The COVID-19 pandemic detonated online grocery shopping in Latin America, a momentum that carried Jüsto into Brazil and Peru at the end of last year. Steady growth in these newly opened markets has helped the company secure an additional US$152 million Series B funding, which the company will use to increase market penetration over the next several years, says its CEO, Ricardo Weder.
“Right now, we believe we have a mature value proposition, especially as our operations expand aggressively and we improve the technology to scale up operations,” Weder told TechCrunch. “We are the leading grocer in Latin America and we see the biggest companies, like Walmart, as competitors, so there are still things we can do to increase our share.”
Founded as a digital-first startup in 2019, the online grocer was significantly well positioned to catapult from the global shift to come. During its first year, the company grew at breakneck speed, swelling its revenue growth 16 times over, with positive traction across consumer retention, frequency and average order value. Its uncontestable results helped the startup raise a US$65 million series A round (the largest in Latin America to date) led by General Atlantic. Weber wasted no time in this burgeoning multi-billion-dollar market, successfully expanding to both Brazil and Peru by Oct. 2021.
São Paulo´s 12.4 million inhabitants helped Jüsto grow at a 30-40 percent monthly rate. The city now represents a fourth of Jüsto’s total revenue. Following this positive reception, Jüsto aims to expand its network to Belo Horizonte, Rio de Janeiro, Porto Alegre and Curitiba in the short term. Weber explained that the company is considering a strategic expansion into 20 additional cities over the next few years, which possibly includes Colombia and Chile.
In 2022 the company will be exploring and assessing new business avenues, including the viability of the hybrid grocery model it implemented in Peru. Other concepts include a discount online supermarket meant to complement Jüstos’s Freshmart and Ekonofresh, as means of offering greater variety to consumers. More concrete initiatives concern personalizing its product offering to each city and developing relationships with small and medium-sized regional farmers.