Discover more from Whitepaper.mx
Land cross-border logistics partner
Mexico became the top US trading partner in early 2023, with bilateral trade totaling US $263 billion during the first four months of this year.
Behind these numbers lies the freight spending market, where Mexican companies allocate around US $80 billion annually.
Let's dive in.
As head of logistics at a manufacturing company in Mexico, you and your team are responsible for scheduling more than 50 monthly shipments to the US.
Getting quotes on your routes, receiving invoices, and constantly communicating with your different suppliers is part of your daily tasks.
Managing customer updates on their truckloads adds complexity to your already busy schedule.
What if there was a way to streamline and simplify all these logistics challenges in one platform?
Enter Konargo, a platform to manage your land cross-border logistics.
Explain it like I'm five
Konargo is a cross-border logistics platform for truck transportation.
Their platform allows users to track, manage and monitor all loads in a centralized platform.
Companies can get pre-approved quotes from multiple suppliers in a few seconds.
They also offer customs brokerage and risk management as a service.
Founders aim to digitalize Mexico’s most important supply chain.
Industries: Logistics, Saas
Headquarters: Monterrey, Mexico
Year Operations Started: 2023
Team Size: 4
Raised: Bootstrapped (Currently raising)
Accelerator: Peak Nuevo Leon
Investors: Family & Friends
Business Model: Transaction-based
What we like:
Location: In 2022 alone, Nuevo Leon exported US $51 billion in goods, representing a 23.3% increase from the year before. Konargo strategically operates in one of the most important Mexican states for trade between the US and Mexico.
Direct: Konargo offers companies multiple tools and intelligence features, but one of their biggest strengths is working directly with carrier owners. Founders claim it could reduce the company’s logistics costs by up to 16%.
Nearshoring: Mexico is expected to continue to benefit from the US-China trading war that has been heating up in the last few years. According to Banxico, in 2021, exports of goods and services from Mexico amounted to more than US $465 billion, equivalent to 49% of the national GDP.
Time: On average, companies wait around 30 hours to receive quotes. Konargo has many partners and can offer instant pre-approved quotes on more than 50 destinations between Mexico and US in seconds.
Personalized: Every company has different needs in its logistics operations. Konargo can adapt to companies' diverse needs, making it a personal experience for each business by adopting their routes, logistic suppliers, and timeframes.
Crowded space: Konargo has recently begun its operations. They face high-funded startups that have a head start. To name a few, Nowports and Nuvocargo have established their company brand and presence globally.
Insecurity on roads: One of the most significant issues in Mexico is insecurity. The Association of National Transporters (ANTAC) estimates that around US $115M is lost yearly due to cargo theft. However, according to the logistics company AI27, the amount is much higher, and cargo theft represents around US $250M. In 2022, the authorities reported 13,199 crimes committed against truckers.
Culture: Traditional services work well, though not perfectly. Many companies adopt the mindset of "if it ain't broke, don't fix it" regarding their logistics processes. This makes them hesitant to implement new tech into their operations since it may change their strategies and slow them down.
Government: Government laws significantly impact the logistics industry. Konargo heavily relies on export/import regulations of Canada, Mexico, and the United States. Any changes can create complications for them.
Fernando Lemarroy Co-Founder & CEO. Previously @ Servifacil.
Alejandro Sandoval Co-Founder & CTO. Previously @ Kueski.
Hector Ruiz Co-Founder & COO. Previously @ Nuvocargo.
Request intro with founders by sending an email to firstname.lastname@example.org
Bright, a solar energy company, raised $31.5M in Series C funding from the Danish Investment Fund for Developing Countries. First Round Capital and Y Combinator also participated. (Businesswire)
Vetalia, a veterinary services network, raised $10M from angel investors, including current and former Rappi, Merama, and Laika leaders. (Crunchbase)
Nubank now has 80 million users, surpassing Banco do Brasil to become the country's fourth-largest bank. (Seeking Alpha)
Kavak, the renowned Mexican online car marketplace, has recently announced a substantial $40M investment into Chile. (Contxto)
The best tools and resources we came across this week:
Marcelo Claure and Shu Nyatta recently announced Bicycle Capital, a $500 million fund for LatAm. They discussed their fund mission and the mistakes they made at SoftBank on last week's 20VC podcast.
Whitepaper recently released a comprehensive and insightful deep dive into the nearshoring phenomenon.
Warp recently announced their $50m series B led by Sequoia last month. Their public "How We Work" document is one of the best we've seen, covering communication, problem-solving, decision-making, and more.