Solvento
Financial solutions for the logistics industry
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More than 30,000 trucks cross the Mexico and US border daily. That’s over $465 billion dollars worth of goods, making up approximately 49% of Mexico’s annual transported goods.
Let's dive in.
Imagine this
You own a medium-sized logistics company focused on US-Mexico exports.
In the last few years, you had to scale operations due to increased demand for the services offered by your company.
As clients got bigger, they started to ask for extended payment terms, which leaves you with low operating cash flow.
Less cash means your business is now vulnerable due to all the payments that go unseen by clients —maintenance, gas, and salaries.
In search of a solution, you attend a logistics conference, where you discover a service that helps logistics companies manage their cash flow.
Explain it like I'm five
In the cross-border trucking industry, three key elements have significantly digitalized and transformed in recent years:
Payments: Freight forwarders and brokers can automate the payment process instead of manually paying carriers.
Audits: Companies can digitize their invoices, eliminating the need to keep physical paperwork and reducing mistakes.
Invoicing: Transport companies can access credit to pay their invoices quickly.
In our interview with Jaime Tabachnik, Co-founder & CEO of Solvento, he mentioned that they’re the only company that currently digitizes these key aspects for the Mexican market.
While numerous companies like Mundi, Finkargo, and Nuvocargo provide some of these services, Solvento distinguishes itself by consolidating them into a single, integrated platform.
This approach enhances their proposition for financial solutions in Mexican logistics companies.
Solvento’s ABCs
Industries: Logistics, fintech
Headquarters: Mexico City
Year Operations Started: 2021
Team Size: 45
Capital Raised: $10 million dollars Seed round, $50 million dollars debt (in the process of raising Series A in Q2 2024)
Investors: Lendable, Ironspring Ventures, Zenda, Quona, Wollef, SUSA Ventures, Proeza Ventures, 9 Yards Capital, and Dynamo
Business Model: SaaS, financing, transaction fees
Background check
What we like:
Management: In the trucking industry, it’s common to have extended payment terms with clients. Invoices for services provided might not get paid for up to 90 days. Payment delays create gaps between when expenses, like fuel, maintenance, and salaries, are paid and when revenue is actually received. Access to financing is crucial for many logistics companies to keep operations running.
Traction: To date, Solvento’s founders told Whitepaper that they have allocated more than $80 million dollars in financing to over 180 clients in Mexico. They also claim that their past-due portfolio (unpaid credits) is around 2%.
Location: The Covid-19 pandemic revealed the vulnerabilities of supply chains, leading international companies to reconsider their strategies. Mexico’s proximity to the US market has allowed it to emerge as a preferred destination for companies seeking to reduce supply chain complexity and transportation costs, potentially benefiting Solvento in the long run.
Solutions: Solvento doesn’t rely on one client profile. Instead, it looks to diversify and target different businesses. Their target customers include businesses that hire third parties for their logistical operations, transportation companies, 3rd party logistics, and freight forwarders.
Roadblocks:
Lack of drivers: According to the International Road Transport Union (IRU), in 2022, there was a shortage of 55,000 drivers in Mexico. This indirectly affects Solvento because they depend on their business partners to meet their logistical demands.
Insecurity: In 2022, the authorities reported 13,199 crimes committed against truckers. AI27, a logistics company, estimates that around $300 million dollars are lost yearly due to cargo theft.
Cyclical Market: The logistics industry experienced a significant boom during and in the aftermath of Covid-19. Following this surge, the market has gradually stabilized, leading to a noticeable decrease in the industry’s growth and activity.
Geopolitics: Solvento depends heavily on cross-border transport between Mexico and the US. In 2024, 64 countries are heading for elections, almost half of the world’s population. A concern is if the US changes its import/export regulations, it could have a significant impact on Solvento’s business model.
The Architects
Jaime Tabachnik, Co-founder & CEO.
Pedro Bosch, Co-founder & CPO.
Guillermo Bosch, Co-founder & COO.
Request intro with founders by sending an email to gabriel@readrunway.com
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Headline Corner
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Founders Bookmarks
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A reminder of how quickly “the current thing” fades away — stay focused.
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