The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
The e-commerce startup that provides financing for direct-to-consumer businesses in Latin America raised $225 million in a Series B funding this week, valuing the company at nearly $850 million.
Earlier this year, the accelerator with dual headquarters in Sao Paulo, Brazil and Mexico City, Mexico, secured $100 million in debt financing and $60 million in seed funding.
Sujay Tyle, co-founder and CEO of Merama said in a statement that the investment was “a strong affirmation of Merama’s business model, momentum and the size of the market opportunity.”
Since its creation in December 2020, the company has acquired stakes in 20 brands across Latin America, including beauty and personal care brands.
ADVERTISEMENT
Latin America’s tech sector has been attracting leading global investors over the past year, in particular firms that power SMEs. One of the most recent investments was Mexican fintech provider Konfío, which raised $110 million in a Series E investment from Soft Bank, one of Merama’s major investors. The company, which specializes in helping small businesses secure loans, raised a total of $235 million, following its $125 million raise in June. Konfío became Mexico’s fourth unicorn with a $1.3 billion valuation.
In June, Brazil-based, payment processing company Ebanx received an injection of $430 million from Advent International, another one of Merama’s leading investors. The company, which is said to be eyeing an IPO for 2022 and boasts clients such as AliExpress, Airbnb, Pipedrive, Spotify, Uber and Wish, hit a billion-dollar valuation in 2019.
Learn more:
Online Battle Heats Up in Latin America
Despite social unrest and a sluggish economy, Latin America’s fashion e-commerce sector is forecast to grow by more than 20 percent each year from 2019 to 2021. Here’s how to get in on the action.
This week’s round-up of global markets fashion business news also features Latin American mall giants, Nigerian craft entrepreneurs and the mixed picture of China’s luxury market.
Resourceful leaders are turning to creative contingency plans in the face of a national energy crisis, crumbling infrastructure, economic stagnation and social unrest.
This week’s round-up of global markets fashion business news also features the China Duty Free Group, Uniqlo’s Japanese owner and a pan-African e-commerce platform in Côte d’Ivoire.
Affluent members of the Indian diaspora are underserved by fashion retailers, but dedicated e-commerce sites are not a silver bullet for Indian designers aiming to reach them.