Yummy raises $4M, aims to be ‘super app of Venezuela’

Yummy, a Venezuela-based supply app on a mission to create the tremendous app for the nation, introduced Friday it raised $4 million in funding to increase its darkish retailer supply operations throughout Latin America.

Funding backers included Y Combinator, Tinder co-founder Justin Mateen, Canary, Hustle Fund, Necessary Ventures and the co-founders of TaskUs. The complete funding consists of pre-seeding capital raised in 2020.

“This appears to be a contrarian bet, but Yummy has quickly become the No. 1 super app in Venezuela and proven that the team can scale the business in a difficult territory,” Mateen mentioned in an announcement. “Now Vicente and the rest of the Yummy team will expand into more traditional markets with the necessary experience and support to overcome inevitable challenges that they will face.”

Vicente Zavarce, Yummy’s founder and CEO, launched the corporate in 2020 and is at the moment half of Y Combinator’s summer season 2021 cohort. Born in Venezuela, Zavarce got here to the U.S. for college and stayed to work in development advertising at Postmates, Wayfair and Getaround earlier than beginning Yummy. Zavarce was a distant CEO over the previous yr, caught within the U.S. due to journey restrictions, however mentioned he’s making probably the most of it.

Yummy’s app can be downloaded totally free, and the corporate fees a supply price or service provider price. In distinction to some of his meals supply rivals, Zavarce informed TechCrunch Yummy’s charges are “the lowest in the market” so they don’t have an effect on the service provider’s capacity to use the app.

Yummy order warmth map. Image Credits: Yummy

The firm is pulling collectively further key elements for its tremendous app technique, which incorporates launching a ridesharing vertical this yr. Yummy has already linked greater than 1,200 retailers with a whole bunch of hundreds of prospects.

And, over the previous yr the corporate accomplished greater than 600,000 deliveries of meals, groceries, alcohol and buying. It reached $1 million in month-to-month gross merchandise quantity whereas additionally rising 38% in income month over month.

Over the previous eight years, the political and financial challenges confronted by the nation have led to its current adoption of the U.S. greenback, Zavarce mentioned. In some instances up to 70% of transactions are taking place in {dollars} on the bottom. He mentioned this has protected the enterprise towards hyperinflation and in the end created the chance for startups to start working in Venezuela.

Because of that, mixed with extra shopper expertise innovation over the previous decade, Zavarce mentioned there isn’t any cause why Venezuela mustn’t have the very best last-mile logistics. It’s there that Yummy has a possibility to join a number of vertices into an excellent app with little to no competitors.

“Eventually, other players will enter, but because we have a super app, we already have an amazing frequency of usage,” he added. “We also already have exclusivity with 60% of the food delivery marketplace, which has enabled us to build a moat around the market. We believe we are the right people to execute on this and feel it is our responsibility to do it.”

Plans for the brand new funding embody consumer acquisition — the corporate has shut to 200,000 registered customers already — and to increase in Peru and Chile by August. At the identical time, Zavarce will spend some of that capital to appeal to extra customers throughout Venezuela. He additionally expects to be in Ecuador and Bolivia by the tip of the yr.


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