Cubbo, the revolution in e-commerce takes over Latin America
The logistics company presents its ambitious expansion plans for the coming months after closing the purchase of one of its competitors.
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Cubbo, a company dedicated to fulfillment logistics for e-commerce, which deals with the storage, packing and delivery of orders, has just acquired Dedalog, a competitor firm based in Sao Paulo, Brazil.
With existing operations in Colombia and Mexico, the acquisition of the Brazilian company seeks to strengthen its presence in this market, and although the final amount of the transaction was not disclosed, it was completed after Cubbo raised $4 million in a round of seed investment.
Cubbo's software, which works as a partner for clients in the United States and Europe, offers them the possibility of making direct shipments to the consumer in Latin America through platforms such as Shopify, VTEX and Mercado Libre.
The firm currently has a team of 35 people, as well as four warehouses, two located in Sao Paulo, one in Bogota, Colombia, and the other in Mexico City. In addition, Cubbo plans, in the short term, to open four new collection centers, including the first in Rio de Janeiro, as well as two more in Sao Paulo, and one in the Colombian capital.
Brian York, CEO and co-founder of the company along with Josu Gurtubay, highlighted in an interview for Forbes that the firm's gross income increased by 60% for the last quarter of 2021, with expectations of growing 100% in the first quarter of 2022. These figures encourage them to seek, in the coming months, a new round of Series A financing that will allow them to enter the Chilean market by 2023.
York also told the publication that after analyzing the numbers on the market in the different countries in which Dedalog has operated during its first year, they seemed surprising.
“Dedalog was cash flow positive, had great clients, a great team and was one of the top technology e-commerce fulfillment companies in São Paulo. Once we discovered this gem, we acted quickly to to acquire their business,” York highlighted after the acquisition of the Brazilian firm.
According to the latest projections indicated on its website, based on growth levels, "It is expected that by 2024 the number of online shoppers will reach 351 million users in Latin America, estimating an average growth of approximately 21 million per year. This may indicate that by 2021 the number of buyers in Latin America reached 288 million.”
“We will continue to focus on e-commerce fulfillment in Latin America by leveraging our network of urban warehouses throughout the region. We are investing a lot of resources to increase the number of global brands we work with, making it easier for them to import their products and ship them directly to the consumer through our urban fulfillment centers,” stressed York.
“E-commerce sales did not slow down with the awareness of the COVID measures, on the contrary, they continue to increase. The e-commerce market is expected to grow almost $11 billion between 2021 and 2025, while buyers will continue to visit online stores and register consumption figures in this channel, never seen before,” they point out in the company's blog, where it is also reported that "according to worldwide projections, online sales will reach $5 billion by 2022."
Through an interview with Bloomberg Línea, York said:
Brazil is a great market, so much I’m relocating my entire family to the country. We are super excited to work side by side with Tiago, CEO of Dedalog, who will be running the country while I oversee the rest of Latin America.