Brazilian startup Pitzi has announced a new round of investment led by Kaszek Ventures, the fund started by the cofounders of MercadoLivre, that will help it bring its smartphone insurance club to new states in the country.
Pitzi launched its online club early last year with a focus on São Paulo and is preparing to move into Minas Gerais, Rio Grande do Sul, Santa Catarina and Paraná.
Additional investors on the round include Flybridge Capital Partners, Thrive Capital and Initial Capital as well as angel investors Fabrice Grinda and José Marin (the founders of OLX and Deremate) and João Alceu Amoroso Lima, ex-CEO of Qualicorp and SúlAmerica.
“The growth of smartphones in Brazil has created a huge need for protection of these devices. Pitzi is an innovative company that impressed us by maintaining quality service while undergoing rapid growth,” Kaszek Ventures’ Hernan Kazah said in a statement.
The 💜 of EU tech
The latest rumblings from the EU tech scene, a story from our wise ol' founder Boris, and some questionable AI art. It's free, every week, in your inbox. Sign up now!
Much like AAA in the US, Pitzi works as a club. Its members pay monthly fees between $2.50 and $15.00 depending on which phone model they have, and if they have problems with their device, they can send it in for repair. CEO Daniel Hatkoff says the company guarantees a 5-day turnaround time for repairs within São Paulo, and 10 business days for other states.
Pitzi has the luxury of a rapidly growing market in its home country. IDC recently highlighted Brazil as a strong growth country over the next few years. Kleiner Perkins partner Mary Meeker pegged Brazil as the fourth largest market worldwide last year, with an estimated 55 million devices.
Image credit: Thinkstock
Get the TNW newsletter
Get the most important tech news in your inbox each week.