Mexico City-based FoodTech startup Jüsto bags $65M for online groceries
Jüsto, a Mexico City-based FoodTech startup and an online supermarket delivery-only grocery store chain, today announced it has raised a $65 million Series A funding to fuel its expansion into a leading online grocer across Mexico and Latin America. The latest round, which brings Jüsto total Series A funding to $65 million, was led by General Atlantic, with participation from existing investors including Foundation Capital and Mountain Nazca.
Jüsto was founded in 2019 by CEO Ricardo Weder as one of Mexico’s first vertically-integrated, online grocery platforms with no physical store presence. Over the past 18 months, Jüsto has developed into an emerging leader in the transformation of the digitally-enabled online grocery experience, powered by its cutting-edge technology and seamless purchasing platform. The business experienced significant acceleration over the course of 2020, with 16x revenue growth and positive traction across user retention, frequency, and average order value.
Unlike the traditional grocery chains, Jüsto’s business model is fully online—without physical stores—and delivers directly to the customer’s home. Jüsto saves its customers time and money. It also guarantees 100% fulfillment of orders, as well as a commitment to deliver the freshest fruits, vegetables, meats, and seafood. Jüsto offers a vast catalog of products, both from top brands and local producers, all at competitive prices. Jüsto is building a more just and sustainable grocery model, empowering small and medium producers by giving them access to sell their products online.
The growth investment marks the largest Series A round raised in Latin America2 and will support Jüsto’s future strategic initiatives, including the expansion of the Company’s geographic footprint across Mexico and Latin America, the enhancement of its last-mile logistics infrastructure, marketing initiatives, and additional working capital needs.
Jüsto will also use the fresh capital infusion to focus on accelerating its next phase of growth as it aims to disrupt the existing grocery ecosystem in Latin America, a market that represents a $325 billion opportunity. Jüsto, which translates to “fair” in Spanish, is committed to providing high-quality products, fair practices, and new distribution avenues to suppliers, as well as competitive prices, lower transaction costs, and improved convenience to consumers by eliminating intermediaries in the supply chain.
“Our mission at Jüsto is to become Latin America’s favorite supermarket within the next decade. We strongly believe that this vision, combined with our expertise in technology, logistics, and customer service, will lead to an even more seamless, more affordable online shopping experience for our consumers,” said Ricardo Weder, Founder & CEO, Jüsto. “We are beyond thrilled to take our vision to the next level alongside General Atlantic and look forward to harnessing the firm’s global resources and expertise in consumer businesses and technological enablement to aid Jüsto in meeting the rapidly-growing demand for our services.”