Episode 7 - Mexico's E-commerce sector is stealing the spotlight
Welcome to Scenius Mexico: Your weekly newsletter on technology, innovation, and startups in Mexico.
The e-commerce sector is stealing the spotlight from the FinTech one. Some diversification is always good and anyone having tried to launch an e-commerce in Mexico knows how many challenges still need to be solved.
The talent shortage has spilled over the LatAm region, with international companies and Mexican ones looking to hire outside of their boundaries.
The crypto sector is in no rest, with Coinbase facilitating the remittance process for Mexicans. Another signal announcing its international expansion with Mexico at the top of the list.
You can read this episode online.
Funding Rounds
Valoreo raises an US$80 million Serie B to speed new acquisitions
Founded in 2020, the startup operates as an e-commerce aggregator for brands in Mexico, Brazil, and Colombia.
So far, the startup has raised US$160 million in debt and equity to build a portfolio of 25 local brands.
This type of business model is capital intensive and based on economies of scale, funding rounds have to be frequent and consequent.
Valoreo plans to use the funds to keep acquiring new brands but also to develop e-commerce solutions to improve the shopping experience.
In Mexico, Valoreo is competing with Quinio and Merama. To differentiate itself, the startup is taking full control of the brands it acquires and is creating its own brand from scratch.
Sector: E-commerce Aggregator
Total Raised: US$160 million in Equity & Debt financing
Founders: Cedrik Hoffmann, Alexander Gruell, Stefan Florea, Martin Florea
Investors: L Catterton, Presight Capital, Kingsway Capital, Kaszek, Upper90, FJ Labs
99minutos announce an US$82 million Serie C and is now shy of being a unicorn
The startup has been operating since 2014 but did not attract investors until recently. Alexis Patjane got rejected by 74 funds before finally getting 3 “yes”.
Taking part in this round are Oak HC/FT, with participation from existing investors Kaszek and Prosus Ventures.
With a growing e-commerce market, 99minutos tries to position itself as the first technology company to build the logistics infrastructure required to scale and to have a fast delivery experience in Mexico and LatAm.
The company is currently handling over 15 million packages per year, intending to deliver them in less than 99 minutes via its fleet of electric vehicles.
Sector: Logistics service
Total Raised: US$128.7 million
Founders: Alexis Patjane
Investors: Oak HC/FT, Kaszek, Prosus Ventures
General News
Mercado Libre announces an US$1.47 billion investment in Mexico
This investment represents a 30% increase compared to last year. The company disclosed that Mexico had the highest net revenue in the fourth quarter of 2021 and want to double down on it.
The Argentine company said it plans to innovate in technology, bolster its logistics operations and develop “priority” categories in its online market, such as apparel and supermarkets.
In line with Valoreo announcement, the e-commerce sector in Mexico is taking the spotlight of 2022. We can expect to see Startups tackling the logistic challenges get more traction and raise funds to surf on this trend.
Global hiring: 286% increases for Latin American talents
A report issued by Deel shows that the hiring of professionals from other countries by companies in the region skyrocketed in the second half of 2021; Latin American workers also appear among the most requested by international companies.
When looking at salaries, Mexico's average salary paid to professionals hired via Deel’s platform increased 57%. The areas with the largest increase in average pay were Marketing (+49%), Sales (+13%), and Products (+6%).
Talk with founders in the region and the talents subject comes to the conversation every time. Startups from Mexico are already looking to other LatAm countries such as Colombia and Peru to get early access to a growing pool of qualified professionals.
Coinbase has enabled a cash-out service in Mexico to convert crypto into fiat
Users in Mexico can now convert crypto sent to them by other users into Mexican pesos at more than 37,000 physical retail outlets and convenience stores across the country.
The cash-out service will remain free of charge until March 31. After that date, an undisclosed nominal fee will be applied, which will remain between 25% and 50% cheaper than traditional cross-border payment solutions, the company said.