Mexico City-based last-mile logistics platform announced a $7 million raise in follow-on funding, bringing its total seed round to $11 million. It will use the capital to create a nationwide distributed warehouse network so regional retailers can compete with giants like Amazon.
Cargamos intends to use the funding to build a large fulfilment facility and expand its network of mini distribution centers or “pods,” where packages are sorted and sent out for final delivery. The company currently has about 50 pods which I seeks to double in six months so that it can cover a service area around Mexico City of up to 75 additional cities, according to Ivan Ariza, founder and CEO of Cargamos.
Currently, Cargamos works with three of Mexico’s largest retailers, including Liverpool, Mexico’s largest chain of department stores, as well the top 50 companies with an e-commerce channel in the country, according to the company. When it builds its fulfilment facility, it will be able to expand its service to smaller and medium-sized businesses that don’t have their own fulfilment centers, opening the door for expanded e-commerce in Mexico.
Retailers can access Cargamos’ pod network via its cloud-based software platform, which includes smart routing and an ability to get a bird’s eye view of the different points of logistics, from fulfilment to pod to front door.
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