Digital freight forwarding startup Nuvocargo raises $12M to modernize US-Mexico trade

LatamListNuvocargo, an all-in-one digital platform for US-Mexico trade, recently raised a $12M Series A funding round led by QED Investors with participation from new investors including David Velez, Michael Ronen, FJ Labs, Clocktower, and others. 

Additionally, existing investors NFX, ALLVP, MAYA Capital, Magma Partners, One Way Ventures, Ride Ventures, and others also participated. This round brings Nuvocargo’s total funding to $17.3M

The platform automates logistics processes involved in cross-border trade between US-Mexico that oftentimes are still operating on analog systems. 

“While on the surface Nuvocargo appears to be primarily a logistics company, our vision has always been to build an all-in-one digital platform to simplify trade for businesses across the Americas,” said Deepak Chhugani, Founder and CEO of Nuvocargo.

“One of the biggest components of that vision is deeply rooted in the movement of money and payments for the international supply chain. Nuvocargo will soon offer products and services that help truckers, SMBs, and businesses across countries with multiple pain points that go beyond the actual movement of goods.”

With this funding, the company aims to accelerate its roadmap and continue hiring world-class talent in the logistics industry across the US and Mexico. 

Moreover, Nuvocargo will invest heavily in developing a series of add-on financial products for shippers and carriers. Supply chain finance between the US and Mexico represents a $125B+ market opportunity. By targeting this market, the platform can better serve the needs of stakeholders.

Some of these products include cargo insurance, working capital financing, trade financing, and inventory loans, among others.

“QED recognized that as truly transformative companies like Nuvocargo brought much of the traditionally disjointed and offline supply chains online, there would be huge opportunities for embedded financial solutions in the US-Mexico trade corridor,” said Lauren Morton, Partner, QED Investors.

Nuvocargo currently has a team of 35 employees in the US and Mexico. In the next 12 months, the company expects to increase that number to 100+.

The company’s milestones for 2020 included:
  • growing its revenue by 25x
  • employee base growth by 5x
  • customer base growth by 9x, landing new clients such as Calidra Group, Howden, and Land & Sea. 

Learn more about Nuvocargo and Deepak Chhugani’s story in Episode 116 of the Crossing Borders podcast.

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