Asia news roundup: Baidu raises $1.9b for finance arm, eyes $500m for AI fund

Baidu-built robot AI Xiaodu / Photo credit: Baidu

Among the top news from today and the weekend were big investments for Baidu, funding for bKash, Pathao, and RailYatri, and several high-profile departures.

Fintech

US$1.9 billion raised for Baidu’s spinoff finance unit (China). The Chinese tech firm has secured the funding for its newly created financial services company, Du Xiaoman, which will spin off in July. Investors include TPG, the Carlyle Group, and the Taikang Group, among others. Du Xiaoman will use artificial intelligence to provide services relating to short-term loans and investment. (South China Morning Post)

Capital Float receives US$7 million debt investment from Triodos (India). The online lender says it will use the funds from the asset management firm to expand its SME borrower base. Capital Float raised US$22 million in funding from Amazon last week, closing out its US$45 million series C round. (Livemint)

Ant Financial to buy 20 percent stake in bKash (Bangladesh). The Alibaba affiliate will acquire a 10 percent stake from bKash shareholders Money in Motion, the Bill and Melinda Gates Foundation, and International Finance Corporation, with an option to acquire a further 10 percent in the future. The Bangladeshi startup will retain 51 percent of its shares. (DealStreetAsia)

Delivery and logistics

Didi denies alleged food-delivery drivers’ strike (China). Local media in Jiangsu province reported that a group of dissatisfied Didi Waimai drivers went on strike to protest changes in payment rules and rewards – moves apparently made by the company in response to a drop in order numbers. Didi, however, released a statement, claiming this “was not a strike” and that “the gathering was over in 20 minutes.” The app handled 334,000 deliveries on its April 9 launch in Wuxi, but drivers are claiming that orders have dropped by 50 percent since then. (TechNode)

Transportation

Photo credit: Get My Parking

Get My Parking grabs Constapark (India). The smart-parking startup acquired the Bangalore-based parking space finder to strengthen its position in the domestic market. The move comes after Get My Parking secured US$3 million in a series A round last September from IAN Fund and Beenext, among others. (Get My Parking)

Pathao valuation soars past US$100 million after latest fundraise (Bangladesh). The motorbike-hailing app also includes courier, food delivery, and car ride-sharing services. Previous investors including Go-Jek, Openspace Ventures, Battery Road Digital Holdings, and the Osiris Group participated in the pre-series B fundraise. Indonesian ride-hailing giant Go-Jek led the Bangladeshi startup’s series A round in November 2017. (Pathao)

Pathao co-founder Hussain M Elius (L) and Go-Jek CEO Nadiem Makarim (R) / Photo credit: Pathao

Mobike co-founder and CEO Davis Wang steps down (China). In a letter to the company, Wang said he is departing to spend more time with his family. Co-founder Hu Weiwei will be the new CEO, while Wang will remain as advisor to the bike-sharing startup. His resignation comes after Chinese on-demand services giant Meituan-Dianping purchased Mobike for US$3.4 billion earlier this month. (TechNode)

RailYatri gets undisclosed series B injection from Omidyar Network (India). The Noida-based startup has developed an app that provides real-time travel information to railway passengers. Existing investors Blume Ventures, Helion Venture Partners, and Nandan Nilekani also participated in the series B round. RailYatri provides information on trains, passenger amenities, seating availability, tickets, and even the speed of the trains, and is moving into other areas including food delivery and hotel bookings. (Inc42)

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