Tracking Tiger Global (Week 36)
4 tiger deals this week: Scalapay, Factorial, Snyk, Aviatrix
Dear subscribers,
Welcome to the third edition of Tracking Tiger Global, a newsletter that provides weekly updates on Tiger Global’s latest investments.
There were 4 new deals with Tiger’s involvement announced this week. The dataset can be accessed here.
SCALAPAY (Italy | $155m | Series A | Fintech | Tiger led)
FACTORIAL (Spain | $80m Series B | SaaS | Tiger led)
SNYK (US | $530m Series F | SaaS | Tiger co-led)
AVIATRIX(US | $200m Series E | SaaS | Tiger participated)
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SCALAPAY (Italy | $155m | Series A | Fintech | Tiger led)
Founded in 2019 and headquartered in Italy, Scalapay is a Buy Now, Pay Later (“BNPL”) solution. It currently operates in Italy, France, Germany, Spain, Portugal, Finland, Belgium, Netherlands and Austria. It raised a $155m Series A round led by Tiger Global at a $700m valuation. Existing investors include Fasanara Capital and Ithaca Investments. The latest funding round brings the total amount raised to $203M in two years since launch.
Similar to other BNPL providers, Scalapay breaks payments for shoppers into three instalments with zero interest. [A good introduction to BNPL can be found here and here.] Scalapay can be used by merchants, online and in-store. The process for shoppers via both channels is shown below.
Based on company information, the benefits for merchants include (a) increased basket size by 48%, (b) 11% higher conversion at checkout, 68% higher return rate and 30% lower return rates. Scalapay has integrations with major e-commerce-related solutions such as SAP, WooCommerce, Shopify, Magento, Salesforce etc.
To date, Scalapay has partnered with 3,000+ merchant partners (in-store and online) with a focus on the luxury fashion vertical but has expanded in other verticals such as beauty and homeware. Illustrative customers include brands such as Decathlon, Intimissimi, Carpisa, Yamamay, Twinset.
The proceeds from this round will primarily be used for:
(a) Further growing Scalapay’s team and operations
The team has already doubled in size, to over 150 since the seed funding announcement in January 2021. Based on LinkedIn data, the company currently employs c.90 employees, with 13 job openings. Scalapay has hired Pingki Houang (ex-Fashion Cube) and Arlene Reynolds (ex-Just Eat) to oversee the global expansion.
(b) Help the company scale internationally, and launch new products to support merchants across luxury, fashion, and travel.
In January 2021, it announced that it has recently signed a partnership with Raisin Bank, a leading pan-European Banking-as-a-Service provider, whose passporting services will support the company’s EU rollout.
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FACTORIAL (Spain | $80m Series B | SaaS | Tiger led)
Founded in 2016 and headquartered in Spain, Factorial is an HR software platform for SMEs. It recently raised $80 in a Series B round led by Tiger Global, with participation from previous investors CRV, Creandum, Point Nine Capital and K Fund. According to Techcrunch, the valuation is between $500-550m post-money.
Factorial is building an all-in-one HR automation platform for SMEs to manage payroll, employee hiring and onboarding, time off, performance management, internal communications and other HR functions. Furthermore, Factorial is architected to manage teams across geographies and manage remote work. [A good overview of the HR software market with landscape overview and comps can be found here.] A snapshot of its current product capabilities is provided below.
The Factorial team is also very focused on product design, which is a differentiating factor relative to incumbents and makes Factorial attractive to smaller companies with non-HR users. In fact, CRV’s investment thesis (during the Series A round in Apr-20) was centred around Factorial emerging as a Zendesk of HR.
Factorial has currently 75,000+ customers across 65 countries. Last year, it “expanded its customer base across Europe and in Latin and North America. The Factorial team grew from 39 in 2019 to 253 today and it opened a new office in Mexico City to meet growing demand.”
The Series B round will enable Factorial to further fund geographic and product expansion. The company plans to open offices in Brazil and North America. Furthermore, it plans to "expand its tools “to become a true-all-in-one people data platform that organisations can use to grow their business.” Factorial expects to double the headcount within the next few months.
Sources:
SNYK (US | $530m Series F | SaaS | Tiger co-led)
Founded in 2015 and headquartered in Boston, “Snyk is a developer security platform. Integrating directly into development tools, workflows, and automation pipelines, Snyk makes it easy for teams to find, prioritize, and fix security vulnerabilities in code, dependencies, containers, and infrastructure as code.” [A good overview of the cybersecurity software market with comps can be found here.]
The $530m Series F transaction was co-led by Sands Capital and Tiger Global and “included both primary and secondary offerings with more than $300 million of new capital. The company has now raised a total of $775 million to date with a valuation of $8.5 billion post this round, more than tripling since the beginning of 2021.
The Snyk Developer Security Platform is shown above with key products including:
(a) Snyk Open Source: Automatically detect vulnerabilities and accelerate fixing throughout the development process
(b) Snyk Code: static application security testing re-imagined for the developer
(c) Snyk Container: Container and Kubernetes security designed to help developers find and fix vulnerabilities in cloud-native applications
(d) Snyk Infrastructure as Code: helps developers write secure configurations, well before anything reaches production.
A short but super helpful product demo can be found here (worth watching!).
In 2021, ARR increased by 154% y-o-y and the customer base has grown to 1,200 enterprises. The company has c.800+ employees (320 employees hired in YTD alone) with c.190 job openings on LinkedIn.
“The financing will continue to fuel Snyk's product innovation and development, set to be revealed at the company's free annual developer conference, SnykCon 2021, next month. The company plans to introduce new enhancements to its Developer Security Platform, new workflow integrations, improved functionality and new features at that time.”
Sources:
Aviatrix (US | $200m Series E | SaaS | Tiger participated)
Founded in 2013 and headquartered in Palo Alto, Aviatrix delivers cloud networking, network security and operational visibility to enterprises in a multi-cloud environment. As Cisco was the dominant networking leader of the client-server / internet era, Aviatrix has the ambition to become the dominant networking leader of the cloud era.
It has raised $200 million in growth funding led by TCV. Additional new investors include Insight Partners and Tiger Global, while several existing investors also participated in the round, raising Aviatrix’s valuation to $2 billion, which has more than doubled in six months since the previous round.
Aviatrix’s Multicloud networking solution “is an abstraction layer that leverages and controls native cloud network constructs through public APIs, then adds a superset of advanced networking, security, and operational services to simplify and accelerate service delivery in the cloud.”
The major components of the platform include:
(a) Aviatrix Controller (the brain of the platform): “controller understands all the networking constructs and services deployed in the enterprise’s multi-cloud network, understands all cloud accounts, and maintains correctness as new services and application environments are deployed.”
(b) Aviatrix Gateways: “software that operates on an enterprises’ clouds. Gateway delivers the advanced networking, security and operational services of the platform.”
(c) Aviatrix CoPilot: “enterprise operational visibility, monitoring and troubleshooting platform that delivers the information required to accelerate service delivery, reduce mean time to problem resolution, and improve operational efficiency.”
“Combined, Aviatrix Controller and CoPilot deliver a single management console that provides visibility and control across an enterprise’s entire multi-cloud networking and security environment.”
Aviatrix has more than 500 enterprise customers with contracts ranging from hundreds of dollars in ARR to over $2m in ARR. Customers include Heineken, Verint, FactSet, Informatica, Raytheon, and Splunk.
This growth-stage investment will enable the company to scale its worldwide sales and support operations.
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