LogComex raises US$583,000 through Caravela Capital and Invest Tech

Contxto – Importing or exporting goods calls for jumping through a lot of hoops. This is because there are multiple participants involved in getting cargo from “point A” to “point B”. As a result, information-gathering and tracking products becomes a nightmare-ish process.

These trends help explain why logistics startup LogComex and its Big Data platform have been reportedly growing at a monthly rate of 10 percent since its 2016 founding. In turn, this level of growth is what recently drew venture capital (VC) funds Caravela Capital and Invest Tech to invest R$3 million (around US$583,000) in LogComex.

The startup will use the funds to double its current staff of 70 people. Most hiring will be for its tech and data science departments. LogComex currently manages operations in five countries: Brazil, Argentina, Paraguay, Uruguay, and the United States.

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LogComex and big data

Brazilian LogComex tenders to virtually every participant in international commerce: airports, warehouse agencies, freight forwarders, ports, customs brokers, to name a few. Through its platform, they can get a better understanding of their business.

The startup pulls information on vendors, buyers, prices, and other trends from multiple sources then arranges it for stakeholders to make more data-driven decisions.

Related article: 5 startups from Monterrey developing logistics technology solutions

Why it’s a big deal: Covid-19 is putting e-commerce on the fast track for adoption throughout the world. That entails a bigger challenge for those in international commerce because they’ll be dealing with larger volumes of cargo and information, plus more demanding customers.

Tools like those LogComex offers can help gather and synthesize that information so they’re more efficient.

Logistics industry challenges

The logistics industry is making steady progress in tech adoption. Nonetheless, there are still some challenges that must be addressed to truly “revolutionize” it.

Here are just a few:

Some players like airports and warehouses already work with slim profit margins and tight budgets. Consequently, data insights may help them manage their already—limited resources to optimize how they move cargo—if they can afford the software that is.

Many parties in logistics show skepticism towards tech. They may hang onto less-automated solutions simply because “that’s how it’s always been done.” As tech adoption continues, and younger generations join their ranks, this will change.

Importing-exporting goods always requires dealing with customs officials. This means that startups and businesses should actively engage the government to adopt more tech solutions. Otherwise many of their efforts will be in vain.

Related articles: Tech and startups from Brazil!

-ML