Mexico-based last-mile delivery platform 99 Minutos secured $82m in series C funding yesterday from investors including Prosus, the internet group formed by media and e-commerce conglomerate Naspers.
Growth equity firm Oak HC/FT led the round, which included venture capital firm Kaszek Ventures, while Prosus took part through its Prosus Ventures subsidiary. The deal lifted the company’s total funding to almost $129m, according to TechCrunch.
Founded in 2014, 99 Minutos has built a last-mile delivery app that caters to users in Latin American markets including Chile, Colombia and Peru as well as its home country. It claims its platform can fulfil the order within 99 minutes, but also offers same-day, next-day and emission-free deliveries.
Prosus had already taken part in 99 Minutos’ $40m series B round in May 2021, investing alongside Kaszek. It came three years after Engie Factory, part of energy utility Engie, had paid an undisclosed sum for a 34.4% stake in the company.
Y Combinator, 500 Startups, Pioneer Fund and Streamlined Ventures are also among 99 Minutos’ early investors.
Alexis Patjane, 99minutos’ chief executive, said: “The quality and depth of the technology we have developed in the past year, coupled with the new talent we have brought on board has enabled us to scale our operations, become more efficient and prepare us for more structured growth.
“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.”
Patjane told TechCrunch the company had not intended to raise additional funding immediately after its series B, but that the latest round came as the company was experiencing exponential growth and VC groups were keen on investing, adding that its valuation is nearing $1bn.
Banafsheh ‘B’ Fathieh, head of investments of Americas for Prosus Ventures and part of Global Corporate Venturing’s Rising Stars 2021 and Emerging Leaders 2022 rosters, holds a board seat at 99 Minutos. She told GCV she also serves on the board of its other Mexico-based portfolio company, digital banking service Klar.
Online used car retailer Kavak, digital payment services provider Clip, digital lender AlphaCredit and neobank Stori are among the Mexico-headquartered companies to have raised significant amounts in corporate-backed rounds in recent years, as are business finance provider Konfio, digital grocery retailer Jüsto and digital freight forwarder Nowports.
Prosus Ventures is among the most active corporate investors in Mexico, according to PitchBook, which also identified Femsa Ventures, Wayra and Aramex Ventures, respective vehicles for beverage bottler Femsa, telecommunications firm Telefónica and logistics firm Aramex, as notable participants.
Media group Bertelsmann, breadmaker Grupo Bimbo and energy utility Engie are also active in Mexico – through subsidiaries Bertelsmann Asia Investments, Bimbo Ventures and Engie New Ventures – as are freight forwarder Flexport, property developer Fox Development Corporation, advanced materials manufacturer Saint-Gobain and payment services firm Visa.
Image courtesy of Godo Parsa, SAPI de CV.
