Asia news roundup: Trax banks $125m, Chinese IPOs galore, and more

Freight, a robot that uses Trax image recognition technology to analyze in-store product placement / Photo credit: Trax

It’s Monday – here’s what happened today and over the weekend.

Ecommerce

Chinese ecommerce pretender files for US$1 billion IPO in the US (China). Ecommerce website Pinduoduo announced plans to raise US$1 billion by listing in the US. The startup provides a “social ecommerce” experience, floating deals to users and then getting them to group-buy items at reduced prices. Backed by Tencent and Sequoia, Pinduoduo has surpassed JD in terms of daily active users in China. It hit 55.9 million in June compared to JD’s 34.3 million. (Bloomberg)

Alibaba-backed baby product and parenting website plans Hong Kong IPO (China). China-based Babytree, which operates as an online community and ecommerce service, announced that it has filed for an initial public offering in Hong Kong. The IPO size, however, has not been specified. Babytree reported revenue of US$110 million, up 43 percent from 2016. Alibaba Group invested in Babytree earlier this month, valuing the company at US$2.19 billion. (China Money Network)

Artificial intelligence

Trax hauls in US$125 million in pre-IPO round for its image recognition tech (Singapore). The Singapore-based company operates a computer vision and image recognition platform that caters to food and drink retailers. Trax just raised US$125 million in a pre-IPO round led by China-based Boyu Capital, ahead of a planned IPO in New York within the next two years. The latest funding values the startup at nearly US$1 billion. Last year, it raised US$64 million in a round led by US private equity firm Warburg Pincus. This round brings Trax’s total disclosed funding up to more than US$280 million. (Bloomberg)

Delivery and logistics

AI analytics startup for marine logistics reels in US$3.3 million seed round from US investors (Singapore). Ocean Freight Exchange, which develops predictive analytics technology for the shipping industry, just raised an oversubscribed US$3.3 million seed round. The Singapore-based startup specializes in the dry bulk (meaning cargo that’s transported unpackaged and in large quantities, like grain or metals) and tanker markets. It will use the funding to double its 25-strong team and scale operations. Investors that joined the round include seasoned shipping executive Peter Evensen, Techstars managing director Jenny Fielding, and US venture capital firms Corigin, Nextview, Accomplice, Foundation Capital, and US Investment Partners. (Ocean Freight Exchange)

Media and entertainment

Japanese new media company buys Quartz to expand out of Asia (Japan). Uzabase, a Tokyo-based startup founded by an engineer and two ex-UBS investment bankers, has inked a deal to buy New York-based online business outlet Quartz from current owner Atlantic Media. The sale will cost between US$75 million and US$110 million, depending on Quartz’s financial performance for the rest of the year. No layoffs are expected as a result of the acquisition. Uzabase plans to use Quartz to “drive its expansion outside of Asia” through subscription-based English-language news coverage. (Quartz)

Douyin and other Chinese media apps suspend advertising services over war hero controversy (China). Video-streaming service Douyin and four other similar apps, including Sogou, have been ordered by the Chinese government to review their advertising content and delete any offensive references to heroes and martyrs like Qiu Shaoyun, a prominent war hero from the Korean war. Douyin advertising apparently appeared on Sogou, calling users to see jokes related to Qiu’s history. All five firms have suspended their advertising services as a result. Market watchers think that the suspension of the services, which are these companies’ main revenue source, will result in huge financial losses for them. The offending references are in violation of a recently passed law in China that protects figures deemed to be war heroes. (South China Morning Post)

Healthtech

Telehealth startup rings up US$4 million series A to make healthcare more accessible (Singapore). Doctor Anywhere announced it has raised US$4 million from local family office Kamet Capital Partners and several other investors. The company offers access to health practitioners through mobile video consultations on its app. Available services include medical aesthetics, mental wellness, and lactation consultation. It will use the funding to continue improving its products and create new services, as well as hire more people. (Doctor Anywhere)

Travel and hospitality

Photo credit: Handy

Startup behind Handy, the smartphone for hotels, attracts investment from SoftBank for Japan-based joint venture (Japan). Hong Kong-headquartered Tink Labs is the maker of Handy, a service that places smartphones in hotel rooms for guests to use while traveling abroad. The company has tied up with SoftBank for an investment into Handy Japan, its Tokyo-based joint venture. The funding will allow Handy Japan to improve a range of hospitality products using SoftBank’s internet-of-things resources. Services will include keyless room entry, express check-out, smart in-room controls, property management systems, and more. (Tink Labs)

Enterprise software and services

HR tech provider joins Y Combinator, raises funding (India). Leena AI has announced it has joined Y Combinator’s summer 2018 program and received investment from the US startup builder. The company develops an artificial intelligence-powered chatbot that can be integrated into apps like Slack and Skype, and use information and data from professional platforms like Oracle and SAP. The system handles communications between employees and HR on topics like onboarding, expense management, and other HR-related services. It can also schedule conversations between staff and managers and connect employees to mentors in order to learn new skills. Leena has 12 paying clients at the moment and plans to double them in the next two months. (Inc42)

Investors, incubators, and accelerators

Investment firms band together for US$15 billion tech fund (China). London-based Centricus and Chinese companies China Merchants Group and SPF Group are teaming up to launch a US$15.11 billion fund that will target tech companies for potential investments and acquisitions. It will look for deals worldwide but focus primarily on China. The three firms will assemble a group of Chinese and international investors to back the fund. (Reuters)