Solvento, a Mexican FinTech, has raised $4.5 million in an investment round, according to a press release.
Solvento’s objective is to be a solution for shippers, to help them smooth out various complications and access more funding, the release stated.
“Truckers are the unsung heroes of the supply chain, yet they often struggle due to constraints on revenue, dealflow, government oversight, and a host of other issues,” Solvento Co-Founder and CEO Jaime Tabachnik said in the release. “In Mexico, small trucking companies make up 95% of the market, and they depend on consistent, on-time revenue to continue functioning and growing their businesses. Solvento aims to help them navigate those issues as a true financial and operational partner.”
The investment will support Solvento’s new growth and help expand the company’s tools, according to the release. The round was led by Dynamo Ventures, and Wollef Ventures, Zenda Capital and Marco Financial participated.
The funding has come as Mexico will require invoices to be stamped by the Mexican Tax Administration Service. Carriers will also have to record shipment information, the release stated.
The state of the trucking industry is fragmented, with 95% of the over 200,000 companies having less than 30 trucks in their fleets, according to the release. There are also liquidity issues as companies look to expand, with companies paying for transportation service around 60 days after delivery.
There have been FinTechs offering companies in highly regulated Latin America new ways to access credit and payment rails.
Read more: FinTechs Offer LATAM SMBs Speedy Access to Credit in Emerging Markets
For example, Tribal Credit’s platform allows companies to make payments to employees, suppliers or merchants. In Mexico, it integrated the platform with the tax authority.
Tribal Credit Global Head of Product Arvind Nimbalker said the idea is to break barriers open. He said the platform can be used to help make payments to “virtually and literally anybody in the world.”
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