Valoreo raises $30M more to acquire e-commerce brands across LatAm

Just over five months after securing $50 million in debt & equity, Valoreo has closed on a $30 million Series A funding round.

Mexico City-based Valoreo aims to invest in, operate and scale e-commerce brands as part of its self-described mission “to bring better products at more affordable prices” to the Latin American consumer.

Valoreo (which the company says is an extension of the Spanish word “valor,” meaning to add value), acquires merchants that operate their own brands and primarily sell on online marketplaces such as Amazon and Mercado Libre. The company targets brands that offer “category-leading products” and which it believes have “significant growth potential.” It also develops brands in-house to offer a broader selection of products to the end customer.

The startup was founded in late 2020 and has since swelled to more than 100 employees throughout Latin America. It has also since completed “multiple” acquisitions of local brands operating across a variety of industries, such as beauty, fitness and home goods.

California-based Presight Capital and Kingsway Capital out of the United Kingdom co-led the round, which also included participation from existing backers such as Kaszek, Upper90 and FJ Labs. The company declined to break down how much equity it raised in its seed round, but including debt, Valoreo has secured $80 million since inception.

It plans to use the new capital mostly to continue acquiring e-commerce brands across Mexico, Brazil and Colombia as well as to do more hiring.

The company says its model differs from that of its U.S.-based competitors (such as Thrasio and Perch) in that it is tailored to “the specific needs of the Latin American market and is specifically focused on the Latin American end customer.”

Valoreo aims to help entrepreneurs who may lack the resources and access to capital to take their businesses to the next level.

At the time of its seed raise, co-founder and co-CEO Stefan Florea told TechCrunch that the company takes less than five weeks typically from its initial contact with a seller to a final payout. 

Then, the acquired and developed brands are integrated into the company’s consolidated holding. By tapping its team of “specialists” in areas such as digital marketing and supply chain management, it claims to be able to help these brands “reach new heights” while giving the entrepreneurs behind the companies “an attractive exit,” or partial exit in some cases.

Generally Valoreo acquires the majority of the business, with the purchase price typically being a combination of an upfront cash payment and a profit share component so sellers can still earn money.

Hernan Kazah, co-founder and managing partner of Kaszek, said the firm doubled down on its investment in the startup after seeing its “impressive growth over the past few months.”

Valoreo is not the only Latin American startup focused on this space. In April, Merama announced it had raised $60 million in seed and Series A funding and secured $100 million in debt.

The money was raised “at well over a $200 million valuation,” co-founder and CEO Sujay Tyle said at the time.