Nuvocargo, a digital freight forwarder and customs broker for U.S./Mexico trade, has raised $12 million in Series A funding led by QED Investors, bringing its total funding to $17.3 million, the company said Wednesday.
Leaders at the cross-border logistics firm said they will use the funding to expand the company’s product and service offering and hire more talent on both sides of the border. The company said it also plans to add financial products for shippers and carriers, including cargo insurance, working capital financing, trade financing, inventory loans, and similar offerings—essentially targeting the supply chain finance market.
“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,” Deepak Chhugani, company founder and CEO, said in a statement. “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.”
Specific hiring plans include investing more aggressively in engineering, design, analytics, and marketing as well as sales and operations. The company said it expects to grow its team of 35 employees in the U.S. and Mexico to more than 100 in the next 12 months.
In 2020, Nuvocargo added offices in Mexico City and Laredo, Texas, to support growth. The firm also enhanced its platform with tracking features available in English and Spanish that provide shippers with enhanced visibility and the ability to track and monitor their cargo shipments all in one place.
The latest funding round also includes new investors: David Velez, Founder/CEO, Nubank; Michael Ronen, Branded/SoftBan; Raymond Tonsing, Caffeinated Capital; FJ Labs; and Clocktower. Existing investors NFX and ALLVP also participated, the company said.