Sequoia Capital India on its early funding in Appier, the fund’s newest exit – TechCrunch

Sequoia Capital India on its early investment in Appier, the fund’s latest exit – TechCrunch

Chih-Han Yu, chief government officer and co-founder of Appier Group Inc., proper, holds a hammer subsequent to a bell throughout an occasion marking the itemizing of the corporate on the Tokyo Inventory Alternate, on the firm’s workplace in Taipei, Taiwan on Tuesday, March 30, 2021. Photographer: Billy H.C. Kwok/Bloomberg by way of Getty Photographs

Appier’s initial public offering on the Tokyo Stock Exchange yesterday was a milestone not just for the corporate, but in addition Sequoia Capital India, one in all its earliest buyers. Based in Taiwan, Appier was the fund’s first funding outdoors of India, and is now additionally the primary firm in its portfolio outdoors of India to go public. In an interview with TechCrunch, Sequoia Capital managing director Abheek Anand talked about what drew the firm to Appier, which develops AI-based advertising and marketing software program.

Earlier than shifting its focus to advertising and marketing, Appier’s founders—chief government officer Chih-Han Yu, chief working officer Winnie Lee and chief expertise officer Joe Su—worked on a startup called Plaxie to develop AI-powered gaming engines. Yu and Su got here up with the concept once they have been each graduate college students at Harvard, however discovered there was little demand on the time. Anand met them in 2013, quickly after their pivot to massive knowledge and advertising and marketing, and Sequoia Capital India invested in Appier’s Sequence A just a few months later.

“It’s simple to say on reflection what labored and what didn’t work. What actually stands out with out attempting to jot down revisionist historical past is that this was simply an extremely good group,” mentioned Anand. “They’d most likely probably the most technical core DNA of any Sequence An organization that we’ve met in years, I’d argue.” Yu holds a PhD in pc science from Harvard, Wu earned a PhD in immunology at Washington College in St. Louis and Su has a M.S. in pc science from Harvard. The corporate additionally stuffed its group with AI and machine studying researchers from high universities in Taiwan and the US.

On the time, Sequoia Capital “had a broad thesis that there can be adoption of AI in enterprises,” Anand mentioned. “What we believed was there have been a bunch of individuals going after that downside, however they have been attempting to unravel enterprise issues with out essentially having the technical depth to do it.” Appier stood out as a result of they “have been swinging at it from the opposite finish, the place they’d an unlimited quantity of technical experience.”

Since Appier’s launch in 2012, extra corporations have emerged that use machine studying and massive knowledge to assist corporations automate advertising and marketing selections and create on-line campaigns. Anand mentioned one of many causes Appier, which now operates in 14 markets throughout the Asia-Pacific area, stays aggressive is its technique of cross-selling new merchandise and specializing in particular use instances as an alternative of constructing a basic objective platform.

Appier’s core product is a cross-platform promoting engine referred to as CrossX that focuses on consumer acquisition. Then it has merchandise that handle different elements of their clients’ worth chain: AiDeal to assist corporations ship coupons to the shoppers who’re most probably to make use of them; consumer engagement platform AIQUA; and AIXON, a knowledge science platform that makes use of AI fashions to foretell buyer actions, together with the probability of repeat purchases.

“I feel the primary factor that the corporate has spent lots of time on is specializing in effectivity,” mentioned Anand. “Clients have tons of knowledge, each exterior and first-party, that they’re processing to drive enterprise outcomes. It’s a really onerous technical downside. Appier begins with an answer that’s comparatively simple to interrupt right into a buyer, after which builds deeper and deeper options for these clients.”

Appier’s itemizing can be noteworthy as a result of it marks the primary time an organization from Taiwan has listed in Japan since Pattern Micro’s IPO in 1998. Japan is one in all Appier’s greatest markets (clients there embrace Rakuten, Toyota and Shiseido), making the Tokyo Inventory Alternate a pure match, Anand mentioned, though most of Sequoia Capital India’s portfolio corporations listing in India or the US.

The Tokyo Inventory Alternate additionally stood out due to its retail investor participation, liquidity and whole quantity. A few of Appier’s different core buyers, together with JAFCO Asia and SoftBank Group Corp., are additionally primarily based in Japan. However although it has virtually $30 billion in common buying and selling quantity, the overwhelming majority of listings are home corporations. In a recent report, Nikkei Asia cited a better company tax charge and lack of potential underwriters, particularly for smaller listings, as a possible obstacles for international corporations.

However Appier’s debut could prepared the ground for different Asian startups to selected the Tokyo Inventory Alternate, mentioned Anand. “Preparing for the Japanese trade meant having the fitting accounting practices, the fitting reporting, an entire bunch of compliance stuff. It was a protracted course of. In some methods we have been main the cost for exterior corporations to get there, and I’m positive over time it’ll hold getting simpler and simpler.”

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