March 2, 2022
New funding to accelerate expansion, as 99minutosmoves closer to becoming a leading tech company for e-commerce logistics in the region
99minutos,the scale up offering affordable, fast and reliable logistics services fore-commerce vendors across Latin America, today announced a US$82 million fundraising round led by OAK HC/FT, with participation from existing investors Kaszek and Prosus Ventures.
Since its last funding round in May 2021, 99minutos’ operation and business has grown threefold. The Series C funding will now enable the company to execute a three-pronged strategy made up by scaling new business models, expanding further into LatAm, and investing in new sustainability initiatives in line with the company’s low-carbon goals.
The market size for retail e-commerce in LatAm is expected to increase to US$160billion by 2025, compared to an estimated US$85 billion in 2021.This incredible acceleration requires logistics infrastructure to scale accordingly, in addition to the need for specialized services across the entire supply chain.
To address these needs, 99minutos will continue to grow its core last-mile delivery business, as well as expand its suite of services for e-commerce logistics. These new offerings include Punto 99, a new Pickup/Drop off network; new services to cover the entire fulfillment process, including storage and picking & packing; and the launch of a route tracking and optimization SaaS solution for its customers. This round will also fund a comprehensive plan to further the company’s positive ecological impact, including investments to increase the use of electric vehicles and other sustainable practices in their operations.
“The quality and depth of the technology we have developed in the past year, coupled with the new talent we have brought onboard has enabled us to scale our operations, become more efficient, and prepare us for more structured growth,” said Alexis Patjane, CEO of 99minutos.“We are eager to continue investing in our technology and infrastructure with the goal of becoming the largest, most sustainable provider of e-commerce logistics in Spanish-speaking LatAm. These ambitions inspired us to partner with the expert team at Oak HC/FT.”
“Ecommerce in LatAm has experienced exponential growth over the past few years, creating a clear need for effective technology solutions to enable a seamless process from order to delivery,” said Allen Miller, Principal at Oak HC/FT. "99minutosis 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.”
Founded in Mexico City in 2014, 99minutos is transforming the e-commerce landscape in Latin America by offering the fastest and most reliable logistics services for e-commerce vendors across Mexico, Colombia, Chile and Peru. Through its five distinct services: less than 99 minutes, same-day, next-day, CO2-free delivery, and economy, 99minutos handles more than 15 million packages per year for major e-commerce companies and thousands of smaller e-commerce brands.
About OAK HC/FT
Oak HC/FT is a venture and growth equity firm investing in companies driving transformation in healthcare and fintech, two uniquely complementary and high-growth sectors. With deep domain expertise and strategic resources, Oak HC/FT partners with leading entrepreneurs at every stage, from seed to growth, to build businesses that make a measurable, lasting impact on these industries. Founded in 2014, the firm has $3.3 billion in assets under management and is headquartered in Greenwich, CT, with investors in San Francisco and Boston. Follow Oak HC/FT on Twitter and LinkedIn and learn more at oakhcft.com.
Prosus is a global consumer internet group and one of the largest technology investors in the world. Operating and investing globally in markets with long-term growth potential, Prosus builds leading consumer internet companies that empower people and enrich communities. The group is focused on building meaningful businesses in the online classifieds, food delivery, payments and fintech, and education technology sectors.
Through the Prosus Ventures team, the group invests in new technology growth opportunities within logistics, fintech, health, blockchain, social and ecommerce platforms, agriculture and more. The team actively backs exceptional entrepreneurs who are using technology to improve people’s everyday lives.
Each month, more than 2 billion customers across the globe use the products and services of companies that Prosus has invested in, acquired or built. To find out more, please visit www.prosus.com.
Kaszek is a Latin American venture capital firm that partners with exceptional entrepreneurs to build lasting, high-impact technology-based companies whose main initial focus is Latin America. The firm is industry and stage agnostic, mainly investing in Seed, Series A and Series B. In addition to capital, it provides first-hand expertise and insights in strategy, operational execution, team building, growth, technology, product, networking, fundraising and more.
Some of the fund’s portfolio companies are: Nubank, QuintoAndar, Kavak, Creditas, TheNotCompany, Konfio, Bitso, GymPass, MadeiraMadeira, Escale, Kushki, NuvemShop, DigitalHouse, LaHaus, andCrediJusto. www.kaszek.com/portfolio.