CargoX, a provider of trucking services for corporations, has raised $10 million in Series B funding. Goldman Sachs led the round with participation from other investors that included Valor Capital Group, Agility Logistics and Lumia Capital. In addition to the funding, Hillel Moerman, co-head of Goldman Sachs Private Capital, has joined CargoX’s board.
São Paul, Brazil (July 20, 2016)— CargoX, the leading technology company that offers trucking services for corporations, today announced it has secured a $10M Series B Round Funding to enable the company to accelerate its technology development. Goldman Sachs led the round with continued participation by Valor Capital Group and existing investors, Oscar Salazar (Co-Founder of Uber), Hans Hickler (former CEO of DHL Express US). Agility Logistics and Lumia Capital.
This follows CargoX’s Series A round of $4M led by Valor Capital Group, bringing the total funding to date to $14M.
CargoX employs cutting-edge technology and excellence in data science to reduce trucking costs by making use of truck’s existing excess capacity and improving freight visibility. Their team has the best, most creative and committed professionals from Brazil, Russia, Argentina and the USA.
Due to the significant lack of railroad options and reduced air and maritime transportation, the Brazilian economy is strongly dependent on trucks, being that 65% of all Brazilian freight is moved by trucks. If CargoX is able to reduce trucking costs, the overall impact on the economy will be significant.
“We believe that CargoX has built a very strong technology foundation to enable the disruption of the industry at large scale,” said Hillel Moerman, co-Head of Goldman Sachs Private Capital.
“CargoX is about leveraging great technology and world-class design to stay connected with a network of thousands of truck drivers in real time,” said Federico Vega, CEO of CargoX. “The new funding will enable us to build the next iteration of our platform to continue scaling our business and revolutionize the transport of cargo, bringing innovation and strong meritocratic business culture to one of the largest and most traditional sectors of our economy.”
“CargoX is changing the way people think about the trucking industry and generating a positive impact by reducing trucking costs for the overall economy of Brazil,” said Oscar Salazar, Founder of Uber.
“The CargoX team is the first mover in creating and scaling a world class technology platform in the Brazilian logistics market and we are proud to have acted as a bridge between CargoX and leading strategic and financial partners in the United States,” said Clifford M Sobel, former U.S. Ambassador to Brazil and Managing Partner of Valor Capital Group, LLC.
Brazilian trucks run empty 40% of the time. As a result, the miles trucks run empty in a year are enough to go around the earth a colossal 300,000 times. By utilizing existing excess capacity in trucks and helping trucks to avoid running empty CargoX could save 15,600,000 tons of CO2 emissions per year, which is equivalent to the CO2 emissions that 6,724,137 households of 4 members with one car produce in a year.
Hillel Moerman, co-Head of Goldman Sachs Private Capital will also join the board of CargoX alongside current members including Oscar Salazar (Uber Co-Founder), Hans Hickler (former CEO at DHL Express US) and Michel Nicklas of Valor Capital.
CargoX is a high technology company that offers heavy duty trucking services for corporations. CargoX enables over 150,000 trucks owner operators to make use of their excess capacity and avoid empty return trips. As a result, they cut down CO2 emissions and reduce the amount of empty trucks on the roads. Additionally, truckers increase profitability and freight owners save an average of 30% in transportation costs.
CargoX takes away the bureaucracy and complexity associated to the trucking business. The company guarantees the high quality of its trucking network, processes payments, and offers freight insurance. By enabling better monitoring of trucks via mobile tracking / GPS and automating most manual processes associated to the trucking business, CargoX is able to provide a higher quality client service and increase safety.