Favo, a Brazilian social commerce platform, raised a $26.5M Series A funding round led by Tiger Global. Existing investors GFC, Elevar Equity, FJ Labs, H20 Capital, Kevin Efrusy, and David Velez also contributed to the round.
Favo is a supermarket shopping community that connects local entrepreneurs and neighbors. The platform allows underemployed entrepreneurs to create new income streams through sales from their own local grocery networks.
Customers order groceries through the Favo app and the logistics system then delivers orders in bulk to the entrepreneur the next day for the last-mile delivery.
“We are creating a new class of entrepreneurs,” said Alejandro Ponce. “We empower unemployed people, mainly moms, with technology and logistics to become owners and generate extra income for their household.”
The platform is adding an element of trust to online grocery shopping by giving it a human face, which Ponce says customers really value.
Favo launched in 2020 in Peru and then Brazil. The new funding will enable further expansion in Brazil and launch into Mexico. The founders are expecting to reach 20 cities in the next few months.
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