Brazilian startups have been raking in the cash in 2012. The year’s first semester boasted big results in terms of funding and financing, with our sources reporting at least 25 investment deals involving major players like Riverwood Capital and Peixe Urbano. Most recently, we reported Baby.com.br’s closing of a second-round investment of US$16.7 million. And today, we’ve caught wind of more funds headed Brazil’s way.
Building, construction and finishing e-commerce platform MadeiraMadeira recently closed its first investment round, having received capital from Monashees Capital, Kaszek Ventures and Flybridge Capital Partners.
MadeiraMadeira follows a business model for construction and building materials popular in the United States and Europe, being something like the Brazilian cousin of Build.com. The platform currently features about 25,000 products and a 35% repeat purchase rate. Over the next three years, MadeiraMadeira’s executive team plans to expand the company’s product offer to 500,000.
There is a lot to be gained in the construction materials industry in Brazil, which has an estimated value of about US$22 million for 2012. With the booming real estate industry and growing economy overall, building and construction is an area that will take off quite a bit over the next five years. The Brazilian infrastructure sector is estimated to receive US$1.2 trillion in investments by 2013, and while the majority of these funds will go to large-scale projects, they are bound to have an influence on the private construction and building arena in which MadeiraMadeira is situated.
Founded in 2009, MadeiraMadeira is well on its way to gaining more clout in Brazilian e-commerce. This round of funds will be used for making interface adjustments and improving relationships with users. As 35% of the purchases made on MadeiraMadeira come from returning visitors, developing strong ties with customers is essential.
Another important vote of confidence for the company? Backing from two leaders of online construction materials companies in the U.S. – Niraj Shah, founder of Wayfair, and Christian Friedland of Build.com.
Like most areas of e-commerce in Brazil, that of construction and building materials has a long way to go. With this investment round closed, MadeiraMadeira will likely have a hand forging the sector forward.