Mexican online grocer Jüsto raises $65 million

Jüsto, which claims to be the first supermarket in Mexico without a physical store, was founded in 2019 by Ricardo Weder, the former president of Cabify. Customers can buy groceries directly from the website or through an app, and Jüsto will deliver the order to the location of the customer's choice.

The concept is clearly resonating with consumers as Jüsto has seen impressive growth in 2020, with revenue increasing 16-fold. During the summer of 2020, penetration in the region tripled in just a few months.

Jüsto prides itself on working directly with fresh produce suppliers, enabling it to offer the “freshest” fruits , vegetables , meat and fish on the market. It also offers a wide range of products such as pantry staples , personal hygiene and beauty , household and cleaning products , beverages and pet-related items .

The platform also uses artificial intelligence to predict demand and attempts to reduce food waste at its micro-fulfillment centers. The company’s approach results in competitive pricing, lower transaction costs, and increased convenience for consumers by eliminating middlemen in the supply chain.

Looking ahead, Justo plans to use its new capital to expand throughout Mexico and Latin America to improve its last-mile logistics infrastructure and marketing initiatives . Luis Cervantes, head of Mexico City at General Atlantic , believes Mexico is at a turning point in its transition to a digital economy .

“ Mexico is at a critical juncture in its transition to a digital ecosystem, given the decline in data costs and the increase in internet penetration , which drives online interactions, and the traditional grocery market is ripe for disruption , ” he said . Jüsto stands out from the crowd by focusing on creating innovative solutions that leverage technology and a seamless purchasing platform to better serve consumers and suppliers .

Jüsto marks General Atlantic’s fifth investment in Mexico since 2014. Since then, the firm has invested nearly $1 billion in what it calls “high-growth” Mexican companies. It has also invested about $4 billion in Latin American startups over the past two decades .

The funding brings Jüsto’s total funding to over $100 million. Other investors include FEMSA Ventures, S7V, Elevar Equity, Bimbo Ventures, Quiet Capital, Sweet Capital, H2O Capital, and SV LatAm Capital.

Mexico

Online Grocer

Jüsto