20 Things You Didn’t Know About Loggi
Loggi is a shipping logistics platform based in Sao Paulo, Brazil. The company has been busy with the reinvention of logistics through the use of technology to create a more reliable and less expensive network for courier services and food delivery across e-commerce. The business has grown at a rapid pace and has achieved a remarkable level of growth since its inception. This is just one more example of how new startups that begin small can grow to become a leader within their respective industries. Here are 20 things that you didn’t know about Loggi.
1. Loggi is revolutionizing the shipping industry
Since its inception, Loggi has offered one of the most in-demand services in the food industry. They match shippers with couriers for same-day delivery of goods. The company serves as a broker for restaurant owners who offer food delivery services or others who have important documents or other items to be delivered on the same day with a fast turnaround time from the moment that the order for services is placed. This is a revolutionary service that is making a difference in Brazil.
2. The network in Brazil is massive
As of early 2020, Loggi serves the Sao Paulo area with 1,000 couriers who are ready to move and who take their speed and efficiency seriously. So far, Loggi serves approximately 10,000 companies in the region. They are in a highly competitive environment, so Loggi workers focus on taking the order and executing delivery with record speed. One of their goals is to provide a faster service than the competition. We learned that prior to the launch of Loggi, most same-day delivery services in the area could take up to two hours from the time of the request. Loggi has established some mind-blowing averages for pick up within 7 minutes, then immediate deliveries to the address specified. They accomplish this feat through a geolocation system.
3. Loggi is working to infuse technology into the system
Loggi launched its app to make it easy to place orders for on-demand delivery within the timeframe that is established by the consumer. The company is currently allocating a lot of resources in helping businesses who offer online ordering to incorporate Loggi’s app into their systems for a seamless means of order placement, pickup, and delivery. This saves a great deal of time and effort on the part of the company offering the goods, the consumer, and the couriers. The system calculates the cost along with the delivery route automatically, thanks to advanced technology that performs the functions in seconds.
4. Loggi was founded in 2013
Loggi was founded by three Brazilian entrepreneurs who are Arthur Debert, Fabien Mendez and Eduardo Wexler. The three identified issues within the delivery systems that were in place in the region at that time. The city of Sao Paulo tends to become hectic with a huge “motoboy” community for home delivery. The nature of the market was informal and many of the bike riding couriers were paid little for their jobs and worked long and hard hours. The three entrepreneurs came up with a plan to use couriers on motorbikes and bicycles as well as incorporating small trucks in their operations to devise a more efficient and cost-effective system for delivery. They have a large crew to serve the region with couriers serving specific areas of the city in a more regulated manner.
5. Loggi automates time-consuming processes
One of the most impressive aspects of the Loggi model is the automation of payments. In addition, the app offers real-time tracking so when goods are sent from one place to another, it’s easy for the shipper and recipient to track the progress of the delivery, although in most cases, it’s really fast.
6. Loggi serves multiple industries
Loggi delivers a variety of different goods through its courier services. Anything that is legal and can fit in the carrying dimensions of the vehicles that it uses for delivery is handled. Restaurant orders provide a huge percentage of the services provided, but the company also delivers parcels, business documents, and they even have an e-commerce delivery service, carrying and delivering packaged goods. The e-commerce segment of Loggi makes up about 35% of its sales.
7. Loggi could disrupt the parcel delivery market
There is a high probability that Loggi will serve as a disruptor for more traditional means of shipping parcels within the Sao Paulo area. While shippers in the area often rely on these services to send packages from one part of town to the other, it can take a day or two for the shipments to arrive. Loggi offers a same-day delivery service for a competitive price. Once the word gets out to everyone, this could have a big impact on the number of businesses that migrate from FedEx and UPS to use their own local courier at a discount and greater time efficiency.
8. Loggi is a Late-Stage Venture funded company
Loggi has received several rounds of venture capital funding. There has been no lack of investors who are willing to put up the funding for startup, operations, and expansion of the services. A seed round led by Iporanga Ventures completed on August 15, 2013, and raised $1 million for the startup. Monashees and Qualcomm Ventures raised an additional $3 million on August 1, 2014, followed by a Series B round led by the Dragoneer Investment Group raising $15 million. On February 18, 2016, IFC Venture Capital Group and Microsoft led a Series C round that raised another $15 million, and on November 29, 2017, $1,000 was raised for non-equity assistance. The SoftBank Vision Fund led a round of Series D funding raising $111 million in October of 2018, and the latest round of Series E funding completed on June 5, 2019, raised an additional $150 million, led by SoftBank
9. Loggi is privately owned
We checked on the IPO status of Loggi and discovered that the company has not yet filed for an Initial Public Offering. We found no indications that they plan to do so in the near future. Most companies that go public make this move to raise funding for expansion. So far, Loggi has not had any difficulties in finding financial support and backing for its business ventures. There are several large venture capital firms who have confidence in the future success of Loggi.
10. Loggi has achieved unicorn status
When a company reaches a valuation of $1 billion, it joins an exclusive group of businesses that have achieved this level of value. The latest round of venture capital funding has pushed Loggi’s value past this mark. The outlook is sunny for investors and for the owners of Loggi as it continues to provide services that are in high demand in its area of operation.
11. Loggi has 8 lead investors among others
The response by solid investment firms has been overwhelmingly positive for Loggi’s founders. A total of 8 firms led the various funding rounds, and they were joined by others who see Loggi as a great investment opportunity. Others not yet mentioned include Velt Partners, GGV Capital, Fifth Wall, Kaszek Ventures, Google, and more.
12. Loggi has made its first acquisition
Loggi acquired the WorldSense company on October 10, 2018. WorldSense is a technology startup in the advertisement sector was established to improve the way that advertisers and publishers connect around content. This was a brilliant move that will further enhance the operations and marketing for Loggi’s delivery services and logistics.
13. Loggi started with document delivery
Loggi has grown and expanded the scope of its operations since it made its first deliveries in 2014. The first items that it delivered were documents. In Sao Paulo, the streets are bustling and chaotic and being a courier is no easy feat. The company has grown to include most industries that ship items that can be delivered by motorbike, bicycle, or small trucks. Loggi has come a long way in a short time.
14. Loggi is a logistics service
Delivery of goods is the primary function of Loggi, but it is very much a logistics service. Their aim is to construct a logistics service that covers the breadth of Brazil. They have presently secured coverage of approximately 35% of the population of Brazil. The delivery estimates for Loggi are about 100,000 per day. Logi employs a large workforce and its goal is to secure a team of over 1,000 engineers for the construction of the Brazil-wide logistics service.
15. Loggi has some big-name customers
Clients of Loggi include some very well known names in the business world. They work with a lot of fast-food restaurants including Burger King, McDonald’s Corporation and other lesser-known eateries. Other clients include the e-commerce behemoth Mercadol Libre Incorporated, and the French retailer Carrefour SA.
16. Loggi has big plans for the future
According to Fabien Mendez, Loggi’s Chief Executive Officer, the company has a strategic plan in place to increase its current coverage of Brazil. Given the fact that they currently only cover 35% of the population, there is a lot of room for growth and expansion without ever leaving the borders of the nation. By the close of 2020, the aim of Loggi leadership is to achieve a coverage area of 95% of the country. They further plan to increase the number of deliveries to 5 million per day by 2025.
17. Loggi has some big obstacles to overcome
Loggi operates in an area where the infrastructure has some major deficits. There is a great deal of chaos and confusion on the streets. Bureaucracy is heavy and there is also a high crime rate. There are many structural barriers and the only effective way to bypass these is through the use of advanced technology.
18. Loggi is getting in on the ground floor of logistics
Akshay Naheta is a managing partner at SoftBank, one of the larger investors in Loggi. While he recognizes that there are thousands of obstacles faced by the company, including infrastructure, politics, crime, and competition, he also views Loggi as an emerging enabler for the e-commerce and gig-economy sectors of the market that is beginning to blossom. This puts Loggi in a strategic position to become a major player in a changing economic environment.
19. Mendez has plans to increase the staff at Loggi from 600 to 1,500
Fabien Mendez is leading Loggi forward into a bold new future of expansion. He is just 33 years old and moved to Brazil from his native France in 2010. The current payroll of Loggi staffers, or those who run the business, exclusive of couriers, is at 600. Mendez environs a workforce of 1,500. Once service has been established across Brazil in its entirety, there are plans for the growth and expansion to continue. He sees moving into other Latin American markets. Although this is a tall order, there is little doubt that he will be able to accomplish these goals, given his proven track record of success so far.
20. An IPO could be in the future of Loggi
Mendez addressed the question of taking Loggi public and offering shares for trading to the general public. This is not something that they are even considering in the immediate future. It would be way down the line. He wants to bring the company into a status of exponential growth before any considerations of IPO are made. He did mention that the overall strategic plan is to get the company to the point of being “IPO-able.” It is his sincere desire to ensure that Loggi is extremely attractive to the market in general before such a move would be considered. At the rate of growth the company is currently experiencing, we wouldn’t be surprised if that time comes, perhaps sooner than Mendez might be imagining. They’re on a positive trajectory currently but only time will tell. Still, it’s a company that is worth keeping your eye on for its future potential if it does go public.
