NEW YORK, June 27, 2023 (GLOBE NEWSWIRE) -- Nuvocargo, the first all-in-one digital platform focused on modernizing U.S.-Mexico cross-border trade, announced today that it has raised $36.5M in Series B funding. The round was led by QED Investors with participation from all existing investors including NFX, Tiger Global and ALLVP, plus new investors Tresalia Capital, Amador Holdings, and the co-founders of Dropbox, Repl.it and Platzi. This new round values the company at more than $250M, more than 40 percent higher than the $180M valuation it earned in late 2021, and brings its total funding to date to more than $75M.
Alongside announcing this funding round, Nuvocargo is also announcing it will be expanding to serve all major US-MX border crossings, whereas historically it has only focused on Laredo, TX, which accounts for roughly 40% of US-MX cross-border freight volumes. With this expansion, the company seeks to capitalize on growing demand in the region and bring its integrated solution and cross-border expertise to even more shippers and carriers.
Almost four years after launching in late 2019, Nuvocargo’s business thesis and consistent results continue to gather support from investors. “QED doubled down on Nuvocargo by leading this round because they are on-track to becoming one of the leading startups to spearhead the nearshoring trend to Mexico from China & Asia,” said QED Partner Lauren Morton. “As more companies look to Mexico as a means to diversify from Chinese & Asian supply chains, we are confident in Nuvocargo's ability to keep scaling its market leadership, launch new products, and become the end-to-end modern platform for trade across the Americas.”
Nuvocargo’s mission to streamline the process of cross-border trade, specializing in the U.S.-Mexico trade route - the world’s largest- resonates even stronger today, as nearshoring and the regionalization of supply chains soar into the spotlight. In October last year US-MX trade crossed yet another milestone, with trade via the land port of Laredo, TX exceeding that of the seaports of Los Angeles and Long Beach combined, a clear sign of changing times for global freight.
“We are bullish on the nearshoring opportunity and have already seen increased demand for services specialized in the US-Mexico trade lane. We expect this trend to continue growing as Mexico settles into the top spot for US trading partners. Nuvocargo’s unique expertise in the market, innovative technology and integrated solution puts us in a privileged position to serve even more shippers by expanding beyond our current scope of Laredo, TX and into all major US-Mexico border crossings,” said Deepak Chhugani, Founder & CEO at Nuvocargo.
With a team of 150 bilingual experts and a strategic presence in key locations throughout the US and Mexico, Nuvocargo will use the funds to expand its core business to all major Over-The-Road border crossings between the US and Mexico, and grow its platform, which offers shippers freight, customs, insurance and trade finance in one place. Carriers operating through Nuvocargo's marketplace also have access to Carrier Quickpay, a one-click cash advance solution.
Other recent Nuvocargo milestones include:
- Hiring new senior executives from Shopify, Convoy and Arrive Logistics
- Being named to Fast Company’s Most Innovative Companies in LatAm and YC Top Companies for two consecutive years
- Increasing the contribution margin per shipment by over 9x since last summer, while simultaneously cutting burn by close to 50% over the same time frame
- 33% faster border crossings with Nuvocargo clients that centralize both Freight and Customs with Nuvocargo, and 100% retention of our new Customs product
To learn more, visit https://www.nuvocargo.com/
About Nuvocargo
Logistics startup Nuvocargo is the first all-in-one digital platform focused on U.S.-Mexico cross-border trade – one of the largest bilateral trade lanes in the world. Modernizing a $2T industry that’s been mostly reliant on paper, fast-growing Nuvocargo combines proprietary software with a team of bilingual experts to seamlessly and transparently manage end-to-end cargo movement in a single platform. The company has the most experience on both sides of the border, unique access to hard-to-get routes, and add-on services such as customs, insurance and financing – everything a shipper or carrier needs to simplify logistics. Nuvocargo is backed by over $75M in funding from QED Investors, Tiger Global, NFX, Homebrew, Y Combinator, among others. Nuvocargo has been recognized in YC Top Companies 2023 and as one of the 10 Most Innovative Companies in Latin America by Fast Company for two consecutive years. Learn more at nuvocargo.com/en.
Media Contact:
Shantal Erlich
shantal.erlich@nuvocargo.com
