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Delivery Startup Cargamos Raises US$4 Million in Funding

By Andrea Villar | Mon, 01/25/2021 - 10:27

Cargamos, a last-mile cargo and delivery service startup, raised US$4 million in its latest investment round led by FEMSA Ventures and Mountain Nazca. With this investment, the company will develop new technologies and expand its network to more than 300 micro-hubs in 15 cities in Mexico, including Mexico City, Monterrey and Guadalajara. 

The platform launched in November 2019, links companies with delivery service providers. “Our mission is to be able to connect the digital world with the street around your house. An essential point that was missing was that there was no connection between the brands and the last-mile networks that were on the streets, like motorbikes, cars and the collaborative economy network that already existed. Something was needed to bridge this gap,” told MBN Iván Ariza, CEO of Cargamos, in an interview back in December. 

One of the big problems in e-commerce today, Ariza said, is that the warehouses of the big retailers in the market are not prepared to deliver packages to people in the gig economy. “That is why we established on-demand warehouses at strategic urban areas,” he noted.

“We do not know of any companies that do anything like this. We know companies that have motorbikes or vehicles to make last-mile deliveries and we also know large companies in the game but we do not compete with either. Cargamos stands between both and acts as a bonding agent,” Ariza pointed out. Javier García Quiroga, Director of FEMSA Ventures, agrees. “We bet on Cargamos because there is currently no other player in the market with this type of service, which provides a solution to today's major challenges in e-commerce, such as delivery times,” he said in a statement.

In 2020, Mexico was one of the fastest-growing countries in the world regarding e-commerce, with a growth rate of between 30 and 35 percent, according to the Mexican Association of Online Sales (AMVO). By 2021, 19 percent of companies in the country expect e-commerce to account for more than 30 percent of their total sales. Meanwhile, an estimated 900,000m2 of logistics centers and other last-mile delivery facilities are expected to be built in Mexico City and the metropolitan area between 2021 and 2022, according to Newmark, a commercial real estate advisory firm. 

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Andrea Villar Andrea Villar Journalist and Industry Analyst