99minutos, a logistics service firm for e-commerce distributors throughout Latin America, is making quick work out of attracting funding. It introduced in the present day $82 million in Sequence C funding, led by Oak HC/FT, with participation from present buyers Kaszek and Prosus Ventures.
The final spherical follows a $40 million Sequence B funding final Could from Prosus and Kaszek and brings the corporate’s whole funding to about $128.7 million. It was then that we realized concerning the origins of the Mexico Metropolis-based firm, based by CEO Alexis Patjane, who had been working a meals truck-making enterprise in Mexico.
Patjane informed TechCrunch that he wasn’t instantly searching for extra capital after closing the Sequence B, and in reality had plans to start elevating once more this yr. Nevertheless, alternatives with new clients got here alongside, the corporate was rising and there was a ton of curiosity from enterprise capital companies.
“That curiosity didn’t occur earlier than,” he added. “It has been a life-changing spherical. We contacted 77 funds, and three stated ‘sure,’ and the remainder stated ‘no.’ It was miserable to listen to all the ‘nos.’ Now that we now have positioned the model and the corporate, getting curiosity from the opposite facet is flattering, and helps to make issues transfer sooner.”
He notably was concerned about talking with Oak HC/FT due to its international presence and method to bringing collectively its portfolio firms round suggestions and recommendation for founders. Patjane didn’t reveal 99minutos’ valuation, however did say the corporate is now shy of being a unicorn, and within the subsequent spherical, he would be capable of announce one thing greater.
Since e-commerce and logistics firms, like Amazon, got here to Mexico, there was a lot infrastructure created round this business, Patjane stated. Conventional firms, like FedEx and DHL had been there earlier than, as had been country-specific supply firms, however the service was expensive, not obtainable each day and wasn’t tied to expertise.
Because the retail e-commerce market in Latin America is poised to achieve $160 million by 2025, in contrast with an estimated $85 billion in 2021, Patjane believes 99minutos must be the primary expertise firm to construct the logistics infrastructure required to scale, to have a quick supply expertise — getting packages tomorrow as a substitute of 10 days from now — and provide specialised companies.
After we final reported on the corporate in 2021, it was working in 40 markets and is now in 60 markets throughout Mexico, Colombia, Chile and Peru, with a objective of opening in two extra nations, but to be decided, this yr. Patjane plans to be at 95% penetration in all of its present markets earlier than connecting companies to different nations.
In the meantime, the corporate is dealing with over 15 million packages per yr, with a objective of delivering them in lower than 99 minutes, same-day or next-day through its fleet of electrical automobiles.
Patjane intends to speculate the brand new funding into scaling new enterprise fashions, increasing into new geographic areas with Latin America and new sustainability initiatives consistent with the corporate’s low-carbon objectives of accelerating its use of electrical automobiles.
A few of its new choices because the final elevate embody Punto 99, a pick-up and drop-off community that addresses the complete success course of and returns. The corporate opened greater than 500 stations, which embody printing stations for labels, the place individuals can decide up or drop off their packages. Patjane expects to extend the variety of these “hubs” to eight,000 in Mexico by the top of the yr.
It additionally has a route monitoring and optimization SaaS instrument for patrons known as Routa 99 that figures out the easiest way to get a package deal to its vacation spot and in what sort of car.
In the meantime, 99minutos has 5,000 staff working from Mexico, Colombia, Chile and Peru, and Patjane goals to achieve between 8,000 and 10,000 by the top of the yr. It is usually working with over 120,000 clients, primarily business-to-business firms. Income grew 3 times yr over yr.
Allen Miller, principal at Oak HC/FT, stated in a written assertion that the expansion skilled in Latin America’s e-commerce business of the previous few years has facilitated a necessity for higher expertise in order that orders make it to their remaining vacation spot.
“99minutos is assembly this want and has impressively expanded past its core last-mile providing to develop into the main expertise logistics and success firm within the area,” Miller added. “We stay up for supporting the group as the corporate continues its progress and enlargement in LatAm.”