Chiper, the Latin American B2B e-commerce ecosystem for corner stores, has secured $53 million in Series B funding. Nosara Capital and Tiger Global led the round.
November 18, 2021 – Today, Chiper announced the completion of a US $53M round of funding led by Nosara Capital and Tiger Global to continue uniting many of the region’s 3.7M corner stores, the retail channel responsible for supplying 50% of LatAm’s groceries and goods, creating one of the world’s largest retail networks of bulk buyers. Globally, the convenience corner stores market is expected to grow at a CAGR of 8.1% to nearly $1.3 trillion by 2025. Other participants in the round include Endeavor Catalyst, InQlab, Alter Global, and Interplay.
Founded in 2018, Chiper is now the leading B2B e-commerce ecosystem for independent merchants in Latin America – offering the fastest delivery, widest selection, and best prices available. By aggregating demand from thousands of stores and digitizing supply chain management, Chiper is transforming how owners replenish their businesses and embed technology into their day-to-day operations. “We are on a mission to drive the digital transformation of the corner store retail market, starting with solving the complexities of stocking and sourcing inventory that store owners struggle with today,” said Jose Bonilla, CEO of Chiper. “With more than 40,000 monthly active customers, we are just starting to scratch the surface of the region’s $300B market, where less than 1% of all B2B transactions and only 8% of retail purchases are done through e-commerce.”
Although online shopping has been nearly non-existent in the region, it has grown at a compound annual industry growth rate of 16% over the past five years. “B2B e-commerce is only the beginning,” Jose Bonilla shared. “Our long-term approach of understanding the underlying problems store owners face every day, represent various untapped opportunities on Chiper’s horizon – including financial services and facilitating e-commerce to stores’ end consumers as well.”
While many corner store owners have no other choice but to endure doing business in an archaic purchasing system filled with intermediaries, Chiper has been steadily challenging this paradigm by building a custom-tailored e-commerce ecosystem that streamlines the entire value chain— empowering store owners to earn more and be more competitive as businesses.
Through machine learning, Chiper has scaled up while continuously raising the bar on service levels, evidenced by Chiper’s 7X growth in the trailing 12 months and delivering more than 10,000 orders per day as of Q3 2021. The company’s commitment to operational efficiency has resulted in Chiper making a $1 contribution margin for every order delivered.
Corner stores that buy with Chiper gain near-instant delivery of 5,000 items and are empowered to make smarter purchasing decisions, manage their working capital better, increase their revenue, and improve their shopper’s buying experience too.
“Chiper’s digital platform exponentially improves efficiency and simplifies workflows in a retail channel that has changed very little in half-a-century,” stated Ian Loizeaux, partner at Nosara Capital. “They’re essentially a B2B Amazon Prime for corner stores, giving these small businesses a one-stop-shop for both inventory procurement and inventory management. With every store that adopts their platform, their network effect grows stronger and their bulk purchasing power increases.”
To date, Chiper has operations in Colombia and Mexico, with the launch of Brazil coming soon. Every day, Chiper is enabling corner store owners to reap the benefits of the internet economy in a region ripe for technological disruption. To put the region’s tech adoption stage into context – when compared to other emerging markets, LatAm has a GDP of $6T, 40% of China’s and 2x the size of India’s. It has some of the highest internet engagement rates in the world, averaging >9 hours per day compared to >6.5 hours in the US and the rest of the world. Plus, internet penetration of 70% surpasses China/India at 50/50%, and mobile penetration at 67% exceeds China/India at 56/50%.
Chiper has created the most comprehensive map of the entire network of mom-and-pop corner stores across LatAm, down to the most underserved areas. These stores represent the smallest, most localized nodes in larger logistics networks that serve 300 million people, a population the same size as the US. With its Series B locked in, Chiper continues on track to set the standard on service, selection, and price.
Chiper is a B2B e-commerce ecosystem for the corner store retail market in Latin America. They were founded in 2018 with the aim of empowering the digital transformation of the LatAm corner store market – a channel in which only 1% of sales are presently handled through e-commerce. Their digital platform helps store owners be more competitive, offer better prices, and improve their inventory procurement and management systems through automation and machine learning.