99 Minutos Raises $40M Series B for Last Mile Delivery in Mexico

The Genesis of 99 Minutos

The concept for 99 Minutos originated in 2014 with Alexis Patjane during a visit to a hookah bar in Mexico City. A temporary shortage of tobacco at the establishment sparked an idea: real-time online ordering with immediate delivery.

At the time, Patjane possessed significant entrepreneurial experience, having previously managed a business responsible for approximately 80% of the food truck operations throughout Mexico.

Addressing an Instant Delivery Need

Recognizing a gap in the market, Patjane launched 99 minutos a few weeks later. This platform was designed to sell products and guarantee delivery within 99 minutes, a commitment reflected in the company’s name.

Recent Funding and Expansion Plans

99 minutos has recently secured $40 million in Series B funding led by Prosus and Kaszek Ventures. These funds will be strategically allocated to facilitate growth across Latin America.

Currently, the company provides services in 40 key markets spanning Mexico, Chile, Colombia, and Peru.

Diverse Delivery Options

99 minutos offers a range of delivery services to cater to varying customer needs:

Less than 99-minute delivery
Same-day delivery
Next-day delivery
CO2-free delivery

Evolution into a Last-Mile Delivery Service

Initially conceived as an e-commerce platform focused on rapid delivery, 99 minutos has evolved into a crucial last-mile delivery solution for other e-commerce businesses.

“We developed API connections and plug-ins, enabling any e-commerce business to integrate our delivery services seamlessly,” explained Patjane in an interview with TechCrunch.

Revenue Model and Operational Efficiency

99 minutos generates revenue by charging customers a fixed delivery fee and compensating drivers with a flat rate. The high volume of packages per route has resulted in substantial profitability.

Package volume currently averages between 60 and 80 deliveries per route.

User-Friendly Delivery Experience

The 99 minutos delivery app mirrors the functionality of navigation apps like Waze, offering customers considerable control over their deliveries.

Customers can adjust delivery details, including pausing deliveries, changing the delivery address, or redirecting packages to alternative locations.

Geographic Expansion

The company initially focused on deliveries within Mexico City, but quickly broadened its reach to encompass intercity services. Today, 99 minutos operates across 21 cities in Mexico.

Latin American E-commerce Landscape

While e-commerce is experiencing rapid growth in Latin America, it remains in its early stages of development.

E-commerce penetration currently stands at 6% in Latin America, compared to 30% in China and 20% in the United States.

Industry Recognition

“The fact that major e-commerce players consider 99 minutos their most dependable partner and recognize its significant potential underscores the team’s exceptional execution and its trajectory to revolutionize e-commerce delivery in Latin America,” stated Banafsheh Fathieh, Head of Americas Investments at Prosus Ventures.