The expansion of e-commerce attracts investors to the region
By Carlos Martinez, Dominic Pasteiner and Thiago Barrozo
In a region particularly affected by COVID-19, tens of millions of Latin Americans continue to order their food, groceries and medicines online, while home orders remain in place in the region.
Startups specializing in delivering goods bought to buyers’ houses are capitalizing on this dynamic to raise tens of millions of dollars of brand new capital.
In the last 4 months alone, at least six corporations in Brazil, Colombia and Mexico have announced plans to raise more funds, according to Mergermarket data.
Last mile delivery responses are definitely more exciting than an investment attitude thanks to COVID-19, said Rodolfo Dieck, managing director of Proeza Ventures, the venture capital branch of Mexican commercial conglomerate Grupo Proeza.
“It’s a hot industry,” he said, noting that Proeza Ventures has approached several last mile delivery response corporations in Argentina, Peru, Chile and Mexico.
Mergermarket reported in mid-April that 99 Minutes, a Mexico-based company that offers last mile deliveries and is subsidized through Engie’s corporate subsidiary, Engie Factory, was in complex talks to raise $12 million.dollars to boost its regional expansion.
Last month, Mergermarket also announced that Bogota’s last-kilometre logistics platform, Mensajeros Urbanos, planned to build a new investment circular early next year to drive expansion in Mexico and the Latin American country.through Movile, a naspers unit.
Vuux, a Sao Paulo-based company that connects truck carriers and drivers to transport fewer trucks, also plans to lift a new investment cycle in 2020 due or early 2020.
Strong logistics generation fundraisers are developing demand, said Nadim Matuk, leading investment officer at Liil Ventures, the independent venture capital branch of Mexican transport company Mobility ADO.Liil Ventures owns a stake in Colombian generation company logtech MiAguila.
Latin America has surpassed its weight in e-commerce: from 2016 to 2018, the region experienced the fastest expansion worldwide for Uber, Netflix and Airbnb, according to a technical report by DHL and the Panama Department of Commerce.
As a result, the e-commerce boom in Latin America is attracting investors. Mergermarket reported that LalaMove, a Hong Kong-based provider of logistics and same-day delivery services, is tracking M&A opportunities to fuel its expansion in Latin America. .
In fact, online logistics markets will continue to attract the interest of monetary and strategic investors even after COVID-19, said a Brazilian M&A representative who worked on acquiring the last-kilometre ASAPlog delivery platform through the Via Varejo store in April.
Cargo rental programs are expected to be the main form of urban deliveries for at least two years, according to Brazilian logistics consultancy and ILOS chains.
Unsurprisingly, classical transportation and logistics corporations will marry these new companies or launch their own online logistics platform, said Ruiz of KPMG Mexico.
The transport and logistics company Grupo Traxion, based in Mexico City, for example, introduced its own logistics market, Traxporta, which recorded profits of about $13.6 million in its first 4 months of operation, Forbes Mexico reported earlier this month.
Grupo Transportes Monterrey, a Mexican transport and logistics company, participated in Liftit’s 22.5 million series B, a Bogota-based startup that connects giant carriers with a network of independent truckers for last-kilometer deliveries.
Increased online sales in Latin America have also benefited corporations that supply facilities to online stores or last mile delivery service providers, which have also sought to raise new capital.
At least five corporations plan to raise a new budget in the coming months, according to Mergermarket data, including Unlog and Pegaki Delivery Technology, two Brazilian startups that manage retirement problems for e-retailers and logistics operators.it tracks deliveries of the last kilometer in Chile, and is also making plans to obtain capital by selling a minority stake.
Carlos Martínez is a senior correspondent for Latin America from Mergermarket, founded in Bogota, we can succeed in [email protected].
Dominic Pasteiner is the Mexican mergermarket correspondent founded in Mexico City, we can succeed in it in [email protected].
Thiago Barrozo is editor of Megermarket for Latin America, in Sao Paulo, can be attached to [email protected].
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