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99minutos clocks in recent capital for logistics infrastructure in Latin America – TechCrunch


99minutos, a logistics service firm for e-commerce distributors throughout Latin America, is making quick work out of attracting funding. It introduced immediately $82 million in Collection C funding, led by Oak HC/FT, with participation from present traders Kaszek and Prosus Ventures.

The final spherical follows a $40 million Collection B funding final Might from Prosus and Kaszek and brings the corporate’s complete funding to about $128.7 million. It was then that we discovered concerning the origins of the Mexico Metropolis-based firm, based by CEO Alexis Patjane, who had been operating a meals truck-making enterprise in Mexico.

Patjane informed TechCrunch that he wasn’t instantly in search of further capital after closing the Collection B, and actually had plans to start elevating once more this yr. Nonetheless, alternatives with new prospects got here alongside, the corporate was rising and there was a ton of curiosity from enterprise capital corporations.

“That curiosity didn’t occur earlier than,” he added. “It has been a life-changing spherical. We contacted 77 funds, and three mentioned ‘sure,’ and the remainder mentioned ‘no.’ It was miserable to listen to all the ‘nos.’ Now that we’ve positioned the model and the corporate, getting curiosity from the opposite facet is flattering, and helps to make issues transfer sooner.”

He significantly was concerned about talking with Oak HC/FT due to its world presence and method to bringing collectively its portfolio firms round ideas and recommendation for founders. Patjane didn’t expose 99minutos’ valuation, however did say the corporate is now shy of being a unicorn, and within the subsequent spherical, he would be capable of announce one thing greater.

Since e-commerce and logistics firms, like Amazon, got here to Mexico, there was a lot infrastructure created round this trade, Patjane mentioned. Conventional firms, like FedEx and DHL had been there earlier than, as had been country-specific supply firms, however the service was expensive, not accessible day-after-day and wasn’t tied to know-how.

Because the retail e-commerce market in Latin America is poised to achieve $160 million by 2025, in contrast with an estimated $85 billion in 2021, Patjane believes 99minutos must be the primary know-how firm to construct the logistics infrastructure required to scale, to have a quick supply expertise — getting packages tomorrow as a substitute of 10 days from now — and provide specialised companies.

After we final reported on the corporate in 2021, it was working in 40 markets and is now in 60 markets throughout Mexico, Colombia, Chile and Peru, with a aim of opening in two extra international locations, but to be decided, this yr. Patjane plans to be at 95% penetration in all of its present markets earlier than connecting companies to different international locations.

In the meantime, the corporate is dealing with over 15 million packages per yr, with a aim of delivering them in lower than 99 minutes, same-day or next-day through its fleet of electrical automobiles.

Patjane intends to take a position the brand new funding into scaling new enterprise fashions, increasing into new geographic areas with Latin America and new sustainability initiatives in step with the corporate’s low-carbon objectives of accelerating its use of electrical automobiles.

A few of its new choices for the reason that final increase embody Punto 99, a pick-up and drop-off community that addresses your complete success course of and returns. The corporate opened greater than 500 stations, which embody printing stations for labels, the place individuals can choose up or drop off their packages. Patjane expects to extend the variety of these “hubs” to eight,000 in Mexico by the tip of the yr.

It additionally has a route monitoring and optimization SaaS software for patrons referred to as Routa 99 that figures out one of the best ways to get a package deal to its vacation spot and in what sort of automobile.

In the meantime, 99minutos has 5,000 staff working from Mexico, Colombia, Chile and Peru, and Patjane goals to achieve between 8,000 and 10,000 by the tip of the yr. It’s also working with over 120,000 prospects, primarily business-to-business firms. Income grew 3 times yr over yr.

Allen Miller, principal at Oak HC/FT, mentioned in a written assertion that the expansion skilled in Latin America’s e-commerce trade of the previous few years has facilitated a necessity for higher know-how in order that orders make it to their last vacation spot.

“99minutos is assembly this want and has impressively expanded past its core last-mile providing to change into the main know-how logistics and success firm within the area,” Miller added. “We look ahead to supporting the group as the corporate continues its progress and growth in LatAm.”

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