In a significant move to accelerate its growth, Jüsto, a prominent online grocery platform in Latin America, has announced the successful completion of a $70 million financing round. This funding comprises $50 million in equity led by existing investor General Atlantic and an approximately $20 million debt facility arranged by HSBC México. With this capital infusion, Jüsto aims to enhance its operational efficiencies, further its growth strategy primarily in Mexico, and innovate its e-commerce model across the region.

A Leader in Online Grocery Delivery

Founded in 2019 by CEO Ricardo Weder, Jüsto has positioned itself as Mexico's first vertically integrated online grocery platform. It has expanded its operations into Brazil and Peru, establishing itself as a leading player in the online grocery market throughout Latin America. With the region's grocery market potential exceeding $600 billion, Jüsto is committed to transforming the grocery industry by leveraging technology and fostering equitable partnerships with suppliers. The company focuses on efficiently sourcing fresh produce while ensuring a seamless shopping experience for its customers, achieving a remarkable 99% fill rate for orders.

Leveraging Technology for Efficiency

Jüsto differentiates itself as the only first-party grocer operating across Latin America. The company utilizes artificial intelligence and data analytics to accurately forecast demand, minimize waste at its micro-fulfillment centers, and optimize daily operations. Its proprietary software enhances order management, picking, and delivery processes, thereby eliminating intermediaries in the supply chain. This strategy not only offers competitive pricing and lower transaction costs but also enhances convenience for customers. As a result, Jüsto has seen an increase in purchase frequency and customer retention rates, surpassing the levels observed during the pandemic.

Investor Confidence and Future Prospects

"This new funding round underscores the strong belief our investors have in Jüsto, our team, and the unique approach we bring to the grocery market," stated Ricardo Weder. He expressed excitement about deploying the new capital to redefine the grocery shopping experience in Latin America through advanced technology and operational excellence.

Zeev Thepris, Vice President at General Atlantic, emphasized the immense opportunities that Mexico and Latin America present for digital innovation in the grocery sector. He highlighted Jüsto’s commitment to providing technology-enabled customer service and high-quality products, predicting that the company’s unique approach will continue to reshape the grocery landscape for consumers in the region.

HSBC México also expressed its support for Jüsto's mission. Juan Carlos Pérez Rocha, Head of Wholesale Banking at HSBC México, stated, "We are excited to provide the financial backing that will enable Jüsto to continue driving innovation and meeting the needs of consumers."

Commitment to Social and Environmental Responsibility

Jüsto is not only focused on business growth but also on promoting a socially and environmentally responsible culture. The company emphasizes sourcing high-quality products from both large consumer brands and smaller local producers, thereby strengthening the economic activities of rural and semi-rural communities. This approach aligns with Jüsto's mission to provide fair prices and competitive market access to all suppliers.

Innovating with AI-Powered Solutions

At the core of Jüsto's strategy is its AI-driven platform, Rapid Alloy Design (RAD)™, which revolutionizes the design and commercialization of new materials. This technology significantly reduces the time and cost associated with developing new grocery products. By streamlining the material sourcing process and reducing reliance on intermediaries, Jüsto is able to deliver fresher products to consumers while maintaining competitive pricing.

The company’s business model is fully online, meaning it has no physical stores, allowing it to save customers both time and money. Jüsto guarantees 100% fulfillment of orders, ensuring that customers receive the freshest fruits, vegetables, meats, and seafood. The company also provides a broad catalog of products from top brands and local producers, all at competitive prices.

As Jüsto embarks on this new chapter of growth, it is well-positioned to continue redefining the grocery shopping experience in Latin America. With a strong commitment to leveraging technology, fostering partnerships, and promoting sustainability, Jüsto aims to set new standards in the grocery industry while enhancing the quality of life for consumers across the region. The recent financing round underscores the confidence investors have in the company’s vision and operational model, paving the way for future innovations and market expansions.