In Latin American countries like Brazil and Chile, WhatsApp has emerged as a leading app for online purchases. Amidst the pandemic, it became the preferred ecommerce platform in the region. However, WhatsApp’s inherent design as a messaging platform doesn’t cater to e-commerce needs directly. Enter Mercately, a pioneering startup that’s crafting essential backend software to empower brands to sell effectively through WhatsApp.
Mercately offers a B2B software solution that establishes the necessary infrastructure for brands to engage in direct sales on WhatsApp. Featuring integrations with notable platforms such as Stripe and HubSpot, the software harnesses AI agents to streamline communication with customers, inventory checks, payment processing, and order creation, all without leaving the WhatsApp environment.
The concept for Mercately was born out of co-founder and CEO Henry Remache’s real-world observations in 2021. While working on software development for Latin American companies, he encountered an Ecuadorian client, a shoe retailer, who was conducting an astonishing 90% of its sales via WhatsApp. This revelation sparked the idea that instead of seeking new platforms, brands could maximize sales on existing channels where they already have a presence.
“Typically, small to medium-sized enterprises in Latin America do not maintain websites; all their business transactions occur on WhatsApp,” Remache explained. “This existing behavior among consumers and businesses alike facilitates our aim to simplify selling on the platform where the audience already engages.”
Developing Mercately posed its challenges, given the diverse currencies and logistical processes across Latin America. Despite these hurdles, the startup launched in 2022 and is now collaborating with over 1,000 companies across 20 countries, with Remache reporting profitability and over $1.5 million in annual revenue.
The company’s recent achievement includes securing a $2.6 million seed funding round led by Inventus Capital Partners and SVQuad, with contributions from Techstars, Salkantay Ventures, and BuenTrip Ventures. These funds are earmarked for expanding the team, particularly in AI development, to enhance their AI chatbots, with a focus on consolidating Mercately’s presence in existing markets like Brazil and the United States.
Despite the competitive landscape, with various startups developing business solutions on WhatsApp and major players like Infobip and Trengo offering marketing and customer engagement services, Mercately’s unique proposition places it at the forefront of the WhatsApp commerce movement in Latin America. Similarly, recent investments in the region reflect a growing interest in WhatsApp as a commerce hub, emphasizing the platform’s cultural significance and potential for further adoption in markets like the United States. Mercately is poised to lead the shift towards WhatsApp-centered commerce, mirroring Shopify’s success in simplifying web-based eCommerce in the U.S.