Valoreo Raises $30M to Acquire LatAm E-commerce Brands

Valoreo Secures $30 Million Series A Funding

Valoreo has successfully completed a $30 million Series A funding round, occurring just over five months after obtaining $50 million in debt and equity financing.

Focus on Latin American E-commerce

Based in Mexico City, Valoreo is dedicated to investing in, managing, and expanding e-commerce brands. Its core objective is to deliver superior products at more accessible prices to consumers throughout Latin America.

Acquisition and Brand Development Strategy

The company, whose name reflects the Spanish word “valor” signifying value addition, focuses on acquiring businesses that operate their own brands. These merchants primarily utilize online marketplaces like Amazon and Mercado Libre to conduct sales.

Valoreo specifically targets brands offering products considered leaders in their categories and possessing substantial potential for growth. Furthermore, the company proactively develops its own brands to broaden the product range available to customers.

Rapid Growth and Expansion

Founded in late 2020, the startup has quickly grown to a team of over 100 employees across Latin America. It has also finalized “multiple” acquisitions of local brands operating in diverse sectors, including beauty, fitness, and home goods.

Investment Details

The funding round was co-led by Presight Capital, based in California, and Kingsway Capital, located in the United Kingdom. Existing investors, including Kaszek, Upper90, and FJ Labs, also participated.

While the specific equity raised in the seed round remains undisclosed, Valoreo has secured a total of $80 million in funding, including debt, since its inception.

Future Plans

The newly acquired capital will be primarily allocated to continuing the acquisition of e-commerce brands in Mexico, Brazil, and Colombia. The company also intends to expand its workforce.

Differentiation from U.S. Competitors

Valoreo distinguishes its business model from U.S.-based competitors like Thrasio and Perch by tailoring its approach to “the specific needs of the Latin American market and is specifically focused on the Latin American end customer.”

Supporting Latin American Entrepreneurs

The company aims to empower entrepreneurs who may lack the necessary resources and capital access to scale their businesses effectively.

Efficient Acquisition Process

Co-founder and co-CEO Stefan Florea previously stated that the company typically completes the acquisition process, from initial contact with a seller to final payment, in under five weeks.

Integration and Growth Enhancement

Acquired and internally developed brands are integrated into the company’s consolidated portfolio. By leveraging a team of specialists in areas like digital marketing and supply chain management, Valoreo aims to facilitate significant growth for these brands.

This approach also provides entrepreneurs with an appealing exit strategy, or in some instances, a partial exit.

Acquisition Terms

Valoreo generally acquires a majority stake in businesses, with the purchase price typically structured as a combination of an initial cash payment and a profit-sharing arrangement, allowing sellers to continue benefiting from future success.

Investor Confidence

Hernan Kazah, co-founder and managing partner of Kaszek, highlighted the firm’s increased investment, citing the startup’s “impressive growth over the past few months.”

Competitive Landscape

Valoreo is not alone in this market segment. In April, Merama announced it had raised $60 million in seed and Series A funding, alongside $100 million in debt.

At the time, co-founder and CEO Sujay Tyle revealed that this funding was secured at a valuation exceeding $200 million.