SAO PAULO (Reuters) - Brazilian e-commerce solutions platform Olist has raised $23 million in fresh investment from Goldman Sachs and venture capital firm Redpoint eventures in its most recent round of funding, the SoftBank-backed company said on Thursday.
The proceeds will fund Olist’s expansion plans, including new hiring, acquisitions and expansion outside Brazil. This fourth funding round totaled $80 million.
CEO and founder Tiago Dalvi said Olist decided to expand the funding round, first announced in November, as faster-than-expected growth demands more capital.
Amid lockdowns to curb the spread of the novel coronavirus, more companies are turning to e-commerce.
“Olist services small and medium companies which are the ones who were the least prepared for digital sales when the pandemic started,” said Dalvi. He declined to disclose Olist’s valuation. It has 675 employees.
Goldman Sachs, which leads the $23 million financing and will appoint a board member, is investing in Olist through its old merchant banking unit, currently part of the bank’s asset management division. It also invests in payments fintech Iugu and oncologic services provider Oncoclinicas.
Besides Goldman, Redpoint and SoftBank, Olist’s investors include Valor Capital, Velt Partners, FJ Labs, Península Participacoes and software and consumer investor Kevin Efrusy.
Reporting by Carolina Mandl; Editing by Sam Holmes