Meet Merama, Mexico’s Newest Unicorn
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Meet Merama, Mexico’s Newest Unicorn

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Pamela Benítez By Pamela Benítez | Junior Journalist & Industry Analyst - Thu, 12/09/2021 - 16:20

Following Advent International and Softbank’s US$60 million funding to startup Merama, the startup has reached a valuation of US$1.2 billion. In addition, Merema joins Clara and Incode to become the third Mexican unicorn to appear this week.  

This week, three emerging companies that exceeded a private valuation of US$1 million are now considered Mexican unicorns: the fintech Clara, verification and identity authentication platform Incode and private-label startup Marema. These companies have joined Kavak, Bitso, Clip, Konfío and GMB and are now part of the Mexican unicorn clan.

Moreover, Advent International and Softbank’s funding contributed to Merama´s total capital raise to US$445 million, combined with US$345 million of investment and US$100 million of debt.

Merama’s success is attributed to the growing e-commerce market in Latin America as the startup partners with multiple e-commerce companies across the region to accelerate  growth and profit through working capital investment, while also offering strategic and functional knowledge with proprietary technology.

Its business model aims to acquire Latin America’s local companies that sell online products and improve its marketing, product development, supply chain management, cost optimization, channel and international expansion, BI investment and operational synergies. It offers human resources and non-dilutive capital, a first-class e-commerce experience with a focus on high impact and growth.

The startup focuses on acquiring businesses that manage cosmetics, kitchen and home fitness products, among others.

Merama has a team of 30 people that manages a 20-brand portfolio in Mexico, Brazil, Colombia, Chile, Peru, Argentina and the US. The company expects to close this year’s operations with a US$250 million turnover.

Given its rentability, the company plans to expand its business model to create brands from the ground up through Merama Labs and partner with Mexican and Brazilian influencers to launch their products in online stores specialized in: beauty, fashion, skin and self-care, food supplements, among others.

"With this, we are going to take it a step further as we will see how we enter certain categories where we do not see a very clear player, with the potential of developing brands from scratch," said Felipe Delgado, CFO & Co-Founder, Merama.

In the past, Merama received a series B US$225 million funding co-led by Advent International and Softbank Group as well, using the investment money to help other brands expand.

“This [US$225 million] capital will work for many things, fundamentally to help brands grow as they require marketing, working capital, equipment, technology,” said Sujay Tyle, CEO & Co-Founder, Merama.

Photo by:   Cottonbro, Pexels

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