Chazki expands in Mexico with Amazon

Amazon, its main trading partner today in the Mexican capital and in Peru and Argentina, where Chazki also operates.

Chazki expands in Mexico with Amazon
The link with regional clients has become a pillar of Chazki's internationalization strategy. Image: company's website

"Next month we are opening in Guadalajara and in August we will open in Monterrey", Gonzalo Begazo, founder & CEO of the corporate messaging startup Chazki. The commitment to grow in Mexico, where Chazki began operating in June last year, tripling the burden, is not only associated with the potential market of two of the most populated cities of the Aztec country. It also has to do with the confidence gained with Amazon, its main trading partner today in the Mexican capital and in Peru and Argentina, where they also operate.

The startup seeks to continue capitalizing on that relationship when the company of Jeff Bezos decides to plant a flag beyond Colombia, where he established a service center last year. It is no coincidence that the country with access to two oceans is, along with Chile, the favorite of the firm to continue growing. "We have to maintain the metrics and very good user experience, not only for the end customer but for the Amazon operations staff, who see our performance day by day," says the executive.

Regional challenges

This work and the link with regional clients have become a pillar of Chazki's internationalization strategy. It happened to them with Nespresso in Argentina (where they are in charge of the distribution of coffee capsules), which opened the doors of Mexico. And with the Falabella group, Begazo counts. "It is one of the main sales synergies: to be able to enter markets with customers, to whose systems we are already integrated."

This decision, indicates, challenges, and strengthens its business model, being obliged to go through processes of homologation of suppliers. What is the risk? For the executive, these are more 'soft' strategic issues, such as being able to manage operations in several cities at the same time, without losing their identity. "When you manage a micro-multinational you have to manage people you do not see all the time. You can lose your goals." To remain one, following a giant, will not be a minor challenge.

Chazki aims to enter two new cities in Mexico and Brazil

Gonzalo Begazo, the co-founder of the Peruvian enterprise, said that one of its main clients is Amazon, to whom they provide services in Mexico City. Within the framework of Endeavor Inspire, Gonzalo Begazo, co-founder of Chazki, a Peruvian enterprise that provides delivery services focused on e-Commerce, indicated that the company aims to enter, by 2020, two new cities in Mexico and, one year later, to Brazil.

For this operation, the company needs a "series A" investment, which is around US $ 10 million. In a dialogue with El Comercio, Begazo explained that they have already begun talks with investors from Silicon Valley, Mexico, Peru, and Argentina, to find this financing. It should be noted that, to date, the Peruvian company also has a presence in Buenos Aires (Argentina) and Mexico City, which would specify its presence in a fourth country.

With an initial investment of US $ 3 million, the venture was born in Arequipa, in 2014, and, a year later, it was able to start operations. According to Begazo, Chazki arose in a context where the postal public service presented several deficiencies, so it was an ideal opportunity to appear. Also, another of the problems of that time was that the addresses were difficult to find.

Against this background, this venture relied, for example, on technology to optimize locations, thus offering a differentiated service and, even allowing customers to make real and efficient monitoring of their purchased product. "We are proud of what has been achieved. We have been able to evolve in the value proposition. We wanted the goods we buy online to reach our homes faster. Before we waited between 5 and 7 days and, now, it is much faster, "he told this newspaper.

Chazki grew over the years and expanded to Argentina and Mexico, its main market today. Even in this last country, precisely in Mexico City, they offer their prime service to the giant Amazon. Meanwhile, the results of this company, since the beginning of operations, have quadrupled. Begazo indicated that, currently, they make between 90 thousand and 100 thousand shipments per month; while last year, in the same period, they registered 25 thousand shipments, approximately.

Finally, it should be noted that Chazki is part of the Endeavor Entrepreneurs portfolio. He joined after participating in the 82nd International Selection Panel held in Buenos Aires between September 5 and 7, 2018.