By Richard Mann
RIO DE JANEIRO, BRAZIL – InLoco, a startup from the state of Pernambuco, reported on Thursday, June 13th, that it had received a capital infusion of US$20 million (R$80 million), led by the U.S. fund Valor Capital and the Brazilian fund Unbox Capital.
Owner of a geolocation service that traces the consumer profiles of smartphone users for companies, InLoco has approximately 400 clients in Brazil. With these new funds, the startup intends to expand its operations in Brazil and initiate operations in the United States.
For InLoco, the investment amount is considerable: in its first and only round of investment to date, the startup has received approximately US$600,000.
Established in 2014, after coming into being as an undergraduate project at the Federal University of Pernambuco (UFPE), InLoco today uses its technology to help companies target ads over the Internet.
To this end, clients such as Grupo Boticário, Hyundai, and OLX couple the software developed by the company to their apps. Through geolocation data from users provided by the service, a cosmetics brand may target advertising for those who recently visited a beauty salon, for instance.
The first step in the U.S. expansion is to set up an office in New York to probe the market. To this end, the company has a partner: Valor Capital, the leader in this round of investments, has been working with Brazilian companies for some time.
The fund has already helped Stone go public in New York and Gympass, owner of a corporate gym service, to expand internationally to 14 countries.
According to Michael Nicklas, a partner in the American fund, the technology from Pernambuco has enormous long-term potential, especially considering the Internet of Things — the title given to the revolution that will connect all objects around us. “InLoco’s technology has a major advantage: the accuracy of geolocation,” says the Valor partner. “It will be an important element in the Internet of Things. It enables an air conditioner to be switched on automatically when it detects a smartphone entering a room, for instance.”
The startup claims that results can be obtained ensuring the privacy and anonymity of the user. “We want to be an example of anonymous storage,” says André Ferraz, CEO.