Brazilian online retailer BelezaNaWeb has secured a US$30 million Series C investment from an unnamed New York-based private equity firm, according to a report published in Tech Crunch. The money will enable the web-based outlet to take on its competitors – Sephora and Natura – head to head, capturing a sizeable chunk of Brazil’s rapidly growing e-commerce business thanks to enhanced consumer experience and an expanded inventory of brands. Last, the company has plans to develop a range of own-label products.
Currently, Brazil’s e-commerce market is under-exploited, according to Tech Crunch, but is developing rapidly, posting 22 percent increase in the last year alone, with fashion and beauty transactions the driving force behind this growth. Despite the fact that Brazil is the third largest market in the world for beauty products, less than one percent of volume is currently sold online.
“The market leaders in Brazil own their distribution channels,” noted BelezaNaWeb CEO Alex Serodio. “It’s very hard to get products to people in Brazil. E-commerce is a way to get them.”
BelezaNaWeb sells over 200,000 units per month to 800,000 registered customers and has been growing 50-60 percent annually since 2013. The online retailer has taken inspiration from the hugely popular direct sales channel and harnessed the power of social recommendation with curated digital content including make-up tutorials and recommendations.