Two key players in the Latin American corporate merchandising space, Branddu and Reno, have announced their merger to form Branddu AI. This new entity launches as a B2B MerchTech platform designed to digitize the procurement of promotional products. The launch is supported by a new US$300,000 pre-seed investment from 500 Global, bringing the company's total capital raised to US$800,000.
A Strategic Merger to Digitize a Traditional Industry
The new company strategically combines Branddu's established regional operations in Colombia, Mexico, and the United States with Reno's advanced technological expertise. Branddu AI leverages artificial intelligence and proprietary software to modernize an industry long characterized by manual processes. This fusion establishes Latin America's first dedicated MerchTech platform, aiming to streamline corporate purchasing.
Mariana Velásquez, CEO and co-founder of Branddu AI, stated that the merger accelerates their shared goal of fundamentally digitalizing the merchandising sector. The company intends to build the essential infrastructure this market needs to operate with greater speed and transparency. Velásquez emphasized that Latin America possesses the talent and supplier ecosystem to lead this significant transformation.
Addressing Inefficiencies in the Merchandising Market
The global merchandising market is a substantial industry, valued at approximately US$90 billion annually, yet it remains heavily reliant on outdated methods. Companies often face slow quotation times, fragmented supplier networks, and a general lack of visibility into available inventory. These inefficiencies create significant operational hurdles for businesses seeking promotional products at scale.
These challenges are particularly pronounced in Latin America, where businesses with multi-country operations must navigate disparate suppliers and variable costs. Branddu AI directly addresses these issues by offering a single, centralized platform for the entire procurement process. This unified solution is designed to eliminate the complexities of managing multiple vendors across different markets.
Technology-Driven Platform and Client Impact
The Branddu AI platform empowers companies to find, quote, customize, and purchase promotional items within minutes, a stark contrast to traditional timelines. The company has already attracted an impressive roster of over 700 clients, including major brands like Netflix, Canva, Kavak, and JP Morgan. This strong market adoption underscores the platform's effectiveness and value proposition.
According to CRO and co-founder Sebastián Illescas, this merger elevates the MerchTech category to a new scale by providing an immediate and intuitive user experience. He emphasized that the company's technology is designed not to replace people but to optimize complex processes. This philosophy ensures that efficiency gains are achieved while maintaining a focus on customer service.
Future Growth and Expansion Plans
With the new US$300,000 in pre-seed funding, Branddu AI plans to consolidate its operations across Latin America and accelerate its expansion into the United States. A key long-term objective is to establish MerchTech as a recognized global technology category within enterprise software. These funds will provide the necessary resources to pursue this ambitious growth strategy.
The combined entity boasts a strong track record, having completed over 4,150 projects and built a catalog of more than 35,000 products. This extensive experience positions Branddu AI to become the leading MerchTech platform in its home region. The company is now poised to compete effectively in the world's largest promotional products markets.
The formation of Branddu AI through the strategic merger of Branddu and Reno represents a pivotal moment for the corporate merchandising industry. Supported by new capital from 500 Global, the company is set to redefine procurement standards with its innovative technology platform. This move positions Branddu AI as a leader in the emerging MerchTech space, with a clear path for growth in Latin America and beyond.