Own and scalable technology, providing customers with a differentiated and customized experience, with high operational efficiency.
A total of nine of the company’s twelve operating systems are proprietary and were developed in-house, enabling Sequoia to provide a high level of flexibility and fast service implementation, reducing the Company’s dependence on third-party software. The Company’s own technology provides scalability to the business, enabling it to expand the volume of operations with no need for significant additional investments.
The proprietary and scalable technology platform enables the Company’s customers and their respective customers to provide services with operational efficiency, in a market where reducing the potential for complaints by the end customer is essential.
The Company attends nine of the eleven largest e-commerce players in Brazil, in addition to other leading companies in other sectors such as telecommunications, financial services, large retailers, consumer goods, education, electronics, and pharmaceuticals.
Exposure to the e-commerce market in Brazil, which is expanding significantly and is under-exploited.
Brazil is experiencing a strong increase in online shopping for consumer goods, mainly retail products such as electronics and apparel. From 2018 to 2020, the volume of goods in Brazilian e-commerce increased 32% per year, according to data from Ebit | Nielsen, Webshoppers. According to eBIT, Forrester data, it is projected that the industry will grow, in total number of sales, by approximately 250.0% between 2019 and 2025 (CAGR of 23%), from R$107 billion in the year 2019 to R$377 billion in the year 2025. In 2020, the e-commerce usage rate in Brazil was 11.0% as a share of total retail, significantly lower than the rate in other countries, such as China (27.0%) and the United States (15.2%).
The Company believes that the fast expansion of Brazilian e-commerce, which is still very reliant on the Brazilian Post Office, will further increase the demand for its services, generating additional growth opportunities for the Company.
Value proposition, with a low capital requirement (asset light), scalable and flexible business model.
All the real estate assets used in the Company’s operations are leased or owned by partners, allowing it to expand operations with a low need for investment in fixed assets. The Company’s bases, as well as those of its partners, are strategically located throughout the country in order to be located close to the final consumers, enabling an increased capacity and scale in the intermediate transportation stages (long-haul), and reducing the time and distance traveled in the final stage (last-mile).
Sequoia’s network capillarity and operational efficiency allows it to make fast deliveries even to regions far from the main capitals and metropolitan regions of the country – one of its major differentials compared to its competitors.
The Company’s fleet is mainly of outsourced vehicles monitored by technology (97% of the fleet is outsourced).
Sequoia monitors its entire fleet – own or outsourced – through its own technology systems, resulting in increased delivery quality and reduced losses. Through its partnership model, the Company seeks to provide agile, reliable services throughout the national territory, with no need for the Brazilian Post Office, while maintaining control over its operations.
The asset light business model allows the Company operational flexibility and the opportunity to scale its capacity, up or down, according to demand and regional characteristics. The investments (capex) needed for the operations are low and are mainly focused on automation and technology to manage the operations steps, including security and fleet online monitoring.
Experienced management, supported by partners with expertise in the industry and high standards of governance.
In 2010, the Company initiated its activities, aiming to build a specialized logistics business model, customized and focused on timely and speedy delivery. In 2014, the Company received a financial contribution from an affiliate of selected private equity funds managed by Warburg Pincus LLC, a financial advisory company with strong expertise in technology applied to logistics, with over 50 years of history and investments of over USD$86 billion in more than 930 companies in over 40 countries. Since then, Sequoia has experienced a transformation process, developing a long-term strategic plan for its business, aiming to create and operate the best logistics solution for its customers.
The Company has introduced recognized management tools, including share-based compensation for managers and key employees, the implementation of an organizational meritocracy culture, and the enhancement of corporate governance and internal controls. For the implementation of the measures set forth in the strategic planning designed by Sequoia’s shareholders, as well as for executive management, Sequoia has a qualified and experienced management team, composed of qualified and experienced executives with 20 years of experience on average, fully aligned with the Company’s goals through a long-term incentive plan, a distinguished standard in the industry.
Strong organic growth and profitability leveraged through new acquisitions.
Over its 11-year history, the Company has balanced its growth between organic and via acquisitions. Since 2010, Sequoia has concluded the acquisition / creation of eleven companies, 5 of which will follow its IPO in October 2020.
These operations allowed the company to expand its geographic coverage, increase its operational capacity, entry into additional business segments, as well as operational, commercial, and financial synergies. Its successful acquisition background provides experience in identifying targets, evaluating opportunities, and concluding the acquisition process as well as its integration. The management team, with integration protocols and a structured acquisition process, Sequoia has achieved financial and operational indicators beyond those initially projected for its acquisitions. The Company’s organic growth background, combined with its experience and history of acquisitions, provides Sequoia with a great competitive advantage to further grow in the Brazilian logistics segment, which remains significantly fragmented.