Meru

Meru.com is a Mexico City-based business-to-business platform that connects small and medium-sized Latin American companies with manufacturers in Asia, initially operating between China and Mexico. The company offers a marketplace and app through which buyers can select and purchase wholesale goods, with Meru handling logistics, importation, distribution and delivery, billing and follow-up, and providing financing through fintech partners. It states that customers can buy in their own currency with a guarantee that goods will be received as ordered and at market-competitive prices.

The stated problem Meru addresses is fraud and inefficiency in cross-border sourcing: the company says up to 80% of transactions involving SMEs importing from Asia result in fraud at some point, and that traditional sourcing can consume up to two days a week and involve four to five intermediaries. Its stated ambition is to become a one-stop shop for small businesses and the "Alibaba of Latin America." Y Combinator's listing describes Meru.com as a one-stop shop for auto parts in Mexico and as a platform optimizing the automotive aftermarket supply chain for mechanics in Latin America, categorized under fintech and marketplace. One investor describes the company as a one-stop shop for Asian wholesale in Latin America, using data and technology across the stages of the cross-border trade value chain.

Founding story

In 2020, Manuel Rodriguez Dao (in Mexico) and Federico Moscato (in China) encountered problems sourcing and importing goods while working for another company, including receiving merchandise that did not match what had originally been offered. Those difficulties prompted them to found Meru together with Eduardo Mata, Virgile Fiszman and Daniel Ferreyra. Rodriguez Dao, the CEO, previously worked at Kavak.com with its founding team across growth, data analytics, finance, marketing, sales, business development and IT, and independently imported wholesale products from China to Mexico.

Business model

Meru operates a B2B marketplace that intermediates between local and foreign manufacturers and Latin American retailers and SMEs, bundling product sourcing with end-to-end logistics (transport, importation, distribution and delivery), returns, 24-hour customer service and financing arranged through fintech partners. It works directly with quality-certified factories and states that it removes price asymmetries by connecting parties across the supply chain at discounted, wholesale prices.

The company sells wholesale goods sourced from Asian and local manufacturers to Latin American SMEs through its platform at what it describes as wholesale market prices, with logistics and financing services provided around the transaction.

Traction

By April 2021 the platform operated 17 goods categories covering about 1,000 products from roughly 100 factories in China. By December 2021 the company reported more than 10,000 registered users and seven product categories, revenue growth of 40-50% per month, and headcount growth from six employees in August 2020 to 210 across China and Mexico. Y Combinator's listing shows a team size of 70.

Latest developments

In December 2021 Meru announced a $15 million Series A co-led by Valor Capital Group and EMLES Ventures with participation from individual founder investors, bringing total funding to $17 million. The proceeds were earmarked for adding verticals and product categories, technology development and team scaling, and for broadening inventory, wholesale pricing, home delivery, returns, financing and 24-hour customer service for SMEs across Latin America.