Gringo Raises $ 8 Million to Help Brazilians Manage Auto Documentation With Its App
Gringo, a Brazilian startup that has created an app to help drivers in various ways, has raised $ 8 million in a new round of funding.
Kaszek led the funding, which also included participation from GFC and OneVC. Kaszek also led the company’s 2020 funding round. The latest investment brings its total raised to $ 10 million since its inception in 2019.
SÃ£o Paulo-based Gringo’s self-proclaimed mission is to be âthe Brazilian driver’s best friendâ. This means it has created an app – launched in early 2020 – to help drivers monitor and perform services related to their documents and vehicles. For example, users can use the app to monitor, manage, and pay for documents (such as their driver’s licenses and vehicle registration). They can also pay taxes and fines through the app, which today has around 2.5 million users (including 2 million in SÃ£o Paulo).
âWe started with the documentation because we realized this was the main problem for Brazilian drivers,â said Rodrigo Colmonero, founder and CEO of Gringo. âIt all starts and ends with documentation. When a driver needs to buy or sell, finance a vehicle or take out contract insurance, for example, it is very painful for him.
Ultimately, he said, the startup’s goal is to become a âsuper appâ for drivers. Today, the app offers real-time alerts on fines, annual fees, points and license expiration.
âA lot of our competition is focused on selling products, while we build a customer-centric business and as a result, we solve their problems while monetizing,â Colmonero told TechCrunch.
Gringo must be doing something right. He saw the the number of drivers on its platform increases “10 times” from year to year, according to Colmonero. His GMV has increased 100-fold year over year, while his income has increased 150-fold year over year. (Of course, we don’t know the basics, but the multiples are awesome).
Image credits: Gringo
In addition to developing the services of its app, Gringo also aims to build a community around the issues it tackles through WhatsApp and social media. He shares content around automotive related topics such as notices of new legislation or whatever “drivers need to know how to have a practical routine in traffic.
There is no doubt that the COVID-19 pandemic and the resulting switch to all digital have helped Gringo’s efforts.
âDriver and vehicle licenses have gone digital in Brazil,â noted Colmonero. âDrivers are becoming more and more digital and there is no longer a need for them to solve their problems with brokers and physical locations. “
Gringo offers its services for free and monetizes by charging service charges for issuing or renewing digital vehicle registration. It also offers credits for the payment of fines and taxes.
The startup plans to use its new capital primarily to expand into new services for drivers, towards hiring and further expansion in Brazil, and possibly in Latin America. In reality, the company reinvests all of its profits in “growth in Brazil and later in Latin America,” according to Colmonero. Today, it has 100 employees, 5 times more than a year ago.
Kaszek’s partner Santiago Fossatti said he was impressed with Gringo’s goal of helping drivers manage âeverything related to car documents,â including driver’s licenses, fines and annual registration.
âIt is ideally placed to become a trusted hub from which drivers manage every step of their journey as car owners,â he wrote via email.
He was also drawn to the fact that the founding team had a solid track record of growing other businesses before. Colmonero co-founded an equity fund called NEO Future Fund and has invested in several public companies. Juliano Dutra was a partner at ifood and co-founded Rapiddo, a logistics startup sold to Ifood. And Caique Carvalho co-founded the My ink tattoo market.