“How Techstars and Meta Helped LatAm Startup Mercately Secure a $2.6M Seed Round”
In Latin America, particularly in countries like Brazil and Chile, WhatsApp has emerged as a dominant platform for online shopping, even surpassing traditional e-commerce sites during the pandemic. Recognizing this trend, the startup Mercately is developing back-end software to facilitate e-commerce transactions directly through WhatsApp.
Image Credits:Ā Mercately
Overview of Mercately
Mercately operates as a B2B software solution, providing the necessary infrastructure for brands to sell directly on WhatsApp. The platform integrates with popular services such as Stripe and HubSpot, employing AI agents to assist brands in managing customer communications, checking inventory, processing payments, and creating purchase ordersāall without requiring customers to exit the WhatsApp environment.
Founding and Growth
Henry Remache, co-founder and CEO of Mercately, conceived the idea in 2021 while working on software development projects in Latin America. He discovered that a client in Ecuador was generating 90% of its sales through WhatsApp instead of traditional e-commerce channels. This insight led him to realize that brands should focus on maximizing sales where consumer behavior is already established, rather than trying to redirect customers to other platforms.Remache noted, āIt is fairly unusual for a small or medium company [in LatAm] to have a website; they do all the transactions on WhatsApp.ā This observation highlights a significant shift in consumer behavior, where WhatsApp serves not only as a messaging tool but also as a primary platform for transactions.Since its launch in 2022, Mercately has expanded rapidly, currently collaborating with over 1,000 companies across 20 countries and achieving profitability with annual revenues exceeding $1.5 million. The company has experienced remarkable growth, reporting a 3.5x increase in revenue year over year.
Recent Funding and Future Plans
Recently, Mercately secured a $2.6 million seed funding round led by Inventus Capital Partners and SVQuad, with participation from Techstars and other investors. This funding will be used to hire additional AI engineers to enhance their chatbot capabilities and to strengthen their market presence in Brazil and the U.S.Remache acknowledged the challenges of fundraising in Latin America, stating, āFirst of all, being from Latin America is a little different; there is not that much money over here.ā However, participation in Techstars and Metaās āFuture of Business Messaging Platformā program has significantly aided their growth and investor connections.
Competitive Landscape
The rise of WhatsApp as a business tool has spurred a wave of startups targeting this market. Other companies, such as Magie and FĆ©lix Pago, are also leveraging WhatsApp for financial transactions and payments. Additionally, established firms like Infobip and Trengo are focusing on customer engagement through WhatsApp, which poses potential competition for Mercately.With over 90% of internet users in Latin America utilizing WhatsApp, the platform’s integration into daily life creates a fertile ground for e-commerce innovations. Remache is optimistic about Mercately’s ability to capitalize on this trend, especially as WhatsApp continues to grow in popularity in regions like the U.S., where it has not yet reached the same penetration level as in Latin America.