Business

The largest Series A round raised in Latin America: Mexico's online grocery business Jüsto raises $65 million

GA-funded Jüsto will use the round to support expansion across Mexico and begin operations in Colombia later 2021

Image: Jüsto/ Courtesy
  • The Series A round also counted with existing investors including Foundation Capital and Mountain Nazca;
  • Jüsto is fully focused on groceries delivery with no physical store presence.

Mexican grocery delivery startup Jüsto has raised a $65 million Series A funding round led by U.S.-based growth equity firm General Atlantic. The proceeds will be used to expand operations in Mexico and enter in Colombia later this year.

Now Luis Cervantes, Managing Director and Head of Mexico City for General Atlantic and Zeev Thepris, Vice President at General Atlantic, will join Justo’s Board of Directors.

The Series A also counted with existing investors including Foundation Capital and Mountain Nazca. The growth investment marks the largest Series A round raised in Latin America, according to Pitchbook. It does not disclose its valuation.

READ ALSO: Mexican online grocery business Jüsto raises $12 million in a new round

CEO and founder Ricardo Weder (that previously served as President of Cabify) told LABS that the firm will use these resources to continue developing technology that “allows us to optimize our operations and last-mile delivery capabilities as well as to expand our geographic operations.”

“During this year we will probably be expanding to Colombia,” he said. The startup currently has 600 employees, but it plans to hire 10,000 in the next three years, according to Weder. Asked if the hiring is remote for all of Latin America or restricted to Mexico, the CEO said “it depends on the area but we have both.”

General Atlantic’s fifth investment in Mexico

Unlike online grocery apps that have started expanding product-portfolio to a wide range of different items, Jüsto is fully focused on groceries delivery with no physical store presence. As the pandemic boost demand for online deliveries of goods, the startup says that it experienced significant acceleration over the course of 2020, with 16 times revenue growth and positive traction across user retention, frequency, and average order value.

“Mexico is at an inflection point in its transition to a digital economy, and we see Jüsto as leading the way in the high-growth online grocery space with its technology-centric, mission-driven approach,” said Luis Cervantes, in a press statement. “Under Ricardo’s leadership, we believe Jüsto is positioned for significant expansion as it disrupts and transforms the legacy grocery value chain.”

READ ALSO: Moova, an Argentine logistic platform, raises a round led by Brazilian Movile

“In the time since its establishment, the Jüsto model has quickly resonated with consumers, who are looking for new ways to buy groceries digitally, as well as with suppliers, who are seeking more direct engagement within the ecosystem,” added Martin Escobari, Co-President, Managing Director and Head of Latin America, General Atlantic.

“We look forward to leveraging our deep expertise in helping businesses scale across Latin America in support of Jüsto’s next chapter of growth.”

READ ALSO: The app economy surged in Mexico and Brazil during the last few months

Jüsto marks General Atlantic’s fifth investment in Mexico since 2014, when it first entered the country. Since then, General Atlantic has invested nearly $1 billion in high-growth Mexican companies.

Since its inception in 2019, Jüsto has raised more than $100 million, including a $27 million Seed Round last year led by Foundation Capital, alongside Mountain Nazca and with participation from FEMSA Ventures, S7V, Elevar Equity, Bimbo Ventures, Quiet Capital, Sweet Capital, H2O Capital, and SV LatAm Capital, among others.

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