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Contxto – The second unicorn to emerge amidst the pandemic is here. Today (28), VTEX announced it raised an investment for US$225 million. Consequently, it’s valued at a reported US$1.7 billion and has entered the unicorn club. Round participants include Tiger Global, Lone Pine Capital, Constellation, SoftBank, and Endeavor Catalyst.
The Brazilian ecommerce platform had previously raised US$140 million through Japanese VC SoftBank in December of last year.
Good year for VTEX and e-commerce
Thanks to the funding, VTEX will move forward to complete acquisitions, expand its team, and improve its platform. Moreover, it also wants to accelerate its presence in the US, Europe, and the Asia-Pacific region.
Evidently, it will face stiffer competition in these markets from other major platforms like Shopify.
VTEX was greatly favored by the coronavirus outbreak as businesses rushed to its platform to set up their online presence.
By the numbers: The Brazilian startup reports to have added over 1,000 new customers to its platform within the past 12 months, according to Canaltech. That means it has more than 2,500 customers around the world hosting their products through VTEX’s e-commerce solutions.
If anything, its latest investment and resulting status upgrade comes as a relief. One can’t help but feel inaccurate by calling a 20-year old company a “startup.”
Certainly dubbing VTEX a “unicorn” will feel less awkward.
The platform for Latam?
Despite all its scaleup plans beyond the region, unicorn VTEX hasn’t forgotten its Latam roots.
Founded in Brazil, for the next four years it will invest almost US$20 million in its product development ops in Argentina, Mexico, Colombia, Chile, and Peru.
VTEX wants to focus on boosting its omnichannel and logistical capabilities. Similarly, it will direct funds towards enhancing its AI tech and B2B services.
The new unicorn does right in keeping and strengthening its position in Latin America. The e-commerce boom continues in the region and it’s in a favorable position to dominate.
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