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A little more than a year after its birth, the Mexican e-commerce company Valoreo is growing rapidly in terms of capital raised.
The company, dedicated to acquiring, operating, and scaling e-commerce brands, has not disclosed its valuation. However, in 2021 it raised US$80 million in a seed round and a Series A round. Now it has announced a Series B for US$80 million.
The new fundraise was led by U.S. venture capital fund L Catterton. However, in the previous round that took place last July, the leaders were Presight Capital, based in California, and Kingsway Capital from the United Kingdom. Kaszek, Upper90, FJ Labs, and Angel Ventures also participated in this recent round.
Valoreo Goes After More Companies in Mexico, Brazil, and Colombia
The company was founded in late 2020 by Martin and Stefan Florea, Alexander Gruell, Cedrik Hoffmann and Miguel Oehlin. It will use the new funding to accelerate the acquisition of leading e-commerce brands in Latin America, expand existing ones and improve the technology platform.
Unlike Merama, which is another aggregator for e-commerce brands in the region that partners with them and then acquires them, Valoreo acquires brands outright. It then adds new products, improves existing ones and even creates brands from scratch.
In this way, the acquired and created brands are integrated into Valoreo’s consolidated holding. This allows them to call on experts in marketing and supply chain management to reach a higher level in their development.
Valoreo said that for now it wants to keep growing in Mexico, Brazil and Colombia. This is in an environment where these three countries are leading the e-commerce boom in the region. The first two show an annual growth of 41%, while the third one of 32%, according to Ebanx’s Beyond Borders 2021-2022 study.
“LatAm is the apple of e-commerce’s eye,” the report noted. It expects the region to keep growing 30% annually year-over-year. “Driven by an increasingly digitally savvy population, high smartphone penetration and local fintech companies, Latin America is the big business today for local and global e-commerce companies,” the report noted.
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