Yummy, an app that delivers food and offers ride-hailing services in Latin America, has raised $47 Million.
This start-up was founded in 2020 and aims to create a’super app’ that combines multiple functions such as delivery and transportation into one seamless service.
Bolt and Grab, which are competing in Europe and Southeast Asia, are following a similar pattern.
Anthos Capital led the latest round of funding for Yummy. Wind Ventures, an investment arm of Chilean energy giant COPEC, was also part of the group. The round was also supported by JAM Fund, Soma Capital and Ethos Capital as well as YC Continuity.
Vicente Zavarce is the company’s head, an ex-senior employee of Postmates and Getaround.
He stated that Yummy would be focusing its efforts on expanding its coverage in existing markets like Venezuela, Bolivia and Peru, with no plans to expand into new countries.
Yummy has signed agreements with KFC and Burger Shack for deliveries to these markets. It also offers delivery options for goods such as clothing.
According to the company it has 2.5 Million registered users and processes 800,000.00 monthly transactions.
More than 12,000 riders and drivers are employed by the company. They are paid per trip or delivery based on distance, rather than an hourly rate or per shift like some other companies in recent years.
Zavarce stated that E-commerce penetration in most of Latin America is low and that access to modern financial services is limited. We see a tremendous opportunity to encourage the adoption of mobile commerce as well as a new wave inclusive financial products throughout the region.
Yummy also appointed Barney Harford, former Uber COO, to its board as part of the raise.
Yummy closed its funding round in a difficult time for online grocery and food delivery companies as they adjust to post-pandemic market conditions and current economic challenges. As part of this adjustment, a number companies laid off hundreds of employees last week.
Anthos Capital’s lead investor Annie Luchsinger stated that Yummy was “extremely bullish” about the intersection where it operates. As Latin America continues to experience economic boom, she is confident that Yummy will continue to be a household name for consumers looking for convenience, gig workers seeking additional work, and merchants looking for additional revenue streams.