cargox hauls in us$80 million investment with big pandemic growth
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Contxto – Brazilian logistics startup CargoX is hauling in an impressive investment. The São Paulo-based business announced last week an equity round for US$80 million for its Series E led by LGT Lightstone. Other investors included Goldman Sachs, Valor Capital, and Farallon Capital.
Thanks to this funding, the startup will further develop its tech to tackle current coronavirus-related challenges and assist its drivers.
“In addition to helping our partner carriers when they need us the most, the new investment will be focused on continuing to develop cutting-edge technologies that allow them to operate 100 percent online and pave the future of road freight transportation,” stated Federico Vega, CEO/Founder of CargoX.
Likewise, the startup plans to double the number of drivers within its network this year. At the moment, it has 20,000 businesses with 400,000 truckers on its marketplace platform.
CargoX and logistics in Latin America
With its Series E, the logistics startup has raised a (disclosed) total of US$176 million divided among five rounds.
Note that CargoX hasn’t disclosed its valuation. Although it’s been growing at a rate of 20 percent per month, despite the pandemic. These are just some of the factors that likely convinced LGT Lightstone and friends to invest in CargoX. But there’s more to it for the medium to long term.
Despite the upcoming coronavirus fallout, logistics in Brazil is set to reach new heights.
One of the pandemic’s effects is that it has forced many businesses and users into the digital realm. Consequently, e-commerce is gaining ground. And even after quarantine periods ease up, many will continue to rely on apps and platforms to receive their goods.
As a result, in the medium to long term, more pressure is expected on the freight industry of Brazil—and all of Latam for that matter.
So for startups like CargoX, that means they not only have a headstart in the market but also a genuine problem to solve.
Something I’m sure its investors can appreciate.
Related articles: Tech and startups from Brazil!
-ML
