Merama's strategy is backed by J.P. Morgan with US$80 million financing

The LatAm unicorn reaffirms its house of brands strategy focused on consolidating profitable, autonomous business units with relevant synergies.

MEXICO CITY, MEXICO, April 25, 2024 /EINPresswire.com/ -- Merama, the LatAm unicorn operating and scaling e-commerce business, reiterates its house of brands strategy focused on business units, supported by an US$80 million financing from J.P. Morgan, through a five-year credit line.

The financing provided by J.P. Morgan, a leading global financial services firm, is backed by the company's strong results, audited by a Big 4. This credit line reinforces confidence in Merama's solidity and growth potential.

With this milestone, Merama strengthens its strategic vision focused on categorizing portfolio companies into profitable, autonomous and industry-leading business units, including wellness, beauty, home, babies and sports. This approach has enabled sustainable operational growth, achieving outstanding results in terms of sales and profitability.

In this regard, by the end of 2023, Merama recorded sales of over US$600 million, with an EBITDA of over US$100 million among its business units and an organic growth of more than 2 times that of the previous year. This remarkable performance was achieved without losing focus on cash flow generation initiatives. Moreover, this upward trend continues, with EBITDA for the first quarter of 2024 growing organically by more than 150% compared to the same period of the previous year.

The firm, with a presence in Latin America and headquartered in Mexico City and São Paulo, selected J.P. Morgan in a competitive process for debt financing based on various factors, such as its global stellar reputation, favorable terms offered, and alignment with long-term strategic objectives.

Expansion strategy and focus on business units.

The plans of the LatAm unicorn to maintain its low leverage ratios and solid balance sheet rely on prudent financial management and disciplined capital allocation. Merama plans to deploy debt financing strategically, prioritizing the refinancing of existing debt and high-growth opportunities aligned with its long-term goals.

"We are proud of the great moment we are experiencing and of having the support of a bank like J.P. Morgan. We plan to use the US$80 million to refinance existing debt and to continue driving the growth of our current brands, as well as maximizing their potential and consolidating them; we also remain open to the possibility of acquiring new brands that align with the categories we are focusing on, should strategic opportunities arise," emphasized Felipe Delgado, Co-founder, President, and CFO of Merama.

Merama's strategic vision has allowed it to create synergies among companies in its portfolio and to use economies of scale to accelerate organic growth. Each business unit operates independently within its niche, leveraging Merama's resources and expertise. This structure also allows each unit to maintain its unique identity and market presence.

"Since founding Merama, we have adopted a house of brands approach, allowing each business unit in our portfolio to maintain its unique identity and operational autonomy. This is based on an omnichannel strategy, which allows us to integrate various distribution and communication channels to provide a complete and competitive experience aligned with market needs," added Delgado.

Some examples of the brands it manages include Bebesit, Mundo In and Avera in Hispanic America and Oceane in Brazil, highlighting Merama's interest in cultivating and growing businesses in sectors with significant e-commerce growth potential.

Merama PR Team
Eureka&Co.
+52 55 5256 4225
merama@eurekandco.com
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