Big ideas from the conversation with Thibaud Lecuyer, CEO at ~$2B logistics unicorn Loggi: how to turnaround a billion dollar tech business and why global investors should invest in Brazil 🇧🇷💸

In the United States, same-day and next day deliveries (think Amazon Prime) have become the golden standard in e-commerce. Amazon generated $40.2 billion in revenue through Prime membership in 2023. The number of Amazon Prime members in the United States is predicted to reach 171.8 million in 2024, roughly 50% of the U.S. population 🤯 All of this to say that people want convenience and instant gratification. And not only in the US 👇🏻

Brazil’s last mile delivery market is rapidly growing (CAGR of 12.81% between 2022 and 2027, with the market size forecast to increase by USD 2,837.69 million). The growth is fueled by the surge in e-commerce (we are looking at ~16% compound annual industry rate over the past few years) and changing consumer expectations for faster and more convenient deliveries.

Major e-commerce players like Mercado Libre have followed Amazon Prime example and launched same-day delivery networks, spurring consumer expectations for faster deliveries and driving investment in the last mile delivery sector. 

VC funding flowing into the sector though is highly concentrated. Sao Paulo-based Loggi accounts for ~60% of last-mile VC investment in whole Latin America. The company pulled in $205 million in their latest funding round, giving them a valuation of almost $2 billion. With this massive cash boost, Loggi has a big edge in a fragmented market full of small, informal players still managing deliveries with spreadsheets or pen and paper 👀. Today, Loggi has ~4% market share of Brazil's market, leaving plenty of room to grow both locally and across Latin America. It’s a tough road ahead, but it's pretty exciting!

So exciting that I jumped on the opportunity to record an episode with Thibaud Lecuyer, CEO at Loggi who took the reins from founder Fabien Mendez in 2022 and completely turned this multibillion-dollar company around, reaching EBITDA-positive in just 18 months. Prior to that Thibaud founded Brazilian e-commerce company Dafiti, probably the most well-funded startup in Brazil of its time and we are talking 2012 🚀

Thibaud's entrepreneurial journey is truly remarkable, especially considering that he spent the first part of his career in traditional finance in Europe. Here are five big ideas from our conversation 👇🏻

1️⃣ Investment success in Brazil requires patience

It's a market that offers outsized returns if you take a long-term view, similar to buying property rather than investing in REIT

2️⃣ Adapting and growing in economic uncertainty requires strategic prioritization and cost control culture
Prioritize one clear goal to align the team around-like shifting from negative to positive EBITDA—and communicate it in terms everyone can grasp. Foster a mindset where every employee monitors spending closely, ensuring each expenditure is aligned with business goals

3️⃣ Entrepreneurs in Brazil possess strong competitive advantages compared to their developed markets counterparts such as adaptability and resilience
They are adept at navigating unpredictable regulatory environments, economic instability, and resource constraints. They often find creative, cost-effective solutions that enable them to pivot swiftly and thrive amid adversity

4️⃣ Tech-driven differentiation is the way to compete a commoditized market
Loggi's competitive advantage lies in leveraging advanced technologies like ML for delivery route optimization and anomaly detection in pricing and costs. By offering proactive planning and reliable service, the company establishes stable partnerships with clients and differentiates itself in a crowded logistics market, ensuring consistent growth in both customer satisfaction and profitability

5️⃣ Use the 5 Whys technique to evaluate the root cause of an issue, or explore new business opportunities
If the project doesn’t pass the 5 whys exercise, maybe it’s not something you want to push forward

Thibaud’s book recommendation is Working Backwards: Insights, Stories, and Secrets from Inside Amazon by Colin Bryar and Bill Carr

You can watch the full interview with Thibaud on Youtube 👀👇🏻

Or listen / watch the episode on Spotify 🎧

On another note, we've just dropped an awesome episode with Andre Florence and Gui Azevedo, co-founders of one of Latin America's biggest health techs, Alice! We dive deep into why Brazil's $200B healthcare market is broken and how to fix it, plus how to build long-term partnerships in a startup while handling market volatility. Don't miss out—it's a fascinating story! Check it out!

You can watch the full interview with them on Youtube 👀👇🏻

Or listen / watch the episode on Spotify 🎧

Thanks for reading,

Olga