Clubbi — a startup that helps neighborhood grocery stores better purchase their stock, avoiding 'outages' — has just raised R$ 62 million in a round that will fund its commercial expansion and the launch of a credit vertical.

João Macedo came up with the idea of creating Clubbi when he was the head of distribution for Red Bull in Latin America.

"In the USA, large retailers are very strong, so the distribution process basically focuses on these key accounts," he told Brazil Journal. "But in Latin America, it is quite different. In some countries, like Peru, neighborhood markets account for up to 80% of all food retail sales."

In Brazil, the situation is not as extreme — but the opportunity is still huge.

There are about 400,000 neighborhood grocery stores, which account for 35% of all retail sales (more than Grupo Pão de Açúcar, Carrefour, Assaí, and Atacadão combined).

"The main pain point for these grocery stores is the lack of capital and shelf space to ensure stock," said Marcos Adler, the other founder. "They operate with very low stock coverage and do not have good supply organization, which causes constant outages and makes them lose sales."

Clubbi is solving this problem with a B2B marketplace that currently offers over 8,000 SKUs — from both manufacturers and distributors and wholesalers — and delivers the next day after purchase.

The company already serves 2,500 small retailers in Rio and Salvador and expects to reach 7,000 by the end of the year with entry into other cities.

"Our solution gives these retailers breathing space and allows them to stop worrying about outages," said Marcos.

However, the founders' thesis goes beyond a product marketplace. The vision is to transform the platform into a distribution channel where the retailer will have access to other services, starting with credit.

Clubbi will start by offering longer terms for purchasing goods and an installment option. Later, it will add credit for business investment; tools to help with cash flow management; the option to use part of the card receivables to pay suppliers; and even help grocery stores provide credit to their customers, for example, with a credit line.

At first, Clubbi will do this with its own capital, but the idea is eventually to use partners.

João says the startup also plans to offer management software to retailers in the medium/long term.

Clubbi is not the only one to see a niche in this market. Mercê do Bairro, a startup founded by the creators of iFood and Zé Delivery that raised R$ 53 million in October, operates in the same market with a similar proposition.

The two startups have not yet clashed, however. While Clubbi operates in Rio and Salvador, Mercê do Bairro has focused its commercial efforts in São Paulo. (People, how about an M&A?)

The Series A round was co-led by NFX, a Silicon Valley venture capital firm specializing in B2B marketplaces, and the Mexican firm Hi Ventures, which was one of the first investors in Cornershop.

This is Clubbi's third round, which had already raised another R$ 28 million with Canary, Valor Capital, ONEVC, and Better Tomorrow Ventures. All, except Canary, participated in the new round.
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