Mercado Quarterly Update: Q2 2021

An amazing quarter for the world's first online importing platform

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An overview of the quarter

Despite a turbulent quarter for importers globally, Mercado has seen an increase in activity across the second quarter. From sponsored events to closed deals to awards, we have hit numerous milestones throughout the first half of this year.

New business

The addition of 2 new accounts with a combined ARR of $175K, bringing our total ARR to almost $1MM.

Product development

Extensive and revolutionary product roadmap development.

New product launch

Our new Mercado Plan “Kits” product will bring transparency and standardization to a highly manual and unstructured process, resulting in improved brand credibility for our customers with their consumers in the fields of ESG & CSR.

New partnerships

Entered into a new partnership with logistics management company TOC Logistics, opening up the door to 70+ opportunities with international importers.

New Agile sales approach

Crafted to deliver a speedy sales process with a quick close. This new approach has already helped close multiple deals in the span of a couple months.

Customer onboarding

Successful customer onboarding for Whitmor & maxiaNET

Customer roll-out

Next phases of roll-out for existing customers, including AutoZone.

Platform development

Created Online Importing Platform & developed automated workflows

#1 in Category

Established product-market fit and emerged in category leadership

Seamless supplier onboarding

Developed market-leading supplier on-boarding in less than 30 minutes

Network expansion

Connected trading networks and created import marketplace

Automated ROI

Launched automated ROI calculator & customer proposal generation
Mercado Labs | Product Suite - Buy

Tapping into the largest market opportunity

The current import market is broken. Businesses new and old remain heavily reliant on antiquated, slow, and manual processes, using tools that were never designed to manage trillions of dollars' worth of inventory every year.
So we wanted to do something about it.

With consumer demand and spending projected to grow at a 26% annual rate over the middle two quarters of 2021, international trade is one of the fastest growing areas coming out of the COVID-19 shutdown.

Consumer demand and spending projected to grow at a 26% annual rate over the middle two quarters of 2021.

Value to investors →
Global Trade
$11.2T inventory

EU Import Trade
300k importers
$3B market size
$2T inventory

US Import Trade
300k importers
$3B market size
$2T inventory

Value to customers →
Asia > US (All)
$396B inventory
$11T sales

Asia > US (Top 100)
$105B inventory
$265B sales

Engaging prospective customers across the entire supply chain network

The lifecycle of a customer starts well before the first interaction and goes beyond the point of purchase.
Our growth strategy is built on the “flywheel effect” to identify and convert prospects into long-term customers, as well as leveraging the wider network opportunity and channel partners to boost inbound opportunities and increase our win volume.

The importer’s direct network

Consists of up to 15 business entities controlled by them, including a 50:1 supplier to customer ratio

The network’s network

Each new entity also has their own network:
  1. Supplier A has up to 10 additional customers
  2. Forwarder A may have hundreds or even thousands

Force Multipliers

  1. Channel Partners: OWLogistics, TOC, Allport Cargo Services
  2. Market Partners: Clear Track, Topl, INTL, Chain.io
Mercado - Investment (Actual & Forecast)

623%

YoY Growth

117%

Net Revenue Retention

100%

Logo Retention
Mercado is so much more than “just an import Order Management System.”
Mercado interoperability builds strong connections between an importer’s ecosystem (P1) and each of the ecosystem participants presents additional opportunities for growth.

Mercado extensibility creates the potential for entirely new scenarios with qualified marketplace providers (P2), the flywheel spins ever more quickly as this occurs. This rich data pool provides exciting data science (P3) opportunities.
Mercado Labs | The Network Effect
Network Effect Case Study
Mercado Customers | AutoZone
Turning a $262k deal into a $2.4MM opportunity
AutoZone asked Mercado to build a product to improve their vendor receiving process. We recently signed the first AZ Vendor Neotek.

Neotek is considering Mercado preferred vendor INLT (owned by Amazon). AutoZone asked Mercado to assist with an inventory challenge, leading to a $96K ACV Deal.
Mercado - AutoZone Case Study

The first mile is the new final mile

Virtually every product we use each day is imported, yet the import supply chain is managed almost entirely manually.
While a customer waits at most 4 days for a product to be delivered from the moment they place an order online, importers typically wait at least 4 months before they receive products ready to sell.

Our vision is to make it as easy for importers around the globe to order and receive products as it is for their customers to buy them.
The Mercado import Order Management System (iOMS) connects and automates the first mile of the international supply chain, equipping importers with the tools to improve product transparency and visibility and helping to create a more sustainable world.
Mercado | As Featured in Business Insider
Mercado | As Featured in Sourcing Journal
Mercado | As Featured in FreightWaves
Mercado | As Featured in Journal of Commerce
Mercado - Featured in PitchBook

As featured in...

Mercado has also significantly grown its brand presence across the industry, taking part in number of both paid and organic promotional activities.

Procurement Foundry’s Shark Tank Pitch Contest

Winner, "Best Pitch"

Plug and Play Batch 9 Selection Day

Selected out of 100 supply chain startups to participate in a networking event with companies such as Yamato, Unilever, TJX, Ryder, L'Oreal, Kohls, and CH Robinson.

Podcasts & Media

Covering topics including supply chain and diversity. Check out an example with Let’s Talk Supply Chain’s “Blended” podcast here

Webinar Series

Roll-out of monthly webinars focused on hot topics in the supply chain. Helping to educate and inspire transformation in the supply chain industry.
Mercado | Guide download - 6 Advantages of a Modern IMS

How Digital Relationships Build the Foundation for Efficient, Ethical Supply Chains

Watch here
Mercado | Create opportunities that set the world in motion

Why Fashion’s Order Management Should Take Cues from Fast Food

Watch here
Mercado | Guide download - 6 Advantages of a Modern IMS

Eliminating Excess Inventory Through Supply Chain Efficiencies

Watch here
Mercado | Bring Order to your Imports
                                               
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