Netshoes Cayman Limited

completed

Founded in 2000 and based in São Paulo, Netshoes (or “the company”) is Brazil''s largest online retailer of sports shoes, sporting apparel, and sporting goods. While the company started by operating retail stores in the São Paulo region, it decided in 2007 to devote itself entirely to online sales and disbanded its physical stores. The vast majority of Netshoes’ products come from name-brand manufacturers; however, the company has now started to market its own products under the names GoNew and All 4 One. In addition to commercial and administrative offices in São Paulo, it operates three distribution centers in Brazil, including in Barueri and Itapevi (both satellite cities of São Paulo) and Jabotão dos Guararapes, close to Recife, the capital of Pernambuco state in the country''s northeast. All three of these distribution centers are operated by Netshoes in rented warehouses, and in the case of the Itapevi and Pernambuco distribution centers, the facilities are located in larger logistics complexes shared with other companies. In 2012 the company launched operations in Argentina and Mexico, including an administrative office in each country''s respective capital and a distribution center located nearby. In the case of Netshoes'' Mexican operations, the distribution center is operated by a third-party, Onest Logistics, in a rented facility that is part of a larger logistics complex. The Argentine warehouse is situated in a larger complex owned by a third-party, but operated directly by Netshoes. All of these administrative offices and warehouses are located in urban or peri-urban areas converted to or zoned for commercial and/or industrial uses at least. IFC is contemplating an equity investment of up to $20 million in the company.