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On the road freight is a pivotal force in propelling Mexico's economy, accounting for approximately 4% of the nation's GDP. Nonetheless, the sector faces significant obstacles when it comes to securing financial remuneration for their services. Traditionally, transportation service invoices can take up to 90 days to be paid and many freight companies struggle to obtain access to institutional credit.
Enter Solvento.
Solvento is a platform for the trucking sector that allows for more efficient payment and credit processes. Solvento does this by providing tools that are dependable, flexible, and simple to use through automated payments, easy to use invoice templates, and lending solutions to assist with truckers' liquidity needs.
Solvento = On the Road Freight’s “Right Hand Man”
The spark of inspiration for Solvento was inspired through Jaime Tabachnik’s, Co Founder of Solvento, personal experience in the freight industry. "I was the CEO of a trucking brokerage and I felt the pain of this broken system firsthand."
Witnessing the financial struggles of small and medium-sized trucking companies (SMEs), the lifeblood of the industry, Jaime wanted to provide a better solution. There are too many parties and antiquated technology involved in moving money in this particular industry. It made things take forever and was full of mistakes. This squeezed small trucking companies, preventing them from working efficiently and hurting the whole chain of deliveries. “Nearly 95% of this $80 billion industry are SMEs," Jamie explains, "and their (SMEs freight) struggles threaten the flow of goods, impacting the entire Mexican economy."
Empowering Mexico’s Wheels
Solvento isn't just fueling trucks; they're fueling a revolution in the Mexican trucking industry.
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. The problem is that these companies don’t have access to financing, sometimes not even personal credit cards. So they’re living day to day paying in advance for gas, payrolls and other operational expenses. - Jamie Tabachnik
Solvento’s solution extends beyond SMEs. By injecting stability and efficiency into the supply chain, Solvento fosters a ripple effect of positive change. Shippers enjoy smoother logistics and reduced delays, consumers benefit from a more robust economy, and the entire system hums with newfound resilience.
Ultimately, Solvento's mission is not just about empowering individual trucks; it's about building a stronger, more equitable future for the entire Mexican economic engine.
Founders
For shippers, 3PL’s (3rd Party Logistics) and Brokers, Solvento offers a variety of services, including:
- Auditing POD’s (Proof of Dellivery) with artificial intelligence: Solvento uses AI to check PODs to ensure transparency in freight spend.
- Invoices and “Carta Porte” supplements: Solvento helps shippers to ensure that their invoices are compliant with the most updated Mexican government regulations.
- Providing early payment to carriers: Solvento offers early payment to carriers, which can improve relationships with their customers, attract and retain quality carriers.
- Providing market intelligence: Solvento provides market intelligence, such as freight rates and seasonality, to help them make better decisions.
Challenges Fueling the Flames
Solvento’s mission to empower Mexico's fragmented trucking industry is crucial. But even with an amazing product and ample customers, scaling in Mexico has its unique roadblocks. Here are a few challenges Solvento navigates:
Talent Crossroads: Assembling the appropriate team in Mexico comes with its own set of challenges. "It's difficult to find individuals with experience in scaling tech companies within Mexico," Tabachnik points out. The country's technology ecosystem, despite its growth, remains in its infancy. This creates obstacles in expanding teams with the deep expertise required to deliver on Solventos mission.
Shifting Gears on Paperwork: Many businesses remain deeply entrenched in manual payment processes. The irony is many shippers benefit from the “paper world” because it creates inefficiencies, allowing them more time to pay. Introducing Solvento's digital solutions requires shifting mindsets (Freightwaves).
Funding
Solvento has raised a total funding amount of $63M.
2023, $53.5M (Debt & Equity Financing) from Lendable, Ironspring Ventures, Quona Capital, Proeza Ventures, Dynamo.
2022, $5M (Seed) led by Ironspring Ventures including Quona Capital, Proeza Ventures,Susa Ventures, Dynamo, Supply Chain Collective.
2022, 3M (Debt Financing) from Marco.
2021, $1.5M (Pre Seed) led by Dynamo including Zenda, Wollef Ventures and LG Group.
Market Opportunity
Solvento sits at the heart of a massive opportunity: streamlining and revolutionizing Mexico's road freight industry, a sector valued at a staggering $80 billion. Here's a closer look at the potential:
- Addressing the SME Bottleneck:
- Over 95% of Mexican trucking companies are SMEs struggling with cash flow crunch due to delayed payments and paperwork.
- Solvento's AI-powered solutions unlock faster payments and smoother operations, empowering these vital players.
- Beyond Payments, Compliance and Intelligence:
- Solvento simplifies government compliance (Carta Porte) and provides market intelligence on rates and seasonality, optimizing efficiency and profitability.
- Transforming the Supply Chain:
- A thriving SME sector strengthens the entire logistics network, leading to smoother flow of goods, reduced delays, and cost savings for everyone.
Advice for Aspiring Entrepreneurs
Talk to customers, talk to customers, and talk to customers. - Jamie Tabachnik
