Delivery is about to get a whole lot faster if this investment has its way. Mexican-Chilean startup Cornershop announced a $6.7 million funding round this weekend, directed at expanding the company’s services around its two Latin American centers. The round was led by Jackson Square Ventures (JSV) and Mexican early-stage fund ALLVP, with investments from Endeavor Catalyst, Creandum, and Accel.
“We’re excited to have more great investors join a strong team of investors and help the amazing people here at Cornershop,” said Oskar Hjertonsson, Cornershop’s co-founder and CEO. “We have the right team, product and operational model to advance faster. So we’re going to roll up our sleeves, and focus on those everyday details and incremental improvements that make this business so much fun.”
Cornershop mainly operates around Mexico City and Santiago de Chile, but they sound pretty focused on their Mexican base. The company claims that a paltry amount of the country’s shopping is e-commerce, but that that means the market is rife for their business. They claim that Mexican e-commerce is worth in the neighborhood of $15 billion, but only one tenth of one percent of the national grocery industry does its business online.
“Metropolitan areas such as Mexico City and Santiago de Chile have the perfect characteristics — consumer interest, geographic density, and sound infrastructure — to build and scale this service profitably,” added ALLVP’s Federico Antoni, who will also join Cornershop’s board.
Mexico: E-commerce in a credit card desert
They work with chains Superama, the Green Corner, City Market, and Costco, according to their website. They also claim they can get your order to you within 90 minutes.
The country has some rather unexpected drawbacks though. Writing in the Wall Street Journal in January, Anthony Harrup described data from Euromonitor International about a Mexico where not even a fifth of the country’s 119.5 million people have credit cards (22.6 million by his estimate). That grocery-specific online shopping comes into focus as Harrup estimates 2% of all Mexican shopping is e-commerce, meaning barely a twentieth goes to the supermarket.
All that doesn’t dismay the e-commerce startups popping up in Mexico.
One of the most important trends in Mexico’s startup ecosystem is “the increase in the percentage of the Mexican population that becomes active digitally,” angel investor and IPRO founder Ariel Poler told Geektime in November. “Historically Mexico has had very expensive infrastructure costs and very low usage by the population of things such as e-commerce.”
“As technology prices move in line with the rest of the world and the bulk of the population becomes comfortable moving a lot of their lives online, there will be huge opportunities to address their needs.”
Cornershop was founded in July 2015 by CEO Oskar Hjertonsson, CTO Daniel Undurraga, and Juan Pablo Cuevas.