Valoreo wants to buy Mexico e-commerce businesses

  • Five young people bet on Latin America to find value in all kinds of e-commerce businesses and make them grow.
  • The goal of this startup is to build a 21st-century e-commerce holding company in the region.
  • Online purchases in Mexico only represent 2% of the approximately 203,000 million dollars in annual sales.

The startup Valoreo launched its first business with a $ 50 million seed round. Equity funds such as Angel Ventures, Upper90, Presight Capital, and FJ Labs promoted this team of entrepreneurs who want to form the largest e-commerce holding company in Latin America.

Five young people bet on this sector to find value in all types of e-commerce businesses and make them grow. Once these businesses are in their portfolio, they look to grow them. 

Although it is a European multicultural group, they found in Mexico the ideal ecosystem to launch their idea. Brothers Martin and Stefan Florea, Alexander Grüll and Cedrik Hoffmann, of German origin, and Miguel Oehling, Spanish, launched Valoreo in Mexico at the end of 2020.

“We have known each other for a long time and are united by a shared passion for investing in and growing small businesses. This passion extends to both e-commerce and Latin America, ”said Martin Florea, co-founder and co-CEO of Valoreo.

Its objective is to acquire, develop, operate and scale e-commerce businesses. “We acquire businesses that operate their own brands and sell mainly on e-commerce platforms such as Mercado Libre, Amazon, and Linio,” explained Florea.

3 steps for Valoreo to pay for your e-commerce business

The objective of this startup is to build a 21st-century electronic commerce holding company in Latin America. “The five of us bring experience in investments, building and scaling companies and startups, supply chain, e-commerce, and we wanted to combine them, to create something great,” added Florea.

When studying the businesses in the region, the young entrepreneurs saw a business opportunity that they could scale with the help of established companies in e-commerce. “We have long been amazed by the entrepreneurial spirit and growth opportunities here in the region,” said the co-founder.

After analyzing the challenges for the growth of small electronic businesses, they found the mission for their company. “(We seek) to support Latin American e-commerce entrepreneurs by providing liquidity, and taking your brands to the next phase of growth. And amaze the end consumer with outstanding products at affordable prices, ”said Florean.

In fact, on its website, Valoreo points out that in just three steps, those interested in selling their e-commerce business can have an offer:

  1. Free evaluation. When Valoreo has contact with the person interested in selling their e-commerce business, they begin an analysis of the potential of this company within the startup.
  2. Analysis and research. Once the startup has a deep understanding of the brand it is going to acquire, it makes a “fair and convenient” offer.
  3. Completion and payment. After submitting the purchase offer, it takes approximately two weeks to sign all the necessary documentation to close the deal. 

This process takes a maximum of five weeks and upon completion, the interested party will obtain the money agreed upon as a result of the investigation. Then, Valoreo is in charge of continuing to grow those e-commerce projects.

Valoreo sees a good time to exploit e-commerce in the region

Although Latin America has several challenges to bring connectivity to all the inhabitants of the region, these entrepreneurs see a latent growth opportunity that they did not want to waste.

“We are in the right place at the right time; since e-commerce in Latin America is currently at a turning point. Even before the pandemic, e-commerce was growing rapidly in Latin America, especially in Mexico, ”said Alex Gruell, co-founder.

However, e-commerce in Latin America has a minor expansion compared to other regions. But in Mexico, there are 84.7 million people who use the internet, aged six years and over, among the 126 million inhabitants.

However, online shopping in Mexico only represents 2% of the roughly $ 203 billion in annual retail sales in the country in 2020, according to a Societe Generale study. “The growth that we have seen before the pandemic has accelerated even more during it; as many people were forced to buy online, and we are confident that this growth will continue for years to come, ”said Grüll.

While it is a challenge that is leveled by the pandemic, these entrepreneurs see other challenges. “We are constantly looking for ‘superstars’ in different areas including brand management, technology, mergers and acquisitions, and supply chain. We are excited to meet candidates who are as passionate as we are about e-commerce in Latin America, ”said Miguel Oehling, co-founder and chief operating officer.

The Valoreo team trusts in the effervescence that the e-commerce pandemic unleashed to continue betting on this sector in the region. “Today, Latin America is the fastest-growing e-commerce market in the world, and we believe there is much more to come,” concluded Grüll.


Mexico Daily Post