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Merqueo is able to achieve greater margins, competitive pricing, and healthy unit economics by owning and managing the whole vertical supply chain and relying solely on proprietary technologies.
Fremont, CA: Merqueo, a full-stack delivery scale-up, closed a $50 million Series C round led by IDC Ventures, Digital Bridge and IDB Invest. The company is Latin America's first and largest full-stack grocery delivery player. Merqueo is able to achieve greater margins, competitive pricing, and healthy unit economics by owning and managing the whole vertical supply chain and relying solely on proprietary technologies.
MGM Innova Group, Celtic House Venture Partners, Palm Drive Capital, and prior shareholders also contributed to the round.
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"Merqueo has developed all the attributes and technologies required to operate in a complex market, such as Latin America. Cash acceptance, adaptation of delivery slots and adjusted price are critical variables to consider when scaling startups in the region," stated Alejandro Rodríguez, Managing Partner at IDC Ventures. "We are thrilled to support them in capturing the regional eGroceries revolution, which started 18 months ago with GoPuff and Getir, in the US and EU, respectively."
The company intends to leverage this money infusion to build Latin America's largest and most ambitious dark store network. Merqueo is also hiring and expanding its personnel across Mexico, and it has recently begun operations in Brazil.
Its disintermediation-based strategy and use of in-house technology lower fulfillment costs, provides for control of the entire customer experience and make the service more accessible to a broader range of customers who are unwilling or unable to pay for exorbitant delivery fees or markups on their items. This opens the door to a $700 billion market in Latin America alone. Furthermore, the company has already achieved positive cash flow for the first few months of 2020.
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