Elenas Raises $6M to Fuel Social Commerce Expansion

Elenas Secures $6 Million in Series A Funding to Empower Women Entrepreneurs

Elenas, a Colombian startup, is facilitating income generation for a significant number of women through online product sales. The company recently announced the successful completion of a $6 million Series A funding round.

Expanding on Previous Investment

This new investment supplements the $2 million seed funding that Elenas secured last autumn. According to Founder and CEO Zach Oschin, the continued growth in demand is fueled by elevated unemployment rates, particularly among women, and ongoing consumer hesitancy regarding in-person shopping due to the pandemic.

Oschin stated, “We have enabled tens of thousands of women to supplement their income.”

Reimagining Direct Sales for the Digital Age

Elenas is effectively modernizing the traditional direct sales and catalog sales model, which currently engages 11 million women throughout Latin America. The platform allows independent sellers – often women – to select products from a catalog encompassing categories like beauty, personal care, and electronics.

These products are sourced from over 250 distributors and brands at wholesale prices. Sellers determine their desired markup and then promote the items via social media platforms such as WhatsApp and Facebook.

Mitigating Risk for Resellers

Beyond its digital focus, Elenas distinguishes itself by minimizing risk for its resellers. “Unlike conventional direct sales, we do not maintain company inventory, and our entrepreneurs are never required to hold stock,” Oschin explained.

Furthermore, entrepreneurs are relieved of responsibilities like payment processing and delivery, as these functions are managed by Elenas and its distributor network.

He added, “Our objective is to deliver a comprehensive backend operating system that equips women with all the necessary tools to operate their businesses.”

Training and Support for Sellers

While Elenas provides an automated onboarding process, the application also incorporates extensive training resources to assist sellers in developing their sales skills.

Impact and Demographics

The company, a participant in the Latin American Startup Battlefield in 2018, reports having distributed over $7 million to its sellers. While open to all, the platform’s user base is overwhelmingly female, with over 95% of sellers identifying as women.

Approximately 80% of these sellers are under 30 years old, and roughly one-third have no prior experience in direct sales.

Future Expansion Plans

The latest funding round was led by Leo Capital, FJ Labs, Alpha4 Ventures, and Meesho. Oschin noted that the investors’ global presence underscores the company’s international ambitions.

Elenas intends to expand its operations throughout Latin America, beginning with Mexico and subsequently Peru.

Leo Capital co-founder Shwetank Verma stated, “Having observed the rapid expansion of social commerce in India and China, we are pleased to collaborate with Elenas, as they have demonstrated the appropriate product and operational framework for this region.” He continued, “The Elenas team has created a solution that is inclusive, impactful, and poised for substantial growth.”

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