Merama acquires and launches digital direct-to-consumer brands across Latin America and builds automation and scalability tools to grow them regionally. The company operates a portfolio of 20 brands across Mexico, Brazil, Chile, Colombia and Peru and has more than 180 employees. It says it is poised to sell over $250 million of product merchandise this year and will be significantly cash flow positive. Merama is also developing technology to automate brand management and supply chain and plans to monetize that underlying technology. The company has launched Merama Labs, an internal incubator to create new D2C brands alongside influencers in categories like fashion, cosmetics, supplements and beverages. Merama has added senior hires including a CTO and a former MercadoLibre marketplace director to support expansion. Merama acquires and scales primarily online direct-to-consumer brands across Latin America and the U.S. Founded in December 2020 with dual headquarters in Mexico City and São Paulo, the company typically takes majority stakes while allowing founders to retain ownership and continue operating. It supports portfolio businesses with e-commerce expertise, working capital, international marketplace expansion, and a proprietary suite of technology tools. To date Merama has acquired stakes in more than 20 brands operating in Mexico, Brazil, Chile, Peru, Colombia and the U.S.; those businesses are expected to generate over US$250 million of revenue in 2021 and are described as highly profitable. The company says it is highly selective in new partnerships and is finishing a technology platform to automate and power its brands. Planned uses of capital include paying down debt, partnering with more businesses, completing the technology platform, and providing working capital to existing brands. Merama partners with e-commerce product sellers in Latin America by purchasing stakes in businesses and working with their teams to grow sales, boost technology, and provide nondilutive working capital. The company says it will work with only a few top brands rather than aggregating dozens, positioning itself more like The Hut Group than Thras.io-style consolidators. Merama is focused on Mexico, Brazil, Argentina and Chile and collaborates with platforms such as Amazon and Mercado Libre. The company expects to sell $100 million across the region this year, more than twice the prior year, and CEO Sujay Tyle says Merama already operates “very profitably.” The 42-person team includes e-commerce leaders from Amazon, Mercado Libre and Facebook, and the founders launched the company in December 2020. Planned use of proceeds includes partnering with more brands, building a technology platform to automate facets of partner businesses, and providing working capital for product innovation and inventory.

Total raised

$445M

Funding rounds

4

Latest round

Equity

Latest activity

Dec 2021