Infracommerce Latam Company Profile

Background

Infracommerce Latam is a leading full-service e-commerce solutions provider in Latin America, offering a comprehensive "white-label digital ecosystem" that empowers brands and industries to navigate their go-to-market digitization journeys. Founded in 2012 by entrepreneurs including Kai Philipp Schoppen and Luiz Pavão, the company has expanded its operations across major Latin American countries, including Mexico, Colombia, Peru, Chile, Argentina, and Uruguay. Infracommerce's mission is to consolidate its position as the best ecosystem of innovative solutions based on technology for digital businesses, facilitating the growth of its customers and bringing them closer to their consumers.

Key Strategic Focus

Infracommerce's strategic focus centers on providing an integrated, modular, and scalable e-commerce ecosystem tailored to the needs of both B2C and B2B clients. The company's core objectives include enhancing customer experience, optimizing omnichannel technology, leveraging artificial intelligence and data intelligence, offering payment and credit solutions, and ensuring logistics efficiency. These objectives are realized through five specialized verticals:

Infra.Digital: Management and consulting services to co-create and execute digital strategies.

Infra.Tech: Platform and technology solutions for digital business digitalization.

Infra.Data: Data intelligence and AI to support decision-making.

Infra.Pay: Omni-payment experiences through payment, credit, and technology solutions.

Infra.Log: Logistics and customer support services, from fulfillment to post-sale management.

This comprehensive approach enables Infracommerce to serve over 750 brands, including notable names like Ambev, Nike, Motorola, Ray-Ban, and Unilever.

Financials and Funding

As of December 31, 2021, Infracommerce reported net revenue of R$422.6 million and generated R$7.1 billion in gross merchandise volume (GMV) for its customers, reflecting a compound annual growth rate of 75% in net revenue. The company has raised a total of $77 million in funding over 10 rounds, with the latest funding round occurring on September 30, 2022, amounting to $77 million.

Technological Platform and Innovation

Infracommerce distinguishes itself through its proprietary technological platforms and innovative methodologies:

Proprietary Technologies: The company has developed its own Warehouse Management System (WMS), standardized across all operations, enhancing logistics efficiency.

Artificial Intelligence and Data Intelligence: Through Infra.Data, Infracommerce utilizes AI and machine learning algorithms to automate analyses for supply decisions, purchases, campaigns, pricing, and more.

Omnichannel Solutions: The company's Infra.Tech vertical offers comprehensive omnichannel technology, integrating ERP, WMS, TMS, and CRM systems to provide seamless retail operation management.

Leadership Team

Infracommerce's leadership comprises experienced professionals with extensive backgrounds in logistics, technology, and omnichannel retail:

Kai Philipp Schoppen: Founder and Board Member, with over 15 years of experience in e-commerce and digital solutions.

Luiz Pavão: Co-Founder, instrumental in establishing Infracommerce's foundational strategies and operations.

Ivan Luiz Murias dos Santos: Chief Executive Officer, leading the company's strategic direction and growth initiatives.

Fabio Bortolotti: Chief Financial Officer, overseeing financial planning and management.

Amanda Pires de Almeida: Corporate Secretary, managing corporate governance and compliance.

The leadership team's commitment is evidenced by their participation in the company's stock option program, reflecting a strong alignment with Infracommerce's mission and values.

Competitor Profile

Market Insights and Dynamics

The e-commerce market in Latin America, particularly in Brazil, has experienced substantial growth. In 2021, the B2C online retail sector in Brazil reached R$177 billion, representing a 15% penetration of the total retail market. The B2B segment also shows significant potential, with an estimated value of R$2.4 trillion in 2019, though only about 2.5% of transactions occur via e-commerce, indicating room for growth.

Competitor Analysis

Infracommerce operates in a competitive landscape with several key players:

VTEX: A global e-commerce platform offering a comprehensive suite of services, including marketplace integration and order management.

Shopify: A leading e-commerce platform providing tools for businesses to create and manage online stores.

BigCommerce: An open SaaS platform offering e-commerce solutions for businesses of all sizes.

These competitors focus on providing scalable e-commerce solutions, emphasizing platform flexibility, integration capabilities, and user-friendly interfaces.

Strategic Collaborations and Partnerships

Infracommerce has established significant partnerships to enhance its market position and service offerings:

Brandlive, Ecomsur, and Summa Solutions: The integration with these companies in January 2024 solidified Infracommerce's presence in the region, positioning it as the largest e-commerce service provider in Latin America.

Tevec: Acquisition of Tevec, a company specialized in machine learning algorithms and big data processing, allows Infracommerce to automate analyses for supply decisions, purchases, campaigns, and pricing.

Operational Insights

Infracommerce's operational strategy emphasizes modularity, flexibility, and scalability, allowing clients to choose between full-commerce services or specific solutions tailored to their business needs. The company's extensive logistics infrastructure, including 14 distribution centers across Latin America, enables efficient fulfillment and delivery services. In 2023, Infracommerce moved over 3.2 million units across six countries, achieving a 97.3% order handling time within 24 hours.

Strategic Opportunities and Future Directions

Infracommerce aims to capitalize on the growing e-commerce market in Latin America by expanding its service offerings and enhancing technological capabilities. The company plans to double the size of its distribution center in Mexico and expand its workforce, reflecting its commitment to meeting increasing demand. Additionally, Infracommerce is investing in automation and digitalization initiatives, such as implementing vertical storage projects and developing proprietary WMS, to optimize operations and improve customer experience.