The logistics startup Nuvocargo recently raised US$20.5 million in a round led by Tiger Global Management. With this new investment, the Ecuador-founded and New York-based company now has a valuation of US$180 million. This is more than double the US$70 million it was valued at when it raised US$12 million in April 2020.
This round also featured participation from The Flexport Fund, Kavak’s COO, and existing investors such as QED Investors and NFX. Previous Nuvocargo investors include the co-founders of Deel, Rappi, Camp, Loft and Y Combinator; as well as David Velez, the founder of Nubank.
This most recent investment brings Nuvocargo’s total amount raised up to US$37.8 million since its launch in late 2019. The new amount will be used to continue accelerating its growth and expanding its product offering in the industry; including QuickPay, its first financial product.
QuickPay is a cash advance for carriers on the Nuvocargo marketplace. With an estimated 10 million trucks moving cargo between Mexico and the United States each year, they estimate the QuickPay market at around US$20 billion annually.
They will also seek to develop new sources of revenue aimed at securing a share of the supply chain financing market between the United States and Mexico, which is valued at more than US$125 billion.
The company created a platform to track shipments, manage paperwork and make trade between the United States and Mexico a more streamlined process.
Data released by the United States Census Bureau revealed that the trade volume between the two countries amounted to US$614.5 billion in 2019. As the main trading partner of the United States, the logistics sector has enormous growth potential .
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