A huge round of Yummy helps boost its delivery, a super app for sharing trips in Latin America.

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Less than a year after admission first fundingLatin American Local Delivery & On-Demand Cargo Super App Yummy returned with an increased round of $47 million.

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The round was led by Anthos Capital with contributions from JAM Fund, Soma Capital, WIND Ventures, Ethos Capital and YC Continuity. The new investment gives Yummy a total of $69 million in funding to date.

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Yummy was founded in 2020 by CEO Vicente Zavarce, a Venezuelan native and former Director of User Acquisition for Postmates and Getaround. It started as a food delivery app and was part of the Y Combinator cohort in the summer of 2021.

Today, a free super app enables delivery of goods ranging from food to medicine to clothing – vehicle sharing, grocery delivery in less than 20 minutes, and purchase of experiences such as concerts and sporting events. The company has also moved from its original markets of Venezuela and Bolivia to Peru and Panama, Zavarse told TechCrunch. In addition, he has partnered with fast food restaurants including KFC, Arturo’s and Burger Shack to provide customers with exclusive deals.

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This last investment nearly three times the amount announced by Yummy last October.. Around this time last year, the company had about 200,000 registered super app users, and now the number is 2.5 million, Zawarche said. It also provides thousands of jobs for gig workers in the region.

delicious app

delicious app Image credits: Yummy

In terms of grocery business, Zavarce last year set a goal of having 50 active dark stores by the end of 2022. The company operates 21 micro fulfillment centers of its own and also works with partner-owned facilities. Meanwhile, Zawars told me, the motorcycle-sharing business, which includes both motorcycles and cars, was the first Yummy business unit to turn a profit.

Overall, Yummy is partnering with over 8,000 merchants, processing 800,000 transactions per month across its markets and growing over 40% QoQ. The average basket size varies by category, but for prepared meals it is $14 and for groceries it is $30.

With the new capital, Yummy plans to invest in product development, increasing density in its current categories and expanding reach in its more mature markets, including Venezuela and Bolivia.

The company originally started in Panama and Peru with groceries, but now that it has had some success there, Zavarce is looking to expand into other categories.

“In this round, we will focus on going deeper into what we already have,” he added. “We recognize that e-commerce penetration in Latin America is still low and we have also identified access to modern financial services as a need and an opportunity for us.”

Zawarche noted that he didn’t want to talk too soon about what financial services plans would look like, but he said that since consumers use the Yummy app to buy food and groceries, “there’s no reason we couldn’t add fintech.” layer to make everyday life easier in Yummy.”

Online food delivery in Latin America continues to grow and Statista estimates that the market has grown by 30% in 2019 and 2020, valuing it at around $6.8 billion. By 2026, this sector should amount to $9.3 billion.

The market is dominated by companies such as rappi, whose latest round of funding is estimated at $5.2 billion; Uber eats; iFood; as well as Yusto, which raised $152 million in Series B in April. Such a large market also attracts young startups such as Horchata.

Zawarche believes that Yummy will stand out from the competition with the group of people who lead the company. As part of the investment, Barney Harford, former COO of Uber Technologies and CEO of Orbitz Worldwide, was named to Yummy’s board of directors.

“We have found a way to develop a sustainable business, and joining the former COO of Uber to the board only strengthens the platform around me,” Zawarche added.


Credit: techcrunch.com /

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