Does SoftBank have 20 more DoorDashes?

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.

Natasha and Danny and Alex and Grace were all here to chat through the week’s biggest tech happenings. This week felt oddly comforting from a tech news perspective: Facebook is copying something, early-stage startup data is flawed enough to talk about and sweet DoorDash is buying robots for undisclosed sums.

So, here’s a rundown of the tech news we got into (as always, jokes aren’t previewed so you’ll have to listen to the actual show to get our critique and Award Winning Analysis*):

In good news, long-time Equity producer Chris Gates is back starting next week, which means we’ll have our biggest crew ever helping get the show put together. And, in other good news, there’s going to be more Equity than ever for you to hear. Coming soon.

Equity drops every Monday at 7:00 a.m. PST and Thursday afternoon as fast as we can get it out, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts.

*OK, so not award-winning yet. But soon enough, because manifestation works.

#bumble, #doordash, #early-stage, #equity-podcast, #ethena, #fintech, #fundings-exits, #j-curve, #justo, #podcasts, #reddit, #softbank, #startups, #zeta

0

Mexican online grocer Jüsto raises $65M in General Atlantic-led Series A

Jüsto, an online supermarket based in Mexico City, announced Tuesday it has raised $65 million in Series A round led by General Atlantic.

The amount is sizable for a Series A in general, but supersized for a LatAm startup. In fact, according to Pitchbook data cited by General Atlantic, the round represents the largest Series A raised in Latin America in the past decade.

Existing backers also participated in the round including Foundation Capital and Mountain Nazca.

Ricardo Weder, former president of Cabify (a large ride-sharing company operating in Latin America, Spain, and Portugal) founded Jüsto in 2019 with a mission to “disrupt the Latin American grocery industry.” It claims to be the first supermarket in Mexico with no physical store. Customers can buy their groceries directly from the website or via the app and Jüsto delivers the order to the customer’s location of choice.

The concept is clearly resonating with consumers as Jüsto saw impressive growth in 2020 with a 16-fold increase in revenue. 

Jüsto prides itself on working directly with fresh produce suppliers so that it can offer “the freshest” fruits, vegetables, meats and fish in the market. It also offers a variety of products such as pantry staples, personal hygiene and beauty, home and cleaning, drinks and pet-related items.

The startup only sells items from local suppliers, with whom it prides itself on developing fair trade agreements. (“Jüsto” means fair in Spanish) It also uses artificial intelligence to forecast demand and to try and reduce food waste at its micro-fulfillment centers. The company’s approach results in “competitive prices, lower transaction costs, and improved convenience to consumers by eliminating intermediaries in the supply chain,” according to the company.

Looking ahead, Jüsto plans to use its new capital on expanding across Mexico and Latin America as a whole, enhancing its last-mile logistics infrastructure and marketing initiatives.

Luis Cervantes, managing director and head of Mexico City for General Atlantic, believes Mexico is at an inflection point in its transition to a digital economy.

“We see Jüsto as leading the way in the high-growth online grocery space with its technology-centric, mission-driven approach,” he said in a written statement. “Under Ricardo’s leadership, we believe Jüsto is positioned for significant expansion as it disrupts and transforms the legacy grocery value chain.”

 Jüsto marks General Atlantic’s fifth investment in Mexico since 2014. Since then, General Atlantic has invested nearly USD $1 billion in what it describes as “high-growth” Mexican companies. 

The financing brings Jüsto’s total raised to over $100 million. Other investors include FEMSA Ventures, S7V, Elevar Equity, Bimbo Ventures, Quiet Capital, Sweet Capital, H2O Capital  and SV LatAm Capital, among others.

#artificial-intelligence, #ecommerce, #foundation-capital, #funding, #general-atlantic, #grocery-store, #justo, #latin-america, #mexico, #mexico-city, #recent-funding, #startups, #tc

0

Jüsto adds another $5 million in funding to build its online, delivery-only grocery store for Latin America

As it begins expanding beyond its home base in Mexico City, the on-demand, online only grocery store Jüsto has  added another $5 million in early stage funding.

The new money came from Bimbo Ventures, the strategic investment arm of one of the world’s largest bakery companies, Bimbo, and Sweet Capital, the investment fund from the founders of King.com.

Over the summer, the company expanded its services beyond Mexico City to Carretaro and saw explosive growth. According to Jüsto co-founder and company spokesman Manolo Fernandez. With sales in the first week equaling what had taken the company 200 days to achieve in Mexico City. Tavarez said it was an indicator of the demand for the company’s service across the country.

The $5 million top-up comes only a few months after Jüsto raised $12 million in funding from a slew of well-known global and Latin American investors and shows just how robust the early stage investment scene in Latin America is becoming.

As the company expands it may look to engage in some joint ventures with delivery services in other countries to expand its footprint, according to Fernandez, but for now, the focus is on growing its footprint independently.

The company will look to open operations in cities in Colombia, Peru, and potentially Ecuador in the next year, Fernandez said.

#colombia, #companies, #ecuador, #justo, #king-com, #latin-america, #mexico, #mexico-city, #peru, #sweet-capital, #tc

0

Mexico City’s Jüsto raises a $12 million bridge round for its delivery-only grocery stores

Jüsto, the Mexico City-based, delivery-only grocery store chain, has raised another $12 million in financing as it looks to expand its now pandemically relevant business of “dark stores” across the country.

The COVID-19 pandemic is changing consumer habits and increasing the use of delivery services across the world, and consumers in Mexico are no different.

A recent Nielsen study cited by the company found that 11 percent of respondents had purchased fresh food online for the first time in 2020, as lockdowns in cities across the world restricted movement for everyone but essential workers — with 70 percent of those surveyed saying they’d do it again within the year.

“Despite Covid-19 dramatically accelerating the curve of adoption of e-commerce, the penetration rate of e-grocers is still less than 1 percent,” in Latin America, according to Jüsto founder and chief executive, Ricardo Weder, in a statement. “That means there’s an enormous opportunity—and all the right conditions—to disrupt the grocery industry in Latin America.”

With the new bridge round, Jüsto’s financing has hit just over $20 million in less than a year. Part of that can be attributed to the pedigree of the company’s founder.

Weder was instrumental in Cabify’s growth in Latin America, according to Rodolfo Gonzalez, a partner at Foundation Capital, which led the firm’s investments into Jüsto. Gonzalez also saw the opportunity in the company’s business model.

“We’ve seen that type of model of warehouse and D2C for groceries be very successful in other geographies,” Gonzalez told Crunchbase, when Jüsto announced its previous $10 million seed round. “But that model didn’t quite exist in Mexico yet.”

Other investors in Jüsto’s round include Mountain NazcaFEMSA VenturesQuiet Capital, and 500 Startups.

The Mexican company prides itself on selling both local and international brands in categories, including fresh produce, dry goods, personal hygiene and beauty care, home and cleaning goods, beverages, organic food, and pet supplies.

“We have these darkstores and hold the delivery,” says Manolo Fernandez, a spokesperson and member of Jüsto’s founding team. “At traditional supermarkets the fill rates are lower and the product is less fresh. One of our core tenets is to reduce waste. We don’t have fruits and vegetables sitting outside in the store.”

Jüsto also claims that its prices come in at roughly equivalent to those of a regular supermarket. The company has delivery options ranging from express delivery, same day, and next day delivery.

The company isn’t the first startup to look at unused real estate and internet shopping habits and see an opportunity.

Darkstore is a company that has raised nearly $30 million to convert empty space into third-party fulfillment centers. Istanbul’s Getir, which recently raised $25 million from Sequoia’s Michael Moritz, is doing the same thing. And Samokat has adopted a similar strategy in Russia, promising over 3,000 SKUs and an under-45-minute delivery time fulfilled via their urban darkstores.

These companies are focused on being third-party logistics players for delivery rather than creating their own brands, but Jüsto shows that there’s an opportunity for purpose built direct to consumer grocery businesses to use the same infrastructure and create actual brand loyalty.

We have the technology, talent, and infrastructure to scale our expansion to more cities in Mexico and begin our international expansion, beginning with Colombiam” Weder said. 

#d2c, #darkstore, #e-commerce, #food-and-drink, #istanbul, #justo, #latin-america, #mexico, #mexico-city, #michael-moritz, #nielsen, #organic-food, #sequoia, #tc

0