Solvento raises $4.5M to resolve Mexico’s trucking business issues

Solvent, a Mexico City-based digital platform offering trucking corporations with entry to capital, introduced Monday it has raised $4.5 million in a fundraising spherical led by Dynamo Ventures.

Other members included Wollef Ventures and Zenda Capital, together with a $3 million debt facility from Marco Financial.

Jaime Tabachnik, co-founder and CEO of Solvento, mentioned the funds shall be used to rent extra staff in addition to present capital for the loans it offers out to Mexican trucking corporations.

“A year from now we want to grow our outstanding portfolio, onboarding more customers,” Tabachnik instructed FreightWaves. “We’re working with 27 customers right now. We’re hoping to get to over 250 customers in a year.”

Solvento was based in 2021 by Tabachnik and brothers Guillermo and Pedro Bosch. The firm is a monetary expertise platform aiming to alleviate a capital crunch felt by small and midsized trucking corporations throughout Mexico.

“The 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,” Tabachnik mentioned. “The problem is that these companies don’t have access to financing, not even credit cards. So they’re living day to day paying in advance for gas, payrolls and other operational expenses.”

Mexico’s trucking business generates income of about $60 billion yearly, based on a 2016 report titled “Trucking in Mexico: Navigating the Opportunity” by Wisconsin-based Armstrong & Associates.

Tabachnik mentioned producing income is extraordinarily aggressive and difficult for small and mid-sized carriers within the Mexican trucking business. Additionally, it’s frequent apply for shippers to not pay truckers for as much as 60 days on common after the products have been delivered.

“So that’s killing them and that’s also keeping them from growing,” Tabachnik mentioned.

Solvento works by extending credit score traces to trucking corporations, permitting them to gather invoices when items are delivered. Solvento integrates its platform into current logistics administration programs utilized by carriers and shippers. When a service invoices the shipper upon supply, Solvento underwrites the bill and advances the cost on the shipper’s behalf.

Solvento’s platform will even assist carriers mechanically navigate authorities compliance, such because the Carte Porte complement that goes into full impact Jan. 1. The Mexican authorities is implementing a brand new customs requirement that every transport bill be licensed by the Mexican Tax Administration Service previous to providers starting.

The new necessities embody disclosing every part in regards to the cargo, together with kind of merchandise, who owns it, insurance coverage, origin, vacation spot and invoice of lading. Solvento will work with carriers and shippers to finish the Carte Porte complement course of electronically on its platform.

“We partnered with an electric electronic invoicing company and we’re giving the service for free, as a premium to truckers,” Tabachnik mentioned. “Our solution for truckers will generate their invoice and their Carte Porte supplement for free, including the stamp that usually truckers need to pay for each of these stamps, like 20 cents of $1. But we’re giving it for free starting in January.”

Over the following yr, Solvento will even be engaged on elevating its Series A funding spherical to maintain increasing its providers to extra markets.

“We have a very clear expansion strategy, in Latin and Central America and up to the U.S., for Spanish-speaking trucking companies,” Tabachnik mentioned.