A little over five months later securing $ 50 million in debt and equity, Valoreo closed a $ 30 million Series A round of funding.
Mexico-based Valoreo aims to invest in, operate and develop e-commerce brands as part of its self-proclaimed mission to “bring better products at more affordable prices” to the Latin American consumer.
Valoreo (which the company says is an extension of the Spanish word “value,” which means to add value), acquires merchants who operate their own brands and primarily sell in online marketplaces such as Amazon and Mercado Libre. The company targets brands that offer “cutting edge products” and that it believes have “significant growth potential”. It also develops brands internally to offer a wider choice of products to the end customer.
The startup was founded in late 2020 and has since grown to over 100 employees across Latin America. Since then, she has also made “multiple” acquisitions of local brands operating in various sectors, such as beauty, fitness and housewares.
Based in california Provident captainEarth Kingsway Capital from the UK co-led the cycle, which also included participation from existing funders such as Kaszek, Upper90 and FJ Labs. The company declined to detail how much equity it raised during its roundtable, but including debt, Valoreo has raised $ 80 million since its inception.
He plans to use the new capital primarily to continue acquiring e-commerce brands in Mexico, Brazil and Colombia, as well as to hire more.
The company says its model differs from its US-based competitors (such as Thrasio and Perch) in that it is designed to “The specific needs of the Latin American market and focuses specifically on the Latin American end customer. “
Valoreo aims to help entrepreneurs who may lack the resources and access to capital to take their business to the next level.
At the time of its seedling, co-founder and co-CEO Stefan Florea told TechCrunch that the company typically takes less than five weeks from its first contact with a seller to final payment.
Then, the brands acquired and developed are integrated into the consolidated holding company of the company. By bringing in his team of “specialists” in areas such as digital marketing and supply chain management, he claims he can help these brands “reach new heights” while offering the entrepreneurs behind the companies ” an attractive exit ”, or a partial exit in certain cases.
Typically, Valoreo acquires the majority of the business, with the purchase price usually being a combination of an upfront cash payment and a profit sharing component so that the sellers can still make money.
Hernan Kazah, co-founder and managing partner of Kaszek, said the company doubled its investment in the startup after seeing its “impressive growth in recent months.”
Valoreo is not the only Latin American startup to focus on this space. In April, Merama announced that it had raised $ 60 million in seed and Series A financing and raised $ 100 million in debt.
The money was raised “at a value well over $ 200 million,” co-founder and CEO Sujay Tyle said at the time.