Mexico-based e-retailer Linio has raised 58 million euros ($79 million) from Northgate Capital and Access Industries. The new funds will be used to expand Rocket Internet‘s South American e-commerce business to new markets in the continent.
Founded in 2012, Linio is operational today in Mexico, Colombia, Peru, Venezuela and Chile, with offices and storage spaces in each, employing around 1500 people in total.
The successful venture of Germany’s clone master has been previously backed by JP Morgan Asset Management, Investment AB Kinnevik, Mexican VC Latin Idea, Santo Domingo, Summit Partners, Tengelmann and Rocket Internet itself. Total investment made so far has reached over $150 million with the latest addition.
Andreas Mjelde, the CEO of the startup claims they sell over 300,000 products on the site with a variety of payment options, including hard-to-manage paying on delivery, and the right to return the purchased item with no cost.
Paying on delivery seems crucial to Linio’s success. Internet-connected people in Mexico, the primary market of the e-retailer, are often reluctant to shop online because they do not think they pay for will actually be delivered or delivered in a bad shape, according to Forrester Research. Secondly, many in South America do not have credit cards or bank accounts.
Last year Rocket Internet raised $500 million reportedly to be used to support startups in Africa, Latin America and Russia.