Trela Grabs $25 Million Series-A Investment from SoftBank

Trela, which organizes collective purchase between neighbors through WhatsApp, grabs $25 million Series-A from SoftBank Latin American Fund.

Trela, a startup born in the pandemic which organizes group purchases between neighbors through WhatsApp groups, grabs Series-A $25 million in investment from Softbank.

The round was joined by Kaszek, General Catalyst, Y Combinator and Pierpaolo Barbieri, the influential Argentine economic historian who founded the unicorn Ualá, a kind of porteño Nubank. Trela grabs this Series-A with a valuation of US$ 125 million. A year ago, Trela had already raised BRL $16 million in early seed investment.

The startup was founded in 2020 by Guilherme Nazareth (CEO), João Jonk and Guilherme Alvarenga. The model came about when Alvarenga noticed in his building in Greater Belo Horizonte residents were organizing on WhatsApp to get a discount from suppliers.

Prices on average are 25% lower

To use Trela you need to live in a close gated community ou residential community buildings with at least 60 people. When 25 residents organize to participate, the startup creates a WhatsApp group and sends three to four product offers per week. The focus is on food and privileges premium products from small and medium-sized suppliers. Among the recurring items in the promotions are high-end products such as barbecue meats, seafood and wine.

According to Nazareth prices are on average 25% lower than those in the supermarket, and shipping is always free. But the sale is only closed when a minimum number of residents agree to buy the product.

For now, Trela only operates in the metropolitan area of the city of Belo Horizonte, where it was founded, and São Paulo. According to the company’s CEO, the investment will allow Trela to expand coverage to at least three other major cities in Brazil this year and increase the team from 33 people to more than 80. As Trela grabs its Series-A investment, another objective is also to boost logistics operation.

The Esquires and the Firms Behind the Deal

TozziniFreire Advogados acted as Brazilian legal counsel to Softbank and the Investors on Trela’s Series-A investment with a team led by partners João Busin and Beatriz Seixas with contribution from senior associate Victor Farias Françoso and associates Luis Felipe Bueno Sima and Barbara Queiroz.

The IFRL1000 and Legal 500 accredited partner João Busin is head of the Private Equity & Venture Capital practice group of TozziniFreire and together with Juliana Maluf are based in the São Paulo headquarters of the firm, and are regarded as renowned specialists in the M&A Venture Capital and emerging growth technology companies spaces.

The Latin America Chambers 2022 TozziniFreire is a full service law firm and one of the most traditional firms of Brazil with headquarters in São Paulo and offices in Rio de Janeiro, Brasilia, Campinas, Porto Alegre, Caxias do Sul and New York. 

Morrison Foerster acted as U.S. counsel to Softbank with partner Juan Delgado leading the firm’s transaction team and with contribution from associate Axel Miranda. The firm has its headquarters in San Francisco servicing its clients from 15 offices in the U.S and around the world.

Melo Campos Advogados acted as Brazilian legal counsel to Trela. The firm’s transaction team was led by partner Julia Molinari (picture left) with contribution from senior associate Winnie Simões.

Nelson Mullins Riley & Scarborough acted as U.S. legal counsel to the Investors, with partner Leandro Molina leading the firm’s deal team.