An employee of Favela Brasil Xpress transports parcels for delivery to residents of the Paraisopolis favela on December 1, 2021 in Sao Paulo (AFP / Filipe ARAUJO)
By clapping their hands or shouting at the door of the recipients of the parcels, the deliverers of Favela Brasil Xpress walk the alleys of Paraisopolis, a popular district of Sao Paulo not served by traditional businesses.
“We want to bring down the invisible walls that separate the favelas from the urban fabric,” Givanildo Pereira, 21, founder of this start-up, told AFP.
Paraisopolis, a favela of 100,000 inhabitants, is the second most populous district of Sao Paulo, the largest megalopolis in Latin America.
Located in the southwest of the economic capital of Brazil, near upscale neighborhoods like Morumbi, it was not yet served by home delivery services, which say they fear problems of insecurity.
“We want to respond to a demand suppressed by the blocking of postal codes in this area considered at risk” by the large delivery companies, explains Givalnildo Pereira, who has lived in Paraisopolis since childhood.
“We restore dignity to people who have the right to receive their packages like any other member of our society,” he insists.
This need is all the more crucial given that online shopping, in the favelas as elsewhere, is very popular due to the coronavirus pandemic.
– New borders –
Favela Brasil Xpress began operations in April. The concept is simple: the start-up takes over from other delivery companies by collecting their packages in a distribution center located at an entrance to the favela, before redistributing them to residents of the neighborhood.
An employee of Favela Brasil Xpress transports parcels for delivery to residents of the Paraisopolis favela on December 1, 2021 in Sao Paulo (AFP / Filipe ARAUJO)
To find their way around this meander of lanes with hazardous numbers, delivery people use a map designed by an associative network to identify the needs of each lane and organize food donations at the height of the Covid-19 crisis.
And Givalnildo Pereira has made it a point of honor to hire favela residents, using their knowledge of the area and “offering opportunities to the unemployed”.
One of its employees, Imael Silva Maia, 28, is responsible for organizing shipments from the distribution center, where parcels of household appliances or children’s toys are stacked.
“I am a tattoo artist and there is much less work because of the pandemic. Here, I do a bit of everything, I sort the packages and sometimes I also make deliveries,” he says.
Favela Brasil Xpress employees load packages for delivery to residents of the Paraisopolis favela on December 1, 2021 in Sao Paulo (AFP / Filipe ARAUJO)
The start-up is already showing significant results, with a turnover of around 200,000 reais per month (around 31,000 euros), with 1,800 daily deliveries on average.
It has 300 employees, between direct employees and independent deliverers.
Its services are no longer limited to Paraisopolis: Favela Brasil Xpress also delivers to six other popular districts, including Rocinha, the largest favela in Rio de Janeiro.
Its method of financing is also innovative: it is the first Brazilian company from a favela to use equity crowdfunding, a participatory investment model.
Givanildo Pereira, 21, founder of Favela Brasil Xpress, on December 1, 2021 at the Paraisopolis favela, in Sao Paulo (AFP / Filipe ARAUJO)
Accepting modest contributions from 10 reais (around 1.50 euros), it pays its investors a percentage of its profits, such as shareholder dividends.
She now hopes to raise 1.3 million reais (around 200,000 euros) to reach 50 favelas and 1,500 employees by 2023.
– Favela stock exchange –
The potential is enormous: Brazil has some 13,000 favelas, which turn the economy up to 26 billion euros per year, according to the NGO G10.
An employee of Favela Brasil Xpress delivers a package to be delivered to the Paraisopolis favela on December 1, 2021 in Sao Paulo (AFP / Filipe ARAUJO)
Favela Brasil Xpress’s method of crowdfunding can be likened to an IPO, but outside the conventional circuit.
Contributions are made via a digital platform, DIVIhub, which has conducted a market study beforehand.
But to create an alternative favela stock exchange in due form, you still need the agreement of the CVM (Comissão de Valores Mobiliários), explains Ricardo Wendel, executive director of DIVIhub.
Givalnildo Pereira hopes eventually that his company will be the first out of a favela to become a “unicorn”, a term that refers to start-ups valued at more than a billion dollars.
© 2021 AFP
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