Meru.com Secures New Funding to Become Latin America's Leading E-commerce Platform

The Challenges of International Sourcing

Companies engaging in the sourcing and import of goods from international markets frequently encounter difficulties, potentially resulting in non-delivery of purchased items or complete financial loss.

Manuel Rodriguez Dao, CEO and co-founder of Meru.com, based in Mexico City, alongside co-founder Federico Moscato, personally experienced these challenges while sourcing products for a previous venture. They faced issues including discrepancies between offered and received goods.

Meru's Founding and Initial Funding

In 2020, Rodriguez Dao and Moscato joined forces with Eduardo Mata, Virgile Fiszman, and Daniel Ferreyra to establish Meru. Their aim was to mitigate these risks for small and medium-sized enterprises (SMEs).

The company recently announced a $15 million Series A funding round, co-led by Valor Capital and EMLES Ventures, with contributions from various founders. Total funding to date reaches $17 million.

Meru's Technology and Approach

Meru’s platform comprises a marketplace and application designed to streamline connections between manufacturers – both local and international – and the broader supply chain. This is achieved through a simplified process, eliminating price inconsistencies, initially focusing on trade between China and Mexico.

Quality control is a priority, with Meru working directly with factories that have received quality certifications, as Rodriguez Dao explained to TechCrunch.

Addressing Inefficiencies and Fraud

Traditional sourcing methods can consume as much as two days per week for small businesses, navigating a complex process often involving multiple intermediaries.

Furthermore, approximately 80% of transactions are susceptible to fraudulent activity, according to Rodriguez Dao. Meru offers a contrasting experience, enabling customers to select and purchase products rapidly, with a company-backed guarantee of delivery and competitive pricing.

Growth and Future Aspirations

Having participated in Y Combinator’s winter program in 2021, Meru intends to utilize the new funding to evolve into a comprehensive solution for SMEs.

The company’s long-term vision, as stated by Rodriguez Dao, is to become the leading B2B e-commerce platform in Latin America, mirroring the scale and impact of Alibaba.

“Our initial remote operations in China revealed consistent challenges across emerging markets in global transactions,” Rodriguez Dao noted. “We are dedicated to ensuring secure sourcing and procurement through technology-driven distribution, connecting supply chain participants and providing access to reduced prices.”

Current Traction and Expansion

Within its first year, Meru has attracted over 10,000 registered users and currently operates across seven product categories.

The company also collaborates with fintech partners to facilitate financing options. Meru’s team has expanded significantly, growing from six employees at the marketplace launch last August to 210 employees distributed between China and Mexico.

The new capital will be allocated to expanding product offerings, enhancing technology, and scaling the team. The company is experiencing monthly revenue growth of 40% to 50%.

Investor Perspective

“Meru is developing an integrated B2B marketplace that empowers Latin American SMEs to procure goods from Asia more efficiently, all managed through a single point of contact,” stated Antoine Colaço, managing partner at Valor Capital Group.

“By providing access to a vast product range, managing logistics, billing, and follow-up procedures, and integrating financial solutions, Meru will strengthen the connections between the global supply chains of Latin America and Asia.”