In correspondence with Contxto, Yaigo stated it will launch operations in El Salvador, Paraguay, Spain, Costa Rica, and Panama during what’s left of 2020.
If you were counting, that means the startup aims to complete deliveries in five countries with less than six months before the year is over.
Given the general outlook for startups in 2020, as well as a growing weariness for blitzscaling, Yaigo is certainly taking an unorthodox path.
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Yaigo, out and about
With Covid-induced economic uncertainty, coupled with an increasingly heated last-mile delivery competition, one could not help but wonder if these circumstances influenced Yaigo’s decision to scale so quickly.
But surprisingly, it’s not the case.
In fact, Ariel Valverde, co-Founder and CEO of Yaigo, said its initial plan for 2020 was to launch operations in seven countries. The only matter that had to be re-adjusted because of the pandemic was its launching strategy.
When asked how the startup will finance these projects, Valverde stated it has its bases covered.
“Up until now, the two consolidated operations we have and the upcoming two in August [for El Salvador and Paraguay] are self-financed,” the Executive told Contxto.
But a capital equity round isn’t off the table either. After all, traveling abroad isn’t free.
“As a startup that’s reached a level of maturity and scaling, we don’t discard the possibility of raising funding to accelerate our growth phase and market positioning.”
So the company’s El Salvador and Paraguay launches are slated for next month. Meanwhile, it will cross the Atlantic for the first time into Spain in September. After which Yaigo has its eye on Costa Rica and Panama by October.
This story sounds familiar…
The startup says it sets itself apart by going to where other platforms won’t, including more out of reach towns.
However, like other logistics startups, Yaigo has also been developing its B2B (business to business) approach.
Through “Yaigo Business,” vendors can track and manage deliveries to their customers through its platform. Considering the rise of e-commerce across the region, the demand for logistics services of this nature has increased.
Now I do love an ambitious startup.
Nonetheless, these scaling plans remind me of how Uber Eats tried to quickly snag multiple markets in Latam, only to withdraw later. Rappi too faced layoffs earlier this year as it began its post-blitzscaling search for profitability.
Although in Yaigo’s case, it’s rather reassuring that at least its upcoming projects in El Salvador and Paraguay are funded out of its own pockets.
Rest assured, we’ll certainly stay-tuned to learn more of this startup’s exploits in Latam and beyond.
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