MuccaShop raises 5M USD from Private Investors

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After two years of bootstrapping, MuccaShop receives 5 million dollares from private investors. The investment will be dropped along 2 years within the company's cash flow and will be used to improve infrastructure, advertisement and new people will come on board to develop new projects.

MuccaShop
It is really hard to build brading in the internet. We don't spent in advertisement without being able to measure the precise return of investment.

After two years of bootstrapping, MuccaShop (see more) receives 5 million dollares from private investors. MuccaShop is a online stores aggregator, they call themselves the Shopping Mall of the Web. It was founded by four entrepenours, two of them had previous experience on the web with a real estate website, Imobox. A few months after selling 70% of their business to Apontador, one of the biggest geo location websites in Brazil, Luis and Carlos Fertonani, two brothers, used only a fraction of the money received on the deal to start MuccaShop.

After six months after the launch they already broke even since they were operating at very low cost. In the beggining, there was no office to avoid renting costs, and meetings with the four partners were held once a week at a caffe in Curitiba, mid size city in south of Brazil. They finally moved in to an office when things were growing and launched the new businesses Oferta do Dia (see more), which is a daily offer similar to Woot.com.

In the beggining of this year they alsolaunched a social network for books lovers called Orelha de Livro (see more). After 3 months after the launch, it has over 50k users.

The investment of 5 millions will be dropped along 2 years within the company's cash flow and will be used to improve infrastructure, advertisement and new people will come on board to develop new projects. The advertisement, according to Carlos Fertonani has been precisely measured and will continue like this. Every dollar spent must return at least one dollar in revenue in the short term. "It is really hard to build brading in the internet. We don't spent in advertisement without being able to measure the precise return of investment." says Fertonani.

The development of new projects is basically what has already been done since its start. "The only difference is that we will do things at a faster pace.". Fertonani claims to have a list of projects to develop, mainly new functionalities to improve the tools, both MuccaShop and Orelha de Livro.

The brazilian internet market is booming, but there is also a lot of competition. About a year ago there was a truly gold rush where over 2000 deal-of-the-day websites, Groupon copycats were created. One year later, only a few survived. Fourth biggest market in the world, Brazil is definitely a market full of oportunities, but not for everyone.

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Carlos Fertonani
Mucca Company Servicos de Internet Ltda
+55 41 9925-0673
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