Ecommerce aggregator Merama is doing well after just 12 months in business – TechCrunch

When it comes to investing in e-commerce aggregators in Latin America lately, when it rains, it rains.

Merama, which is acquiring or launching Latin American digital brands, reached a valuation of $ 1.2 billion – just 12 months after its incorporation – following a new follow-up investment of $ 60 million led by the Series B investors Advent International and Softbank. It also comes a day after e-commerce aggregator LatAm Quinio announced $ 20 million in seed funding to acquire some 30 companies.

The investment follows a $ 225 million Series B investment announced in September that puts the Mexico and Brazil-based company at a valuation of $ 850 million. At the time, the company billed it as “the tallest Series B tower ever lifted in Latin America.”

We first introduced Merama in April when it burst onto the ecommerce aggregator scene with $ 160 million in a combined seed and Series A round. In total, the company raised $ 445 million. of dollars, including $ 345 million in equity and $ 100 million in debt.

The company was co-founded by CEO Sujay Tyle, co-founder and former CEO of Frontier Car Group; Felipe Delgado, former CEO of Beetmann Energy; Olivier Scialom, co-founder and former COO of Petsy; Renato Andrade, previously associate partner at McKinsey; and Guilherme Nosralla, former head of growth at Wildlife Studios.

“Latin America is the fastest growing e-commerce region in the world, but brands are extremely nascent or non-existent,” Tyle told TechCrunch via email. “Merama believes that several multi-billion dollar brands will be created in Latin America over the next five years. “

Today, Merama has more than 180 employees and a portfolio of 20 brands in Mexico, Brazil, Chile, Colombia and Peru. It is set to sell more than $ 250 million in derivatives this year and will be “a significantly positive cash flow,” Tyle said.

Its leading brands include Mexican consumer electronics company Redlemon and Bebesit, a seller of baby products in Chile. Overall, the $ 85 billion e-commerce market in Latin America is growing rapidly and is expected to reach $ 116.2 billion in 2023.

In addition to acquiring digital brands, the company is launching its own and developing automation and scalability tools to help them grow in Latin America. It also plans to monetize the underlying technology it is developing to automate brand and supply chain management.

The latest funding will allow the company to expand into Argentina and the United States. Merama also rounded out its leadership team with the hires of former Mandae CTO Danilo Ferreira as CTO of Merama, and former MercadoLibre Market Manager Ignacio Nart, to be Senior Vice President of Private Label.

Overall, ecommerce aggregators have gained traction across the world in recent years, with successful companies raising billions in venture capital in recent years. In addition to Quinio, Beijing-based Nebula Brands took in $ 50 million this week.

Before them was Gravitiq, focused on healthcare brands, and Heyday’s $ 555 million Series C. The big name of aggregators, Thrasio, announced $ 1 billion in October, while Perch made a significant investment of $ 775 million in May.

Unlike Thrasio and Perch, Tyle explained that “Latin America is a story of growth and therefore Merama is focusing on a lot less brands and focusing on scale and expansion. The goal is to have a single category leader in each major ecommerce category rather than consolidating hundreds of brands.

The funding also helps the company launch Merama Labs, promoting it as “the first Latin American incubator of its kind for consumer brands.” The in-house incubator will create new D2C brands in categories such as fashion, cosmetics, supplements and beverages. This is a new growth channel that incubates and internally launches D2C digital brands across multiple categories.

“We’re going to be building brands alongside influencers,” Tyle added.

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