Mercado, a Dallas-based supply chain technology company, will use a new $2.5 million investment to ramp up its marketing and sales efforts.
The startup founded by CEO Rob Garrison received the cash from Austin-based Ironspring Ventures.
Garrison said Mercado grew out of his supply chain work in 49 countries, where he noticed that most transactions occurred through Microsoft Office and email. He wanted to find a better solution.
“In the United States, we purchase roughly $2 trillion worth of product from abroad each year,” Garrison said. “All of that product that we purchase in America is purchased by about 300,000 importers.”
On average, it takes six months for an importer to place an order and then receive a product, Garrison said. The Mercado software helps companies plan, buy and ship products internationally.
“It’s a pretty complicated, lengthy process that was being done almost entirely via Microsoft Office,” he said.
Garrison said he also plans to use some of the investment for supply chain ventures.
“We’ve got a really great platform, but there are technologies out there that we’re investing in that can improve our offering even more,” he said.
It’s the second funding round for Mercado. In November, it received $3.2 million in a seed round led by LiveOak Venture Partners. Schematic Ventures, Story Ventures and Amplifier also participated.
Ironspring Ventures managing partner Ty Findley will join Mercado’s board of directors.
“Rob and the team are tailor-made for Mercado, bringing decades of direct international importing experience to help drive efficiency into the $11 [trillion] global trade market,” Findley said in a statement.
Mercado was founded in 2018 but had its formal launch this year, Garrison said. It has 30 employees and serves about 20 clients. The company declined to disclose its annual revenue.
