R3D

Connecting entrepreneurs and companies with Mexican manufacturers

Together with:

---

As per DENUE 2022 data, Mexico has over 608,484 manufacturers. They represent nearly 18% of the GDP and are the main exporting industry with 87%.

However, there is a significant gap in capacity mapping, digitalization, and accessibility.

Let's dive in.

---

Imagine this

• You started an e-commerce venture focused on travel bags and luggage.

• After finishing the design phase, you quickly shift your team’s focus to finding the proper manufacturer.

• They recommend looking at the Chinese manufacturers, but with your past experiences, you know that communication is terrible and that by going overseas, you could face supply chain issues in the future.

• You decide to stay local and find a Mexican manufacturer, but as you start scouting, you realize that most manufacturers lack an online presence, and finding them will be harder.

• As your team continues searching, they come across R3D, a platform that helps entrepreneurs and companies find experienced Mexican manufacturers.

---

Explain it like I'm five

R3D is a platform that helps entrepreneurs and companies develop and manufacture new products.

• They connect clients with Mexican manufacturers to create new products or components.

• Clients can compare manufacturers based on pricing, quality, and production time.

• R3D and customers can rank manufacturers on their platform based on quality, time, process, and communication.

Founders aim to digitalize Mexican manufacturers and simplify the development of new products.

---

The ABCs

• Industries: Manufacturing

• Headquarters: Mexico City, Mexico

• Year Operations Started: 2023

• Team Size: 4

• Raised: Bootstrapped

• Accelerators: Founders Institute, Parallel 18

• Business Model: Commission fees on orders

Other players:

• Gambah

• Makers Row

• Xometry

---

Background check

What we like:

• Manufacturing: They source through Mexican manufacturers that can develop the products clients need. This not only supports entrepreneurs and companies to build their products faster but also supports the local economy instead of sourcing from China. Chinese imports into Mexico represent over USD $90 billion annually.

• Time: Companies and entrepreneurs spend weeks or months finding the proper manufacturer. Their platform makes sourcing and trying multiple suppliers easier, saving businesses money and time.

• Vetted: R3D has worked with multiple companies across industries, trying different suppliers to meet the client’s needs and expectations. According to the founder, R3D’s network of manufacturers has been carefully vetted through an extensive due diligence process.

• Cost-effective: Provides an opportunity to cheaply and quickly test new product designs, which benefits small companies since R3D offers large or on-demand orders.

Road Blocks:

• Access: The internet has simplified how we can find manufacturers. Entrepreneurs and companies can search the web and go directly to the manufacturers.

• Scaleability: Processes are more effective for small batches and don’t offer scalability options regarding economies of scale. This means that on-demand manufacturing alone can’t fulfill a business’ manufacturing needs when its demand grows.

• Industry: Manufacturing is one of the most traditional industries, which has made it difficult for founders to encourage them onto their platform.

• Financing: They still don’t offer financing options, which is essential for companies’ and entrepreneurs’ liquidity. They are still building a solution. Therefore, obtaining clients without it will be tough.

---

The Architects

• Gerardo Peña, Co-Founder & CEO. Previously @ GPD.

• Ramiro Pantoja, Co-Founder & CTO.

Request intro with the founder by sending an email to gabriel@readrunway.com

---

---

Together with Simon

Your team probably despises every training program, but with Simón, you can simplify your workplace training through bite-sized educational capsules, TikTok-style. They offer a tailored platform that adjusts to your business needs, allowing you to measure its ROI with key indicators.

Plus, they ensure engagement and retention with short video lessons and accessibility via the web, WhatsApp, or your software.

Join businesses that already trust Simon and transform your company's training programs!

---

Headlines Corner

• Nomad, a fin-tech that allows Brazilians to open US dollar accounts, secured a USD $6M Series B funding led by Tiger Global. (Blomberg)

• Banxico released its new digital payment tool called Dimo (Dinero Movil). It will be integrated into Mexican banking apps. (Contxto)

• Nido Ventures, a fund specializing in early-stage investments, announced the closing of Fund I, an international fund with a total of USD $7M. (ConteNido)

• Devolut raised USD $600K in pre-seed to enhance Latin America's e-commerce returns, offering swift refunds and promoting product exchanges with AI. (LatamList)

---

Founders Bookmarks

The best tools and resources we came across this week.

• Atlantico launched its LatAm digital transformation annual report.

• Whitepaper recently dove into Mexican “Billion dollar brands.”

• Sam Altman, Open AI founder, on why 90% of companies fail.

Building in LatAm? Send us your pitch deck for the opportunity to be featured in Runway.

---