In 2014 Alexis Patjane was at a neighborhood hookah bar in Mexico Metropolis with some mates and the bar ran out of tobacco. They thought possibly they might purchase some on-line and have it delivered to the bar in real-time, but it surely seems that service didn’t exist.
On the time, Patjane was operating a meals truck-making enterprise, which was answerable for about 80% of all of the meals vans in Mexico, so he had expertise doing enterprise within the area.
A few weeks later, to resolve the moment supply downside he had confronted on the hookah bar, Patjane launched 99 minutos, an internet site that offered merchandise and delivered them inside 99 minutes, therefore the identify.
As we speak, 99 minutos introduced a $40 million Sequence B from Prosus and Kaszek Ventures which it plans to make use of to develop its enterprise in Latin America.
The corporate at present operates inside 40 main markets throughout Mexico, Chile, Colombia, and Peru and affords 4 providers: lower than 99 minutes supply, same-day supply, next-day supply, and CO2-free supply.
What began as an e-commerce firm with quick supply rapidly grew to become a last-mile supply service for different e-commerce firms.
“We began to construct the API connections and plug-ins, and any e-commerce may add our supply service to their enterprise,” Patjane informed TechCrunch.
99 minutos makes cash by charging the client a flat payment for supply after which providing the motive force a flat fee as nicely, however right now, the amount is so massive on every route, that it’s grow to be very profitable.
“We ship about 60-80 packages per route,” Patjane mentioned, and from the patron’s perspective, the supply app works equally to Waze. “You possibly can pause the supply, you’ll be able to change the tackle. You possibly can say, “Oh, I’m not at dwelling, I’m on the Starbucks on the nook, are you able to drop it off there?”’ he added.
Patjane mentioned that originally, the corporate provided supply solely inside Mexico Metropolis, but it surely rapidly grew to supply its providers between cities and now operates between 21 cities in Mexico.
“E-commerce is rising rapidly in Latin America, however it’s nonetheless [the] early days. E-commerce penetration in Latin America is at 6%, whereas China is reaching 30% and the U.S. is at 20%,” the corporate mentioned in a press release.
“After we hear massive e-commerce gamers saying that 99 minutos is ‘their most dependable companion’ and that they’re ‘the supplier with probably the most potential,’ it tells us that the crew is executing extraordinarily nicely and is on a path to disrupt e-commerce supply in Latin America,” mentioned Banafsheh Fathieh, Head of Americas Investments at Prosus Ventures.
A part of the funds may also be to hurry up their city-to-city deliveries. “We’ll be doing similar day [delivery] from metropolis to metropolis and shall be utilizing small plane to attach the cities,” Patjane mentioned.