NXTP Ventures led a R$6m seed investment in Kangu, a Brazilian delivery logistics startup.
(Press Release) Kangu, a vertically integrated network of drop-off and pick-up points for e-commerce logistics in Brazil, announced its seed investment round of R$6 million led by NXTP Ventures with participation from existing angel investors (including Américo Pereira Filho, former FedEx Brazil President). Headquartered in Sao Paulo, Kangu was founded in March 2019 by Ricardo Araujo, Marcelo Guarnieri and Celso Queiroz, all experienced logistics executives who were previously Senior Directors at Rapidao Cometa, building the company into one of the largest transporters and 3PLs in Brazil before its sale to FedEx.
E-commerce logistics is a large and growing market in Brazil currently with R$20 billion of annual expenditure and growing at 15%+ per year, as consumer adoption of online retail is rapidly increasing (currently below 5% of retail sales). In addition, e-commerce companies face considerable challenges today streamlining their logistics operations as traditional urban logistics networks have been slow to adapt to the demands of digital commerce and consumer experience has lagged. Through its growing network of 700+ drop-off and pick-up points in the Sao Paulo area and various cities in Brazil, Kangu solves an important infrastructure problem by connecting small online sellers, e commerce companies, transporters and 3rd party logistics providers, and consumers in an integrated platform to handle the drop-off, return/pick-up, and transport of packages sold online.
“Kangu emerged to contribute to the Brazilian logistics market in the distribution of products, mainly in large urban centers,” said Ricardo Araujo, co-founder of Kangu. “By placing the final consumer at the center of the decision, we become an excellent option for the drop-off services of e-commerce sellers, order pick-up and reverse logistics of products that can be posted or picked up very close to the home or workplace, as well as scheduled delivery services.”
“We are very pleased with the strong growth of the operation in its first year and how engaged our partners have been in offering an excellent service to our customers. We are proud to see how much we have positively impacted hundreds of local businesses. This investment comes at a very important moment of our growth, as we will be able to improve our services and accelerate the expansion to other cities,” commented Marcelo Guarnieri, co-founder of Kangu.
Kangu’s dense network of drop-off and pick-up points in the Sao Paulo area are currently receiving and delivering hundreds of thousands of packages a month. The Kangu points, which are largely independently operated local stores, are serviced by Kangu’s integrated transportation service leading to improved customer experience and better efficiency for online sellers and e-commerce companies.
“We are thrilled to partner with Kangu in the next phase of the Company’s growth. Ricardo, Marcelo, and Celso are unique logistics talents who are building a differentiated e-commerce infrastructure solution that is highly sought by customers,” said Darly Bendo, Investment Director at NXTP Ventures. “The market for Kangu’s services is large and growing with high inefficiencies, and we strongly believe Kangu is well positioned to capture this growth.”
“Kangu has identified an opportunity to provide a better customer experience and higher operating efficiency for all stakeholders in the supply chain,” highlighted Alex Busse, Investment Director at NXTP Ventures. “Ricardo, Marcelo, and the team have a deep understanding of customer and industry needs. Their operational and technological expertise will allow them to execute upon their ambitious vision to make Kangu a leader in e-commerce logistics in LatAm.”
In its first year of operations, Kangu has experienced impressive volumes and traction with multiple key customers, and will use the proceeds of this investment round to accelerate growth with existing and new customers, expand regionally into various cities throughout Brazil, and increase the product and service offering to broaden customer value.
Founded in March 2019 and headquartered in Sao Paulo, Brazil, Kangu is a vertically integrated network of drop-off and pick-up points for e-commerce logistics in Brazil, connecting online sellers, e-commerce companies, 3rd party logistics providers (3PLs), and end consumers in an integrated platform. Kangu currently has over 700 “Kangu points” in Sao Paulo and various cities in Brazil, receiving and transporting packages for online sellers and e-commerce companies. Kangu does not own or operate its points, rather the Company partners with local small store owners using their physical locations as points for drop-off and transport of packages and additional services. For more information about Kangu, please visit kangu.com.br.
About NXTP Ventures
Founded in 2011 and based in Buenos Aires, Argentina, NXTP Ventures is one of the oldest and most active early-stage venture capital firms in Latin America. We partner with high-impact, visionary founders early on as one of the first sources of institutional funding to help build their companies into market leaders with long-term competitive advantages. We primarily invest in Seed and Series A rounds in recurring and scalable businesses, and our core verticals are logistics technology, B2B SaaS, information services / AI, fintech, internet security, and tech-enabled services. For more information about NXTP, please visit nxtp.vc.