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Contxto – Like another ray of lightning, SoftBank has struck again. Rather than causing electric damage, though, it’s depositing substantial dollar bills into Latin American startups. This is particularly true when it comes to Brazilian startups.
Joining QuintoAndar, Volanty, Gympass and Creditas, the latest Brazilian recipient of the firm’s regional fund is MadeiraMadeira, one of the largest online homeware platforms in today’s ecosystem. It just raised US$110 million in an epic Series D.
“MadeiraMadeira is in a unique position to lead the digital transformation of an industry into a considerable market,” said Paulo Passoni, an investment managing partner for SoftBank’s Latin American fund. “This is key for us.”
Additional investors included U.S. hedge fund Light Street Capital, in addition to long-term supporter Flybridge Capital. Being the largest investment round in the history of Brazilian homeware, the new capital will go towards acceleration. Under this involves more technology, logistics, as well as customer experience investments.
Beds, shower curtains, pillows. Name an everyday home item and it’s most likely in MadeiraMadeira’s inventory. Slowly but surely, it now appears as though MadeiraMadeira is well on its way to becoming the go-to website for home embellishment.
From the beginning, MadeiraMadeira has been an e-commerce merchant. Founded by Daniel Scandian, Marcelo Scandian and Robson Privado in 2009, it has worked with early-stage investors such as monashees, Kaszek and Flybridge.
“We have always been very fortunate to have high-quality investors that contribute with capital and experience over the years,” said Marcelo Scandian, co-founder and financial director of MadeiraMadeira. “SoftBank and Light Street Capital are stellar additions to the team. They have supported some of the most incredible companies in the world.”
In terms of growth, MadeiraMadeira has multiplied itself tenfold over the last five years. Much of this is due to its effective “asset-light” business model, not to mention its logistics technology. Little inventory risks have benefited the startup greatly.
To provide direct shipments, it has even created its own logistics company called Bulky Log. Specializing in bulk items, this service expedites home delivery to customers. With it comes inventories that are always stocked and items ready to hit the trucks.
“We have always focused on improving the use of active third parties with our efficient technology and logistics platform,” said Daniel Scandian, co-founder and CEO.
“In this context, our exclusive logistics subsidiary Bulky Log that began to operate in the first period of 2019, will play a key role in the company’s mission to redefine the home goods industry in Brazil.”
There are also some well-known investment partners ensuring MadeiraMadeira’s continual success. These include CEO and founder of Wayfair Niraj Shah as well as the founder of Build.com, Cristian Friedland. Today, it has 600 employees, 200 of which are focusing on technology and product development.
Recently, it has also hired some big-name industry experts including the former technology director at Build.com, Dan Davis. Former IKEA Managing Director for Latin America Santiago Antoranza, as well as former GVT Director of Human Resources Adeildo Nascimento, also work for the company.
Part of MadeiraMadeira’s innovative business scheme is its technology within its platforms. This includes the ability to directly connect to the manufacturers’ ERP (enterprise resource planning) management software. In this regard, the Brazilian startup can effectively visualize the entire supply chain for optimal operations.