Cubbo — 2nd investor update

Our second month of operation — originally sent in February 2021

The 2nd floor of the new urban warehouse. Repurposing a gym into a micro-fulfillment spot

Please find below the February 2021 update:

Gross Revenue
*January (our first month of operation) revenue Projected — $100k, Actual — $90k

Difference: The original projection was on a cash basis, not accrual basis. Going forward we’ll report on an accrual basis. The $10k difference was the revenue Wicore earned in December 2020, but invoiced in January. Since Cubbo acquired Wicore in January, this $10k was Wicore’s earned revenue, not Cubbo’s

*February projected revenue: $95k
*March projected revenue: $110k
*April projected revenue: $120k

The next couple months will be hard to materially grow revenue because we’re transitioning out of the warehouse space of Wicore, into our new space (more below). It’s difficult to start new fulfillment operations until we’ve moved into the Cubbo space. We expect to start operations in our new warehouse space on March 15th and to be fully operational in the new space by April 15th, 2021.

Highlights
We found an urban warehouse in Mexico City, next to Polanco, at address Av. Ingenieros Militares 70 Argentina Poniente, Miguel Hidalgo.

This is the bottom floor — the top floor we had to reconstruct (see hero picture above)

At full capacity, this space will allow us to get to $1M+ a month in gross revenue and do ~125k orders a month. We’re projecting to hit full capacity numbers on this urban warehouse in Q4 this year.

We started working with Ignasi Vegas as our first engineer manager. He’s still currently working at Feedback Loop in New York as an engineering manager, and will be relocating to Mexico City and working with Cubbo full-time in Q2. Our intention is to have Ignasi be part of our leadership team.

Cayman Holding update

We’re still in the process of transitioning to the Cayman Island Holding company. Our counsel, Gunderson Dettmer is leading the process and we hope to be finalized this quarter.

How can you help?
Please introduce us to a business that needs fulfillment services for their e-commerce sales in Mexico City. Our ideal customer sells small-to-medium product sizes which are non-perishable. Good industries for us are: footwear, apparel, sunglasses, cosmetics, health and beauty, skin care, and supplements.

Please let me know if you have any questions and thank you for your support!

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