(PE Hub Network) Latin American ecommerce platform Linio has raised US$55m in funding. LIV Capital and Northgate Capital led the round with participation from Kinnevik.
PRESS RELEASE
Mexico City, 22 September 2016. Linio today announced a USD 55 million financing led by Mexican investors LIV Capital and Northgate Capital together with Swedish e-commerce investor Kinnevik.
Launched in 2012, Linio has grown to become one of the leading ecommerce platforms in Latin America, with operations in Mexico, Colombia, Peru, Venezuela, Chile and Argentina. As the promotor of B2C e-commerce in Latin America, Linio today operates the largest marketplace platform in the region, offering more than six million products across 60 categories via a fast- growing network of over 27,000 professional sellers.
Additionally, Linio delivers a world-class and locally adapted customer experience, with seven different online and offline payment options, pre- and post-purchase telephone assistance, free returns, and industry-leading delivery times.
Since launch, the Company has delivered three consecutive years of +150% growth in transaction volumes combined with significant gains in key profitability metrics. The new financing round reflects confidence in Linio’s business model, market, and management team. Furthermore, the capital raise substantially strengthens Linio’s financial position, providing the resources necessary to drive continued growth and achieve long-term success. The lead investors, who possess a strong combination of local market know-how and industry-specific expertise, will be working closely with management as Linio continues to deliver a superior ecommerce experience to millions of customers throughout the region.
Linio is now very well positioned to take advantage of Latin America’s vast e-commerce growth potential. Online retail in Latin America grew 23% in 2015, exceeding rates of growth seen in Europe and North America. The region’s accelerated growth has been driven in large part by an exponential ramp-up in mobile adoption, with 36% of the regional population regularly navigating the web via mobile browser or app last year.
Andreas Mjelde, Linio’s co-founder & CEO, comments: “The new funding round reflects the progress we have made towards technical and operational excellence across all aspects of our business. Additionally, in an increasingly challenging fundraising environment, the capital raise highlights our attractive unit economics, which set the stage for sustainable growth in the years ahead”.
Alex Rossi, Managing Partner at LIV Capital, comments: “Linio today has the platform, team, and capital necessary to cement its position as one of Latin America’s leading ecommerce platforms for the long-term. Combined with a fully engaged investor and management group, we have never been more confident in the Company’s future”.
Proceeds from the new financing will be used to further improve Linio’s domestic and international marketplace business, with the roll-out of new payments and logistics solutions and the release of enhanced mobile apps. Additionally, the financing will support ongoing investments in marketing to fuel growth.