In the rapidly digitizing Latin American retail landscape, Brazil-based Praso is not only emerging as a player but as a market disruptor. While many companies are focusing on consumer-level fulfillment, Praso is taking an alternative route by offering B2B fulfillment solutions specifically for small food service retailers. This is a critical sector that has been historically overlooked, with distribution largely offline and manual. This strategic focus, coupled with savvy business decisions, has positioned Praso for unprecedented growth, attracting interest from key investors and industry innovators.
A Unique Business Model
Praso originally functioned by purchasing products from supply partners and reselling them to small-scale businesses like bars, restaurants, cafés, and bakeries. However, in a bold strategic shift, the company is transitioning away from holding inventory to providing fulfillment services. The results are striking: 120 supply partners and 7,500 merchants now form part of Praso's network.
Explosive Growth and Financial Milestones
This pivot has propelled Praso's revenue to increase sevenfold, and the company is on track to triple its growth by the end of this year. Notably, Praso has achieved contribution profit positivity, meaning it generates a profit on every order it delivers—an excellent indicator for potential investors and partners eyeing profitability and scalability in a venture.
Series A Funding and Acquisition
Further validating its strategy, Praso recently secured $9.3 million in Series A funding, co-led by Valor Capital Group and NFX. The round also featured participation from existing investors like Base Partners, Formus Capital, Iporanga Ventures, and Endeavor Scale-Up. To date, Praso has amassed $14.5 million in total funding.
Simultaneously, Praso announced its acquisition of intellectual property from Floki, a technology company specializing in AI-driven purchasing for small bars and restaurants. The specific terms remain undisclosed, but the acquisition will infuse Praso’s offering with cutting-edge data intelligence.
With the injection of fresh capital, Praso is poised to broaden its logistics network within the four metro areas it currently operates. It also plans to integrate Floki’s advanced data intelligence into its existing customer portfolio services, such as accounts payable management and inventory management. Moreover, Praso is developing a credit offering aimed at further empowering its network of merchants.
Praso's unique focus on the B2B food service distribution sector, often overlooked in the mad dash to digitize consumer services, places it in a category of its own. Its bold moves have paid off in robust financials and attracted leading investors. With a visionary approach and a growing arsenal of technological capabilities, Praso is set to revolutionize the food service distribution landscape in Brazil and perhaps even beyond.
For investors, founders, and corporations looking to innovate within foodtech, agtech, and climate tech, Praso offers a compelling case study in seizing underexploited opportunities, leveraging technological integration, and scaling rapidly while maintaining profitability.