Round co-led by Silicon Valley venture fund NFX and Mexican venture fund ALLVP; funds will help Nuvocargo attract the best talent, take advantage of high demand for establishing new U.S./Mexico supply chains
NEW YORK, April 23, 2020 (GLOBE NEWSWIRE) — Nuvocargo, the first digital freight forwarder and customs broker for U.S./Mexico trade, announced today that it has raised a $5.3M seed round co-led by NFX and ALLVP, with participation from One Way Ventures, Maya Capital, Magma Partners, the co-founders of LatAm unicorn Rappi, the former CMO of Cabify, and several more angels. The total includes earlier backing from investors including Y Combinator.
Nuvocargo’s proprietary software helps shippers coordinate door-to-door transportation between U.S./Mexico including procuring trucks on both sides of the border, customs clearance, insurance, trade finance, reporting and more. Nuvocargo’s goal is to become every shipper’s “one-stop shop” for all things related to U.S./Mexico cross-border trade, and eventually for U.S./Latin America. “We act as an extension of our customers’ team so they can outsource to us all the complexities associated with their U.S./Mexico cross-border supply chain,” said Deepak Chhugani, founder and CEO of Nuvocargo.
Nuvocargo is modernizing a multi-trillion dollar market that has traditionally relied primarily on paper, phone calls, faxes and spreadsheets, and enables shippers to have one main point of contact for the entire international logistics process, rather than a dozen. Nuvocargo’s software is free for shippers and gives them all of their shipment data, updates, and reports in one web-based dashboard, which they can access in both desktop and mobile. Nuvocargo provides users with proactive shipment updates via WhatsApp, email or SMS, and a shared workspace where they can invite their own team members, vendors and clients.
Run by a fully bi-lingual team located in New York and Mexico City, Nuvocargo has been growing revenues by 70 percent month over month since beginning operations in August 2019. In the current age of the coronavirus pandemic, Nuvocargo is also focusing significant efforts on working with companies transporting essential goods that can aid in this crisis. Nuvocargo, along with other technology and logistics companies, recently joined PPECoalition.com and is offering its services at cost or below cost to help move critical medical equipment or food supplies related to the COVID-19 crisis. “We encourage anyone who could benefit from our offer to help to contact us at email@example.com,” said Chhugani.
“At NFX, we specialize in marketplaces and businesses with network effects in large markets, which is why Nuvocargo’s story really appealed to us,” said James Currier, Managing Partner at NFX. “Even before the coronavirus pandemic, many U.S. companies were moving their supply chains from Asia to Mexico. Deepak and team have a big vision, and we’re excited to be part of the Nuvocargo journey.”
ALLVP is a leading VC fund in Mexico and Latin America and invests in founders who are bringing innovative solutions and products to Latin American markets through technology. Antonia Rojas, Partner at ALLVP said, “More than almost any other industry, crossborder logistics involves complex interactions across multiple cultures, sectors and stakeholders. We can’t think of a better team, with experience and talent on both sides of the border to tackle this challenge. I’m thrilled to join Deepak and Sam as they transform a massive industry still untouched by technology.”
Nuvocargo will use the funds to fuel expansion and to grow its teams in both the U.S. and Mexico. Chhugani said, “Freight forwarding is one of the few remaining industries that software hasn’t eaten yet. Nuvocargo is bringing together the best talent and methodologies from four distinct worlds and cultures: Silicon Valley, logistics, Latin America, and the U.S. Our early customers have been thrilled with the results, and we’re quickly expanding our presence, working hard to keep up with strong demand.”
NFX is a leading seed-stage venture firm based in San Francisco, started by technology entrepreneurs who built 10 companies with more than $10 Billion in exits. They are experts in networks and marketplaces across multiple industries and geographies. To learn more, visit NFX at www.nfx.com and follow them @NFX.
ALLVP is the leading early-stage VC for Spanish speaking Latin America. Founded in 2012, the firm manages over $200M in Assets Under Management across three portfolios. ALLVP invests in teams seeking to transform the daily lives of Latin Americans, how they shop, bank, move, work and learn. The ALLVP team has invested in thirty-one companies including Cornershop, the Chilean grocery marketplace juggernaut, Muy, the Colombian ghost kitchen platform and Flat the pioneer Mexican property startup. More about us at www,allvp.vc and @all_vp.
Nuvocargo is the first digital freight forwarder and customs broker for U.S./Mexico trade. Its proprietary software seamlessly coordinates end-to-end movement of cargo, including procuring trucks on both sides of the border, customs clearance, routing, insurance, financing, reporting, and more. Nuvocargo is modernizing a multi-trillion dollar market that has traditionally relied primarily on paper, faxes and spreadsheets, and enables shippers to have one main point of contact for the entire process, rather than a dozen. Run by a fully bi-lingual team, Nuvocargo has been growing by 70 percent month over month since beginning operations in August 2019. Nuvocargo is backed by leading investors in both Silicon Valley and Latin America such as NFX, ALLVP, and Y Combinator, among others. Learn more at https://www.nuvocargo.com.