Continuing a small sales business in Latin America can be accompanied by long bus trips to find new products, lack of working capital, and difficulty paying. These inefficiencies permeate wholesalers, who need to increase costs and deadlines.
This caught the attention of second-time entrepreneurs Bruno Ballardie and Fernando Zanatta. ZAX In 2019, we will develop a platform that integrates freight, delivery and payment tools to connect Brazilian sellers and buyers.
Prior to launching ZAX, CEO Ballardie was the founder of eÓtica, an eyewear e-commerce company. Merged with Lema21 in 2018.. CTO Zanatta is the founder of Netlolo, a tool that connects clients and global experts, and was formerly the CTO of Dafiti and the COO of Buscapé.
They saw a huge direct-to-consumer market thanks to technology and innovation, but the wholesale sector did not see similar growth. Many traveled to city centers like São Paulo to buy inventory, but used pens and paper to write orders and WhatsApp to trade.
“We saw a great opportunity to help people do great business,” Ballardie told TechCrunch. “The market was lagging behind. E-commerce penetration is only 7% and less than 1% in the wholesale sector. That’s because all areas of logistics, payments and product discovery were underdeveloped. I created a tool. “
According to Ballardie, the addressable market for ZAX’s B2B transactions in Brazil alone is estimated at R $ 2.4 trillion, or $ 445.6 billion. The ZAX platform was initially a wholesaler of clothing, but has expanded to include shoes, electronics, toys, accessories and beauty items. Buyers come to the platform, select products, then select shipping and payment methods.
Today, ZAX led ZAX’s first two investment rounds, led by Atlantico, raising $ 6 million in Series A funding in rounds including FJ Labs, Caravela Capital, GFC and Canary. The new capital will bring the company’s total funding to $ 8.3 million.
“ZAX has done a great job in a very short period of time,” said Julio Vasconcellos, managing partner of Atlantico, in writing. “They have a lot of potential to help sellers and buyers not only in Brazil but throughout Latin America. In Latin America, using more technology has the potential for significant growth in wholesale and retail.”
ZAX works with more than 700 suppliers (up from 100 before the pandemic), and its revenue has increased tenfold since March 2020, Ballardie said. We have a team of 40 employees and more than 50,000 buyers using the platform.
With the new funding, the company will be able to expand into two more regions of Brazil and add it to its product line in the beauty products and accessories category. Ballardie also wants to hire additional technology and product development staff.
ZAX then invests in financial services, pilots purchases now, pays initiatives later, and consolidates financial partners to provide working capital to customers. The company currently offers a 30-day capital line and point-of-sale system, with plans to follow up on digital wallets and other payment tools in the future.
B2B marketplace ZAX targets Latin America’s wholesale sector with $6M in fresh capital – TechCrunch Source link B2B marketplace ZAX targets Latin America’s wholesale sector with $6M in fresh capital – TechCrunch
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