E-commerce has been booming and many logistics companies keep growing to meet increasing demand. iVoy, which started operations in Mexico City in 2011, is now expanding to the rest of the country thanks to a “relevant” investment from Northgate Capital, said Álvaro de Juan Uriarte, CEO of iVoy.
“We are very happy with Northgate’s investment, which will help us to keep growing,” said de Juan to T21. He did not disclose the investment amount but mentioned a recently signed contract to acquire a new warehouse that will allow the firm to expand fourfold. iVoy has been steadily investing to grow its logistic capabilities and in 2018, the company focused on next-day and same-day deliveries. The company has benefitted from the e-commerce boom through alliances with big retailers including Liverpool, Walmart and Inditex, reports T21.
Currently, iVoy operates in Mexico City and Guadalajara but plans to invest between US$5 million and US$10 million to reach more areas, reports Forbes Mexico. De Juan said that the company plans to expand to four or five cities and it sees the biggest opportunity in the Bajio area, Puebla and Monterrey. “During 1H21, we will adjust operations, technology and processes to later scale the company in a stronger way.” With Northgate’s investment, the company also plans to improve its offering and maybe even expand its service catalog. “The objective in the following years is to reach Mexico’s main cities and to cover, at least, 70 to 80 percent of e-commerce demand in Mexico,” he said to Forbes Mexico.
“Last year we grew between 350 and 400 percent. Our current plan is to improve our services to be the main shipping option for SMEs in the country,” he said to T21. De Juan Uriarte explained that the company competes with immediate delivery companies like Uber or DiDi. However, the company is specialized in deliveries instead of transportation so it is able to deliver on the same day or the day after, like DHL or Estafeta. “We started with deliveries on the same day and clients asked us why we were not doing next-day deliveries. Inadvertently we began to compete with DHL and Estafeta with very good results,” he said.