Alexis Patjane, 99minutos | The Rollercoaster of Founding, and How to Transform Logistics [Ep. 67]

The audio and video are in Spanish. These notes are a translation.

In recent years, we have gotten used to seeing the news about million-dollar capital rounds and the announcements of unicorns. While telling these stories is important to inspire more Latin Americans to take part in the technology industry, sometimes it seems we forget that starting a company is hard, and that behind the success stories, there are stories of a lot of work and resilience.

In today’s episode, Alexis Patjane joined us, CEO and founder of 99minutos, one of the largest logistics startups in Latin America, which, to date, has raised more than 100 million dollars from international capital funds such as Oak and Prosus, and local funds such as Kaszek Ventures and 500 Startups.

Alexis told us about the hardest moments in the history of 99minutos, and how he and his team overcame them. We also talked about the difficulties of the logistics industry and how 99minutos has been able, with technology, to compete with large companies such as DHL and Fedex.

Thanks to David Berdichevsky and Eduardo López of 99minutos, Allen Miller of Oak HC/FT, and Regina Zurutuza of 500 Startups for their excellent question recommendations, and to Alfonso Salem, who made this interview possible.

What You Can Learn Today

Overview of the logistics sector in Latin America
The trials and challenges of starting a startup
How to choose your partners and investors

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Youtube Timestamps*

About Alexis and 99minutos

[1:37] - How did Alexis get into the world of startups?
- He joined 500 Startups in 2014
- 99minutos was his third venture, but his first startup
[2:20] - What is 99minutos?
- It is a web logistics company
- They handle shipments for online stores and e-commerce
- They operate in 4 countries and more than 60 cities
- They have more than 8 thousand employees

Overview of the Logistics Sector

[2:53] - 99minutos’ technology
- Its entire logistics chain is automated
- Real-time tracking
- Route optimization for greater efficiency
[5:20] - Competition in the logistics sector
- Companies such as Fedex and DHL focus on aviation
- 99minutos was born with technology, but its competitors had to adapt
- Scalability is not as simple as in other sectors
[8:08] - Immediacy in logistics
- A few years ago, customers did not need fast deliveries
- With technology, consumers have become more demanding
- There are many factors involved and they are hard to control
- It is complicated to deliver on the value proposition of fast shipments
- Amazon and MercadoLibre raised customer standards
[12:12] - Meeting consumer expectations
- 1 in 5 packages are returned because of dissatisfaction
- Large e-commerce companies do not charge for returns
- Often, customers take advantage of return policies
[14:56] - 99minutos’ vision
- 99minutos wants to cover all of its customers’ logistics needs
- In 2021 they launched Punto99 (package receiving and delivery points)
- They also launched Ruta99, a platform to collaborate with customers who have their own transport fleet

The Roller Coaster of Starting 99minutos

[17:41] - Hard moments at 99minutos
- Between 2016 and 2018 they had many administrative problems
- Alexis did not pay himself a salary for a long time
- 70% of the time, they did not have money to pay payroll
- They had friction with a partner for almost 3 years
[20:48] - A support network as a founder
- In the hardest moments, Alexis talked with as many people as he could
- It is important to filter opinions and recommendations
- The most important thing is to learn from mistakes
[23:29] - Alexis’s resilience and conviction
- He could not give up, because he invested all his savings in 99minutos
- Alexis fell in love with his idea and its growth potential
- In his head there was no room for failure
- The market needed 99minutos’ solution
[28:40] - Framework for decision making
- Betting all or nothing
- Avoiding the safest decision
- Focusing on the potential benefit
[31:18] - The true value of capital
- Today, many companies raise hundreds of millions in capital without even having consolidated their product
- It is good to understand the value of money
- Going through hard moments helps you value things
[35:32] - How to take care of a team’s morale and culture
- Showing progress and growth
- Giving the team security
- Not taking your foot off the accelerator
[37:43] - Lessons from leading a team
- You cannot do everything at the same time
- It is necessary to delegate tasks, even when it is hard
- As far as possible, offer certainty
[40:43] - Lessons from writing a book
- Alexis wrote a science fiction book at 21
- Even though he did not like writing, he decided to continue until he published it

How to Choose Your Partners

[43:13] - Key aspects when negotiating with an investor
- All good investors want you to do well
- Validating with other companies a specific fund has invested in
[46:30] - Raising capital in the current context
- Taking advantage of all the options and opportunities available today
- Latin America is a market that is drawing attention
- Opting for a more aggressive growth strategy

Tweet Round

[49:50] -
- Recommended book: Delivering Happiness, by Tony Hsieh
- Changes in the Latin American startup ecosystem: keep doing what is being done and pick up the pace
- Founder to interview: Ricardo Weder, of Justo

Episode Mentions

You can find Alexis on Twitter and LinkedIn

Book written by Alexis: The Bright Light

Recommended book: Delivering Happiness, by Tony Hsieh

Founder to interview: Ricardo Weder, of Justo

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Follow Enzo Cavalie on X: @enzocavalie.