Grocery delivery startup Cali holds a portion of the $1 trillion grocery and food delivery market in Latin America with its vision to reduce supply chain inefficiencies by delivering groceries to customers’ doors in less than two hours. produce and thousands of other groceries.
To further this mission, the company on Friday announced a $22.5 million Series A funding round co-led by Dalus Capital and JAM Fund with participation from backers including Foreigner Ventures, Streamline Ventures, Y Combinator and Base 10 Partners . So far, they have raised around $35 million.
David Eduardo Arrambide Montemayor and Maurizio Calo Caligaris, both Stanford-trained engineers, launched Cali, a mobile grocery app that connects producers and brands to automate the end-to-end supply chain and deliver more than 5,000 products. Distributes, such as fresh produce, meat, seafood and prepared meals, through a network of micro-distribution centers.
Not only does this save customers’ food, but it also reduces environmental waste by up to three times, CEO Arrambide Montemayor told TechCrunch via email.
“By removing middlemen and reducing inefficiencies, we generate more profit for producers and pass more savings to our users,” he said. “Our products are priced at or less than those in traditional supermarkets like Walmart.”
Cali operates in what has become an increasingly crowded space, aiming to grow Latin America’s current online grocery sales to less than 5% of the retail market. Arrambide Montemayor sees the company’s rivals as falling into three categories: marketplaces, such as Cornershop, quick-trade, such as Joker and Ruppy Turbo, and full-service grocery stores, such as Justo and Mercio, with the latter four companies all attracted venture capital. last year.
What sets Cali apart from these players is the price, speed and low number of products.
“Our technology-driven approach to automated micro-fulfillment centers, digital picking and packing, machine learning, and big data algorithms for SKU selection and demand forecasting and concentration on ultra-fresh produce and groceries, make us the top-rated grocer. The app manufactures, turning weekly grocery trips into supermarkets,” he said.
When Arrambide Montemayor and Caló Caligaris launched the company in March 2019, the team spent the first 24 months in the two markets improving models, user experience and unit economics.
In the past 12 months, Cali has more than tripled its revenue. In Monterrey, its largest market, the company places over 2,000 orders a day, and the average order value is over $40. During the same period, the company increased its workforce by 250 percent to over 250 employees and operators.
With this funding, the company is entering a new phase of lightning-fast expansion and growth, Arrambide Montemayor said. It is expanding its presence in Mexico and the rest of Latin America, with plans to have a presence in more than 14 cities and multiple countries over the next six months.
In addition, it is rolling out new complementary products, services and categories including appliances and electronics; Market, with over 40,000 grocery items with same-day or next-day delivery; Buy now, pay later by offering Cali Pay. The financing will also allow the company to triple its workforce and exceed 10,000 daily orders.
“To really break into the $1 trillion grocery market at LATAM, we understand that we can’t be a premium service, charging 20% more than supermarkets; therefore, we try to deliver ultra-freshness with cost savings. For this, we are rebuilding and automating the grocery supply chain from first principles, injecting technology and data into every layer,” said Arambaide Montemayor.