E-commerce startup Zubale raises $25M in funding to fuel expansion in Brazil and Mexico

Zubale, an emerging e-commerce startup, has raised $25 million in funding to drive its expansion efforts in Brazil and Mexico. The latest investment, which follows last year’s $40 million Series A round, was backed by QED Investors and NFX.

Zubale originally started as a service to connect gig workers with storefronts for packaging or deliveries, but the company quickly evolved to provide logistics and customer-facing software for its commercial clients.

Zubale co-founder and CEO Sebastian Monroy said that the new capital infusion will be directed toward strategies aimed at strengthening their presence in Mexico and Brazil while enhancing their software offerings.

Since its inception in 2019 in Mexico, Zubale has expanded to include operations in Costa Rica, Colombia, Chile, Peru, and Brazil. At present, it boasts a client base exceeding 115 and a workforce comprising over 100,000 freelancers utilizing its platform, which has facilitated the completion of 30 million tasks.

Allison Campbell and Sebastian Monroy, both Harvard Business School graduates, founded Zubale in 2018. The company offers a comprehensive suite of tools, services, and logistics, empowering retailers to effectively expand their digital channels while ensuring profitability.

With a successful Series A funding round in 2021 that raised $40 million, the company has witnessed triple-digit annual growth in net income over the last two years. Zubale’s platform facilitates the efficient transportation of goods by connecting businesses with delivery personnel. The new investment will fuel Zubale’s growth in Brazil and Mexico, with a focus on developing additional features for its platform.

Zubale currently serves various retailers in Mexico including Grupo Walmart, Liverpool, Chedraui, Super Aki, and Petco.

“We are delighted to continue increasing in Mexico. During 2023, we have processed millions of orders, commenced operations with over ten clients, and reached over 20 new cities.

In addition, Zubale also operates in over 40 cities in Brazil, including Sao Paulo and Rio de Janeiro, and aims to extend beyond grocery stores and pharmacies to include clothing stores, pet shops, and electronics chains. In Mexico, where it operates in 90 cities, Zubale plans to add 40 more cities over the next two years.

Having found success in Brazil with partnerships with major retailers like Magazine Luiza and Mercado Livre, Zubale aims to replicate its achievements in Mexico, a crucial e-commerce market in Latin America. In Brazil, the startup collaborates with retailers such as Carrefour, GPA, and Cencosud, and plans to expand its geographical and segment reach, country manager Thiego Goularte, said.

Goularte added, “Brazil is a really large country, and we have to keep growing.” He went on to say that Zubale has a presence in over 40 cities across the country, including major hubs like Sao Paulo and Rio de Janeiro.

The focus in Mexico includes enhancing the technology supporting its gig service to boost worker productivity and earnings, as well as accelerating the market penetration of its software. According to Monroy, Zubale sees potential in Mexico’s software market, describing it as “still really green.”