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Tuna raises $3M to deal with complexity of e-commerce funds in Latin America

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Tuna is on a mission to “fantastic tune” the funds area in Latin America and has raised two seed rounds totaling $3 million, led by Canary and by Atlantico.

Alex Tabor, Paul Ascher and Juan Pascual met one another on the engineering crew of Peixe Urbano, an organization Tabor co-founded and he known as a “Groupon for Brazil.” Whereas there, they got here up with a method to make use of A/B testing to create a method of coping with funds in several markets.

They finally left Peixe Urbano and began Tuna in 2019 to make their very own fee product which permits retailers to make use of A/B testing of bank card processors and anti-fraud suppliers to optimize their funds processing with one integration and a no-code interface.

Tabor defined that the e-commerce panorama in Latin America was consolidated, which means few banks managed extra of the market. The tackle verification system retailers use to confirm a purchaser is who they are saying they’re, entails sending info to a financial institution that’s returned to the service provider with a rating of whether or not that match is legit.

“Within the U.S., that rating is used to find out if the purchaser is legit, however they didn’t implement that in Latin America,” he added. “As an alternative, retailers in Latam need to faucet into different organizations which have that information.”

That course of entails handbook evaluation and fixed adjusting on account of fraud. As an alternative, Tuna’s A/B checks between processors and anti-fraud suppliers in actual time and offers a assure {that a} resolution to swap suppliers relies on goal information that considers all parts of efficiency, like approval charges, and never simply charges.

Over the previous yr, the corporate added 12 clients and noticed its income improve 15%. It boasts a buyer record that features the massive Brazilian trend chain Riachuelo, and its platform integrates with others together with VTEX, Magento and WooCommerce.

The share of e-commerce in total retail is lower than 10 % in Latin America. Marcos Toledo, Canary’s managing companion, mentioned by way of e-mail that e-commerce in Latam is at the moment at an inflexion level: not solely has the worldwide pandemic pushed extra on-line purchases, but in addition fintech innovation that has occurred lately.

In Brazil alone, e-commerce gross sales grew 73.88% in 2020, however Toledo mentioned there was a lot room for enchancment. What Tuna is constructing will assist corporations navigate the state of affairs and make it simpler for extra clients to purchase on-line.

Toledo met the Tuna crew from his companion, Julio Vasconcellos, who was one of many co-founders of Peixe Urbano. When the agency heard that the opposite Tuna co-founders had been beginning a enterprise that was making use of among the optimization strategies they’d created at Peixe Urbano, however for each firm, they noticed it as a chance to become involved.

“The huge tech experience that Alex, Paul and Juan carry to a really technical enterprise is one thing that we actually admire, in addition to their imaginative and prescient to create an answer that may affect corporations all through Latin America,” Toledo mentioned. “The no-code answer that Tuna is constructing is thrilling as a result of it’s scalable and may also help corporations not solely get higher margins, but in addition drive their builders to different efforts — and builders have been a really scarce workforce within the area.”

To fulfill demand for an e-commerce trade that surpassed $200 billion in 2020, Tuna plans to make use of the brand new funding to construct out its crew and develop outbound buyer success and R&D, Tabor mentioned.

Up subsequent, he needs to have the ability to present traction in funds optimization and facilitators in Brazil earlier than shifting on to different international locations. He has recognized Mexico, Colombia and Argentina as potential new markets.

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