Department store operator Falabella has paid $138m to acquire Mexico-based online marketplace Linio in a deal that enabled retail group Tengelmann and diversified conglomerate Access Industries to exit.
Incubated by e-commerce holding company Rocket Internet and launched in 2012, Linio operates an online platform enabling businesses to sell a diverse range of consumer goods including electronics, toys, cosmetics and even cars.
The company operates in Argentina, Mexico, Chile, Peru, Colombia, Venezuela, Ecuador and Panama, and generated $137m in revenue in 2017 according to Falabella. It also maintains offices in the US and China.
Falabella CEO Gaston Bottazzini said: “With this acquisition, the company takes another step towards its goal of consolidating its position as a leading e-commerce in the region.
“Linio will boost sales of Falabella Retail, (home improvement retail chain) Sodimac and (supermarket chain) Tottus, becoming a common display for the products of the group’s companies, which will also continue to strengthen their own digital e-commerce sites.
“In addition, Linio will allow us to offer a broader assortment from different suppliers that already sell through its platform.”
Linio had disclosed $230m in funding including $50m from Rocket Internet, Tengelmann subsidiary Tengelmann Ventures, financial services firm JP Morgan Chase, Kinnevik, Latin Idea Ventures and Summit Partners in 2013.
Access Industries and Northgate Capital invested a further $79m in 2014 before the latter joined Liv Capital and Kinnevik to provide $55m in a September 2016 round.