After Series B, Jüsto's physical store test
Jüsto, an online grocer focused on Latin America, is opening its first physical store in Peru following a $152 million Series B investment led by General Atlantic, the startup's founder and CEO Ricardo Weder tells Axios.
- To date, the company has raised a total of $250 million, with General Atlantic also leading its $65 million Series A.
Why it matters: Even for a company that expanded its online-only business by more than 500% last year, Weder firmly believes the future is omnichannel.
Between the lines: The company's biggest near-term opportunity is catering to online shoppers, with e-commerce accounting for only 1.5% of grocery sales in Latin America, Weder says.
- That penetration is expected to grow to 20% in five years, he says.
- But Jüsto is testing a new concept where the front half of the building is a physical store and the back half of the building is a fulfillment center.
- This location will be where the company tests and perfects its approach to physical retail.
Details: The Latin American grocer began raising this round after expanding to Brazil and acquiring Freshmart, an online grocer in Peru, in October.
- Proceeds will be used to accelerate growth in existing markets and to assess new markets for future expansion.
- Currently, the company has operations in Mexico, Brazil and Peru, but is eyeing all of Latin America.
- Jüsto expects to grow between 300% and 400% this year.
Of note: Another long-term opportunity for the company is catering to Latin American communities in the U.S., Weder says.
- General Atlantic, also an investor in Shein, sees a big opportunity in overseas e-commerce, a major investment thesis for the firm.
The bottom line: Jüsto is in the pole position to lead grocery e-commerce in Latin America, where traditional supermarkets were slower to embrace online.