Dark groceries see the future as Zipp raises US$636,000 to sustain growing operations

Contxto – Dark store grocery startup Zipp wrapped up an investment for R$3.5 million (~US$636,000). It doesn’t come as a shocker considering users’ adoption of e-commerce as a result of the Covid-19 outbreak.

The round’s leader was Anjos Alumni CSB who was joined by other angel investors like Rafael Duton (Movile).

Thanks to their pretty pennies, Zipp can maintain its growth and level of operations, as demand continues to rise. It currently operates in Rio de Janeiro and its surrounding areas.

In the short term, the startup will focus on doubling its revenue for what remains of 2020. As for next year, it plans to open its Series A to scale within Brazil.

Zipp and the future of e-commerce

An e-commerce platform and fleet of deliverers are insufficient to “make it” in the long term. To truly provide a great customer experience, effective logistics infrastructure is needed.

This infrastructure includes not only digital tools like tracking systems, but physical setups as well like distribution and fulfillment centers. Particularly in very large cities.

The best example of this approach is Amazon. 

For many years now, the e-commerce giant has been investing millions into building warehouses throughout the world. More recently, it’s experimenting with tech such as drones and robots to make its operations more efficient.

In true copycat fashion, this is something companies and startups in Latin America have been applying recently.

Latam’s rollout of logistics foundations

Mercado Libre for example has been opening distribution centers in its native Argentina, as well as Brazil, and Mexico. Colombian logistics startup Vueltap is also rolling out more and more warehouses in the cities where it operates to accelerate delivery times.

Meanwhile, iFood, Hugo, and Rappi have been experimenting with delivery drones.

PedidosYa in Uruguay is opting for dark stores in Montevideo to distribute basic goods. Mexican e-grocer Justo closed a bridge round for US$12 million earlier this year to expand into Latin America. And back in Brazil, Zipp is preparing to take off.

Ultimately, it’s only a matter of time that they too start investing more heavily in other tools that automate operations within their networks.

Related articles: Tech and startups from Brazil!

-ML