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WhatsApp ramps up revenue with global launch of Cloud API and soon, a paid tier for its Business App

WhatsApp is continuing its push into the business market with today’s news it’s launching the WhatsApp Cloud API to all businesses worldwide. Introduced into beta testing last November, the new developer tool is a cloud-based version of the WhatsApp Business API — WhatsApp’s first revenue-generating enterprise product — but hosted on parent company Meta’s infrastructure.
The company had been building out its Business API platform over the past several years as one of the key ways the otherwise free messaging app would make money. Businesses pay WhatsApp on a per-message basis, with rates that vary based on the region and number of messages sent. As of late last year, tens of thousands of businesses were set up on the non-cloud-based version of the Business API including brands like Vodafone, Coppel, Sears Mexico, BMW, KLM Royal Dutch Airlines, Iberia Airlines, Itau Brazil, iFood, Bank Mandiri and others. This on-premise version of the API is free to use.
The cloud-based version, however, aims to attract a market of smaller businesses and reduces the integration time from weeks to only minutes, the company had said. It is also free.
Businesses integrate the API with their back-end systems, where WhatsApp communication is usually just one part of their messaging and communication strategy. They may also want to direct their communications to SMS, other messaging apps, emails and more. Typically, businesses would work with a solutions provider like Zendeks or Twilio to help facilitate these integrations. Providers during the cloud API beta tests had included Zendesk in the U.S., Take in Brazil and MessageBird in the E.U.
During Meta’s messaging-focused “Conversations” live event today, Meta CEO Mark Zuckerberg announced the global, public availability of the cloud-based platform, now called the WhatsApp Cloud API.
“The best business experiences meet people where they are. Already more than 1 billion users connect with a business account across our messaging services every week. They’re reaching out for help, to find products and services, and to buy anything from big-ticket items to everyday goods. And today, I am excited to announce that we’re opening WhatsApp to any business of any size around the world with WhatsApp Cloud API,” he said.
He said the company believes the new API will help businesses, both big and small, be able to connect with more people.
In addition to helping businesses and developers get set up faster than with the on-premise version, Meta says the Cloud API will help partners to eliminate costly server expenses and help them provide customers with quick access to new features as they arrive.
Some businesses may choose to forgo the API and use the dedicated WhatsApp Business app instead. Launched in 2018, the WhatsApp Business App is aimed at smaller businesses that want to establish an official presence on WhatsApp’s service and connect with customers. It provides a set of features that wouldn’t be available to users of the free WhatsApp messaging app, like support automated quick replies, greeting messages, FAQs, away messaging, statistics and more.
Today, Meta is also introducing new power features for its WhatsApp Business app that will be offered for a fee — like the ability to manage chats across up to 10 devices. The company will also provide new customizable WhatsApp click-to-chat links that help businesses attract customers across their online presence, including of course, Meta’s other applications like Facebook and Instagram.
These will be a part of a forthcoming Premium service for WhatsApp Business app users. Further details, including pricing, will be announced at a later date.
WhatsApp ramps up revenue with global launch of Cloud API and soon, a paid tier for its Business App

Daily Crunch: WhatsApp responds to privacy backlash

WhatsApp delays enforcement of a controversial privacy change, Apple may get rid of the Touch Bar in future MacBooks and Bumble files to go public. This is your Daily Crunch for January 15, 2021.
The big story: WhatsApp responds to privacy backlash
Earlier this month, WhatsApp sent users a notification asking them to consent to sharing some of their personal data — such as phone number and location — with Facebook (which owns WhatsApp). The alert also said users would have to agree to the terms by February 8 if they wanted to continue using the app.

This change prompted legal threats and an investigation from the Turkish government. Now the company is pushing the enforcement date back three months.
“No one will have their account suspended or deleted on February 8. We’re also going to do a lot more to clear up the misinformation around how privacy and security works on WhatsApp,” the company said in a post. “We’ll then go to people gradually to review the policy at their own pace before new business options are available on May 15.”
The tech giants
Uber planning to spin out Postmates’ delivery robot arm — Postmates X is seeking investors in its bid to become a separate company.
Apple said to be planning new 14- and 16-inch MacBook Pros with MagSafe and Apple processors — This could be the end for the Touch Bar.
Amazon’s newest product lets companies build their own Alexa assistant for cars, apps and video games — Yes, that means your next car could have two Alexas.
Startups, funding and venture capital
Bumble files to go public — The company plans to list on the Nasdaq stock exchange, using the ticker symbol “BMBL.”
Tracy Chou launches Block Party to combat online harassment and abuse — Currently available for Twitter, Block Party helps people filter out the content they don’t want to see.
Everlywell raises $75M from HealthQuest Capital following its recent $175M Series D round — Everlywell develops at-home testing kits for a range of health concerns, and it added a COVID-19 home collection test kit last year.
Advice and analysis from Extra Crunch
Fifteen steps to fundraising a new VC or private equity fund — Launching is easy; fundraising is harder.
Lessons from Top Hat’s acquisition spree — The acquisition of Fountainhead Press marks Top Hat’s third purchase of a publishing company in the past 12 months.
Twilio CEO Jeff Lawson says wisdom lies with your developers — Takeaways from Lawson’s new book “Ask Your Developer.”
(Extra Crunch is our membership program, which aims to democratize information about startups. You can sign up here.)
Everything else
Video game spending increased 27% in 2020 — According to the latest figures from NPD, spending on gaming hardware, software and accessories was up 25% in December and 27% for the full year.
DOT evaluated 11 GPS replacements and found only one that worked across use cases —  The government wants to create additional redundancy and resiliency in the sector.
The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 3pm Pacific, you can subscribe here.

Daily Crunch: WhatsApp responds to privacy backlash

YouTube and WhatsApp inch closer to half a billion users in India

WhatsApp has enjoyed unrivaled reach in India for years. By mid-2019, the Facebook-owned app had amassed over 400 million users in the country. Its closest app rival at the time was YouTube, which, according to the company’s own statement and data from mobile insight firm App Annie, had about 260 million users in India then.
Things have changed dramatically since.
In the month of December, YouTube had 425 million monthly active users on Android phones and tablets in India, according to App Annie, the data of which an industry executive shared with TechCrunch. In comparison, WhatsApp had 422 million monthly active users on Android in India last month.

Factoring in the traction both these apps have garnered on iOS devices, WhatsApp still assumes a lead in India with 459 million active users1, but YouTube is not too far behind with 452 million users.
With China keeping its doors closed to U.S. tech giants, India emerged as the top market for Silicon Valley and Chinese companies looking to continue their growth in the last decade. India had about 50 million internet users in 2010, but it ended the decade with more than 600 million. Google and Facebook played their part to make this happen.
In the last four years, both Google and Facebook have invested in ways to bring the internet to people who are offline in India, a country of nearly 1.4 billion people. Google kickstarted a project to bring Wi-Fi to 400 railway stations in the country and planned to extend this program to other public places. Facebook launched Free Basics in India, and then — after the program was banned in the country — it launched Express Wi-Fi.
Both Google and Facebook, which identify India as their biggest market by users, have scaled down on their connectivity efforts in recent years after India’s richest man, Mukesh Ambani, took it upon himself to bring the country online. After he succeeded, both the companies bought multibillion-dollar stakes in his firm, Jio Platforms, which has amassed over 400 million subscribers.
Jio Platforms’ cut-rate mobile data tariff has allowed hundreds of millions of people in India, where much of the online user base was previously too conscious about how much data they spent on the internet, to consume, worry-free, hours of content on YouTube and other video platforms in recent years. This growth might explain why Google is doubling down on short-video apps.
The new figures shared with TechCrunch illustrate a number of other findings about the Indian market. Even as WhatsApp’s growth has slowed2 in India, it continues to enjoy an unprecedented loyalty among its users.
More than 95% of WhatsApp’s monthly active users in India use the app each day, and nearly its entire user base checks the app at least once a week. In comparison, three-fourths of YouTube’s monthly active users in India are also its daily active users.
The data also showed that Google’s eponymous app as well as Chrome — both of which, like YouTube, ship pre-installed3 on most Android smartphones — has also surpassed over 400 million monthly active users in India in recent months. Facebook’s app, in comparison, had about 325 million monthly active users in India last month.
When asked for comment, a Google spokesperson pointed TechCrunch to a report from Comscore last year, which estimated that YouTube had about 325 million monthly unique users in India in May 2020.
A separate report by research firm Media Partners Asia on Monday estimated that YouTube commanded 43% of the revenue generated in the online video market in India last year (about $1.4 billion). Disney+ Hotstar assumed 16% of the market, while Netflix had 14%.

Google invests in Indian startups Glance and DailyHunt

1 For simplicity, I have not factored in the traction WhatsApp Business and YouTube Kids apps have received in India. WhatsApp and YouTube also maintain apps on KaiOS, which powers JioPhone feature handsets in India. At last count — which was a long time ago — more than 40 million JioPhone handsets had shipped in India. TechCrunch could not determine the inroads any app has made on this platform. Additionally, the figures of YouTube on Android (phones and tablets) and iOS (iPhone and iPad) will likely have an overlap. The same is not true of WhatsApp, which restricts one phone number to one account. So if I have WhatsApp installed on an iPhone with my primary phone number, I can’t use WhatsApp with the same number on an Android phone — at least not concurrently.
2 WhatsApp Business appears to be growing fine, having amassed over 50 million users in India. And some caveats from No. 1 also apply here.
3 Users still have to engage with the app for App Annie and other mobile insight firms to count them as active. So while pre-installing the app provides Google an unprecedented distribution, their apps still have to win over users.

YouTube and WhatsApp inch closer to half a billion users in India

Facebook highlights small businesses as it ramps up Apple criticism

Facebook already made it clear that it isn’t happy about Apple’s upcoming restrictions on app tracking and ad targeting, but the publicity battle entered a new phase today.
Over the summer, Apple announced that beginning in iOS 14, developers will have to ask users for permission in order to use their IDFA identifiers for ad targeting. On one level, it’s simply giving users a choice, but because they’ll have to opt-in to participate, the assumption is that we’ll see a dramatic reduction in app tracking and targeting.
The actual change was delayed until early next year, but in the meantime Facebook suggested that this might mean the end of its Audience Network (which uses Facebook data to target ads on other websites and apps) on iOS.

Then, this morning, Facebook placed print ads in The New York Times, The Wall Street Journal and The Washington Post declaring that it’s “standing up to Apple for small businesses everywhere,” and it published a blog post and website making the same argument.
While it’s easy to see all of this as an attempt to put a more sympathetic face on a PR campaign that’s really just protecting Facebook’s ad business, Dan Levy — the company’s vice president of ads and business products — got on a call with reporters today to argue otherwise.

Image Credits: Facebook

For one thing, he said that with its “diversified” advertising business, Facebook won’t feel the impact as keenly as small businesses, particularly since it already acknowledged potential ad targeting challenges in its most recent earnings report.
“We’ve already been factoring this into our expectations for the business,” he said.
In contrast, Levy said small businesses rely on targeting in order to run efficient advertising campaigns — and because they’ve got small budgets, they need that efficiency. He predicted that if Apple moves forward with its plans, “Small businesses will struggle to stay afloat and many aspiring entrepreneurs may never get off the ground.”
Levy was joined by two small business owners, Monique Wilsondebriano of Charleston Gourmet Burger Company in South Carolina and Hrag Kalebjian of Henry’s House of Coffee in San Francisco. Kalebjian said that while business in the coffee shop is down 40% year-over-year, his online sales have tripled, and he credited targeted Facebook campaigns for allowing him to tell personal stories about his family’s love for Armenian coffee.
Wilsondebriano, meanwhile, said that when she and her husband Chevalo started a business selling their homemade burger marinade, “we did not have the option to run radio ads or TV ads, we just didn’t have a budget for that” — and so they turned to Facebook and Instagram. With the marinade now available in 50 states and 17 countries, Wilsondebriano said, “It makes me sad that if this update happens, so many small businesses won’t get that same opportunity that Cheval and I had.”
Levy also suggested that Apple’s bottom line might benefit from the changes — if developers make less money on ads from Facebook and other platforms, they may need to rely more on subscriptions or in-app transactions (with Apple collecting its much-discussed fee), and they might turn to Apple’s own targeted advertising platform.
A number of ad industry groups have also taken issue with Apple’s policy, with SVP Craig Federighi fighting back in a speech criticizing what he called “outlandish” and “false” claims from the adtech industry. In that speech, Federighi said Apple’s App Tracking Transparency feature is designed “to empower our users to decide when or if they want to allow an app to track them in a way that could be shared across other companies’ apps or websites.”
Update: Apple sent out the following statement.
We believe that this is a simple matter of standing up for our users. Users should know when their data is being collected and shared across other apps and websites — and they should have the choice to allow that or not. App Tracking Transparency in iOS 14 does not require Facebook to change its approach to tracking users and creating targeted advertising, it simply requires they give users a choice.

Facebook isn’t happy about Apple’s upcoming ad tracking restrictions

Facebook highlights small businesses as it ramps up Apple criticism

Daily Crunch: Pakistan un-bans TikTok

TikTok returns to Pakistan, Apple launches a music-focused streaming station and SpaceX launches more Starlink satellites. This is your Daily Crunch for October 19, 2020.
The big story: Pakistan un-bans TikTok
The Pakistan Telecommunication Authority blocked the video app 11 days ago, over what it described as “immoral,” “obscene” and “vulgar” videos. The authority said today that it’s lifting the ban after negotiating with TikTok management.

“The restoration of TikTok is strictly subject to the condition that the platform will not be used for the spread of vulgarity/indecent content & societal values will not be abused,” it continued.
This isn’t the first time this year the country tried to crack down on digital content. Pakistan announced new internet censorship rules this year, but rescinded them after Facebook, Google and Twitter threatened to leave the country.
The tech giants
Apple launches a US-only music video station, Apple Music TV —  The new music video station offers a free, 24-hour live stream of popular music videos and other music content.
Google Cloud launches Lending DocAI, its first dedicated mortgage industry tool — The tool is meant to help mortgage companies speed up the process of evaluating a borrower’s income and asset documents.
Facebook introduces a new Messenger API with support for Instagram — The update means businesses will be able to integrate Instagram messaging into the applications and workflows they’re already using in-house to manage their Facebook conversations.
Startups, funding and venture capital
SpaceX successfully launches 60 more Starlink satellites, bringing total delivered to orbit to more than 800 — That makes 835 Starlink satellites launched thus far, though not all of those are operational.
Singapore tech-based real estate agency Propseller raises $1.2M seed round — Propseller combines a tech platform with in-house agents to close transactions more quickly.
Ready Set Raise, an accelerator for women built by women, announces third class — Ready Set Raise has changed its programming to be more focused on a “realistic fundraising process” vetted by hundreds of women.
Advice and analysis for Extra Crunch
Are VCs cutting checks in the closing days of the 2020 election? — Several investors told TechCrunch they were split about how they’re making these decisions.
Disney+ UX teardown: Wins, fails and fixes — With the help of Built for Mars founder and UX expert Peter Ramsey, we highlight some of the things Disney+ gets right and things that should be fixed.
Late-stage deals made Q3 2020 a standout VC quarter for US-based startups — Investors backed a record 88 megarounds of $100 million or more.
(Reminder: Extra Crunch is our subscription membership program, which aims to democratize information about startups. You can sign up here.)
Everything else
US charges Russian hackers blamed for Ukraine power outages and the NotPetya ransomware attack — Prosecutors said the group of hackers, who work for the Russian GRU, are behind the “most disruptive and destructive series of computer attacks ever attributed to a single group.”
Stitcher’s podcasts arrive on Pandora with acquisition’s completion — SiriusXM today completed its previously announced $325 million acquisition of podcast platform Stitcher from E.W. Scripps, and has now launched Stitcher’s podcasts on Pandora.
Original Content podcast: It’s hard to resist the silliness of ‘Emily in Paris’ — The show’s Paris is a fantasy, but it’s a fantasy that we’re happy to visit.
The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 3pm Pacific, you can subscribe here.

Daily Crunch: Pakistan un-bans TikTok