Overview
Nocnoc, a company that enables cross-border e-commerce between Latin American merchants and global sellers, has raised $14 million in Series A funding. The round was led by PayPal Ventures, with participation from Mouro Capital, Quona Capital, Caravela Capital, Broadhaven, and Ignia. This brings the company’s total venture-backed funding to $22 million.
Founding and Early Growth
Nocnoc was founded in 2018 by Ilan Bajarlia, Joaquin Colella, and Diego Szilagyi with the goal of enabling businesses to sell in Latin America through 16 marketplaces, reaching a potential consumer base of nearly 500 million people. The company is headquartered in Uruguay and has offices in Brazil, Mexico, Argentina, Colombia, China, and Spain.
Market Opportunity
Latin America’s cross-border sales grew by 44% in 2022, with the market valued at $382 billion. According to Americas Market Intelligence, the market is expected to grow annually at a rate of 25% through 2025.
Quote from CEO Ilan Bajarlia
"Cross border e-commerce is growing faster than local commerce in the last five years," said Bajarlia. "People are keen to buy products that they can’t buy in their local market, so very large marketplaces from the world have been growing their share in Latin America, specifically, Chinese and U.S.-based marketplaces."
How Nocnoc Works
Online merchants upload their product catalog to Nocnoc’s platform, allowing them to start selling on multiple marketplaces, including Amazon, Mercado Libre, Americanas, Carrefour, Walmart, Magazine Luiza, and Coppel. Nocnoc manages the product listings across all of these marketplaces and creates marketing campaigns for the products.
Key Features
- Product Listings: Nocnoc manages product listings across multiple marketplaces.
- Marketing Campaigns: The company creates marketing campaigns to promote products on various marketplaces.
- Communication with Consumers: Nocnoc handles communication with consumers, including delivery logistics, cancellations, and returns.
Payment Terms
Nocnoc typically pays sellers every 15 days in their local currency, even if the product has not yet been delivered. This is compared to the 40-50 day wait for payment that sellers typically experience.
Impact of Nocnoc’s Concept
The company’s concept has caught on, with over 180,000 exclusive products introduced from more than 1,200 international sellers. In the past 12 months, gross merchandise volume grew by 3x, amid the addition of seven new marketplaces and expansion in Mexico, Colombia, and Chile.
Future Plans
The new funding will be used to help Nocnoc’s business and its customers grow and expand into Latin America. New features will include additional fulfillment centers and an ‘Advanced Payments’ product that pays sellers even faster, with cancellations and returns covered.
Quote from CEO Ilan Bajarlia (continued)
"We have been growing a lot in diversifying our consumer base and expanding into new markets," said Bajarlia. "We believe that this funding will help us to further accelerate our growth and become the leading player in the cross-border e-commerce space in Latin America."
Conclusion
Nocnoc’s success is a testament to the growing demand for cross-border e-commerce solutions in Latin America. With its innovative approach and commitment to customer satisfaction, Nocnoc is well-positioned to continue its growth trajectory and expand its presence in the region.
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