99minutos Raises US$82 Million in Series C
Mexican e-commerce startup 99minutos announced US$82 million raised in its Series C funding after securing investment coming from Oak HC/FT, Kaszek and Prosus Ventures.
Prosus and Kaszek also backed 99minutos during its series B investment round last May, when the company secured US$40 million in investment and raised funding to a total of US$128.7 million. After its successful Series B closing, CEO Alexis Patjane did not express an interest in looking for additional capital, but businesses continued to show interest in 99minutos.
“That interest did not happen before. It has been a life-changing round. We contacted 77 funds, and three said ‘yes,’ and the rest said ‘no.’ It was depressing to hear all of the ‘nos.’ Now that we have positioned the brand and the company, getting interest from the other side is flattering, and helps to make things move faster,” said Patjane about this latest funding round.
99minutos is now close to becoming Mexico’s latest unicorn and Patjane expects its next funding round to bring about exciting announcements from the company. E-commerce in Latin America has continued to boom after its pandemic-led boost and transformation. Infrastructure was more greatly incorporated into the industry due to the addition of logistics giants like Amazon, FedEx and DHL, according to Patjane. But in this highly competitive and ever-expanding market, 99minutos’ solutions stand out to customers because of their various innovations.
According to Patjane, 99minutos is the first company to personalize and specialize logistics infrastructure to speed up delivery processes to one day instead of 10. It incorporates digital innovations to finalize deliveries in less than 99 minutes, in some areas, through its fleet of electric vehicles and hub of stations where customers are able to pick-up and drop-off packages, which Patjane expects to increase to over 8,000 by the end of the year.
Additional services include a SaaS optimization and tracking tool and a focus on sustainability, as the company’s vision is in line with international carbon-free goals. Its services aim to limit CO2 emissions through the use of electric vehicles for last mile delivery. Through these innovations, 99minutos has grown its revenue three times annually as interest and demand for timely and efficient deliveries has boomed across Latin America.
“99minutos is meeting this need and has impressively expanded beyond its core last-mile offering to become the leading technology logistics and fulfillment company in the region. We look forward to supporting the team as the company continues its growth and expansion in LatAm,” said Allen Miller, Principal, Oak HC/FT, in a written statement.
99minutos is active in 60 different markets and is looking to expand to two additional countries. Before expanding further, it aims to reach 95 percent penetration in its current markets. To do so, 99minutos expects to increase its staff from the 5,000 current employees to between 8,000 and 10,000 during 2022.