Inventa's Marcos Salama | Supplying Connections | Summary and Q&A

TL;DR

Inventa is a B2B Marketplace in Brazil focused on connecting small retailers with suppliers in Latin America. The company's CEO, Marcos Salama, discusses the founding story, challenges, and growth of Inventa.

Key Insights

• 🌎 Inventa focuses on solving the problems of discoverability, access to credit, and optimizing logistics for small retailers in Latin America.
• 💨 The company emphasizes fast execution, putting the customer first, and iterating based on customer feedback.
• 🪛 Inventa's growth has been driven by supply onboarding and incentivizing suppliers to bring retailers to the platform.
• 🛩️ The marketplace focuses on categories with incremental sales potential and brings value to the system by connecting smaller suppliers and retailers.
• 👻 Data science is a critical asset for Inventa, allowing the platform to provide better recommendations and credit solutions.
• 😤 Building a strong team with a combination of local talent and experienced executives is crucial for success in Latin America.
• 🔺 B2B marketplaces have the potential to revolutionize trade in Latin America and solve key pain points for small entrepreneurs.
• ✋ By focusing on categories with high discoverability and fragmented supply chains, B2B marketplaces can add significant value to the ecosystem.

Transcript

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Questions & Answers

Q: What inspired Marcos Salama to start Inventa?

Marcos comes from a family of entrepreneurs and had a dream to start a business that would have a significant impact. His experiences traveling to different parts of the world, including Asia and Europe, made him realize that many things happening in the US were not happening in Latin America, creating an opportunity to solve unique problems.

Q: How did Marcos Salama bring his learnings from Rappy to Inventa?

Marcos learned valuable lessons about prioritizing the customer, executing quickly, and experimenting from his time at Rappy. The culture of putting the customer first and having an obsessive and relentless speed of execution was something he wanted to bring to Inventa.

Q: What problems does Inventa aim to solve for small retailers in Latin America?

Inventa focuses on solving the problems of discoverability, access to credit, and optimizing logistics for small retailers. Many small retailers struggle to discover new products, negotiate prices, and find efficient logistics solutions. Inventa aims to provide a digital platform that addresses these challenges.

Q: How does Inventa approach growth and ensuring a healthy marketplace dynamic?

Inventa initially focused on supply-driven acquisition, closing contracts with numerous suppliers to bring inventory to the marketplace. The company incentivizes suppliers to bring retailers to the platform, creating a referral loop and increasing the number of brands retailers discover. The key metrics of growth include the number of brands retailers buy and the number of new connections made with suppliers.

Summary

In this video, Greylock partner Mike speaks with Marcos Salama, CEO of inventa, about the founding story behind the leading B2B Marketplace in Brazil and the broader vision for the company. They discuss the challenges and opportunities of building a high-growth startup in Latin America and share insights on B2B marketplaces and the importance of data science in driving growth. Marcos also offers advice for founders looking to build teams in Latin America and discusses the roles inventa is currently recruiting for.

Questions & Answers

Q: What is the founding story behind inventa and its broader vision?

Marcos comes from a family of entrepreneurs and always had the dream to start a business and have an impact. After living in different parts of the world, he noticed that many things that were happening in the US were not happening in Latin America. With a desire to help millions of entrepreneurs thrive, Marcos and his co-founder set up inventa to connect small retailers with suppliers in Latin America and create a B2B marketplace.

Q: How did Marcos bring insights and operating disciplines from his time at rappy to inventa?

Marcos learned a lot at rappy about putting the customer first, executing at a fast pace, and having a clear sense of mission. He brought these principles to inventa, where they built a culture around fast execution and prioritizing the needs of the customer. The speed of execution allowed them to learn quickly from their mistakes and make corrections, ultimately leading to success.

Q: What were some of the challenges in building a company in Latin America?

Latin America presented unique challenges, including a lack of access to credit, fragmented logistics infrastructure, and many retailers still operating with pen and paper. These challenges required inventa to solve multiple problems around credit, logistics, and digitalization. However, the opportunity in Latin America was larger due to a larger portion of the economy being represented by small retailers.

Q: How do local retailers in Latin America currently discover and buy products?

Local retailers in Latin America have limited options for discovering and buying products. They can attend fairs or rely on distributors and sales reps for product options. However, these methods offer limited discoverability and often require upfront payment. inventa aims to solve this problem by providing retailers with a digital platform that offers a wide range of products, credit options, and optimized logistics.

Q: How does inventa work with the dynamic of higher volume, lower margin products?

While inventa deals with higher volumes of lower margin products, the value they generate as a marketplace is incremental. By connecting smaller suppliers with smaller retailers and offering better operations and customer service, inventa creates value for both sides. The focus is on increasing the number of brands that retailers discover and buy, which results in incremental sales and a healthier marketplace.

Q: How did inventa approach growth and build initial liquidity in its marketplace?

inventa focused on supply-driven growth in the early days by aggressively closing contracts with suppliers and building a strong sales team. They used a referral loop where suppliers were incentivized to bring in their retailers to the platform, which helped them understand customer needs and onboard more retailers. This supply-driven acquisition strategy allowed inventa to acquire a high quantity and quality of retailers.

Q: How does inventa assess the health of its growth?

inventa assesses the health of its growth by monitoring the number of brands retailers are buying and discovering. The more brands retailers buy and discover, the more incremental value the marketplace is providing. They also track the number of new connections made with suppliers and the percentage of products that sell within 90 days. Both perspectives help evaluate the growth and quality of the marketplace.

Q: How does inventa navigate the tension between depth in certain categories and being cross-category?

inventa initially focused on specific categories like home decor, cosmetics, and jewelry. However, they realized that cosmetics was growing faster and narrowed their focus to serve specific personas of retailers within the cosmetics category. This allowed them to build critical mass and launch subcategories seamlessly to serve existing retailers. They believe in going deep into categories where they can add value while leveraging retailer signals to decide on new categories.

Q: What is the broader point of view on B2B marketplaces outside of inventa?

B2B marketplaces have the potential to thrive in Latin America, where B2B trade is relatively low compared to the US and Europe. The key is to focus on categories that offer more discoverability, have smaller brands, and require retailers to constantly try new products. The opportunity lies in solving the discoverability and operational challenges faced by small retailers, and building a data-driven solution can create a significant competitive advantage.

Q: How critical is data science in building a successful B2B marketplace?

Data is crucial in building a successful B2B marketplace because it allows for better recommendations, credit offerings, and operational optimization. Many small retailers have limited data and rely on outdated methods for running their businesses. By providing them with access to data and insights, B2B marketplaces can solve significant pain points and add value. Founders building B2B marketplaces should prioritize gathering and understanding data as a core capability.

Q: What advice does Marcos have for founders looking to build teams in Latin America?

Marcos suggests a combination of local and international talent. While local talent is strong in mid-level and junior positions, it can be beneficial to bring in senior executives from across the world who have expertise and can lead specific functions. Building a multicultural, multilingual team focused on hyper-growth execution and an ambition to make a meaningful impact is key. Remote work has been a blessing for inventa, allowing them to hire talent they couldn't access otherwise.

Takeaways

Inventa is a leading B2B Marketplace in Brazil focused on connecting small retailers with suppliers in Latin America. Marcos Salama, the CEO, shares insights on building a high-growth startup in Latin America and the challenges and opportunities of B2B marketplaces. He emphasizes the importance of data science in driving growth and recommends that founders prioritize data as a core capability. Marcos also highlights the need for a strong team and suggests a combination of local and international talent. Inventa is currently recruiting for roles in product, data, and technology. Overall, B2B marketplaces have great potential in Latin America, and focusing on categories with high discoverability and operational challenges can lead to success.

Summary & Key Takeaways

• Inventa is the leading B2B Marketplace in Brazil, connecting small retailers with suppliers in Latin America.

• Marcos Salama, the CEO of Inventa, explains the founding story and vision behind the company, aiming to help millions of entrepreneurs thrive.

• The company emphasizes fast execution, putting the customer first, and iterating based on customer feedback.

• Inventa focuses on solving the problems of discoverability, access to credit, and optimizing logistics for small retailers.

• The marketplace operates in categories such as home decor, cosmetics, and jewelry, with a focus on incremental sales and bringing value to the system.