World News
Airalo locks in $60M to expand its eSIM-based global roaming ‘marketplace’ on July 31, 2023 at 2:26 pm
Published
1 year agoon
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Travel is back on the agenda after a Covid-19 hiatus, and today a mobile startup is announcing a healthy round of funding to capitalize on that. Airalo — which uses software-based eSIM connectivity to provide a wide range of lower-cost mobile data packages, nearly 700 in all, for international travellers — has raised $60 million in a Series B round that it will be using to expand its business.
The all-equity round, values Airalo at $250 million post-money, includes a long list of financial and strategic backers, a mix that speaks to who works with the startup as a business partner as a complement to their own direct operations.
e& Capital, the venture arm of e& (better known as the UAE-based carrier Etisalat), is leading the round with participation also from startup incubator Antler Elevate, Liberty Global, Rakuten Capital, Singtel Innov8, Surge (the early-stage fund run by Peak XV, formerly known as Sequoia Capital India and SEA), Orange, T.Capital (the venture arm of Deutsche Telecom), KPN Ventures, Telefónica Ventures, I2BF Global Ventures, GO Ventures, and LG Technology Ventures. This fundraise is a big step up for the company, which had previously raised just $7.3 million.
Although Airalo’s only just closed the round, the company is currently on a strong growth rate — 20% revenue growth month on month, with nearly 1 million downloads monthly for the past three months. And from what we understand, that’s leading to further interest from other potential investors. There are already discussions to bring extra backers on at a considerably higher valuation of between $800 million and $1 billion.
Launched in 2019, Airalo is one of a group eSIM providers that have received an injection of life thanks to handset makers like Apple promoting the software-based standard as an easier way for users to move from one mobile carrier to another, doing away with requiring customers to physically change the small SIM card in their phones.
eSIM has been both a blessing and curse: it means carriers might have a better chance of wooing away customers from their current providers, but it also means it’s harder to lock in the customers they have. Overall, for consumers it’s a huge win, since it means mobile operators have to be a lot more creative and competitive to win business.
And that’s where Airalo has been showing promise. After a very slow start due to the pandemic when COO Abraham Burak said growth basically “stalled” for two years, it started to pick up momentum in 2022.
Although carriers these days have become more savvy with building and offering travellers more cost-effective mobile data plans, many of these tend not to be as flexible, and thus cheap, as what consumers want or need. eSIM offerings promise an alternative: more granular offerings at smaller pricing increments.
Currently Airalo says that it has 5.1 million customers buying its eSIM products. These products are presented in a matrix of combinations covering some 200 countries, geographic regions, service durations, and data package sizes — in all currently totally 689 different combinations.
“We are seeing exponential growth in sign ups because travel is picking up,” said Burak, who co-founded the company with Bahadir Ozdemir (the CEO).
Burak and Airalo overall refers to this matrix of eSIM plans as its “marketplace”. That appears not to be a reference to multiple eSIM providers — Airalo is the only one selling to users — but to the large bazaar of carriers and carrier plans underpinning the deals.
Behind the scenes, Airalo builds out its many eSIM options by way of a network of carrier agreements that it brokers and then stitches together across the globe, some involving direct capacity purchased on a wholesale basis, and others involving reselling international roaming plans already structured by individual mobile carriers. Airalo has also built technology that measures demand and corresponding costs and pricing for these different eSIM packages.
If you are asking yourself, why would a carrier work with a third party like Airalo, which might compete directly against it? It’s for the same reason that a brand might sell through many retailers while also selling goods directly through its own-branded storefronts: if a customer is already looking somewhere else for a good mobile roaming plan before travelling, chances are the carrier has already lost that customer. Cutting a deal with Airalo gives that carrier a chance — albeit one at a smaller margin — to still win some business.
It’s enough of an opportunity that Burak said that there have been acquisition approaches already from the carrier world.
That’s not to say that all eSIM providers are swimming in opportunity, or necessarily capitalizing on it just yet.
Another big name in the space, Truphone, which had raised hundreds of millions of dollars, recently faced a period of significant turbulence when its biggest shareholder, Roman Abramovich, was slapped with international sanctions over his connections to Russia and he and other Russian shareholders were forced to sell their holdings in the company. Despite some very interesting deals it had on the books including services to banks and a partnership with Apple, Truphone had never made a profit in 15 years of operations, so its sale and its future definitely looked uncertain.
It look almost a whole year, but in the end Truphone was sold for £1 to two entrepreneurs, German businessman and tech entrepreneur Hakan Koç and former telecoms executive and private equity investor Pyrros Koussios, who pledged to invest more into the business and to expand the kinds of services it offers to enterprise customers.
(Indeed, stitching together data connectivity as an eSIM provider is not that far in concept from privacy-focused VPNs, which is something Truphone was already building for business customers, and may have been one of the interesting services that caught the eye of its Russian oligarch former owners.)
On that note, the idea of expanding what else an eSIM company can be providing to its customers beyond basic data is something that it seems Airalo is also taking on board, too. One new service it will be using the funding to help introduce is “Airalo Partners,” which it describes as “an innovative connectivity solution tailored to businesses and organizations across the globe.”
UAE has a number of international expat residents and itself has a population that is widely travelled, so it makes sense that an eSIM provider caught e&’s eye as an interesting investment opportunity.
“We are pleased to lead the Series B financing round for Airalo, a company that has come a long way over the past 18 months with a focus on providing exceptional customer experience,” said Kushal Shah, managing director, e& capital, in a statement. “We have complete confidence in Airalo’s ability to expand its user community, strengthen its diverse team, and introduce its latest product Airalo Partners, a groundbreaking connectivity solution for global businesses and organizations. We believe that Airalo has the potential to become a travel essential and are excited to support their journey towards becoming the definitive gateway to instant connectivity worldwide.”
Travel is back on the agenda after a Covid-19 hiatus, and today a mobile startup is announcing a healthy round of funding to capitalize on that. Airalo — which uses software-based eSIM connectivity to provide a wide range of lower-cost mobile data packages, nearly 700 in all, for international travellers — has raised $60 million
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Humans Need Not Apply: The AI Candidate Promising to Disrupt Democracy
Published
4 months agoon
June 15, 2024The rise of AI Steve, the artificial intelligence candidate running for a seat in the UK Parliament, has sparked a heated debate about the role of AI in governance and the potential disruption it could bring to traditional democratic processes.
Steven Endacott, the human force behind AI Steve, envisions his AI co-pilot as a conduit for direct democracy, enabling constituents to engage with the AI, share concerns, and shape its policy platform through a voting system of “validators.” Endacott has pledged to vote in Parliament according to the AI’s constituent-driven platform, even if it conflicts with his personal views.
Proponents argue that AI Steve can revolutionize politics by bringing more voices into the process and ensuring that policies truly reflect the will of the people. They claim that an AI candidate can engage in up to 10,000 conversations simultaneously, allowing for unprecedented levels of public participation and input.
However, critics raise valid concerns about transparency, accountability, and the potential for AI systems to be manipulated or influenced by their creators, data limitations, or external actors. There are also questions about whether an AI can fully grasp the nuances and human elements involved in complex political issues.
Some argue that AI Steve is merely a clever marketing ploy to garner attention and votes, rather than a genuine effort to “humanize” politics. There are fears that the use of AI in elections could undermine faith in electoral outcomes and democratic processes if voters become aware of potential scams or manipulation.
Beyond the specific case of AI Steve, the rise of AI candidates and the increasing use of AI in political campaigns and elections raise broader questions about the integrity of democratic systems and the need for effective regulations and guidelines.
Anti-democratic actors and authoritarian regimes may seek to exploit AI technologies for censorship, surveillance, and suppressing dissent under the guise of enhancing governance. There are also concerns about the potential for an “AI arms race” between political parties to develop and deploy the most sophisticated AI technologies, further eroding public trust.
As AI tools become more advanced and accessible, upholding electoral integrity will require proactive efforts to establish guardrails, transparency measures, and accountability frameworks around their use in politics. Policymakers, advocates, and citizens must work together to ensure that AI is leveraged as a force for a better and more inclusive democracy, rather than a tool for manipulation or consolidation of power.
The rise of AI candidates like AI Steve serves as a wake-up call for democratic societies to grapple with the implications of artificial intelligence in governance and to strike the right balance between harnessing its potential benefits and mitigating its risks to the democratic process.
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Author: Bolanle Media Staff
Saudi Arabia is reportedly considering abandoning the US dollar for oil trade settlements, a move that could shake the foundations of the global financial system. For decades, the petrodollar system has propped up the dollar’s status as the world’s reserve currency, with Saudi Arabia insisting on dollar payments for its vast oil exports.
However, recent comments from Saudi officials hint at exploring alternatives to the dollar amid growing tensions with the US over various geopolitical issues and the rise of economic powerhouses like China.
Implications of a Petrodollar Shift
If Saudi Arabia abandons the petrodollar, the implications could be significant:
1. Dollar Dominance Eroded: The dollar’s reserve currency status could weaken, potentially leading to a decline in its value.
2. Global Financial Instability: A sudden shift could trigger volatility in global markets as investors adjust portfolios.
3. Geopolitical Realignment: The move could signal Saudi alignment with China and challenge US economic hegemony.
Challenges and Uncertainties
While the prospect is significant, challenges remain:
1. Finding a suitable alternative currency with the dollar’s liquidity and stability.
2. Potential economic disruption for Saudi Arabia and trading partners.
3. Political backlash and strained relations with the US and allies.
As the world watches, it remains uncertain whether Saudi Arabia’s comments signal a negotiating tactic or a profound shift in the global financial order.
Author: Bolanle Media Staff
X, the social media platform formerly known as Twitter, has made a significant policy shift by officially permitting adult content on its platform with some restrictions and guidelines.
In an update to its rules, X stated that users can now share “consensually produced and distributed adult nudity or sexual behavior” as long as it is properly labeled and not prominently displayed in areas like profile pictures or header images.
“We recognize that many of our users are adults who want to freely express themselves by sharing legal adult content,” said an X spokesperson. “At the same time, we have a responsibility to protect minors and prevent exposure to explicit material without proper labeling.”
Under the new guidelines, users who “regularly post” adult content must adjust their settings to automatically mark images and videos as sensitive content, which blurs or hides the media by default. By default, users under 18 or who haven’t entered their birth date cannot view this sensitive adult content.
The policy prohibits content “promoting exploitation, nonconsent, objectification, sexualization or harm to minors, and obscene behaviors.” It applies to all adult content, whether photographic, animated, or AI-generated.
X has stated that it will monitor user-generated content and adjust account settings for those who fail to properly mark pornographic posts. Similar rules and enforcement will apply to violent content as well.
The move aligns X with Apple’s app store guidelines, which allow apps with adult content as long as it is hidden by default and behind proper age gates and content warnings.
While adult content was already present on X, this policy update officially permits and regulates it, aiming to balance freedom of expression for consenting adults with protecting minors from exposure to explicit material.
However, enforcing these rules consistently may prove challenging for X’s reduced content moderation teams following recent layoffs and cost-cutting measures.
The policy shift has drawn mixed reactions, with some praising X for embracing adult expression while others raise concerns about the potential for the platform to become inundated with pornographic content despite the restrictions.
As X navigates this new territory, the effectiveness of its labeling requirements, age verification measures, and content moderation efforts will be closely watched by users, regulators, and advocacy groups alike.
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Author: Bolanle Media Staff
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