Solvento, a Mexico City-based digital platform providing trucking companies with access to capital, said Monday it had raised $ 4.5 million in a fundraiser led by Dynamo Ventures.
Other participants included Wollef Ventures and Zenda Capital, as well as a $ 3 million credit facility from Marco Financial.
Jaime Tabachnik, co-founder and CEO of Solvento, said the funds will be used to hire more employees as well as provide capital for loans he is making to Mexican trucking companies.
âIn a year from now, we want to grow our exceptional portfolio, onboarding more clients,â Tabachnik told FreightWaves. âWe are currently working with 27 clients. We hope to reach over 250 customers in one year.
Solvento was founded in 2021 by Tabachnik and the brothers Guillermo and Pedro Bosch. The company is a fintech platform aimed at alleviating the capital shortage felt by small and medium-sized trucking companies across Mexico.
âThe trucking industry in Mexico is really fragmented, we have over 200,000 trucking companies in Mexico and over 95% of them have less than 30 trucks,â Tabachnik said. âThe problem is, these businesses don’t have access to financing, not even credit cards. They therefore live from day to day by paying in advance for gasoline, salaries and other operational expenses.
The Mexican trucking industry generates approximately $ 60 billion in revenue annually, according to a 2016 report titled “Trucking in Mexico: Navigating the Opportunity” from Armstrong & Associates, a company based in Mexico. Wisconsin.
Tabachnik said generating income is extremely competitive and difficult for small and medium carriers in the Mexican trucking industry. In addition, it is common for shippers not to pay truckers until an average of 60 days after delivery of the goods.
âSo that kills them and it also stops them from growing taller,â Tabachnik said.
Solvento works by providing lines of credit to trucking companies, allowing them to collect invoices when goods are delivered. Solvento integrates its platform into existing logistics management systems used by carriers and shippers. When a carrier invoices the shipper on delivery, Solvento guarantees the invoice and advances payment on behalf of the shipper.
Watch: Craig Fuller, Founder and CEO of FreightWaves, discusses Mexico’s venture capital and cross-border trade with Matt Silver of Forager.
Solvento’s platform will also help carriers navigate government compliance automatically, such as the Porte Card supplement which goes into full effect on January 1. The Mexican government is implementing a new customs requirement that every shipping invoice must be authorized by the Mexican tax administration department before services. start.
The new requirements include disclosure of everything related to shipping, including type of cargo, owner, insurance, origin, destination and bill of lading. Solvento will work with carriers and shippers to complete the Porte Card supplement process electronically on its platform.
âWe have partnered up with an electronic electrical billing company and are providing the service free of charge as a bonus to truckers,â said Tabachnik. âOur solution for truckers will generate their invoice and their Porte Carte supplement for free, including the stamp that truckers typically have to pay for each of these stamps, like 20 cents of $ 1. But we are offering it for free from January.
Over the next year, Solvento will also work to increase its Series A funding round to continue expanding its services to more markets.
âWe have a very clear expansion strategy, in Latin and Central America and all the way to the United States, for Spanish speaking trucking companies,â Tabachnik said.
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