In Latin America, WhatsApp has become an integral part of people’s lives. The messaging platform is not only used for personal conversations but also for buying and selling goods online. However, despite its popularity, WhatsApp was never designed as a full-fledged e-commerce platform. This is where Mercately comes in – a startup that aims to change the way businesses sell on WhatsApp.
The Problem with WhatsApp’s E-commerce Capabilities
While WhatsApp has become an essential tool for many Latin Americans, its limitations as an e-commerce platform are evident. For instance, it lacks features like inventory management, payment processing, and order tracking – all of which are crucial for businesses to operate efficiently. As a result, entrepreneurs have had to rely on third-party platforms or create their own infrastructure, which can be time-consuming and costly.
Enter Mercately: Simplifying WhatsApp Commerce
Mercately is a B2B software that addresses these limitations by providing brands with the necessary tools to sell directly on WhatsApp. The company integrates with popular payment gateways like Stripe and HubSpot, allowing businesses to check inventory levels, take payments, and create purchase orders without leaving the messaging app.
The Idea Behind Mercately
Mercately’s co-founder and CEO, Henry Remache, shares the story behind the startup’s inception. While working on software development projects in Latin America, he stumbled upon a client in Ecuador who was using WhatsApp to sell shoes through MercadoLibre – an e-commerce giant in the region. What struck Remache was that 90% of this client’s sales were happening on WhatsApp, not on their website.
"The lightbulb moment was when I realized that brands shouldn’t be trying to launch platforms elsewhere; they should try to sell more where they already are," Remache explained in an interview. "It is fairly unusual for a small or medium company [in LatAm] to have a website; they do all the transactions on WhatsApp."
Mercately’s Growth and Funding
Since its launch in 2022, Mercately has grown significantly, with over 1,000 companies across 20 different countries using its platform. The startup is profitable, having surpassed $1.5 million in annual revenue. Remache attributes the growth to the company’s ability to adapt to consumer behavior and simplify WhatsApp commerce for businesses.
"Over the past year, we’ve seen an explosion of interest from merchants who want to tap into the vast potential of WhatsApp," said Remache. "I just think about how Shopify simplified web-based e-commerce in the U.S. We are simplifying WhatsApp commerce in LatAm."
In January 2023, Mercately secured a significant funding round to further accelerate its growth plans.
The Future of E-commerce on WhatsApp
As more businesses adopt Mercately’s platform, it will be interesting to see how the startup continues to innovate and expand its offerings. With WhatsApp’s massive user base in Latin America, there is tremendous potential for e-commerce growth in the region.
"We’re not just simplifying commerce on WhatsApp – we’re unlocking new revenue streams for merchants and enabling them to reach their customers more efficiently," Remache said. "The possibilities are endless, and we’re excited to be at the forefront of this revolution."
As Mercately continues to make waves in the e-commerce landscape, it will be exciting to see how other startups and established players respond to its innovative approach.
What’s Next for Mercately?
In an interview with TechCrunch, Remache shared some insights on what’s next for Mercately:
"We’re working closely with WhatsApp to integrate our platform even deeper into their ecosystem. Our goal is to become the go-to solution for merchants who want to sell on WhatsApp."
Mercately also plans to expand its services beyond Latin America, targeting other regions where WhatsApp has a strong presence.
Conclusion
With Mercately’s pioneering approach to simplifying e-commerce on WhatsApp, we can expect to see significant growth and innovation in the region. As more businesses adopt the platform, it will be fascinating to watch how this startup continues to shape the future of e-commerce.
Stay tuned for further updates from TechCrunch on this exciting development!
Subscribe to our newsletter to stay informed about the latest news, trends, and insights from the world of startups and venture capital.
