New York-based Nuvocargo, the trucking marketplace firm has confirmed raising $5.3 million in seed financing. The current round has been led by ALLVP and NFX while One Way Ventures, Maya Capital, Magma Partners, the co-founders of Rappi, the former CMO of Cabify also participated. Notably, VC firm Y Combinator had earlier infused a sum in the company when the company had a different name.
Founded in 2019 by Deepak Chhugani, the firm operates a managed marketplace for the door to door freight transportation, especially between the United States and Mexico. Notably, Chhugani entered the Y Combinator’s W18 class with a different idea and product which was called The Lobby. He impressed everyone with the idea of connecting job seekers to personalized coaches, However, after raising $1.2 million capital, he dropped the idea and ventured in the logistic space. One of the reasons for the shift was the fact that his family was in the logistics business in Latin America.
On how the firm plans to use the capital, Chhugani says that “We are going to grow teams across product engineering, operations, and sales. We are going to use the funding to build the best possible team at the intersection of very distinct worlds, which are the logistics industry, Silicon Valley, Latin America, and the U.S.”
ALLVP partner Antonia Rojas talking about the investment in the firm said that “more than almost any other industry, cross-border logistics involves complex interactions across multiple cultures, sectors, and stakeholders. I’m thrilled to join Deepak and Sam Blackman (Nuvocargo co-founder and chief technology officer) as they transform a massive industry still untouched by technology.”
Amid the ongoing COVID pandemic, the firm pressed on the fact that at the moment, the company is only delivering the essential goods to make sure the supply chain works properly.
Image courtesy: NFX