frubana slips us$25 million investment under pandemic’s nose
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Contxto – Frubana has been rushed off its feet recently. Now it’s got the cash to super-charge its operation right when they need it the most.
In a minimalist press release stated simply that Frubana had:
[…] closed a US$25 million Series A led by GGV and Monashees and with participation from other funds such as Tiger Global and SoftBank.
Talk about the nick of time
Sources initially differed as to when the deal was closed—some said as early as December 2019, others January 2020—. What is clear is that the investment happened back in the days when coronavirus was merely a twinkle in planet Earth’s eye.
Contxto got in touch with Frubana’s Founder and CEO, Fabián Gómez Gutierrez, who apart from confirming the January date told us more about what Frubana had in store.
We asked whether their plans had changed with the current pandemic. Surely, priorities, as well as work and business flows had been turned on their head since.
The answer was yes:
“We’ve noticed that people continue consuming the same amounts of food. But now they’re doing so through different channels (restaurants versus at home). That’s why we’ve made the decision to enter the corner and local shop market.”
This was a complete revamp of its business model. And with good reason too!
Sure, it had to keep itself busy, but perhaps most importantly it could not (financially or ethically) abandon the hundreds of hard-working, low-income farmers to their fate.
Had Frubana socially isolated, it would not have been the fresh produce-seeking consumers who would have suffered the most. Rather it would have been some of the most vulnerable people in our society.
Nevertheless, some plans are still going full-steam ahead. This Series A will continue to be invested:
mainly in technology to make the supply chain process more efficient.
And lucky for them that they got this money right now, too. As we’ve noted before; more business for these delivery companies does not mean they’ll thrive.
- Related article: No, these are not “the best of times” for last-mile delivery apps
Competition amongst last-mile apps is fierce and they need to up their game or drop out.
Gómez Gutiérrez is a Rappi alumnus himself, so, will no doubt understand what’s at stake… and who he’s up against.
Wanna hear more? We recommend you listen to the following podcast episode: Pivotes de último segundo. You can find the time stamp available in the description.
Related articles: Tech and startups from Colombia!
-AG
