Less than a year after taking its first funding, Yummy is back with an upsized round of $47 million.
The round was led by Anthos Capital. There is a total of 69 million dollars in funding so far.
Vicente Zavarce, a native of Venezuela, is the CEO of Yummy. The app started out as a food delivery app.
Delivery of items from food to medicine to clothing, ride-sharing, grocery delivery in under 20 minutes and the purchase of experiences like concerts and sporting events are provided by the free super app today. According to Zavarce, the company has moved on from its initial markets of Venezuela and Bolivian. It was able to provide exclusive offerings for customers through partnerships with fast food restaurants.
This latest investment is three times higher than the previous one. According to Zavarce, the company had 200,000 registered users around this time last year. Gig worker jobs are being created in the region.
The app is called 'Yummy.'
Yummy bags $18M as its expands delivery app across Latin America
Last year Zavarce set a goal to have 50 active dark stores by the end of the year. The company has 21 of its own microfulfillment centers. According to Zavarce, the ride-sharing business became the first business unit to achieve profitability.
Over 8,000 merchants are working with Yummy and it is processing over one million transactions a month. On the prepared food side, the average cart size is fourteen dollars, while the groceries are thirty dollars.
With the new capital, Yummy plans to invest in product development, increase density within its current categories and expand coverage in its more mature markets, including Venezuela and Bolivia.
Zavarce expects the company to expand more categories now that it has had some success.
He said that this round would focus on going deeper. Access to modern financial services is a need and opportunity for us because of the low penetration of e- commerce in Latin America.
Zavarce noted that he didn't want to speak too early on what plans for the financial services would look like, but he did reveal that with consumers using the Yummy app to purchase food and groceries, "there is no reason why we couldn't add a fintech layer to make
The market for online food delivery in Latin America is estimated to be worth about $6 billion. The sector is expected to be $9.3 billion by the end of the decade.
The market there is dominated by companies like Rappi, which has a valuation of over $5 billion. Younger startup Orchata is attracted by a market that big.
The group of people leading the company will be what distinguishes Yummy from its competitors, according to Zavarce. Barney was appointed to the board of directors as a result of the investment.
Zavarce said that having the former COO join the board will strengthen the platform around him.
Last-mile delivery in Latin America is ready to take off
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