Zubale Secures New Capital to Fuel E-commerce Growth for Retailers Across Latin America

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Series A Extension Round Brings in $25 Million for Latin America-Based Company

Mexico-based company Zubale, which provides tools to retailers to scale their digital channels, has brought in another $25 million in a Series A extension round. Co-founder and CEO Sebastian Monroy is calling this investment a significant milestone for the company.

Investment Details

The new investment was led by QED Investors and joined by an investor group that included NFX and Kevin Efrusy. This brings Zubale’s total venture capital raised to date to $73 million. The funds will be deployed into growing all three of the company’s product offerings: FlexiFleet, Consumer Connect, and Fulfillment Optimizer.

Background on Zubale

We last wrote about Zubale in 2022 when it closed its $40 million Series A round. At the time, the company was focused on fulfilling e-commerce orders for retailers amid the jump in new consumers across Latin America purchasing items online.

E-commerce Adoption in Latin America

While e-commerce adoption is slower in this region compared to countries like the United States, the number of online shoppers in Latin America is expected to grow 20% over the next four years. Revenue is poised to double to over $300 billion during the same period, according to Statista.

Zubale’s Growth and Expansion

Since securing its Series A funding, Zubale has added both Brazil and Chile as new markets and works with more than 115 clients, including Carrefour, Walmart, Cencosud, and Chedraui. The company has over 100,000 freelancers on its platform who have completed more than 30 million tasks.

"We are getting very close to profitability and we aim to do so in the first months of 2024," Monroy said. "This will give us a lot of flexibility to accelerate strategically, especially in Brazil where we are just getting started."

Product Offerings

Zubale’s core freelancer marketplace product, FlexiFleet, is now among two other solutions, both software offerings. Consumer Connect improves consumer shopping experiences using WhatsApp, while Fulfillment Optimizer is an end-to-end modular software to increase productivity in e-commerce operations.

"These products helped retail customers not only increase EBITDA but also improve net promoter scores by over 20 points," the company said.

Future Plans

The new investment will be used to grow all three of these product offerings, develop new offerings and strategies to consolidate its presence in Mexico and Brazil. For example, in Brazil, the company signed over 10 of the top market retailers, Monroy said.

Though Monroy declined to say the company’s valuation following the new investment, he did say it "multiplied our valuation" compared to the Series A in 2022. Zubale plans to raise a Series B in 2024.

Latin America’s Venture Results

Latin America’s Q3 2023 venture results show glimmers of light. With e-commerce adoption on the rise and revenue expected to double, it is no wonder that companies like Zubale are attracting significant investment.

Conclusion

Zubale’s latest funding round brings its total venture capital raised to $73 million. The company plans to use this investment to grow its product offerings, develop new strategies, and consolidate its presence in Mexico and Brazil.

With e-commerce adoption on the rise in Latin America, it is clear that companies like Zubale are poised for success. As the region’s online shopping market continues to grow, we can expect to see more companies like Zubale leading the way.