May 2022 Update
newsletter
Published:
May 13, 2022
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Dear friends of Lightrock,
Two years into a global pandemic, the first few months of 2022 have brought yet another dramatic rise in global instability and volatility as war, inflation and the spectre of food insecurity have crowded in alongside existing global challenges which Lightrock is built to address. These turbulent times have given renewed urgency to our mission to address the energy transition, cost of living, and access to healthcare and financial inclusion, and they have provided the Lightrock team with added motivation to fulfil our company’s purpose.
We have stayed focused on accelerating solutions to some of these challenges, even when it is hard to take our eyes off the brutal aggression of Russia's invasion of Ukraine and the devastating impact these events have on millions of displaced people but also more generally on geopolitical stability, economies, investments, and trade around the globe. Our strongest empathy goes out to the Ukrainians and many others suffering through this tragedy, but it also fuels us with extra energy and commitment to help scale solutions to major challenges.
Since our last update, we have made 11 new investments and continued to support our portfolio with numerous follow-on funding rounds.
We are also proud of the recent accomplishments of our portfolio companies, with many having achieved remarkable valuation increases in their recent funding rounds and having been honoured by renown industry awards.
Climate change and energy transition remain top priorities even in these turbulent times, re-enforced by the recent Intergovernmental Panel on Climate Change (IPCC)’s warning that, "Unless there are immediate and deep emissions reductions across all sectors, 1.5°C is beyond reach".
At Lightrock, we have been doubling our efforts to help scale up climate impact companies, like Sunfire, which is helping heavy industrial polluters and long-distance transportation industries transition to syngas, a mixture of hydrogen and carbon monoxide, or South Pole, a developer of nearly 1,000 voluntary carbon reduction projects worldwide using innovative corporate climate finance, which has already cut more than a gigaton of carbon emissions, while on the path to eliminate 10 times that by 2035.
Finally, on the people front, Lightrock has announced a round of senior appointments recently. We welcomed three new non-executive board members, including:
- Vivian Riefberg, a former board member and senior manager of the U.S health care practice at McKinsey & Co,
- Ann Cairns, the executive vice chair of Mastercard known for driving inclusion, diversity and financial innovation globally, and
- Peter Nussbaum, a specialist in German M&A and private equity law, with experience in high-profile IPOs.
Also, Lightrock has promoted active dealmakers Ashish Puri and Christopher Steinau to partner roles within our investment team.
Thank you for partnering with us.
Best regards,
The Lightrock Global Team
2022 has been very active so far, with many investments not only in exciting new companies but also in our existing portfolio companies.
Some of our most recent investments across all our global regions:
- We led the $35m Series B funding round for UK fintech Selina. Selina is bringing innovation to the UK mortgage market by providing the affordability and size of a traditional mortgage at the flexibility and convenience of a credit card for life-changing purchases such as home improvements and tuition fees.
- We also invested in Alasco, a real estate software solution platform, in its $40 million Series B funding. Alasco is a cloud-based financial management platform for real estate projects, that enables real estate owners to make ESG-related decisions based on robust data and benchmarks.
- We participated in Betterfly’s $125 million Series C Funding Round. The Chilean insurance-tech startup provides a digital benefits platform where employers can incentivize healthy habits through perks, such as growing life insurance or directing funds to charitable causes.
- We invested in Tul, an e-commerce marketplace for hardware stores, having participated in its $181 million Series B funding round.
- We invested in EdgeGrid, a B2B enterprise clean-tech platform, that connects sellers that need energy services with individuals, businesses and distribution companies.
- We co-led our new investment in Niyo, one of the fastest-growing neo-banking platforms in India, in its $100 million funding round.
- We invested in health-tech startup MediBuddy, having led the$125 million Series C funding. MediBuddy offers access to specialist doctors 24/7 via video calls, doorstep medicine delivery, at-home lab tests and mental health support in its digital platform.
- We also led a new investment in Bugworks, its $18 million funding round. The Bengaluru-based biotech startup is developing drugs to effectively eliminate multiple drug-resistant bacteria.
- We led Scaler’s $55 million Series B funding round, an Indian edtech startup that offers courses like data science and machine learning for working professionals and students, to help them gain skills to develop and pursue new opportunities in the IT sector.
- We invested in TeamApt, a Nigerian fintech startup. The company has become the largest agency banking platform in the country in just two years, by empowering millions of people to access digital banking, savings and credit products, thus stimulating financial inclusion across Nigeria.
- We co-led our new investment in Max, the largest vehicle subscription platform for low-to-zero emission vehicles in Africa, in its $31 million Series B funding round.
We continue to back our portfolio companies in their growth and development, and we took part in various recent funding rounds, such as:
- Creditas reached a valuation of $4.8 billion, following their $260 million funding round to reinforce the company’s growth.
- Vivriti Capital completed its $55 million funding round for business expansion as well as technology for acquisitions, product delivery and portfolio management.
- Smartcoin raised $7 million to grow its loan book and launch new products to more than 5.5 million of its users across India.
- Arya.ag successfully completed a funding round of $60 million, as the company enters a new phase of growth.
- WayCool Foods raised $117 million in its Series D funding round. The fresh capital will be used to accelerate and leverage deep tech and automation to enhance its efficiency multi-fold.
- Dunzo completed their funding of $240 million to continue expansion across India. Dunzo aims to establish itself as one of the most reliable quick commerce providers in the country.
- M-Kopa raised $75 million to continue enabling access to financial support for over 2 million underbanked customers across Kenya, Uganda, Nigeria and Ghana and broaden their scope of product offering.
- Copia Kenya plans to expand further into Kenya and other African markets after their $50 million funding round.
Again, our portfolio companies have been recognised for their innovative and impactful solutions. Here is a selection:
- Sunfire was named a 2022 Global Cleantech 100 Company by Cleantech Group for the seventh time, for offering solutions that will take the planet towards net zero. Sunfire also successfully raised an additional $215 million, to increase its manufacturing capacity and enable the scaling of its hydrogen technologies.
- South Pole welcomed three new investors, Temasek, Salesforce Ventures and Swisscom, to reinforce South Pole’s strong commitment to scaling up climate action in Asia and North America.
- Infarm ranked number 1 at the Forward Fooding's FoodTech500 list, amongst more than 2,550 international AgriFoodTech startups, which were rated based on their business size, digital footprint, and sustainability practices.
- 4G Capital ranked at Real Leaders Impact Awards for unlocking human potential for good, growing business with capital and knowledge and aiming to be the first choice lender for micro enterprises in Africa.
- CEO of 4G Capital, Wayne Hennessy-Barret, featured at Top 50 Financial Technology CEOs of 2022, as one of the most accomplished and innovative leaders across the sector, for changing the way technology enhances and automates the delivery of financial services.
- Copia Kenya, winning the Best Supply Chain Innovation Award from the Kenya Institute Of Supplies Management (KISM) Official, for the impact they’ve made for serving middle to low-income African consumers, regardless of their access to technology or geographic location. Copia Kenya also received the Mobile App of The Year Award for their Purchasing Experience.
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Creating positive impact is the core value of Lightrock and our portfolio companies. Through innovative products and platforms, our portfolio is able to tackle global challenges and takes efforts to analyse and showcase their positive impact. Some recent examples:
- CMR Surgical has released a case study that illustrates the improved efficiency and quality of work at Milton Keynes University. Since its Surgical Robot “Versius” implementation, the hospital has managed to save up to 450 bed-days, improvements in patient recovery timelines and surgeon comfort, among others.
- Kebony launched its first Sustainability Report, providing a transparent assessment of its eco-friendly credentials. This report includes an overview of Kebony’s values, improvement initiatives, the nature of equality and safety in the workspace, and its role in the sustainability space.
- Buser has launched a sustainability program and has already neutralized more than 2,000 tons of CO2 in the transport sector. Buser also started a program of improvements of public spaces in the cities it operates in Brazil.
