Skydropx Secures Funding to Expand Logistics Automation in Latin America

The Growing Need for Reliable E-commerce Delivery in Latin America

Many online shoppers have experienced issues with package delivery at some point. With e-commerce sales in Latin America projected to increase significantly – by double digits annually through 2024 – the need for dependable and affordable delivery solutions is becoming increasingly critical.

Introducing Skydropx: Automated Logistics Management

Skydropx, a logistics management company headquartered in Mexico City, is addressing this challenge. The company empowers businesses to establish a fully automated delivery process for their customers.

Key Features of the Skydropx Platform

• Over 250 shipping options are integrated into the system.
• Customers receive tracking notifications via WhatsApp.
• Estimated delivery times are provided for enhanced transparency.
• A streamlined return management process is included.

Company Origins and Growth

Founded in 2014 by Tavo Zambrano, Armando Solbes, Óscar Victorín, and Daniel Alvarado, Skydropx initially focused on food delivery. However, a strategic pivot occurred in 2015 when Zambrano identified a gap in the market.

The company’s founders observed that businesses were struggling to navigate the complexities of numerous shipping carriers. Specifically, determining the optimal carrier based on cost, speed, and reliability proved difficult. No existing online solution adequately addressed this problem.

Addressing Unique Regional Challenges

Zambrano emphasizes that each country presents distinct logistical hurdles. Variations in delivery carriers across different nations necessitate a localized approach for Skydropx, requiring them to build their solutions from the ground up in each new market.

Expansion Plans and Recent Funding

Skydropx intends to extend its reach to other rapidly growing e-commerce markets, including Colombia, Argentina, Chile, and Peru. To facilitate this expansion, the company announced a $20 million Series A funding round on Tuesday. This round was co-led by Base10 Partners, Cometa, and 645 Ventures.

Investor Perspectives

TJ Nahigian, co-founder and managing partner of Base10 Partners, first encountered Zambrano and Solbes in 2018. He revisited the company as global e-commerce experienced substantial growth, impacting Latin American adoption. He noted that delivery and fulfillment were key challenges for businesses in the region.

Nahigian stated that Zambrano and Armando are crucial in fostering the growth of this ecosystem, representing a significant opportunity. He believes Skydropx is positioned to streamline delivery and information flow, increasing efficiency. While current market penetration is low, he anticipates substantial growth – a 10 to 100-fold increase – in the coming years.

Financial Performance and Milestones

This new funding supplements previous investments totaling $7 million, including participation in Y Combinator in 2018. Since then, Skydropx has achieved profitability and experienced over 300% growth in 2020 alone.

Currently, the company serves over 50,000 customers and processes more than 1.5 million deliveries monthly. Approximately 6% of all package deliveries in Mexico are now handled through Skydropx, according to Zambrano.

Future Initiatives

Beyond geographical expansion, Skydropx is exploring additional fulfillment services. This includes establishing its own fulfillment centers within Mexico and launching a network of delivery branches. Customers will be able to drop off or pick up packages in person at these locations, in addition to utilizing the website. The company plans to launch approximately 30 branches within existing corner and convenience stores across Mexico in the next two weeks.

Aaron Holiday, co-founder and managing partner of 645 Ventures, initially met the company at Y Combinator but did not invest at that time. He was impressed by the company’s consistent year-over-year performance and sought to participate in the Series A round, marking 645 Ventures’ first investment in Latin America.

Holiday highlighted the resurgence of e-commerce in Latin America, following the growth of fintech. He emphasized that Skydropx is becoming a leading solution for automating fulfillment, enabling businesses to scale and achieve profitability.