Nuvo Secures $34M in Series A Funding to Transform B2B Trade with Social Network-Like Platform

Nuvo, a platform designed to streamline the purchase of physical goods between businesses, has secured a $34 million Series A investment from Sequoia Capital and Spark Capital, according to an exclusive report by TechCrunch. The San Francisco-based startup had previously raised $11 million in a seed round led by Founders Fund and Index Ventures in early 2022. Additional institutional investors include Foundation Capital, Human Capital, and Susa Ventures. Notable angel investors supporting Nuvo are Gokul Rajaram, Instacart founder Max Mullen, Rippling COO Matt MacInnis, Samsara founders Sanjit Biswas and John Bicket, and Flexport founder Ryan Petersen, among others. Nuvo was founded in 2021 by CEO Sid Malladi, a former product manager at Yelp, and CTO Rameez Remsudeen. Their goal was to create a platform where businesses can establish and share verified profiles with trade partners, akin to a LinkedIn for B2B trade. The market for purchasing physical goods and the associated credit agreements is an $11 trillion industry in the United States. However, this sector is still hampered by outdated communication methods like faxes, phone calls, and emails, according to Remsudeen. These inefficiencies are particularly problematic given the current economic volatility, including the impact of tariffs, which necessitates rapid adjustments in trade relationships. Malladi explained to TechCrunch that any economic instability, whether due to tariffs or other factors, often leads to shifts in trade partnerships. "When businesses need to respond to changes in price, risk, or other parameters, traditional pen-and-paper processes can't keep up," he said. "This is where Nuvo steps in to offer a smoother transition." Nuvo aims to facilitate quicker connections between businesses and provide faster access to critical information such as creditworthiness, banking details, and partner history. By enabling real-time verification and sharing of business identities, the platform seeks to reduce instances of fraud, minimize delays, and cut down on administrative overhead. Here's how it works: Sellers invite buyers to join the platform, and those buyers can then connect with additional sellers. Users create a business profile, which is verified in real time. They can access customer references, credit reports, FICO scores, and license verifications through the Nuvo dashboard. These features allow customers to connect with new suppliers, secure better credit terms, and streamline their purchasing processes, as highlighted by Sequoia partner Bryan Schreier. "The potential for network effects is reminiscent of other successful companies Sequoia has partnered with, such as PayPal and Stripe," Schreier told TechCrunch. "As more businesses join Nuvo, they bring their own trade partners, enhancing the platform's data richness. This online approach to B2B commerce enables businesses to operate with greater confidence and security." While other companies, like HighRadius, offer similar solutions, Nuvo differentiates itself by functioning as a network rather than a single-player SaaS tool. "It's the difference between a contacts app and Facebook," Remsudeen said. "Our platform is designed to manage and enhance your business relationships on a broader scale." By the end of the second quarter of 2023, Nuvo, which currently employs 42 people, expects to have around 50,000 businesses in its trade network. Some notable users include Great Dane, Southern Glazer’s Wine & Spirits, and Fender. The platform operates on an annual subscription model. Nuvo's primary markets are alcohol and beverages, building materials, chemicals, distribution, food service, and manufacturing. The company plans to expand into new verticals and introduce additional features such as payment processing and AI integration. International expansion is also on the horizon, with potential markets including Mexico, Latin America, Europe, and the Asia-Pacific region. The investment and growing user base underscore Nuvo's promise in modernizing the B2B trade landscape, making it more efficient and secure in an increasingly volatile economic environment.