Brazilian online retailer Nuvemshop has become the latest unicorn startup in Latin America, after raising US$500 million in a recent round of fundraising.
With this new cash on hand, the retailer will add another 300 people to its payroll and expand operations to Colombia, Chile, and Peru.
Nuvemshop, known as Tiendanube in Spanish-speaking countries, was founded in 2010 and currently has 1,200 employees.
Thanks to its unique operating model, Nuvemshop has rapidly expanded its footprints across Brazil Argentina, and Mexico, where it already has a network of 90,000 merchants.
Unlike its rivals, such as Mercado Libre and Amazon, Nuvemshop is an open platform, meaning it allows merchants to choose their own delivery and payment partners.
In a statement, Nuvemshop emphasized that it would remain an open platform, but unveil a payment app soon.
The round was co-led by Insight Partners and Tiger Global Management, with significant participation from Alkeon and Owl Rock.
E-Commerce is still in its infancy in Latin America, but showing all signs of outshining brick and mortar stores in the near future.
“With 650 million consumers, Latin America is not only a huge market, but it is the fastest-growing e-commerce market in the world,” said Matt Gatto, managing director at Insight Partners.