Brazil's e-commerce sector is growing quickly. The country largely didn't experience Web 1.0 (Amazon, eBay etc) of the US in the late 1990's so the original e-commerce strategy of simply listing products online and shipping them to customers still offers some exciting opportunities for VC and growth equity investors.
Why is Brazilian e-commerce a great place to look for opportunities?
- Growth of Internet users. 80mm people (40% of population) are connected to the internet and there is a government plan to increase the municipalities connected from 27% today to 80% by 2014.
- Increased adoption of e-commerce among Internet users. Forrester Research estimates that over the next five years the e-commerce sector will grow at an 18% compound annual growth rate (CAGR)
- Lack of assortment in traditional stores, especially outside of Sao Paulo and Rio de Janeiro. Retail stores in Brazil often offer a limited selection of products and, in comparison with other countries, there are much fewer of the large, low-price, megastores.
I've tried to map out below the e-commerce landscape. I created this list over the last few weeks and refined it with the help of several people closely involved in the Brazil tech scene. I'm sure that I have missed some of the relevant sites - please feel free to comment or send me an email if there are any major players that I (accidentally) omitted. I am also including any relevant info that I have on the companies below.
Netshoes.com.br - investment from Tiger Global
Dafiti.com.br - investment from Rocket Internet (a German firm whose strategy is to copycat existing companies)
Fashion - (Gilt Groupe copies)
CorpoPerfeito.com.br - Investment by Endurance Partners (founded by Notre Dame grad Richard Lark, who I met this weekend at the Sao Paulo new student send-off party)
Sacks.com.br - bought by Sephora
Belezanaweb.com.br - profiled in previous post
Baby.com.br - Monashees investment (see previous post)
Submarino.com.br - wide variety of products
Shoptime.com.br - wide variety of products
Americanas.com - wide variety of products, brick and mortar
Walmart.com.br - brick and mortar
Cobasi.com.br - brick and mortar
Online Photo Development
Kalunga.com.br - brick and mortar
Drogaraia.com.br - brick and mortar
Araujo.com.br - brick and mortar
Onofre.com.br - brick and mortar
Panvel.com - brick and mortar
Please note that this list is intended just to capture businesses that sell and deliver products. It does not include middle-men sites like Peixe Urbano, Restorando or Mercadolivre. If there are significant sectors or companies that I have missed please give me a heads up!
P.S. Paula Fernandes (a Brazilian singer who I mentioned in a previous post) passed the 1 million CD/DVD's sold milestone 2 days ago.