Felz is a network of "tienditas", small corner stores across Mexico, with a tech-driven approach. The Felz platform is designed to optimize operations for these small corner stores using Machine Learning model and best practices on retail ops, especially those in underserved communities. This includes inventory management, procurement, HR, employee scheduling, and more.
“Our mission is to empower our stores by equipping tiendas with tools that simplify inventory, cash flow, and customer engagement.” - Natan Felzensztein (Co-Founder Felz)
What about Oxxo? Aren't they already doing this?
“Yes and no,” Natan mentions.
Oxxo has over 23,000 stores across Mexico, Latam and Europe. The guidelines for what qualifies as an Oxxo store—regarding factors like location, square footage, and storage—are quite specific. In some ways, you could say they are a competitor, but in another way, we’re not necessarily competing for the same customer profile.
Unlike Oxxo, Felz addresses the needs of underserved communities by improving stores and infrastructure that are already profitable and relevant to our customers. We focus on areas where the working and middle class make their daily purchases, transforming tienditas into mini-markets with affordable essentials. Felz stores are typically smaller than regular convenience stores, tailored to the needs of local families. - Natan Felzensztein
According to Natan, Felz bridges technology with hands-on solutions for tienditas. “We are enabling tienditas, serving thousands of local communities across Mexico, to achieve operational stability and efficiency,” he explains.
Felz’ Vision
Traditionally, many SaaS solutions have targeted SMEs, including convenience stores, due to the large TAM (total addressable market) of almost 5 million SMEs in Mexico alone. However, sales cycles can be long, and SMEs’ willingness to pay for a SaaS solution has made this market challenging.
Initially, Felz was co-founded by Natan and Isaias after they witnessed the daily struggles of Tienditas (a small corner store) and owners who lacked the tools necessary to run their businesses effectively.
Natan, who previously worked in operations at Cornershop and as a Manager on PwC’s M&A team, and Isaias, with prior experience as Head of Data Engineering at Bitso, Latin America’s largest crypto retail trading platform, wanted to build a robust product that was highly intuitive to use yet specifically tailored to the unique needs of small corner stores.
Our system leverages machine learning models to optimize every step—from inventory analysis to precise purchasing decisions and SKU management. By analyzing price elasticity, we can accelerate product rotation, all while keeping operations lean and minimizing reliance on manual input. - Isaias Martinez, Co-Founder of Felz
These stores, which are vital to local economies, often lack the resources to implement complex retail management systems used by large retailers like Oxxo or Soriana.
Felz’s solution is designed specifically for small corner stores, with a focus on addressing their unique operational challenges.
“Our focus is on creating a product that is specifically built for small stores, not big retailers. We wanted to offer a solution that addressed the unique challenges that come with operating a small convenience every day.” - Natan Felzensztein
From SaaS to Acquisition
However, Felz quickly realized that many store owners don’t have the capacity in their budget for a SaaS product. Even if they do, the conversation often shifts to pricing, and their overall willingness to pay becomes a significant challenge.
Many of these store owners have been operating in the same way for years, making it difficult to change their habits. Additionally, many tienda owners carry debts to existing product providers and suppliers. With limited access to credit, their ability to afford the resources needed to grow is extremely constrained.
“It’s tough to change ingrained habits, especially in this market. Many store owners are used to managing their operations manually, and introducing new tools can feel like a big leap.” - Natan Felzensztein
These factors created a unique opportunity for Felz to acquire Tienditas and transform them into a cohesive network of Felz-powered stores, unlocking their potential for growth and efficiency.
We transitioned from a SaaS model to owning Tienditas because we realized that offering tools alone couldn’t deliver the impact we aimed for. By owning the stores, we can fully optimize operations, ensure consistent execution, and build thriving mini-markets that better serve their communities. This approach also strengthens our unit economics, allowing for faster payback periods and scalable growth. - Natan Felzensztein
Felz’ Tiendas: Core Features
- Home Delivery Access
Felz is available on Rappi and DiDi, streamlining the grocery shopping experience by providing efficient delivery options. - Service Payment Integration
Customers can manage bill payments for utilities and other services at Felz locations, simplifying routine tasks with ease. - Airtime Top-Up Service
Felz offers mobile balance recharge options compatible with major carriers, facilitating communication for all users. - Regular Offers and Discounts
To support budget-conscious shopping, Felz provides daily promotions on various items, ensuring cost-effective options are readily available. - Expanded Product Selection
With an expanded product catalog, Felz addresses diverse shopping needs, making it a comprehensive option for various household essentials. - Parcel Pickup Service (Coming Soon)
Felz will soon offer parcel collection services for purchases from platforms like Amazon and Mercado Libre, providing added convenience for customers.
Founders
Natan Felzensztein & Isaias Martinez Vieyra
