Shopify has made an investment in Hong Kong SaaS startup WATI’s $23 million USD Series B round.
WATI announced the financing on Wednesday, which was led by Tiger Global, with participation from existing investors Sequoia Capital India & Southeast Asia, as well as new investor DST Global Partners, in addition to Shopify. The amount Shopify invested specifically was not disclosed.
“The team has grown, revenue and customers have doubled, and now we look to scale the business, operations, teams around the world.” – Bianca Ho, WATI co-founder
According to WATI, the Series B round marks Shopify’s first venture investment in a startup operating in the Southeast Asia region.
Founded in 2020, WATI offers a customer engagement software that is built on WhatsApp’s Business API. WATI, which stands for WhatsApp Team Inbox, allows small to medium-sized businesses (SMBs) to send personalized notifications from their system. They can also support customers through a collaborative team inbox with multiple agents, smart routing, canned responses, data tagging, and analytics.
Since its launch, WATI claims to have over 6,000 customers across 78 countries, comprising SMBs like Shopify stores, and companies that provide domestic house cleaning services to schools, tutorial centres, medical institutions, and others.
WATI claims that it has raised over $35 million to date, including its $8.3 million Series A funding round in December 2021 led by Sequoia Capital India.
While the investment marks Shopify’s first in a startup operating in the Southeast Asia region, it is not its first in customer relations software. Last year, Shopify also invested in United States-based Loop, which helps brands with refund and exchange management.
Shopify has a long history of investing in companies, many of which have connections to its ecosystem. This includes Israel-based e-commerce marketing company Yotpo. Shopify also holds sizeable stakes in American payment processing firm Stripe and buy now, pay later company Affirm.
A number of Shopify’s investments tend to be strategic in nature, such as its $100 million partnership with marketing automation SaaS provider Klaviyo in August, and in US-based AI recommendation startup Crossing Minds, which lets Shopify businesses use Crossing Mind’s product recommendation platform.
In July, Shopify also completed its acquisition of Deliverr to expand its in-house fulfillment network, and last year invested in Vancouver bookkeeping firm Bench.
In line with its strategic investing, Shopify has also established a partnership with WATI, according to WATI co-founder Bianca Ho, who said that WATI doubled down on its product with more automations, and went vertical in its approach by creating integrations and partnerships with the likes of Shopify, Zoho, and Google Sheets, among others.
WATI’s new capital will be allocated towards scaling WATI’s team and investments in its product stack for low-code automation. The startup said it also plans to bolster its go-to-market plans in regions such as Latin America and Southeast Asia. WATI said that it grew its remote-first team by 50 percent this year, tapping talent from Twitter and Freshworks.
“The team has grown, revenue and customers have doubled, and now we look to scale the business, operations, teams around the world,” said Ho.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
