IFC invests in Mandaê to support the growth of parcel logistics sector in Brazil
Brazil has one of the largest e-commerce markets in Latin America, representing approximately 5 percent of the country’s retail sales.IFC | Updated: 03-05-2018 07:18 IST | Created: 03-05-2018 07:10 IST
IFC, a member of the World Bank Group, announced an investment in Mandaê, a technology company providing high-quality and efficient parcel shipment service for small- and medium-sized e-commerce enterprises in Brazil. IFC's investment in Mandaê will help the parcel logistics sector in Brazil to grow and gain more efficiency.
IFC is leading a Series B investment round in Mandaê, along with other investors. Other participants include UPS Strategic Enterprise Fund, Mercado Libre Fund, Tekton Ventures, FJ Labs, and existing investors Performa Investimentos, Qualcomm Ventures (the investment arm of Qualcomm Incorporated), Monashees, and Icon Holding Company. Total investment in the Series B round is of USD 7.1 million.
Brazil has one of the largest e-commerce markets in Latin America, representing approximately 5 percent of the country's retail sales. However, there remain opportunities for growth to reach levels observed in developed markets where some countries register e-commerce penetration rates of 10-12 percent of total retail sales. To facilitate this growth, small- and medium-sized e-commerce companies need access to more affordable and efficient shipping options to support the robust consumer demand.
"The continued growth of e-commerce is one of the mega-trends shaping our world right now, and logistics is adapting and transforming as a result," said Mandaê cofounder and CEO Marcelo Fujimoto. "Our view is that disintermediation across the supply chain is creating even larger opportunities for improvement in the parcel space. Through our platform, Mandaê is redefining the quality, experience, and flexibility of shipping a package. We're extremely excited to partner with IFC to help us continue to grow and transform our industry."
"IFC is proud to support Mandaê's mission to unlock shipping cost savings and market efficiencies for the growing SMB sector in Brazil," said Stevon D. Darling, Investment Officer for IFC's VC investments in Latin America. "Supporting online and mobile technology-enabled private sector enterprises are part of IFC's inclusive strategy of providing individuals with access to better services and solutions, ranging from retail to financial services, education, healthcare, and employment," he added.
IFC's Venture Capital team focuses on technology-driven innovation; we have invested more than USD 80 million globally in the early stage e-logistics sector over the past two years. In Brazil alone, IFC invested almost USD 30 million in venture-backed companies in the last three years.
IFC has been investing in Brazil's private sector since 1957 to address the country's most critical development challenges, including those of the urbanization, social inclusion, competitiveness and productivity, and management of natural resources.