gaia design has raised more capital to become the west elm of mexico
GAIA, a Mexico City-based furniture designer catering to Mexico’s growing middle and upper-middle class, has secured $15 million in a new funding round.
This bridge round is intended to support the company’s operations until a larger capital raise is planned for 2021, allowing GAIA to benefit from the expanding e-commerce sector within Mexico.
A JP Morgan report from 2019 estimated the Mexican e-commerce market at approximately $22.6 billion, representing only 1.7% of the country’s total retail sales. JP Morgan forecasts an annual growth rate of 12.6% for this market.
The COVID-19 pandemic has notably sped up the adoption of online services as the population prioritizes social distancing and virus prevention. GAIA’s CEO, Philippe Cahuzac, notes that consumers with the means to purchase online – even for significant purchases like furniture – are increasingly doing so.
GAIA will utilize the new funding to enhance its online platform with features such as consultations with interior designers, the creation of pre-designed collections, and tools enabling customers to visualize product designs within their homes. The company also plans to significantly increase its sales and marketing activities.
This funding will also further GAIA’s commitment to assisting small and medium-sized Mexican furniture manufacturers by providing them with financial resources, training programs, revenue management tools, and educational opportunities.
IDB Invest joins current investors including Rise Capital, Capital Invest, VARIV Capital, French Partners, FJ Labs, and David Gilboa, co-founder of Warby Parker, in this investment.
Founded by Raffaello Starace, Hassan Yassine, and Cahuzac, GAIA initially operated solely as an online retailer but has since expanded its presence to include 15 showrooms located in Monterrey, Mexico City, Guadalajara, Puebla, and Queretaro.
“Our goal is to provide a seamless and branded retail experience for the contemporary Mexican consumer,” Cahuzac stated. “In just five years, we have become the leading digital provider in the home goods category in Mexico.”