Net Shoes Raises $45M in Fresh Capital for Latin American Expansion

Net Shoes Raises $45M in Fresh Capital for Latin American Expansion

IFC, a member of the World Bank Group, and Riverwood Capital, a risk capital fund specialized in technology, announced a $45 million equity investment in Netshoes to help promote the growth of the online retail sector in Latin America.

The equity investment will support and help accelerate Netshoes’ expansion in Latin America, with growing operations in Argentina and Mexico in addition to Brazil, as well as in developing new business verticals, including the recent launch of Zattini, an e-commerce retailer specialized in the fashion segment. This new investment comes in addition to the $170 million invested by GIC, the Singapore’s sovereign wealth fund, in May 2014.

“The arrival of Riverwood and IFC will contribute to our sustainable growth plan, foster innovation, further investments and in offering our customers the most delightful shopping experience”, said Marcio Kumruian, Netshoes’ founder and CEO. According to Kumruian, the investment reinforces the confidence of major global funds in the solid economic fundamentals of Netshoes, even in a scenario of economic uncertainty.

“Online retail is expanding choice for consumers, creating jobs and promoting development of the retail sector in emerging markets“, said Sean Petersen, IFC Senior Investment Officer in Venture Capital. “Netshoes is bringing world class customer service and logistics to Latin America, and its growth has created new employment opportunities for women and young people.”

In fiscal year 2014, IFC committed more than US$593 million of financing to the retail sector globally.

“We are very excited about joining the Netshoes family and contributing to its continued growth. Netshoes has become one of the top brands in e-commerce in Brazil and Latin America, and we were impressed with its great customer service and an expanding assortment of attractive products and services targeted to the growing class of online consumers in the region” said Francisco Alvarez-Demalde, founder and general partner of Riverwood.

Both IFC and Riverwood will have seats on the Netshoes Board, which is  formed by the top company executives, representatives of the investment funds Tiger Global Management, GIC, Temasek Holdings and Kaszek Ventures, along with advisors such as Paul Tagliabue (former NFL Commissioner), Cássio Casseb (former president of Banco do Brasil) and Nilesh Lakhani (former CFO of Yandex).

IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in about 100 countries, IFC uses its capital, expertise, and influence to help eliminate extreme poverty and boost shared prosperity. In FY14, IFC provided more than USD 22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development. For more information, visit