MEXICO CITY: Mexican grocery delivery startup Justo has raised $65 million in a funding round led by US-based equity firm General Atlantic and plans to expand in Mexico this year, the company said.

Founded a year and a half ago, the startup saw the coronavirus pandemic boost demand for online deliveries of goods ranging from fresh foods to cleaning supplies.

Unlike apps such as Cornershop and Rappi that send couriers to pick up food from brick-and-mortar stores, Justo keeps its own stock of goods, which it sends direct from its warehouses to customers' homes.

Justo operates in Mexico's capital and the city of Queretaro, and this year plans to bring the business to other major Mexican cities, chief executive and founder Ricardo Weder said in an interview on Monday.

Weder also spoke of ambitions to expanding to other countries in Latin America such as Colombia, Brazil and Chile, but gave no time frame. For now, the emphasis on Mexico is partially to keep pace with supermarkets such as Walmart that also offer delivery.

"With the highly competitive industry that we face, we are putting all of our focus in better covering the needs of our users in Mexico," Weder said.

As Justo grows, Weder said its workforce will jump to 10,000 people from the current 6,000 people in the next three to five years.

Existing investors Foundation Capital and Mountain Nazca also invested in the new round.