In Latin American countries like Brazil and Chile, WhatsApp has emerged as one of the most popular platforms for online purchases, especially during the pandemic. However, as WhatsApp is primarily a messaging app, a startup named Mercately is stepping in to develop the back-end infrastructure necessary for brands to sell more effectively on the platform.
Mercately offers B2B software that equips brands with the tools needed to facilitate direct sales through WhatsApp. The software integrates with platforms like Stripe and HubSpot, utilizing AI agents to assist brands in communicating with customers, managing inventory, processing payments, and creating purchase orders, all within WhatsApp.
Henry Remache, Mercately’s co-founder and CEO, was inspired to start the company in 2021 when he noticed a client in Ecuador conducting 90% of its sales through WhatsApp instead of e-commerce websites like MercadoLibre. This revelation highlighted the importance of catering to existing consumer behaviors rather than trying to shift them to new platforms.
“In Latin America, it’s uncommon for small or medium-sized businesses to have dedicated websites; they conduct transactions via WhatsApp,” Remache said. “Consumers are already buying and interacting with family on WhatsApp. We are simplifying the process for these businesses to sell within the app.”
Building the startup came with its challenges, given the fragmented nature of the Latin American market, which has diverse currencies and shipping processes. Mercately launched in 2022 and now collaborates with over 1,000 companies in 20 countries. The company is profitable, boasting more than $1.5 million in annual revenue.
Remache shared that “Over the last two years, we’ve grown 3.5x year over year. This significant growth reflects how businesses are recognizing the need to adapt to consumer behavior rather than sticking with outdated methods like websites.”
Recently, Mercately secured a $2.6 million seed round led by Inventus Capital Partners and SVQuad, with additional investments from Techstars, Salkantay Ventures, and BuenTrip Ventures. This funding will help the startup enhance its AI capabilities and expand its presence in Brazil and the U.S., markets where it currently has a smaller footprint.
Fundraising posed some difficulties, particularly as there is limited investment capital in Latin America. However, being part of Techstars opened many opportunities for Mercately. In 2022, the company joined Meta’s “Future of Business Messaging Platform” program, which introduced them to key investors.
WhatsApp has become a fertile ground for startups innovating on its platform, especially in Latin America. Recently, Brazilian company Magie raised $4 million to enable financial transactions through WhatsApp, while Félix Pago secured $15.5 million for similar payment functionalities earlier this year.
Mercately is not alone in developing business solutions for WhatsApp. Companies like Infobip and Trengo, which focus on marketing, customer engagement, and communication, are also active in this space. These businesses, along with potential new entrants, could challenge Mercately’s market share if they expand their services. Moreover, WhatsApp’s parent company could introduce similar features directly.
Given that over 90% of internet users in Latin America use WhatsApp, the app’s integration into daily life is profound. Although WhatsApp adoption in the U.S. is lower, it is on the rise, and Remache aims to capitalize on this trend.
“I think of how Shopify streamlined web-based e-commerce in the U.S. We are doing the same for WhatsApp commerce in Latin America,” Remache concluded.
