Nuvocargo, a digital freight forwarder and customs broker for U.S./Mexico trade, has raised $5.3 million in a funding round led by venture capital firms NFX and ALLVP, the company said Thursday. The New York-based company said it will use the funding to expand and grow its staff on both sides of the border.
Nuvocargo’s software helps shippers coordinate door-to-door transportation between the United States and Mexico, including procuring trucks on both sides of the border, customs clearance, insurance, trade finance, reporting, and more, the company said. Nuvocargo says its goal is to become every shipper’s “one-stop shop” for all things related to U.S./Mexico cross-border trade, and eventually for U.S./Latin America trade.
“We act as an extension of our customers’ team so they can outsource to us all the complexities associated with their U.S./Mexico cross-border supply chain,” Deepak Chhugani, company founder and CEO, said in a statement announcing the funding.
Nuvocargo says it is modernizing a multi-trillion dollar market that has traditionally relied primarily on paper, phone calls, faxes, and spreadsheets, giving shippers one main point of contact for the entire international logistics process. The firm is run by a bi-lingual team located in New York and Mexico City and was founded in August 2019.
Other funding participants include One Way Ventures, Maya Capital, Magma Partners, the co-founders of LatAm unicorn Rappi, the former CMO of Cabify, and several others. The total includes earlier backing from investors including Y Combinator, the company also said.