Contxto – Many global companies are progressively working towards eliminating gender disparities, Canasta Rosa from Mexico being one of them.
Meaning “pink basket” in Spanish, the online marketplace allowing local entrepreneurs to sell products through the e-commerce market recently raised a US$3 million Series A to expand operations.
Series A funding round
Elevar Equity led this Series A worth US$3 million alongside WPSS Consumer Investments, angel investors, plus other individuals. Funds will reportedly go towards scaling Canasta Rosa in Mexico, and eventually, the rest of Latin America.
Similar to Etsy, Canasta Rosa’s platform permits vendors to sell vintage, handmade or local crafts. These range from authentic clothing, jewelry, sculptures, as well as baked goods, among other items.
Not only does it connect merchants will customers, but also marketing, delivery logistics, payment integrations, in addition to accounting tools.
Many sellers are female entrepreneurs who establish online stores with little legal requirements or bureaucratic loopholes. In the process, they can maintain thriving businesses that not only benefit them, but also the national economy.
“Women entrepreneurs in the region contribute to employment creation and the prosperity and dynamism of our economies,” said Canasta Rosa’s Founder and CEO, Deborah Dana.
Moreover, funds will go towards generating technological solutions to satisfy entrepreneurs’ changing needs. The company’s commitment to their customers is what ultimately caught investors’ attention.
“In Canasta Rosa, we find an amazing, experienced and diversified team that will be able to take advantage of this huge market opportunity,” said Daniel Weiss of WPSS Consumer Investments.
“Canasta Rosa has already shown early traction, brand awareness and solid seller and buyer loyalty metrics. We are very excited to be part of this venture which we expect to also bring great social impact to the region.”
Created in May 2018, Canasta Rosa aims to democratize e-commerce by making it accessible to small and micro-entrepreneurs. To accomplish this, it functions as a market portal where small companies can interact with potential buyers. Oftentimes, sellers depend on the platform for both financial stability and livelihood.
“40 percent of the sellers on Canasta Rosa’s did not have an income before selling on the platform,” said Dana in a recent press release. “80 percent of them sell from home, and about 97 percent are women sellers.”
Over the past few years, the startup has experienced double-digit organic monthly growth in buyers, sellers and transactions. This is mainly due to the unique shopping experience it offers, not to mention the website’s growing inventory.
Limited networks are what often prevent female entrepreneurs from taking their ventures to the next level. Fortunately, Canasta Rosa remedies that situation.
“Canasta Rosa enables micro and small entrepreneurs, typically self-employed women whose sales are limited to the reach of their own networks,” said Johanna Posada, co-founder of Elevar Equity.
“The access to e-commerce and a broad customer base allows them to boost their sales and income, and create great brands.”