Mexico-based company Zubale secures additional funding to enhance its suite of e-commerce solutions and consolidate its presence in Latin America.
Zubale, a Mexico-based company that provides tools to retailers to scale their digital channels, has raised $25 million in a Series A extension round. Led by QED Investors and joined by investor group NFX and Kevin Efrusy, this funding will enable Zubale to further develop its e-commerce offerings and expand its operations in Latin America. With the region experiencing a surge in online shopping, Zubale aims to capitalize on this growing market by providing retailers with innovative solutions to enhance their e-commerce operations.
Fulfilling the E-commerce Demand in Latin America
Zubale first gained attention in 2022 when it closed a $40 million Series A round. At the time, the company focused on fulfilling e-commerce orders for retailers in Latin America, where the adoption of online shopping was slower compared to other regions. However, the number of online shoppers in Latin America is projected to grow by 20% in the next four years, with revenue expected to double to over $300 billion, according to Statista. Zubale recognized this opportunity and established itself as a key player in the market.
A Powerful Ecosystem of E-commerce Tools
Zubale utilizes a network of independent workers who pick, pack, and deliver items for retailers. Since securing its Series A funding, the company has expanded its operations to include Brazil and Chile in addition to its existing markets in Mexico, Colombia, Costa Rica, and Peru. It now works with over 115 clients, including major retailers such as Carrefour, Walmart, Cencosud, and Chedraui. With over 100,000 freelancers on its platform, Zubale has completed more than 30 million tasks and has tripled its net revenue annually.
Evolving Product Offerings
Zubale has evolved from being primarily a gig worker marketplace for e-commerce fulfillment to offering a suite of e-commerce tools. Its core freelancer marketplace product, FlexiFleet, is now complemented by two software solutions: Consumer Connect and Fulfillment Optimizer. Consumer Connect enhances the shopping experience for consumers using WhatsApp, while Fulfillment Optimizer is an end-to-end modular software that improves productivity in e-commerce operations, including picking, packing, and delivery. These solutions have not only helped retailers increase their EBITDA but also improve net promoter scores by over 20 points.
Consolidating Presence and Expanding Offerings
With the latest funding, Zubale plans to further develop its three products and introduce new offerings to consolidate its presence in Mexico and Brazil. In Brazil, the company has already signed partnerships with over 10 of the top market retailers. While the company did not disclose its valuation following the recent investment, Zubale’s CEO, Sebastian Monroy, stated that the valuation has multiplied compared to the Series A round. The company aims to achieve profitability in the first months of 2024, which will provide the flexibility to accelerate its strategic expansion, particularly in Brazil.
Conclusion:
Zubale’s latest funding round of $25 million will enable the company to enhance its suite of e-commerce tools and consolidate its presence in Latin America. With the region experiencing significant growth in online shopping, Zubale’s innovative solutions have positioned it as a key player in the market. By leveraging its network of independent workers and evolving its product offerings, Zubale aims to support retailers in improving their e-commerce operations and capitalizing on the growing demand for online shopping in Latin America.
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