Loggi’s Mega-Spherical, Mercado Libre Ramps Up Brazil Funding, Accenture Goes Procuring


Welcome to this week’s Brazil tech and innovation round-up. Here’s a number of three key developments in Latin America’s largest financial system, beginning with a key story from the week that was: the mega-round introduced by logistics unicorn Loggi. Subsequent up, Mercado Libre’s Brazil operations get an funding increase, and Accenture’s newest Brazilian acquisition.


This week began with huge information for the Brazilian startup ecosystem, as logistics agency Loggi introduced a US$212 million Collection F spherical on Monday (10), the most important because the firm’s inception in 2013, bringing its present valuation near US$ 2 billion.

Led by Brazilian know-how fund CapSur Capital, a brand new investor within the firm, the spherical was additionally joined by new backer Verde Asset Administration. As well as, about 75% of the startup’s present traders supported the corporate as soon as once more, together with monashees, Softbank Imaginative and prescient, Softbank Latam, GGV, Microsoft and Sunley Home.

In line with the agency’s CFO, Thibaud Lecuyer, the corporate was overwhelmed with investor demand, and the spherical might have simply reached US$ 300 million. “It might have been a mega-round,” he argued, downplaying the scale of the funding, whereas noting an IPO could possibly be on the horizon.

“We’ve got to consider what’s sufficient to execute our plan and be accountable with the cash from our traders.” Loggi’s earlier spherical was in June 2019, when it raised US$ 150 million in a spherical led by SoftBank and Microsoft, bringing its valuation to US$ 1 billion.

The brand new funding will go in the direction of enhancing the corporate’s platform, primarily based on a synthetic intelligence algorithm that optimizes supply routes with the purpose of rushing up supply and decreasing price. The corporate has seen a 360% enhance in deliveries in 2020 in relation to the prior 12 months, because of the sharp rise in e-commerce pushed by the Covid-19 pandemic. Loggi delivers roughly 350,000 packages every day.

To deal with the elevated demand, the corporate led by CEO and cofounder Fabien Mendez opened dozens of branches all through Brazil and 6 new distribution facilities. The objective for 2021 is to open 7 new hubs in areas of the nation that aren’t presently lined by Loggi such because the South and Northeast of Brazil – the corporate estimates that it serves 50% of the inhabitants – and to concentrate on small and medium companies (SMBs).

Loggi additionally serves a slew of huge shoppers, together with plenty of native excessive road retailers in addition to marketplaces Amazon and Mercado Libre, each firms which were investing in bettering their very own logistics. Lecuyer is unfazed by the developments: “We solely do logistics, fairly than a market or monetary companies on the similar time, and that focus offers us a transparent benefit”, he famous.

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In line with a survey from the Brazilian Digital Commerce Affiliation (ABComm) and Neotrust, e-commerce gross sales noticed a 68% increase in 2020 in relation to the prior 12 months, the perfect efficiency the sector has ever had. About 20.2 million Brazilians made a web-based buy for the primary time final 12 months, in response to the affiliation, with greater than 301 million purchases made on-line in 2021, at a median ticket of 419 reais (US$ 73).

Relating to e-commerce uptake inside considered one of Loggi’s key goal audiences for this 12 months, the SMB sector, adoption of digital channels has additionally reached an all time excessive: 70% of micro and small companies in Brazil have resorted to the Web to promote their wares after the emergence of Covid-19, in response to the Brazilian Micro and Small Enterprise Assist Service (Sebrae).

E-commerce behemoth Mercado Libre additionally grabbed the headlines this week in Brazil. The Argentine market agency headquartered in São Paulo introduced that it’s going to make investments 10 billion reais (US$ 1.7 billion) in enhancing its Brazilian operations. The funding is equal to the quantity the Latin American agency invested within the nation over the past 4 years.

The cash will go in the direction of vehicles, planes and 5 new distribution facilities to spice up the agency’s personal logistics community. As well as, Mercado Libre plans to broaden shopper credit score provision via its monetary arm Mercado Pago. It would additionally add supermarkets to its market: that is notably related, since Brazilian corporations from that sector nonetheless face obstacles referring to consumption habits and logistical difficulties round distribution of perishable gadgets, despite the fact that supermarkets declare the most important share of retail gross sales within the nation.

Presenting the corporate’s outcomes for the fourth quarter of 2020, Mercado Libre famous its Brazilian operation delivered the strongest gross sales efficiency of the group, up 84% over the last three months of the 12 months. Of the 19 Latin American international locations served by the corporate, Brazil represented 54% of the corporate’s complete This autumn income, of US$ 1.three billion.

Mercado Libre is taken into account to be Latin America’s largest firm in market worth, surpassing the likes of Brazilian mining agency Vale

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, oil and fuel big Petrobras and Itaú Unibanco, considered one of Brazil’s largest banks, in response to a examine launched by consultancy agency Economatica in August 2020.

This week, world consulting agency Accenture introduced its third acquisition in Brazil in lower than a 12 months. The most recent buy is Joinville-based Pollux, an industrial robotics and automation options agency. The transfer is a part of a technique to spice up Accenture’s capabilities for shoppers in shopper items, pharmaceutical and automotive industries. The phrases of the transaction weren’t disclosed.

Based in 1996, Pollux develops designs, engineers and deploys absolutely practical meeting traces that embrace robots and different {hardware}, plus the software program that controls them, in addition to visible analytics inspection options, autonomous cell robots and robots-as-a-service choices for shopfloors and warehouses. Its options are in place in massive pharmaceutical and meals firms, in addition to automobile producers.

As a part of the deal, Pollux’s greater than 290 professionals and operations in Brazil, Ecuador, Mexico, Canada and america will be part of Accenture’s manufacturing-focused group Business X. Previous to Pollux, Accenture acquired data safety agency Actual Defend in January 2021 and cloud specialist Manage Cloud Labs in August 2020.

Mergers and acquisitions involving Web and data know-how firms stood out probably the most within the evaluation of that sort of transaction final 12 months, in response to a report from one other consultancy big, KPMG. M&As of tech corporations rose 6.8% within the comparability between 2020 and 2019, with the variety of offers going from 451 to 482. KPMG predicts that key areas for potential mergers within the tech house in Brazil in 2021 will embrace robotics and synthetic intelligence, in addition to e-commerce, digital funds, shopper expertise and demand technology.

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