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Contxto – One of the latest business acquisitions in Latin America involves 99 Minutos from Mexico and MuvSmart from Chile. The Mexican e-commerce shipping platform recently purchased the Chilean last-mile delivery app for an undisclosed amount. Following this, ENGIE Factory Mexico also made a follow-up investment.
“We decided to expand into Chile via the acquisition of MuvSmart because both teams share the purpose,” said Alexis Patjane, CEO of 99 Minutos. “Both of us offer friendly services to the environment. We share the same vision and goals.”
99 Minutos began in 2013 as a last-mile delivery service for online stores. Word on the street is that it was the first Latin American company to guarantee delivery in less than 99 minutes. Some may attribute this to its technology providing strong logistics for customer transactions.
This merger showcases 99 Minutos’ commitment to clean transportation initiatives in Latin America. It currently operates in 13 cities in Mexico and Chile with over 1,000 customers and an average of 3,000 daily deliveries. With MuvSmart, now it’s one step closer to being the leading provider of battery-powered vehicles in the region.
As expected, 99 Minutos is excited to be collaborating with a company with similar aspirations. Moreover, it appears likes it’s going to make ENGIE Factory proud. That’s to say, the venture builder invested in the company in July 2018.
“We have grown exponentially in Mexico since our alliance with the ENGIE group,” said Patjane. “The next natural step in our search to become the Latin American leader in this sector was to expand to another country.”
The acquisition of MuvSmart’s was certainly strategic for 99 Minutos based on its 100 percent electric bus fleet. Thanks to its algorithms, drivers using electric vehicles or bicycles make deliveries in less than 24 hours. Even better, the company saved more than 40,000 kgs of Co2 in 2017. In the end, the Chilean company seems optimistic about switching gears.
“At MuvSmart, we have worked over the past two years to resolve the last-mile (industry) and contribute to friendlier cities,” said Rodrigo Salvatierra, co-founder of MuvSmart. “All while keeping in mind our focus on technology, optimization, and professionalization of messaging. Today, our alliance with 99 Minutos manages to raise our common purpose to establish new forms of logistics in Latin America.”
At the same time, this was a followup from ENGIE Factory that invested in 99 Minutos last year. Functioning as a company builder and VC fund, ENGIE supports growth for Latin America sustainability startups. Areas of focus range from energy decentralization, decarbonization, digitization and D-Wasting (energy efficiency).
“The last mile shipping service market in Latin America is growing significantly thanks in part to the increase in online purchases,” said Eduardo Guzmán, CFO of ENGIE Factory Mexico. “99 Minutos has been able to take advantage of this growing wave and has become one of the main suppliers for clients like Amazon and Mercado Libre.”