Jüsto Secures $65 Million Series A Funding

Jüsto, a Mexico City-based online supermarket, has announced the successful completion of a $65 million Series A funding round. This investment was spearheaded by General Atlantic, a prominent global growth equity firm.

Significant Investment for a Latin American Startup

The funding amount is notably substantial for a Series A round generally, and particularly significant within the Latin American startup landscape. Data from PitchBook, as referenced by General Atlantic, indicates this represents the largest Series A investment secured by a Latin American company in the last ten years.

Existing investors, including Foundation Capital and Mountain Nazca, also participated in this funding round.

Company Origins and Mission

Founded in 2019 by Ricardo Weder, formerly the president of Cabify – a leading ridesharing service in Latin America, Spain, and Portugal – Jüsto was established with the goal of revolutionizing the grocery sector in Latin America.

The company distinguishes itself as the first supermarket in Mexico to operate without a traditional brick-and-mortar store. Customers are able to purchase groceries directly through the website or mobile application, with Jüsto providing delivery to their preferred location.

Impressive Growth Trajectory

The business model has clearly resonated with consumers, as Jüsto experienced remarkable growth in 2020. Revenue increased by a factor of sixteen during that year.

Ricardo Weder explained to TechCrunch that the COVID-19 pandemic accelerated the rate of adoption. He noted that penetration rates tripled in the region within a few months during the summer of 2020.

Focus on Freshness and Variety

Jüsto emphasizes its direct relationships with fresh produce suppliers, enabling the provision of “the freshest” available fruits, vegetables, meats, and fish. The platform also offers a wide array of other products, including pantry essentials, personal care items, cleaning supplies, beverages, and pet products.

Commitment to Local Suppliers and Sustainability

The startup exclusively sources products from local suppliers, fostering fair trade partnerships – reflected in the company’s name, “Jüsto,” which translates to “fair” in Spanish. Furthermore, Jüsto utilizes artificial intelligence to predict demand and minimize food waste within its micro-fulfillment centers.

This approach, according to the company, leads to “competitive prices, reduced transaction costs, and enhanced convenience for consumers by removing intermediaries from the supply chain.”

Future Expansion Plans

With the newly acquired capital, Jüsto intends to expand its operations throughout Mexico and across Latin America. This includes improvements to its last-mile delivery infrastructure and increased marketing efforts.

Currently, the company employs 425 individuals, with women comprising 40% of the workforce.

General Atlantic’s Perspective on the Mexican Market

Luis Cervantes, Managing Director and Head of Mexico City for General Atlantic, believes Mexico is undergoing a significant shift towards a digital economy.

He stated that decreasing data costs and increased internet access are driving digital engagement, while the traditional grocery market is ripe for disruption. He highlighted Jüsto’s innovative solution that benefits both consumers and suppliers through technology and a streamlined purchasing experience.

General Atlantic’s Investment History in Mexico and Latin America

This investment in Jüsto represents General Atlantic’s fifth in Mexico since 2014. The firm has invested approximately $1 billion in high-growth Mexican companies during this period.

Over the past two decades, General Atlantic has allocated around $4 billion to Latin American startups.

Total Funding and Investor List

This financing round brings Jüsto’s total funding to over $100 million. Additional investors include FEMSA Ventures, S7V, Elevar Equity, Bimbo Ventures, Quiet Capital, Sweet Capital, H2O Capital, and SV LatAm Capital, among others.

The article was updated following its initial publication to include further insights from Jüsto and General Atlantic.