Merama – a holding company for digitally native brands in Latin America – has just announced that it has raised US$80 million in five-year debt from JP Morgan.
CEO and co-founder Felipe Delgado told Brazil Journal that the resources will be used to refinance existing debt and maximize organic growth. Merama is also eyeing some M&A opportunities.
The company did not disclose the conditions of the loan or the guarantees given.
The Merama was founded in 2021 by Mexicans Delgado and Sujay Tyle and Brazilians Renato Andrade and Guilherme Nosralla to be a consolidator of digital native brands – known as DNVBs.
The thesis soon attracted the interest of large funds. In his debut year, the company raised US$445 million in Series A and B with names like Softbank, Advent, Globo Ventures, Monashees and Valor Capital. In December 2021, Merama reached a valuation of US$1.2 billion.
Last year, the company had revenues of US$600 million across its entire portfolio of brands, and had an EBITDA of US$100 million, according to Delgado. In the first quarter of this year, EBITDA was 150% higher than in the same period last year, said the executive without revealing the values.
In Mexico, the company has brands such as Bebesit (for baby items), Mundo In (for office furniture) and Avera (for household appliances). In Brazil, the company has Océane, a beauty and hygiene brand.
The credit line with JP Morgan is the first investment in the company since 2021 and comes at a time of reduced liquidity for startups. Delgado said the company will not need more capital in the near future.
“We have enough resources to continue on this growth trajectory and we are profitable,” he said.
But JP Morgan is really keeping an eye on Merama’s IPO. A source familiar with the transaction says the credit grant is part of an effort by JP Morgan to secure IPO mandates for startups.
Last year, taking advantage of the collapse of Silicon Valley Bank, the American bank hired a series of bankers to serve startups.
“There are a number of startups from large funds that are ‘IPO ready’ and JP Morgan is in talks,” this source said.
André Jankavski
