Nuvemshop Raises $90 Million for Latin American Expansion

By McKenzie Carpenter Monday, March 22, 2021

The COVID-19 pandemic has caused people to increase online shopping to adhere to guidelines and restrictions. Nuvemshop, a Brazilian ecommerce startup and app company, announced today the ecommerce business raised $90 million to expand further into Latin America.

A man paying with a credit card on his smartphone.

About Nuvemshop

Nuvemshop, also known as Tiendanube in Spanish, is a Brazilian ecommerce startup that provides entrepreneurs and small businesses with the resources to create, manage, and customize their ecommerce businesses from any mobile device to reach consumers directly through its app.

According to the app business website, more than 75,000 active stores are using Nuvemshop’s ecommerce platform from various different integrated platforms including, Facebook, Instagram, marketplaces, and other physical stores. In addition, the ecommerce business helps manage more than $1 billion in sales each year. The startup app company charges merchants R$49.90 ($9.09) per month.

In an interview with TechCrunch, Santiago Sosa, co-founder and CEO of the startup company, said, “Most merchants have entered the internet by selling on marketplaces but we are hearing from newer generations of merchants and SMBs that they don’t want to be intermediated anymore...They want to connect more directly with consumers and convey their own brand, image and voice.”

To date, Nuvemshop has raised $128.4 million in total financing. The most recent funding round was the largest one yet for the ecommerce app business — $90 million.

Nuvemshop’s New Financing

Today the business announced the startup app company raised $90 million in a Series D financing round led by Accel. As part of the new funding, Andrew Braccia, partner at Accel, will join Nuvemshop’s board.

With more than 650 million consumers in Latin America and more than $85 billion in ecommerce sales in the region, the business is tapping into Latin America’s low ecommerce penetration and has become a leader in this industry for the region. In Brazil alone, the startup company doubled its ecommerce penetration last year from 5% to 10%.

Sosa said, “Latin America is a vast market, filled with talented entrepreneurs, yet many lack the tools and resources needed to thrive...Our purpose with Nuvemshop is to reduce these barriers to entry for entrepreneurs, and we’re proud to be the e-commerce platform of choice for businesses looking to build, launch and promote their online presence.”

Since the beginning of the pandemic, Nuvemshop has tripled its customer base and revenue. Andrew Braccia said, “Over the last 12 to 18 months, there is an urgency and a real need for merchants and customers to be able to move toward an e-commerce solution...Santi and his team are taking an underpenetrated market and providing a product that is becoming a critical product to have for merchants and customers. It’s not a question of inevitability, it was when and it just happened to have been through a pandemic.”

With the new funding, the ecommerce app company plans on further developing new capabilities like tools for payments and logistics management, as well as expanding further in Brazil, Argentina, and Mexico, while exploring new markets in Colombia, Chile, and Peru.

About the Author

Headshot for author McKenzie Carpenter

McKenzie Carpenter is a graduate of Central Michigan University with a B.A.A. in Integrative Public Relations and French. McKenzie has previously worked for small businesses and nonprofit organizations.

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