Nuvo Secures $34M Series A to Revolutionize B2B Trade

Nuvo Raises $34M to Modernize B2B Trade

Nuvo, a San Francisco-based startup building a social-like platform for B2B trade, has secured $34 million in Series A funding. The round was led by Sequoia Capital and Spark Capital.

This follows an $11 million seed round in early 2022, led by Founders Fund and Index Ventures. Other investors include Foundation Capital, Human Capital, Susa Ventures, and notable angel investors like Gokul Rajaram, Instacart founder Max Mullen, and Flexport founder Ryan Petersen.

Streamlining a Trillion-Dollar Industry

Founded in 2021 by CEO Sid Malladi and CTO Rameez Remsudeen, Nuvo aims to digitize the $11 trillion B2B trade industry in the United States. Currently, this sector relies heavily on outdated methods like faxes, phone calls, and emails.

Nuvo's platform allows businesses to create profiles, similar to LinkedIn, to connect with trade partners. This simplifies the purchase of physical goods, such as lumber and electronic parts, and streamlines credit agreements.

“Any volatility, for tariffs or other reasons, causes shifts in trade partnerships,” Malladi told TechCrunch. “None of this can happen smoothly when relying on pen-and-paper processes.”

Faster Connections, Enhanced Security

Nuvo facilitates faster connections between businesses, providing real-time access to information like creditworthiness, banking data, and partner history. This increased transparency aims to reduce fraud, loss, delays, and administrative overhead.

Sellers invite buyers to join the platform, who can then connect with additional sellers. Users create verified business profiles and access customer references, credit reports, and other vital information within the Nuvo dashboard.

Sequoia partner Bryan Schreier highlighted the platform's potential for network effects, drawing comparisons to PayPal and Stripe. He noted that as new customers join, they bring their own network, creating a richer data platform.

“By bringing B2B commerce online, Nuvo is enabling businesses to grow with confidence and security,” Schreier said.

Differentiation and Growth

While other companies like HighRadius offer similar solutions, Nuvo emphasizes its network-focused approach as a key differentiator. Remsudeen likened the difference to comparing a contacts app to Facebook for managing social relationships.

Nuvo currently has 42 employees and expects to reach 50,000 businesses in its network by the end of Q2 2024, including companies like Great Dane, Southern Glazer’s Wine & Spirits, and Fender. The company operates on an annual subscription model.

Focusing on core markets like alcohol & beverage, building materials, and manufacturing, Nuvo plans to expand into new verticals. Future plans include adding features like payments and AI, as well as international expansion into markets like Mexico, Latin America, Europe, and the Asia-Pacific region.