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The rapid growth of e-commerce in Mexico goes beyond the increase in consumer confidence in online shopping.
The development of backend infrastructure, particularly in logistics, payments, and operations, has contributed to the region's broader adoption of e-commerce businesses.
Imagine this
You launched an e-commerce business selling unique gift boxes, which quickly gained traction.
Handling logistics becomes more challenging as orders increase, making it harder to focus on digital marketing and business growth.
Realizing the need for help, you seek a logistics partner to streamline operations and ensure timely deliveries.
A friend in the industry recommends Buho Logistics, known for helping e-commerce businesses of various sizes scale efficiently and handle shipping complexities.
Explain it like I'm five
Buho Logistics is a fulfillment company for e-commerce businesses.
Fulfillment: They offer storing, packing, inventory management, and shipping orders to customers.
Print-on-demand: Clients can print custom packaging, flyers, and poster designs for their products without stock.
Integrations: Buho can integrate multiple shipping carriers and the most popular e-commerce platforms and marketplaces.
Founders aim to simplify the growth of e-commerce businesses by providing logistics and operation support.
The ABCs
Industries: Logistics, e-commerce, delivery
Headquarters: Monterrey, Mexico
Year Operations Started: 2017
Raised: Bootstrapped
Investors: Family and friends
Business Model: Packaging handling and storage fees
Other players:
Background check
What we like:
Offering: Buho has multiple vertically aligned businesses that complement each other, making it a one-stop shop for their clients. They have Buho Logistics, a one-stop-shop order fulfillment service. EcomPack, where they design shipping supplies for their customers, and Buho Media, where they provide visual solutions to communicate their client's products or marketing campaigns.
Technology: According to the founders, they have been constantly investing in developing state-of-the-art technology for their clients; approximately 33% of their workforce are developers, prioritizing having a technological advantage over their competitors.
Demand: Mexico is emerging as a critical player in the global e-commerce landscape, ranking among the top five countries for e-commerce growth. Initially, Buho focused its services on small and medium-sized businesses, but in recent years, they have attracted the attention of local and international enterprise companies.
PSP (Print Service provider): A difference between Buho and other players in the market is that they offer advanced digital printing services uniquely tailored to meet clients’ needs across multiple sectors, enhancing branding and customer experiences.
Roadblocks:
Crowded: The growth of e-commerce in the region has increased the amount of logistics players. Ultimately, the businesses with more volume have shipping cost benefits for clients due to their size.
Scaleability: Fulfillment providers have limited storage space in their warehouses. To bring more clients on board, they need to expand their current warehouses or open new locations, and with the surge of near-shoring in the country, it is becoming expensive.
Operation: Handling fulfillment for various clients is complex. They must be very organized and efficient, ensuring every client's inventory is tracked and managed correctly.
The Architects
Samuel Elizondo, Co-Founder. Previously @ Synthetic Genomics.
José Gerardo Elizondo, Co-Founder. Previously @ Helicon.
Jaime Torres, Co-Founder. Previously @ Grupo Reforma.
Juan Carlos Torres, Co-Founder. Previously @ Medio Pliego.
Request intro with founders by sending an email to gabriel@readrunway.com
Headlines Corner
Letrus, a Brazilian ed-tech startup, raised US $7.4M in founding (Startupi).
Brinta, a Uruguayan startup focused on streamlining business accounting processes, successfully secured US $5M in funding (Forbes).
Construex, an Ecuadorian SaaS marketplace for the construction industry, raised US $4.6M in funding (Techcrunch).
Venture Capital investments in Latin America have remained constant in the last five quarters (LAVCA).
Founders Bookmarks
The best tools and resources we came across this week.
Three reasons startups don’t find product-market fit.
Charlie Munger’s impactful ideas for a life well lived.
How the founder of Everalane built a fashion brand centered on transparency.
Building in latam? Send us your pitch deck for the opportunity to be featured in Runway.