Supplier, Grocer Connector Clubbi Raises $4.5M for Brazil Expansion
Clubbi Secures $4.5 Million in Seed Funding for Expansion
Clubbi, a business-to-business (B2B) platform serving small food retailers in Brazil, has successfully raised $4.5 million in seed funding. This capital injection will facilitate the company’s expansion throughout the country.
Addressing a Fragmented Market
Founded in 2020, Clubbi operates as a remote-first online commerce resource. It caters to neighborhood markets and grocery stores, many of which were previously without online purchasing options. The platform provides access to products at competitive prices, coupled with enhanced customer support.
João Macedo, a co-founder of Clubbi, conceived the idea during his tenure as head of distribution for Red Bull. He observed significant fragmentation and reliance on traditional methods within the commerce sector, hindering effective reach to a broad retail base.
The Problem of Intermediaries
Macedo highlighted the dependence of suppliers on direct sales, a practice he described to TechCrunch as inefficient. “Reliance on intermediaries complicates and increases the cost of bringing products to market,” he explained. His experience in India revealed similar fragmentation, but also demonstrated the success of B2B marketplaces in that region.
Building the Marketplace
In the previous year, Macedo collaborated with Marcos Adler and Alexandre Farber to establish a marketplace. This platform directly connects suppliers – including prominent names like Kraft Heinz, Adria, and Piraquê – with local markets.
Key Features and Growth
Clubbi launched in October 2020, offering key benefits such as 24-hour delivery, no minimum order requirements, and flexible payment options. Currently, the company serves 1,000 grocery stores in Rio de Janeiro, a substantial increase from the initial three at launch.
Adler stated that plans are in place to expand this number to over 3,000 stores by mid-2022. The company is also experiencing a growth rate of 40% month-over-month in terms of gross merchandise value.
“We effectively reach a segment of customers who are traditionally difficult to serve, often operating with limited working capital,” Adler added. “We provide a centralized platform for all their purchasing needs, ensuring timely delivery to maintain adequate inventory levels.”
The process is streamlined: stores simply place orders with a single click through the website and receive deliveries the following day.
Investment Details
The seed round was co-led by Valor Capital Group and ONEVC, with participation from Better Tomorrow Ventures, Latitud, and Canary. Canary had previously led Clubbi’s $550,000 pre-seed round.
Future Plans
The newly acquired funding will be allocated to accelerating growth, enhancing technology development, expanding into additional Brazilian cities, and forging new supplier partnerships. Clubbi currently offers approximately 7,000 to 8,000 stock keeping units (SKUs) on its marketplace.
In comparison, the average store typically carries between 1,000 and 2,000 SKUs, according to Adler. The company has grown from an initial team of five employees and intends to increase its workforce to 70 by mid-2022.
Significant Market Opportunity
Despite the progress made, Clubbi recognizes the vast potential within the Brazilian market. There are over 200,000 independently owned grocery stores in Brazil, collectively generating more than $35 billion in revenue, as noted by Antoine Colaço of Valor Capital Group.
“These stores frequently encounter challenges in procuring goods efficiently and affordably, and often lack access to suitable financing options,” Colaço stated. “Clubbi delivers an integrated and straightforward solution, providing access to quality products at competitive prices and favorable payment terms, directly to their locations.”
Colaço further emphasized the significant social and economic impact of Clubbi, highlighting the company’s promising early results.