Cubbo, a platform focused on the so-called e-commerce fulfillment (that is, on receiving and storing stock, processing orders, picking items, and shipping packages to customers), raised an undisclosed pre-Series A funding with several investors: Gerdau Next Ventures, SV Latam Capital, Gaingels and the Community Access Fund. The startup will apply more than half of the new resources to expand in Brazil (a market that currently accounts for 10% of its business) as it consolidates its operations in Colombia and Mexico. Shortly, the debut in Chile is also on the startup‘s roadmap.
In Brazil, the company intends to invest in the acquisition of two new warehouses, one in Sao Paulo and another in Rio de Janeiro, in addition to hiring in engineering, sales, and operations.
Cubbo focuses on small orders (smaller than a shoebox) for non-perishable independent brand products that can be delivered the same day.
Cubbo was co-founded in 2021 by Brian York, a Bogotá-born but US-raised entrepreneur who is also the founder of Liftit, a delivery platform using trucks. The startup arrived in Brazil after raising a $4 million Seed round in November 2021 and acquiring Dedalog, a São Paulo-based competitor founded by Tiago Pavan, now the startup’s country manager. Cubbo’s other co-founders are Josu Gurtubay (COO) and Ignasi Vegas (CTO).
Without giving figures, the company says that, as a result of the investments, it expects to see its gross revenue quadruple in the region by the end of this year, while it sees its operations in Brazil reaching about a third or more of its results. “We want to direct this pre-Serie A round to Brazil due to the high demand and growth prospects we see in the country. We already have two full warehouses in São Paulo, and we need to quickly expand to a third if we want to keep growing,” York said in a press release.
Another 30% of the round should be used to expand operations in Colombia, with new warehouses to serve Bogotá, Barranquilla, Cali, and Medellín. And the rest in Cubbo’s engineering and sales teams in Mexico.
“Right now, expanding our team and warehouse space is a necessity. Our biggest customers (the US and European e-commerce brands) want to do more business with Latin America, and we want to take this opportunity to offer a partnership. We will immediately start investing in Brazil to take advantage of our potential to bring brands and customers together and open more avenues for business with local e-commerce companies,” added York.
The company did not reveal the value of the investment and did not say whether it could result in a Series A soon. According to data from Sling Hub, between January and May, there were 30 Series A rounds in Brazil, with an average ticket of $12.4 million.