Jüsto: Welcome Financing in Opportune TimeBy Jan Hogewoning | Fri, 07/10/2020 - 09:13
Q: How was this funding secured? What were the crucial steps behind the process?
We managed to raise this round 100% remotely. We decided to do the bridge round partly because of the in-bound requests from investors. But more importantly, it helps when all your seed lead investors follow with investments. This was the case in the bridge round we announced last week; which will help us open new cities within Mexico and aim for international expansion. So, in short, we are very lucky to have such investors in our cap table.
Q: How much has the platform increased in number of suppliers, and users over the past months?
Latin America has undergone massive adoption of digital services, including e-groceries, during the lockdowns. For example, online groceries in Mexico had penetration rates of less than 2% pre-COVID-19. Today this rate has probably doubled. As a reference, China has about 18% penetration rates. So there is plenty to do in the region. During March, Jüsto’s orders quadrupled due to COVID-19. In other words, we had to be humble enough to go back to the blackboard and rethink our processes. Imagine from one day to the next having that surge in demand. No one is prepared. But as I mentioned we have a dream team of Jüsticieros and managed to take advantage of this opportunity.
Q: How can the company generate more competitive advantage against other online platforms of larger supermarket chains?
We have a massive advantage in terms of agility. In short, we can move a lot faster than traditional supermarkets. Thanks to the technology we are evolving very fast. Additionally, our technology stack drives continuous operational improvement to reduce shrinkage or waste - a huge operational challenge for the grocery industry.
Q: How much growth is the company experiencing currently, and what does it expect by the end of the year?
We are growing 60% MoM. Our aim is to maintain this growth rate as we continue to expand our footprint.
Q: Is the company considering alliances with other companies, and possible expansion to other markets?
A: As mentioned before, we already have a clear path for expansion. Both in Mexico and throughout LATAM. We have done this before, many Jüsticieros participated in other tech companies' rollouts in the region and we are always open to alliances that add value to our users.
To see our in-depth interview with founder & CEO Ricardo Weder, click here.
Jüsto is a Mexican online supermarket that started operating in September 2019. It offers a differentiated experience for users by eliminating intermediaries and offering fresher products at a fairer price