSV/IndieBio, Solasta Ventures, Monde Nissin, Alumni Ventures, Gaingels, Meach Cove Capital, The House Fund, and Hyphen Capital.
Founded in 2017, Prime Roots applies fermentation and food science techniques to create a product that has the “identical microscopic texture of meat,” and adds an umami flavor from plants. The company will use the funding to scale to more deli counters and restaurants.
"People are asking for sustainable meat options that taste good, make them feel good and do good with less planet impact. Prime Roots delivers on all three: taste, nutrition, and sustainability," said Kimberlie Le, founder and CEO of Prime Roots, in a statement. "This new funding is a testament to the market opportunity for the next generation of plant-based meats that meet consumer expectations while forging into old world categories like deli with disruptive innovation."
Datasembly closes on $16M in Series B funding
Datasembly, a software company that provides competitive intelligence tools for CPG brands and retailers, secured $16 million in a Series B funding round.
The financing was led by Noro-Moseley Partners, with participation from Grotech Ventures, Topmark Partners and Staley Capital.
Datasembly provides real-time product pricing, promotions and assortment data for brands and retailers. The company recently launched a product matching service that aims to help brands and retailers keep product matches up to date.
“Even through more complicated economic times, Datasembly has continued to grow and scale, underscoring the demand for our data and tools,” said cofounder and CEO Ben Reich, in a statement. “While the broader funding environment has cooled, Datasembly has still been attractive to new investors because of the value and differentiated offerings we bring to the marketplace that are unavailable elsewhere.”
MERGERS & ACQUISITIONS
Flagstone Foods acquires Emerald Nuts from Campbell Soup
Flagstone Foods, a manufacturer of private label snack nuts and trail mixes, announced that it acquired snack nut brand Emerald Nuts from the Campbell Soup Company.
Emerald Nuts makes grab-and-go packs of 100-calorie nuts and assorted glazed nut products.
It is set to join Flagstone, which has plants in Robersonville, North Carolina; El Paso, Texas; and Dothan, Alabama. Flagstone was acquired by Atlas Holdings in 2019, hired CEO Harry Overly late last year as it moved toward expansion.
QVC parent sells mom-focused ecommerce platform Zulily
Qurate Retail Group has reached a deal to sell ecommerce platform Zulily to Regent, a Los Angeles-based investment firm with expertise in retail and apparel.
Zulily focuses on moms, with products including toys, clothes, shoes, home décor, baby, maternity, beauty and more. Qurate Retail is divesting the company as part of a wider strategy aimed at optimizing its brand portfolio.
Now, Zulily will join an investment group that has also backed Club Monaco, DIM Paris, La Senza, Escada and DiamondBack.
“We are confident Regent is the right partner for Zulily to continue serving its customers, while benefiting from Regent’s depth of operational and strategic expertise in the retail and apparel sectors,” said David Rawlinson, president and CEO of Qurate Retail, in a statement. “We are in the midst of a turnaround at Qurate Retail. This divestiture will allow our management team to better focus on our core video commerce assets, QVC and HSN, and the Cornerstone Brands, while preserving liquidity to further strengthen our balance sheet.
Terms of the deal were not disclosed.
From You Flowers merges with FTD
M&A news from the flower world: Ecommerce platform From You Flowers and florist network FTD are merging with the goal of creating a new global platform in floral and gifting.
With the deal, From You Flowers CEO Michael Chapin will become CEO of the combined companies.
"We are bringing together two businesses with a shared vision to deliver exceptional service to our florist members and consumers," said Chapin. "The merger will enable From You Flowers' best-in-class ecommerce operation to accelerate the growth of FTD's already impressive floral distribution network," said Chapin.
Terms of the deal were not disclosed.
Latest from Economy
