Supplier, grocer connector Clubbi secures $4.5M to expand in Brazil – TechCrunch

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ClubbiAn inter-company resource for small Brazilian food retailers, has brought $ 4.5 million in seed funding to expand nationwide.

In 2020, Remote’s first company stocked up products needed by local markets and grocery stores (most of which have never shopped online), with competitive pricing and better customers. It started as an online commerce resource to provide services.

Co-founder João Macedo initially had Clubbi’s vision when he was working as the head of distribution for Red Bull. He saw how fragmented and analog the commerce business made it difficult to reach a large retail base. In fact, he told TechCrunch that suppliers still rely on door-to-door sales.

“They rely on intermediaries, which makes marketing more complex and expensive,” he added. “I lived in India, which was also fragmented, but the B2B marketplace was doing well there.”

Last year, he worked with Marcos Adler and Alexander Farber to create a market that connects suppliers such as Kraft Heinz, Adria and Pilake.

Launched in October 2020, Clubbi offers 24-hour delivery, no minimum order quantity, and flexible payment terms. According to Adler, there are currently 1,000 grocery stores in Rio de Janeiro, up from three at launch, with plans to grow to more than 3,000 by mid-2022. The company is also growing 40% monthly, increasing the value of its total products.

“It’s difficult to service, it requires less working capital, it provides a single place to buy everything you need, and you reach the long tail of long-lived customers to keep inventories,” Adler added. I did. “All they have to do is go to the website, place an order with one click, and order immediately the next day.”

The Valor Capital Group led the round in collaboration with ONEVC, with Better Tomorrow Ventures, Latitud and Canary participating to lead Clubbi’s $ 550,000 pre-seed round.

The funds will be used to accelerate growth, technological development, expansion into other Brazilian cities and develop additional supplier partnerships. Clubbi offers about 7,000 to 8,000 SKUs on the market, but the average store sells 1,000 to 2,000 SKUs, Adler said. The company started with five employees and plans to hire additional staff to increase its current 40-employee base to 70 by mid-2022.

Meanwhile, the company still has a long way to go in front of more than 200,000 moms and pop grocery stores in Brazil, generating more than $ 35 billion in total revenue, Valor Capital Group’s Antoine Colaço said in writing. I am.

“These stores still face many challenges when trying to procure products efficiently and at low cost, and lack access to fair financing solutions,” said Colaço. .. “Clubbi offers an integrated and simple way for these stores to receive the best products at the door at the right price and payment terms. The social and economic development that Clubbi creates is huge and The company’s early achievements are very promising and impressive. “

Supplier, grocer connector Clubbi secures $4.5M to expand in Brazil – TechCrunch Source link Supplier, grocer connector Clubbi secures $4.5M to expand in Brazil – TechCrunch

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