Latin America’s Cross-Border Sales Soar 44% in 2022
In a significant development for the cross-border e-commerce space, Nocnoc has raised $14 million in Series A funding led by PayPal Ventures. This brings the company’s total venture-backed funding to $22 million. Founded in 2018 by Ilan Bajarlia, Joaquin Colella, and Diego Szilagyi, Nocnoc aims to connect Latin American merchants with global sellers through its platform.
A Growing Market
The cross-border e-commerce market is experiencing significant growth, with Latin America’s sales growing 44% in 2022. The market is valued at $382 billion and is expected to grow annually by 25% through 2025, according to Americas Market Intelligence.
"The market is shifting towards cross-border e-commerce," said Ilan Bajarlia, CEO of Nocnoc. "People are keen to buy products that they can’t find in their local markets, so global marketplaces have been growing their share in Latin America."
How Nocnoc Works
Nocnoc’s platform allows online merchants to upload their product catalog and start selling on various marketplaces, including Amazon, Mercado Libre, Americanas, Carrefour, Walmart, Magazine Luiza, and Coppel. The company manages product listings across all marketplaces, creates marketing campaigns for products, and handles communication with consumers, delivery logistics, cancellations, and returns.
Innovative Payment Solution
Nocnoc has introduced a unique payment solution that pays sellers every 15 days in their local currency, even if the product hasn’t been delivered yet. This is compared to the typical 40-50 day waiting period for sellers to collect payment.
"The current payment process can take up to 50 days," said Bajarlia. "We pay our sellers every 15 days, which helps them get paid faster and reduces the risk of non-payment."
Growing Success
Nocnoc has seen significant growth in the past year, with gross merchandise volume growing three times amid the addition of seven new marketplaces and expansion into Mexico, Colombia, and Chile. The company has introduced over 180,000 exclusive products from more than 1,200 international sellers.
"We’ve become the largest cross-border store in Latin America," said Bajarlia.
Future Plans
The new funding will be used to help Nocnoc’s business and customers grow and expand into Latin America. The company plans to introduce additional fulfillment centers and an "Advanced Payments" product that pays sellers even faster, within three to five days, with cancellations and returns covered.
"We’ve been growing a lot in diversifying our consumer offer," said Bajarlia. "We’ve improved our technology to understand what products are best-selling in Latin America, supply and demand, elasticity of each product, and new categories we can introduce."
Impact on the Industry
Nocnoc’s innovative approach has caught the attention of investors and industry experts.
"The new funding will help Nocnoc further establish itself as a leader in cross-border e-commerce," said an industry expert. "The company’s focus on innovation and customer satisfaction is paying off, and we expect to see significant growth in the coming years."
Conclusion
Nocnoc’s success in raising $14 million in Series A funding is a testament to its innovative approach to cross-border e-commerce. With its growing market share and expanding product offerings, Nocnoc is well-positioned to become a leading player in the industry.
As the demand for cross-border e-commerce continues to grow, companies like Nocnoc are poised to capitalize on this trend and bring new opportunities to merchants and consumers alike.
