IDB Invest led a US$15m round in GAIA, a Mexican digital on-demand furniture and interior design platform. Rise Capital led the US$15m Series B in 2018, and co-led the US$2.5m Series A with Capital Invent in 2015.
(Press Release) – IDB Invest, a member of the IDB Group, invested $10 million in GAIA, the leading company in the digital furniture sector in Mexico. The investment will help reinforce GAIA’s expansion while supporting growth and job creation through the company’s suppliers, mainly small and medium-sized Mexican companies specialized in the manufacturing of furniture.
GAIA plans to use the investment resources to strengthen its digital offering and expand the company’s portfolio of products and services, which seeks to offer quality furniture that is accessible to all Mexicans. The company will continue to grow its design program, allowing consumers to create sketches and be assisted by an interior designer online. The funds will also be used to expand to other major Mexican cities and other large cities in the region.
GAIA has developed a shopping experience based from anywhere through its website, mobile application and showrooms, with a wide range of furniture with an urban approach and contemporary design. The company designs and sources its products primarily from Mexican manufacturers, cutting out the middlemen.
With this investment, IDB Invest contributes to promoting the development of electronic commerce in Mexico and supports the development of small and medium-sized furniture producers, which constitute 100% of their local suppliers. As it grows, GAIA will support its suppliers through increased purchases and through its Supplier Academy program offering training and financial products.
GAIA’s business model, unique in Mexico, registers a high growth rate that translates into an opportunity for its suppliers to access better financing conditions and resources to invest in modernizing and increasing their productive capacity. This support is more relevant in the context of the crisis caused by COVID-19, where local value chains have been key to ensuring the continuity of business operations and maintaining jobs.
This investment potentially contributes to three of the United Nations Sustainable Development Goals (SDGs): Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), and Responsible Consumption and Production (SDG 12).
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social and environmental development in the region. With a portfolio of USD 13.1 billion in asset management and 385 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
GAIA was launched five years ago and offers modern and accessible furniture through its online platform, gaiadesign.mx, and its 15 showrooms. The brand has its own industrial design team and works closely with independent local designers. All products sold on the platform have the GAIA brand. GAIA also has its own logistics capabilities for large products. Today the team consists of about 300 employees.