Ventup
In Mexico, there are over 600 thousand restaurants and spots where you can grab food.
These establishments contribute to more than 2 million jobs and account for approximately 12% of all businesses in the country.
However, 95% struggle to secure credit or lending access.
Let's dive in.
Together with
Imagine this
You decide to start a new venture and open a coffee shop.
As you settle in, you realize that profits are not as expected even though you have good sales.
Ordering products, receiving, and sending invoices, are all managed informally through personal WhatsApp, email, phone calls, and paper.
Additionally, you are using a spreadsheet to track and manage your inventory, COGS (Cost of Goods Sold), and expenses.
Managing operations is challenging, especially when considering opening additional coffee spots, whether a second or a third location.
Scaling like this is extremely hard and becoming too risky to operate independently.
With Ventup, you can efficiently and reliably handle most administration and operational tasks.
Explain it like I'm five
Ventup is a tech-enabled order management system and lending platform that empowers restaurants and suppliers.
They eliminate intermediaries in the industry, digitize communication, and reduce food waste.
Their payment platform facilitates using digital means of payment to generate a financial record.
Ventup has a unique credit score enables them to lend at a lower risk.
Founders aim to become the point of reference for buying and selling while being the industry's biggest lender.
The ABCs
Industries: FoodTech, FinTech
Headquarters: Monterrey, Nuevo Leon
Year Operations Started: 2021
Team Size: +40
Raised: USD 7M (raising seed extension)
Accelerator/Investors: JAM Fund, Luis Garza Sada, Alejandra Rios, XochiVentures & Angel investors.
Business Model: Fee per order SaaS Fee (usage-based) + Lending Fee (Revolving Credit & Factoring).
Other players:
What we like:
Network Effects: According to Ventup, each restaurant works with 20-50 suppliers on average. When a restaurant adopts its platform, it can invite its suppliers to join for free. This creates a strong network effect, ultimately reducing the costs of acquiring new customers for VentUp.
Lending: Ventup has a unique credit score visibility for their clients, which allows them to analyze what rates to offer quickly and can lend them money to finance their operations. Founders claim they have successfully financed US $1M (+2k invoices) with their lending MVP (Minimum Viable Product).
Informality: Invoices are commonly shared through email or Whatsapp. VenTup offers a digitalized solution that streamlines the process and provides a comprehensive payment history. This facilitates credit and lending opportunities and ensures businesses have a reliable record of their transactions.
Traction: As reported by the founders, they currently have more than 2,500 active branches, with a GMV exceeding US $30M, 95,000 orders, and an impressive ARR growth of 114%.
Scalable: Ventup does not manage inventory, logistics, or warehouse. They aim to conquer communication in purchase orders and payment solutions.
Road Blocks:
Culture: Even with the rise of digital payments, cash culture still thrives in Mexico. Encouraging restaurant owners and suppliers, particularly those from older generations, to digitalize and adopt VentUp is a complex task.
Marketplace: Ventup needs to acquire users rapidly since marketplaces depend on volume. As well, marketplaces face various challenges, such as quality control, trust, safety, and have the marketing ability to attract both buyers and sellers to their platform.
Standards: Each restaurant has different requirements and expectations. Understanding the needs of each restaurant and having suitable suppliers for their tailor-made requirements is crucial for Ventup to build long-lasting relationships.
The Architects
Alberto Sada, Co-Founder & CEO. MBA FGV. Previously @ DrinnkEat Solutions.
Alejandro Sherwell, Co-Founder & CPO. Previously @ Parrot.
Mario Romero, CCO. MBA Cornell. Previously @ Rappi.
Request intro with founders by sending an email to gabriel@readrunway.com
Together with Cloudera
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Headlines Corner
Rintin, a digital marketplace for wholesale products, recently secured an undisclosed funding round from LatinLeap, further strengthening its position in the market. (Crunchbase)
Albo, a Mexican fintech, announced the acquisition of Delt.ai, a fintech and SME lender. (Whitepaper)
The total amount of venture dollars raised was 26% higher in Q2 compared to Q1. (Carta)
E-commerce fraud in Mexico has increased by 68% in June 2023 compared to April 2022. (Contxto)
Founders Bookmarks
The best tools and resources we came across this week:
Whitepaper recently dove into entrepreneurs digitalizing restaurants in Mexico.
Ten lessons from some of the best venture investors.
When starting a business, it’s best to keep it simple and organized. Here is a template to help you build a 1-page business plan.