Brazil’s Magalu buys Sode, a platform that delivers in up to an hour
RIO DE JANEIRO, BRAZIL – Magazine Luiza (MGLU3) on Monday announced that it has completed the acquisition of Sode Intermediação de Negócios, a logistics platform for ultra-fast deliveries.
The transaction was handled through a company controlled by the retailer and its value has not been disclosed.
Founded in Recife in 2015, Sode operates in 8 states and has over 1,000 active couriers who currently make 2 million deliveries annually.
The company has proprietary technology specialized in managing, routing, and tracking ultra-fast deliveries made by partners with their own motorcycles. Its algorithm enables orders to be allocated to the nearest partner, ensuring faster delivery to customers.
Sode is currently a Magalu partner in 30 cities, ensuring that e-commerce customers receive their orders within an hour.
According to a press release, the conversion rate is 62% higher for orders delivered within an hour, when compared to 48 hours. “With the acquisition Magalu will accelerate the expansion of ultra-fast delivery to most of its stores,” the company wrote.
In addition, with Sode, Magalu’s logistics will now also include delivery by motorcycle, “further reducing lead times and distance to the end customer,” Magalu points out.
According to its notice to the market, Sode will also provide deliveries within an hour to sellers on Magalu’s marketplace, with delivery from the seller’s own store, and to AiQFome’s partner restaurants.
Mergers and acquisitions booming
Magalu is consistent in its mergers and acquisitions strategy. Recently, the retailer announced the purchase of KaBuM! technology and gaming e-commerce platform for R$1 billion (US$194 million) plus 75 million shares.
In June, the company also acquired Plus Delivery app, a meal delivery platform, as well as startup Juni, which specializes in improving the conversion rate of e-commerce sales.
Last week, Magalu also announced that it raised R$3.981 billion in a stock offering to finance the acquisition of KabuM!
The company priced its shares at R$22.75 each in the subsequent (or follow-on) offering, a discount of 2.15% over the closing price on Thursday, July 22. There was a primary distribution of 175 million common shares.
As a result of the issue, the company’s new stated capital is now R$10,052,161,472 divided into 6,673,926,848 common shares. The new shares began being traded on B3 last Monday, July 26, and the physical and financial settlement occurs this Tuesday, July 27.
This morning (27) at around 10:30 AM, MGLU3 shares were down 1.2% on B3, traded at R$21.80.
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