Favo, a Brazilian social commerce platform, closed on $26.5 million in Series A funding to continue developing its app that takes grocery orders through local social networks. Tiger Global Management led the round, with existing investors GFC, Elevar Equity, Kevin Efrusy, David Velez, FJ Labs and H2O participating. The latest round gives the company about $37 million in total funding since the company was started in 2019 by Alejandro Ponce and Marina Proença. Favo enables under-employed entrepreneurs to create new income streams through steady sales commissions from their own local network. People order groceries through the Favo app, and the logistics system fills the order and arranges delivery, in bulk, to the entrepreneur the next day. The entrepreneur completes the last-mile delivery.
Favo launched in Peru in 2020 and then Brazil. The co-founders plan to focus the new funding on logistics and fulfillment operations, as well as expansion in Brazil and into Mexico. Ponce expects to be in 20 cities in the following months. The company is working with 160,000 buyers and seeing revenue increase 30% month over month. Buyers can choose from over 3,000 products that are delivered to them within 24 hours. Favo’s innovative social commerce business model and rapidly growing logistics platform are transformative developments for the purchase and distribution of goods in Latin America.