Why We Invested: Jüsto
Revolutionizing an industry that has remained stagnant since its inception, Jüsto emerges as the pioneer of a new era in Latin American supermarkets. Jüsto is a disruptive online grocery company that is determined to reshape the landscape of the grocery value chain in the region offering a seamless and innovative shopping experience for both B2C and B2B customers.
The grocery market in Latin America is huge ($69 bn in Mexico; $116 bn in Brazil) and comprises a mix of traditional offline players and emerging online-focused newcomers. While dominated by small independent stores, the market is also heavily concentrated, with retail giants like Walmart, Chedraui, and Soriana in Mexico, and Pao da Azucar in Brazil, holding most of the industry’s total value.
In the face of challenges posed by e-commerce giants such as Amazon and MercadoLibre, brick & mortar stores have had to adapt or face obsolescence. Although most store chains have developed an omnichannel experience for their customers, e-commerce accounts for less than 2% of their current sales due to ineffective implementation and outdated technology. Many digital solutions have merely served as superficial layers on top of existing offline infrastructure, resulting in subpar user experiences.
To meet the evolving demands of consumers, traditional retailers have resorted to short-term solutions, including partnering with third-party delivery companies to enable their online operations. While these innovations have gained traction and partially addressed user experience issues, they do not offer tailored solutions for the industry as a whole.
Jüsto seeks to redefine grocery shopping in Latin America by a streamlined and reliable online experience, with a strong focus on fresh and high-quality products. By adopting a vertical integration approach, Jüsto eliminates numerous intermediaries and third-party providers, ensuring fresher food, higher margins, and a seamless customer experience compared to traditional and on-demand delivery models.
Furthermore, Jüsto takes pride in creating a fair and sustainable grocery model as the company empowers small and medium-sized Mexican producers by providing them access to sell their products online and negotiating fair trade agreements for the benefit of all parties involved.
Setting itself apart from traditional online grocery operators, Jüsto leverages high-tech micro-fulfillment centers. Unlike large-scale centers of the past, Jüsto’s micro-fulfillment centers enable same-day or next-day service to densely populated areas, resulting in improved fill-rates, faster order preparation times, and increased customer satisfaction when compared to established grocers.
A driving force behind why we invested in Jüsto lies in the exceptional team behind the company. A combination of accomplished entrepreneurs with an extensive track record in the entrepreneurial field, bring invaluable expertise to the table.
Founder Ricardo Weder, served as Cabify’s Head of Mexico before becoming the firm’s CEO and President in less than 4 years. Co-founder Ricardo Martinez led the operations of both Groupon and Netshoes in Mexico, and has demonstrated his ability to drive growth and optimize business operations. Finally, co-founder Alejandro Sisniega also worked at Cabify as VP of Global Partnerships. The team’s unwavering passion captivated FEMSA Ventures from the start.
Recognizing the value creation opportunity, FEMSA Ventures acknowledges the merits of the dark store model employed by Jüsto to enable sustainable long-term e-commerce operations in the grocery industry. Additionally, FEMSA Ventures has focused on creating a collaborative environment to leverage learnings between Jüsto and FEMSA’s core businesses, recognizing how synergies between industry incumbents and disruptors co-creates long-lasting value.
Moreover, FEMSA Ventures recognizes the importance of investing in last-mile delivery, given its proximity to core businesses such as OXXO, drugstores, and Coca-Cola Femsa.
FEMSA Ventures is thrilled to join forces with Jüsto to catalyze transformative changes in the grocery market in Latin America!