Brazil-based Favo Raises $26.5M Series A Led by Tiger Global
Brazilian social commerce platform, Favo, has raised $26.5M in a Series A funding round led by Tiger Global Management, bringing its total raised to $37M . The round also saw participation from Positive Ventures and Elevar Equity, among others. Favo is focused on grocery delivery and aims to provide a seamless shopping experience for customers through its mobile app. The company plans to use the funds to expand its operations and increase its market share in Brazil .
Importance of Venture Capital and Private Equity in Latin America
The investment by Tiger Global Management in Favo is a significant development for the Brazilian startup and the wider business community . Venture capital and private equity firms have been increasingly active in Latin America in recent years, providing much-needed funding to startups and growth-stage companies in the region. According to a report by LAVCA, venture capital investment in Latin America reached a record high of $6.2B in 2020, with Brazil accounting for the majority of the funding .
Favo’s Investment Focus
Favo’s focus on grocery delivery is a strategic move, given the growth potential of the sector in Brazil. The COVID-19 pandemic has accelerated the adoption of online grocery shopping, and Favo aims to capitalize on this trend by providing a convenient and reliable service to customers . The company’s mobile app allows customers to order groceries from local stores and have them delivered to their doorstep. Favo also offers a subscription service that provides customers with free delivery and discounts on their purchases .
Favo’s business model is similar to that of other successful grocery delivery startups such as Instacart and Cornershop. However, Favo’s focus on the Brazilian market sets it apart from its competitors. Brazil is the largest economy in Latin America and has a population of over 200 million people, making it an attractive market for investors .
The $26.5M Series A funding round led by Tiger Global Management is a significant milestone for Favo and the Brazilian startup ecosystem. The investment will enable Favo to expand its operations and increase its market share in the highly competitive grocery delivery sector. The funding also highlights the growing interest of venture capital and private equity firms in Latin America, which bodes well for the region’s startup ecosystem .