Mercê do Bairro
Convenience and speed.
| Date | Investors | Amount | Round |
|---|---|---|---|
| N/A | $3.1m | Seed | |
| Total Funding | 000k | ||
Mercê do Bairro was established in 2019 by seasoned entrepreneurs Diego Libanio, a co-founder of Zé Delivery, and Guilherme Bonifácio, one of iFood's co-founders. The duo brought together their extensive experience in the Brazilian technology and delivery sectors to address the challenges faced by small, independent neighborhood grocery stores.
The company initially operated as a B2B marketplace, designed to streamline the procurement process for small retailers. This platform allowed store owners to compare prices from various wholesalers, place orders online, and receive consolidated deliveries within one business day, saving them significant time and effort. The business model focused on earning a commission from partner suppliers on sales made through the platform. Beyond simplifying logistics, Mercê do Bairro aimed to empower these small businesses by providing access to better pricing, credit for working capital, and data insights, effectively functioning as an embedded finance platform.
In October 2021, the company secured a significant Series A funding round of R$ 53 million, co-led by Flourish Ventures and GFC, with participation from a syndicate of other investors. The capital was intended to fuel expansion into new states, further develop the technology platform, and grow the team. However, facing a challenging venture capital market and a business model with thin margins dependent on scale, the company shifted its strategy. In early 2023, after exploring various pivots including a move towards a more capital-light SaaS model and potential M&A activities, the founders decided to cease operations. This decision was made to preserve the majority of the capital raised, which was then to be returned to investors, used to start a new venture, or to acquire another startup.
Keywords: B2B marketplace, retail tech, small business procurement, embedded finance, grocery supply chain, fintech, Diego Libanio, Guilherme Bonifácio, Zé Delivery, iFood, wholesale purchasing, inventory management, retail logistics, Flourish Ventures, GFC, Brazilian startups, proximity market, corner stores, retail technology, working capital credit