Konargo
The go-to platform for import and export management.
Startup Snapshot
Startup name: Konargo
Industry: LogiTech
Business Model: B2B SaaS
Founders: Fernando Lemarroy, Héctor Ruiz & Alejandro Sandoval
Operates in: Mexico, the US & Canada
HQ Location: Monterrey, Mexico
Team Size: 4
Founded: 2023
Stage: Pre-seed
Investors: Friends & Family
Accelerators: Peak Growth NL
Website: konargo.com
What does Konargo do?
Konargo digitizes and manages import and export processes for the industrial sector, specializing in land transportation. Their service works by arranging for a transportation company to move goods across the border and deliver them to their destination, ensuring the delivery is complete and successful. This is particularly helpful for companies with clients in the USA who need to move goods using freight transport.
Over the past 10 years, the exchange of goods between Mexico and the United States has accounted for an average of 33% of Mexico's GDP, making it one of the most significant activities in the Mexican economy.
What's your backstory?
Fernando has been interested in entrepreneurship since he was 19 years old. He began selling products and eventually co-founded an advertising company called 'The Startop' with his best friend. As COO, he helped the company grow to about 12-13 people with organic growth. However, Fernando became dissatisfied with his partner's desire to focus on developing a business in Mexico solely for personal financial gain. He began searching for a more significant problem with economic potential and expected exciting changes in the next 15-20 years. Fernando's family owns a gasoline station company and fuel distributor, which gave him insight into logistics. He spent four months interviewing and conversing with people on LinkedIn in logistics to identify problems and pain points and develop solutions.
During this process, Fernando reconnected with Hector, whom he had previously worked with in logistics. Although they didn't have a relationship, Fernando reached out to chat and established a good rapport. Hector had worked at Traxión for a year as Director of Operations at NuvoCargo and at Transplace for eight years before being acquired by Uber. Fernando and Hector shared an interest in using technology to facilitate international trade and worked together to identify pain points and craft a solution. They eventually met their first CTO.
Of around 2,000 applicants, only 10 startups were selected to participate in 500 LATAM, and Konargo was fortunate enough to be among them. While potential investors showed interest in investing, they asked Konargo to complete 500 LATAM first before committing. Unfortunately, their former CTO lost motivation and wasn't willing to quit his current job at Nowports. This meant Konargo had to withdraw from 500 LATAM as having a technical co-founder is a program requirement. However, Fernando found Alex on LinkedIn and contacted him through DM. They hit it off, and after a few calls and a coffee meeting, Fernando introduced Alex to Hector, and they decided to invite him to join Konargo.
How did you come up with the idea?
Fer's sibling works for a logistics company, and he told him that it is widespread that broker-to-broker interaction is quite common. Different logistics firms exchange quotes until the one with the required unit for the project is found, which results in significant cost increases. Unfortunately, the logistics industry suffers from informality, and many businesses do not use contracts or even insure cargo.
Logistics is typically not the best example of innovation, and issues faced in this space are frequently absurd, and these issues are exacerbated in LATAM.
This is how Fer, Héctor, and Alex came up with the idea of Konargo. A platform that simplifies the import and export process, enabling their customers to focus on their core activities while Konargo sets their logistics to autopilot.
How did you acquire your first customers?
Their first client came through sending a WhatsApp message chain and reached a friend of Fer's who coincidentally had an exporting need. It took about 3 to 4 months to close the deal, and Konargo wasn’t yet registered and didn’t even have a bank account at the time, but they figured it out, and the customer was pleased with the results.
What's your motivation?
Fer and the team are highly motivated by the idea of solving a significant problem for the country and the world. The supply chain is, if not the most, one of the most critical aspects. Without it, you can't have anything you order or buy. The notion of being able to contribute, even in a link of the world's most crucial concepts, is what drives them.
On the other hand, Fer has always had an entrepreneurial spirit. He has always liked building teams and helping everyone surpass personal and professional expectations. For him, taking the lead isn't hindered by fear or uncertainty.
When making decisions, focus on importance, not complexity. If it's important, it's worth addressing regardless of difficulty.
What's next for your startup?
Short-term: Digitize the bureaucratic processes in logistics for companies heavily involved in land-based import and export.
Long-term: Enable international trade facilitation. They are not just limited to land transportation logistics. Provide everything companies lack – advice, insurance, financing. Provide companies with the tools to make importing and exporting as easy as ordering food.
Tips for other founders:
You are scaling people. Separate leadership from management. They're different things. Just because you're good at one doesn't necessarily mean you're good at the other.
When making decisions, focus on importance, not complexity. If it's important, it's worth addressing regardless of difficulty.
Don't let imposter syndrome get the best of you. Feeling uncomfortable in situations is a sign of progress because it means you're growing and facing new things.
Many believe they must follow a formal process to solve problems or bring new ideas. That's far from reality. Everything is spontaneous and intuitive. It starts with a blank document, not a flowchart or a financial instrument. Everything begins with a conversation or discussion.
Special offer for our readers🚀
30-day credit from your first load (FTL) and direct transportation line pricing.
*Valid through September 2023
Axelerate Talent Network:
Discover amazing opportunities in tech:Â https://getmatched.axented.com/jobs
Join the network:Â https://getmatched.axented.com/talent-network
Learn more:Â https://getmatched.axented.com
Special thanks to our sponsor:
Axented helps businesses design, build, and scale their products and teams worldwide.
With over 10 years of experience and a diverse portfolio of more than 300 projects delivered in over 15 countries, Axented has established itself as a trusted partner in the tech industry.
Renowned for its expertise and commitment to excellence, Axented provides innovative solutions to help businesses thrive in a digital world.
