Cargamos Revenue, Valuation & Funding (2024)

Cargamos reported revenue of approximately $1 million per month as of November 2021, placing the business on a roughly $12 million annualized run rate. Ariza told Latka the company was targeting $1.2 million in monthly revenue by December 2021. A year earlier, in late 2020, monthly revenue was approximately $200,000, representing roughly 20% of the November 2021 figure. That implies year-over-year revenue growth of approximately 400% on a monthly basis, or growth from roughly $2.4 million annualized in 2020 to $12 million annualized in 2021.

Cargamos served 20 e-commerce brands as of November 2021. All customers are high-volume brands, and Ariza described the go-to-market strategy as targeting large enterprises first. With approximately $1 million in monthly revenue across 20 brands, the implied average revenue per brand is roughly $50,000 per month, though Ariza did not confirm that figure directly.

The company charges between $1 and $1.50 per package delivered, compared to the prevailing Mexico City domestic delivery rate of approximately $6 per package. Cargamos also charges for fulfillment management and other warehouse operations, so per-package pricing does not capture the full revenue relationship with each brand. No free tier was mentioned in the interview.

Cargamos generates revenue by charging e-commerce brands a per-package fee of $1 to $1.50 for last-mile delivery, plus fees for fulfillment center management and related e-commerce operations. The company leases physical space under a revenue-share arrangement with landlords, paying more as package volume from each station increases rather than paying a fixed lease. This structure reduces fixed real estate costs but does not eliminate them.

Gross margin was 28% as of November 2021, reflecting the capital and labor intensity of the hybrid infrastructure-plus-software model. The single largest cost line is payments to courier and service partners, which totaled approximately $600,000 in the month prior to the interview, equal to roughly 60% of that month's revenue. Service partner costs encompass not only delivery drivers but also the labor inside micro fulfillment stations for sorting, routing, and other operations. The company was not profitable as of November 2021, with Ariza stating plainly that Cargamos was not making money after paying engineers and other staff.

The driver network operates on a gig model similar to Uber. Of the more than 10,000 registered drivers in the network, approximately 30% to 40% are active in any given month, and approximately 3,000 drivers delivered at least one package in the month prior to the interview. Those 3,000 drivers earned an average of approximately $200 each through the platform that month, consistent with the $600,000 total courier expense figure. Drivers also work for other platforms such as Uber and Rappi. Monthly package deliveries were fewer than 100,000 as of November 2021. Ariza cited Amazon's Latin America fulfillment center build cost of more than $1 million per location as context for why the business requires significant capital. Burn rate and runway were not disclosed.

Cargamos employed 105 full-time team members as of November 2021. Approximately half of the full-time headcount, or roughly 52 people, were engineers. In addition to the full-time staff, the company coordinated a network of more than 10,000 registered gig drivers, of whom 30% to 40% were active in any given month.