Our decision to invest in Gira was driven by a combination of factors that make it a compelling opportunity within the fashion retail industry. Gira operates as a B2B marketplace, connecting small and medium-sized businesses (SMBs) with retailers, with the ultimate goal of becoming a one-stop shop for this audience. By addressing key challenges in the industry and providing innovative solutions, Gira aims to deliver a superior experience for retailers, improved financial services, and optimized logistics for all stakeholders involved.

The initial problem Gira tackles is the inefficiency in the relationship between retailers and SMBs. Much of the process is still offline and relies heavily on a few individuals who connect these two points. Additionally, retailers often face challenges in accessing credit, impacting their cash flow and hindering their growth. Gira's platform aims to bring competitiveness and knowledge to empower millions of small and medium entrepreneurs, enabling them to achieve financial independence. By building the largest B2B one-stop-shop trade platform in Latin America, Gira connects manufacturers with SMB retailers, creating a more efficient and transparent marketplace.

Gira's product offering includes features designed to benefit both sellers and buyers. Sellers on the platform have access to centralized inventory management, CRM, and activation tools, streamlining their operations. On the other hand, buyers benefit from an online sales process and after-sales assistance, improving their purchasing experience. Gira also offers flexible payment methods and facilitates financial reconciliation for seamless transactions.

The team behind Gira brings valuable expertise to the table. Lucas Chita, one of the founders, has a background in consulting and previously served as the Business Director of a healthcare startup in Brazil (Memed). Vinícius Fernandes , another founder, worked as a supply manager at Votorantim before becoming a consultant overseeing companies such as RaiaDrogasil and Whirlpool. Their combined experience in various sectors positions them well to navigate the challenges and drive the success of Gira.

The market opportunity for Gira is significant. The Latin American fashion retail market is estimated at USD 38 billion, considering various categories such as footwear, clothing, home decor, and accessories. Gira's initial focus is on the clothing segment, starting with the momentum at Bráz, and has the potential to capture a market size of USD 3 billion. In Brazil alone, there are over 1.2 million SMB retailers and more than 50 thousand wholesalers. Despite the size of the market, there are persistent issues of transparency, limited access to credit, and logistical inefficiencies that Gira aims to address.

The strategy employed by Gira is supported by several factors. The fragmented nature of supply and demand in the market enables Gira to negotiate better commercial terms, capturing a take rate of 10% to 20% of the total transaction value. The go-to-market approach in the industry is not well developed, presenting multiple opportunities for Gira to seize. Furthermore, Gira enjoys better retention rates due to its close alignment with the core economic activities of its customers. Lastly, there are additional revenue streams that Gira can explore as it continues to grow and expand its services.

In conclusion, our investment in Gira is driven by its approach to revolutionize the retail industry through its B2B marketplace. By addressing the inefficiencies in the retailer-SMBs relationship, Gira has positioned itself as a key player in Latin America. With a talented team, substantial market opportunity, and a differentiated strategy, we believe Gira has the potential to generate significant value and become a leading force in the fashion retail sector. We are excited to support Gira as they continue to drive positive change and empower SMBs in the industry.