Cubbo — 4th investor update
Our forth month of operations — we’re finally done with the move!
Dear Cubbo investors & supporters,
We hope all is well. Please find below the April 2021 update:
Performance & projections (in USD):
Revenue remained flat from March to April because we continued to move from the warehouse outside of Mexico City to the new warehouse inside CDMX. April was our last month managing the move, so this will no longer be a distraction in May.
Continuing with the paragraph above, the move took longer than expected and we were not able to grow revenue. We were also too optimistic that the recently hired sales team would be able to start new accounts in the same month as they started working with us. The sales team was able to fill up the pipeline and get 5 new deals closed (more below) but the revenue won’t be recognized until May. Here’s a couple pictures of the chaos we had at the new warehouse as we were moving in, installing new racks, taking new replenishments, training new operation people, and fulfilling orders at the same time:
- The newly hired sales team has closed 5 new deals, with signed contracts, and with a sales cycle under 30 days. The categories of the new deals are a multi-brand company, apparel, beauty products, pet medicine, and headphones
- In April we hired two new people for our sales team (the sales team is 3 now) — Agustina Gomez and Daniel Jaramillo
- On April 30th we finalized our move into our new urban distribution center. The whole process took 3 months — 1 month to find the warehouse, 1 month to transform the space, and 1 month to move out/in. The process also included ~30 large truck loads of inventory, $5m+ worth of inventory moved, no robberies (I was nervous about this), no service downtime, and 7 days a week of work from our operations team
- On April 30th we reached a record of daily orders — close to 600
Did you know?
Our customer that had the most orders in April is a company that is a leading brand of erotic toys and accessories. Previously, this company was already one of our most active customers, but their orders have grown significantly over the last couple months and now they are our customer that had the most orders in April.
What to expect in May
In Mexico, we have our first high season in May: Hot Sale. This, combined with May being the first full month our sales team is working together (plus the recently closed deals noted above), should result in a nice uptick in e-commerce fulfillment orders and gross revenue.
We continue to bring on new investors through a SAFE before raising a priced Seed round. Once we double+ revenue to $200k a month in gross revenue we will start the process on the Seed round (estimated in ~60 days). One of our newest investors is Magma Ventures — they invested in April. I’ve know Nathan Lustig for a few years and I’m excited to partner with him/Magma and to be able to work together on Cubbo.
Please let us know if you have any questions and thank you for your support!
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