SaaS Interviews with CEOs, Startups, Founders
Cargamos Does Last Mile Delivery in Mexico, Breaks $12m Revenue, Raising $30m Now
29 Dec 2021
Chapter 1: What is the main topic discussed in this episode?
Our gross margin is 28%. Yeah.
Okay. So you're processing a million dollars of volume of which your gross revenue, your top line revenue is something like $280,000 per month. And then after you pay all your employees and stuff, then you maybe have profits at the end.
Ah, okay. We are not making profit right now. We need to pay engineers and a lot of people, but right now we are not making money.
You are listening to Conversations with Nathan Latka, where I sit down and interview the top SaaS founders, like Eric Wan from Zoom. If you'd like to subscribe, go to getlatka.com.
We've published thousands of these interviews, and if you want to sort through them quickly by revenue or churn, CAC, valuation, or other metrics, the easiest way to do that is to go to getlatka.com and use our filtering tool. It's like a big Excel sheet for all of these podcast interviews. Check it out right now at getlatka.com. Hey folks, my guest today is Ivan Ariza.
He's building Cargamos.com, delivery stations for any brand. He's an entrepreneur. He's had an exit under his belt and again, now focused on Cargamos. Ivan, you ready to take us to the top? Yeah. Okay. So what does Cargamos do? Tell me about a customer who's paying you.
In Cargamos, we are trying to... bring any brand to the new cloud logistics. So we empower these brands by creating a lot of, creating a big network with micro fulfillment centers and enable all these location for that guys.
And so are these real estate investors buying these micro, like these facilities, you're empowering them to help them run them as a micro like warehouse?
Actually, we are trying to, to, to repurpose that, that, that we use the space right now. So we take, we use the space and we repurpose to converting this space, turning into the micro fulfillment stations.
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Chapter 2: What is Cargamos and how does it operate?
Yeah. Close to do that. Yeah.
I see. Can you break a million per month by the end of December?
Yes, we are trying to break that number and we are hoping to do in December $1.2 million per month.
And Ivan, if you're doing a million right now, what were you doing exactly a year ago? Do you remember?
A year ago, we were selling more or less 20% of our current revenue right now.
Okay, so call it $200,000 per month.
Yeah.
Now, is this your revenue or is this total volume and then you take a small cut of the million?
We take a good cost. I mean, our sales, it's $1 million. We take and we sell our deliveries and all the operations that we are handling right now. But we take everything, but it's not our profit. It's just net revenue.
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Chapter 3: How does Cargamos determine pricing for deliveries?
No.
No, the perceived round was the money that all the founders and close friends put in the company.
How many co-founders?
We have both and we are joining a fourth that is not disclosed. We cannot disclose the name right now. We are bringing a big name in logistics to the company, but we are three guys right now working really hard in this.
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Yeah.
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Chapter 4: What types of customers does Cargamos serve?
And then after that in 2020, you did another part of the seed round for 2 million, correct? Correct. And then in total in 2021, you raised 2 million in early 2021 and 7 million just recently, right? Right. Got it. So what I'm trying to understand is what makes this so expensive? Why do you need so much money to build this business?
Look, across Latin America, if you think about big locations, for example, fulfillment centers, if you look at Amazon, for example, you're going to find that a single location could cost $10. even more than $100 million. So right now in Latin America, we don't have these locations in place.
We need to create some big locations, some automatization, and put a lot of effort creating the buildings, the locations that we need to enable this infrastructure to the last mile. So it's quite expensive. in the infrastructure side. In the software side, it's quite similar to other companies, but we need to raise money because we need to implement that capability to the market.
That makes sense. And the $7 million that you just raised a couple months ago, Ivan, what valuation did you raise that on?
The valuation, we don't have valuation right now. We are close to Series A, so we only raise money through convertible notes, but the amount is not on this closing right now.
Most people in their seed round, if they're raising on a note, there's a cap on the note. Did you have a cap?
Yeah, we have a cap, but we don't disclose that amount at this time.
Most folks, when they're raising that seed round, though, they're selling about 20% of the business at the cap. Are you in that standard range?
Yeah, we are quite in the standard of the range.
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Chapter 5: What are the biggest costs for Cargamos?
uh, five miles, uh, from you. So that's our next move. So, uh, once we have all the data integrated, uh, that we are delivering through our network and all that is our next move. If when I put the micro fulfillment to my micro fulfillment around the cities.
Very cool. Ivan, we're rooting for you, man. Thanks for coming on. In the meantime, though, let's wrap up with the famous five. Number one, what's your favorite business book?
My favorite business book. Um, Blue Ocean Strategy. Maybe it was the first time that I approached a strategy.
Number two, is there a CEO you're following or studying?
Elon Musk.
Number three, what's your favorite online tool for building Gargamos?
Slack.
Number four, how many hours of sleep do you get every night?
Last night, two hours. Two? Yeah. My daughter just came to this world. So last night I just take two hours and, and I have already three other daughters. So right now we have four daughters that are consuming quite time in the night for me. But now it's, it's not, it's not the, it's just this, this week. What's the average? The average is about, uh, five, six hours.
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