Mercador, the e-marketplace serving the Brazilian supermarket sector, said it expects 80% of the industry’s procurement requirements to be dealt with online within the next three years..
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The company is set to reach operational breakeven later this summer, and CEO Paulo Afonso Feijo said that revenues already cover 90% of operational costs. “Our advantage is that the conventional Internet company has fixed costs. Thus, as revenues grow, the chances are higher of surpassing operational costs,” Feijo said.
Mercador shifted 2bn reais (US$770m) last year, compared to 70bn reais for the supermarket industry as a whole. The company expects to grow rapidly as it currently serves just 2% of the potential market, Feijo said, adding that many companies are opting to migrate to Mercador’s platform instead of developing their own solutions in house.
