Automate Fulfillment Company Expands into Latin America
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Automate Fulfillment Company Expands into Latin America

Photo by:   PhotoMIX Company, Pexels
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Pamela Benítez By Pamela Benítez | Junior Journalist & Industry Analyst - Tue, 11/16/2021 - 12:52

Mexico City-based leader in automated fulfillment Skydropx, announced a US$20 million Series A funding to expand logistics automation operations while enabling automated delivery experiences for customers in Latin American e-commerce expanding markets.

Skydropx is planning to expand its services to the Colombian, Argentinian, Chilean and Peruvian markets led by the following companies: 645 Ventures, Base10 Partners and Cometa, as e-commerce expects double-digit annual growth by 2024 while considering cost-effective delivery solutions an urgent matter.

“In Latin America e-commerce is undergoing a Renaissance period, first around fintech and now with the emergence and surge in e-commerce. Skydropx is emerging as the dominant leader to automate fulfillment,” said Aaron Holiday, Co-founder of 645 Ventures.

Skydropx’s profitability was over 300 percent in 2020 after its 2018 participation in Y Combinator that grew the company’s capital by US$7 million. This allowed Skydropx to serve 50,000 customers with 1.5 million deliveries per month as they offer automated delivery solutions with 250 plus shipping options, notification tracking via WhatsApp with available estimated delivery times and return management. According to Founder Tavo Zambrano, around six percent of Mexican package deliveries are operated by Skydropx.

“Skysdropx enables delivery and information to flow through the entire systemin a more efficient way. The penetration rate is still small, but we see that significantly changes 10 to 100 times over the next couple of years,” said TJ Nahigian, Co-founder of Base10 Partners.

The company saw a business opportunity in aiding other businesses decipher the best shipping carriers, while providing up to 70 percent cost reduction in logistics and three-time revenue growth by displacing real-time shipping options and costs. Skydropx is also offering companies data error avoidance solutions through the optimization of operations by up to 91 percent.

“We saw companies struggling to understand hundreds of carriers.  Figuring out which one would be the most cost-efficient or which one had the best speed, nevertheless, we noticed no one was attending this problem online,” said Zambrano.

One of the challenges for this expansion is, according to Zambrano, the adaptation to each market shipping conditions due to the differences in delivery carriers in Latin America, forcing Skydropx’s delivery and fulfillment strategy to adapt.

In addition, the company is also opening its fulfillment centers and delivery branches in Mexico’s convenience stores, which will allow customers to drop off or pick up merchandize.

Photo by:   PhotoMIX Company, Pexels

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