There are currently $85 billion in Latin American e-commerce businesses that are expected to double in the next three years, which means that consumers’ expectations for timely delivery and proper packaging will only grow.
When it comes to logistics and delivery technology, Amazon and MercadoLibre have been at the top of the game for decades while startups have built similar technology to give any e-commerce business equal footing.
Argentina-based In a round led by Tiger Global, the shipping technology company clicOH raised $25 million in Series A funding. Existing investors Flexport, FundersClub, and Vast VC have also joined the JAM Fund. The company has now raised $33 million since it was founded in 2018 by Juan Martin Altamirano, Emiliano Segura, and Agustin Novillo Saravia.
An alum of Y Combinator’s 2021 program ClicOH, the company provides real-time tracking of goods throughout Argentina, Mexico, Chile, and Uruguay via a dashboard with vital indications and traceability.
E-commerce penetration in Latin America surged five to ten years in a matter of months after the epidemic, CEO Novillo Saravia told TechCrunch via email.
It is because of this that only 5% of retail sales were conducted online in LatAm in 2021, despite it being one of the fastest expanding regions on the planet. The need for more capital, according to him, was a major motivator for the company.
It’s impossible to address e-commerce logistics without the use of data and efficiency, he said. Because of our asset-light model, we’re able to serve customers in all of the nations where we do business, learn about their buying habits, and store inventories near to where they’re most needed.
Since launching its current business model in 2020, this demand has allowed clicOH to develop rapidly. Customers range from AB inBev and Red Bull to small Shopify businesses, and the company delivers a delivery every 20 seconds.
According to Novillo Saravia, the number of parcels processed by clicOH each month is up by 30% so far this year, and revenue was six times more in the first quarter than it was in the same period in 2021. The company had 40 employees a year ago, but currently employs 175 people.
There are a growing number of start-ups in Latin America developing e-commerce infrastructure in order to take advantage of the rapidly expanding market. A few examples: 99minutos secured a $82 million Series C investment in March, Cubbo brought in a small seed round in November to transform public areas into fulfillment centers for speedy delivery, and Skydropx is designing a system with hundreds of configurable shipping alternatives.
ClicOH’s Latin American expansion will continue with the new funding, which Novillo Saravia plans to put to use developing technology and extending the logistical network.
In addition to Colombia, “we’re looking at various regions in Latin America,” he continued. A full ecosystem for e-commerce merchants to create sustainable enterprises, including new products aimed at enhancing ties with sellers under development, is also being developed by our company.”
