Published On: Mon, Mar 22nd, 2021

Nuvemshop, LatAm’s answer to Shopify, raises $90M in Accel-led Series D

The COVID-19 pestilence has led to people everywhere offered some-more online and Latin America is no exception.

São Paulo-based Nuvemshop has grown an e-commerce height that aims to concede SMBs and merchants to bond some-more directly with their consumers. With some-more people in Latin America removing used to creation purchases digitally, a association has gifted a vital swell in business over a past year.

Demand for Nuvemshop’s charity was already heating adult before to a pandemic. But over a past 12 months, that direct has skyrocketed as some-more merchants have been seeking incomparable control over their brands.

Rather than offered their products on existent marketplaces (such as Mercado Libre, a Brazilian homogeneous of Amazon), many merchants and entrepreneurs are opting to start and grow their possess online businesses, according to Nuvemshop co-founder and CEO Santiago Sosa.

“Most merchants have entered a internet by offered on marketplaces though we are conference from newer generations of merchants and SMBs that they don’t wish to be intermediated anymore,” he said. “They wish to bond some-more directly with consumers and communicate their possess brand, picture and voice.”

The explanation is in a numbers.

Nuvemshop has seen a series of merchants on a height swell to scarcely 80,000 opposite Brazil, Argentina and Mexico compared to 20,000 during a start of 2020. These businesses operation from direct-to-consumer (DTC) upstarts to incomparable brands such as PlayMobil, Billabong and Luigi Bosca. Virtually each KPI tripled in a association in 2020 as a universe saw a large transition to online, and Nuvemshop’s height was home to 14 million exchange final year, according to Sosa.

“With us, businesses can find a some-more extensive ecosystem around payments, logistics, shipping and catalogue/inventory management,” he said.

Nuvemshop’s fast expansion held a pleasantness of Silicon Valley-based Accel. Having usually raised $30 million in a Series C turn in Oct and achieving profitability in 2020, a Nuvemshop group was not looking for some-more capital.

But Ethan Choi, a partner during Accel, pronounced his organisation saw in Nuvemshop a intensity to be a marketplace leader, or a “de facto” e-commerce platform, in Latin America.

“Accel has been investing in e-commerce for a unequivocally prolonged time. It’s a unequivocally critical area for us,” Choi said. “We saw what they were building and all their potential. So we pre-emptively asked them to let us invest.”

Today, Nuvemshop is announcing that it has sealed on a $90 million Series D appropriation led by Accel. ThornTree Capital and returning backers Kaszek, Qualcomm Ventures and others also put income in a round, that brings Nuvemshop’s sum appropriation lifted given a 2011 pregnancy to scarcely $130 million. The association declined to exhibit during what gratefulness this latest turn was lifted though it is critical that a Series D is triple a distance of a Series C, lifted usually over 6 months prior. Sosa pronounced usually that there was a “substantial increase” in gratefulness given a Series C.

Nuvemshop is banking on a fact that a firmness of SMBs in Latin America is aloft in many Latin American countries compared to a U.S. On tip of that, a $85 billion e-commerce marketplace in Latin America is flourishing fast with projections of it reaching $116.2 billion in 2023.

“In Brazil, it grew 40% final year though is still underpenetrated, representing reduction than 10% of sell sales. In Latin America as a whole, invasion is somewhere between 5 and 10%,” Sosa said.

Nuvemshop co-founder and CEO Santiago Sosa;
Image pleasantness of Nuvemshop

Last year, a association transitioned from a sealed product to a height that is open to everybody from third parties, developers, agencies and other SaaS vendors. Through Nuvemshop’s APIs, all those third parties can bond their apps into Nuvemshop’s platform.

“Our height becomes many some-more powerful, vendors are generating some-more income and merchants have some-more options,” Sosa told TechCrunch. “So everybody wins.” Currently, Nuvemshop has about 150 applications edition on a ecosystem, that he projects will some-more than triple over a subsequent 12 to 18 months.

As for comparisons to Shopify, Sosa pronounced a association doesn’t indispensably make them though believes they are “fair.”

To Choi, there are many similarities.

“We saw Amazon get to unequivocally large scale in a U.S.. Merchants also found collection to build their possess presence. This birthed Shopify, that now is value $160 billion. Both companies saw their marketplace caps quadruple during a pandemic,” he said. “Now we’re saying a same dynamics in LatAm…Our gamble here is that this association and business has all a same dynamics and a same unequivocally absolute tailwinds.”

For Accel partner Andrew Braccia, Nuvemshop has a transparent initial inciter advantage.

Over a past decade, direct-to-consumer has turn one of a many critical drivers of entrepreneurship globally,” he said. “Latin America is no difference to this trend, and we trust that Nuvemshop has a turn of sophistication and ability to know all that change and fuel a continued mutation of commerce from offline to online.”

Looking ahead, Sosa expects Nuvemshop will use a new collateral to significantly deposit in: stability to open a APIs; payments estimate and financial services; “everything associated to logistics and logistics management” and attracting smaller merchants. It also skeleton to enhance into other markets such as Colombia, Chile and Peru over a subsequent 18-24 months. Nuvemshop now operates in Mexico, Brazil and Argentina.

“While a countries share a same physical trends and product experience, they have unequivocally opposite marketplace dynamics,” Sosa said. “This requires an on a belligerent internal believe to make it all work. Separate markets need graphic knowledge. That creates this a some-more difficult opportunity, though one that enables a long-term rival advantage.”

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