Ame Digital, a fintech controlled by B2W Digital and Lojas Americanas, acquired the Rio de Janeiro-based sustainable delivery startup Pedala. The acquisition of the startup is part of Lojas Americanas' logistics plans. In addition to NESsT, Pedala’s investors include BMG UpTech, a corporate venture business group, and Bossa Nova Investimentos. Pedala will gradually exit the NESsT program over the course of 2020.
From day one of our collaboration, Pedala proved its commitment to offering reliable and high-quality jobs to youth from low-income communities in Rio de Janeiro. The deliveries offered by Pedala are made by professional cyclists. Because they are on a bicycle, they are able to fulfill orders placed on the same day, or at most the next day.
In Brazil, people who lack higher-education degrees face difficulties securing flexible full-time employment opportunities that pay a livable wage. This leads them to pick up several low-paid, part-time jobs to cover their survival costs. Pedala proved its commitment to hiring the most marginalized communities, including youth that were previously incarcerated, and helping them to access professional working experience and benefits, while also improving their health. Not only does Pedala provide quality jobs, but in 2019, it also avoided 85 tons of CO2 emissions through its bicycle delivery model.
Since December 2017, NESsT has been supporting Pedala with financing that enabled the replication of the company to new neighborhoods such as Barra de Tijuca and the expansion of its headquarters in Botafogo. Renata Truzzi, Country Director of Brazil, worked regularly with Alexandre Messina and Vinicius da Justa, Co-Founders of Pedala, providing business advisory services that supported the company’s growth by advising the founders and general managers on strategic decisions during the two years of incubation.
“It’s a sensational event for the sector. It’s very uncommon to see a social enterprise acquired by a strategic buyer. This demonstrates that social enterprises can not only deliver on impact but can also operate as efficient businesses that deliver at scale.”
Pedala disrupts the delivery service industry in Rio de Janeiro
NESsT and Pedala worked hand-in-hand to update the enterprise’s operations, HR, marketing, and impact measurement as it continued to increase its hiring eventually employing 175 part-time and full-time bicycle couriers in 2019 from low-income neighborhoods.
During this time, Pedala pivoted its business model from a document delivery service to e-commerce, and also modified its hiring practices. NESsT supported the company in implementing these changes while also preserving its social values.
For example, upon modifying its hiring practices, NESsT advocated for employee contracts and verified the impact that these changes had on worker satisfaction through its Dignified Employment Surveys, interviews conducted annually across 10% of the workforce of all portfolio companies.
This partnership was made possible as a result of the financial and strategic support of the Trafigura Foundation. Since 2017, the Trafigura Foundation has supported a portfolio of companies in Brazil, among them Pedala, in order to increase the sustainability of key industries, such as mobility and fisheries.
“Pedala’s acquisition is an exceptional success. It demonstrates that when social ventures receive the right support and necessary seed-funding they can become a real force for good, with viable and innovative economic models being not an end per se but means to exponentially increase social impact. Congratulations to NESsT too for the awesome incubation support that contributed to make this possible.”
Investing in and scaling sustainable solutions
Pedala offers low-cost, on-time delivery services, in addition to transportation with zero carbon dioxide emissions, the main gas responsible for the greenhouse effect. At the end of each month, the startup offers a report on the amount of polluting gases its customers have stopped emitting when using its sustainable delivery services.
According to BMB UpTech CEO Rodolfo Santos, the sale of Pedala is a confirmation of the good work being done by sustainability-oriented players such as Pedala.
“Achieving an exit is important for everyone involved. It is an opportunity for the startup to scale, develop further and reach new markets. In addition, of course, the financial return to the founders of the business and to the investors who supported the project.”
Vinicius da Justa and Alexandre Messina, Co-Founders of Pedala meet with Renata Truzzi, Country Director at NESsT.
“NESsT was incredibly important in this journey to get to where we are today. It is just the beginning of this social impact dream of improving people’s lives by making eco-deliveries in high dense cities around Brazil and the world the new norm.”