Nuvo, a San Francisco-based startup aiming to transform the traditional B2B trade market, has secured $34 million in Series A funding, led by prominent venture firms Sequoia Capital and Spark Capital.
Since its inception in 2021, Nuvo has focused on developing a social-style platform designed to streamline the procurement of physical goods among businesses. The company previously raised an $11 million seed round in early 2022, backed by Founders Fund and Index Ventures. Additional investors include notable firms Foundation Capital, Human Capital, and Susa Ventures, along with a distinguished lineup of angel investors such as Gokul Rajaram, Instacart’s founder Max Mullen, Rippling COO Matt MacInnis, Samsara’s Sanjit Biswas and John Bicket, and Flexport founder Ryan Petersen.
Co-founded by CEO Sid Malladi and CTO Rameez Remsudeen, Nuvo set out to modernize an $11 trillion U.S. market still reliant on outdated communication methods like faxes, phone calls, and email correspondence. Evoking comparisons with LinkedIn in the way it fosters and manages business relationships, Nuvo facilitates the exchange of critical information, including creditworthiness, banking data, licensing verifications, and customer references among different trading partners.
Malladi, previously a product manager at Yelp, highlighted the importance of digital connections and real-time data amid increasing economic volatility fueled by tariff concerns and other market dynamics. Remsudeen explained that unlike typical SaaS tools that serve single users, Nuvo’s strength derives from its network structure, amplifying effectiveness as new participants join. He likened their model to the difference between a contacts app and Facebook, stressing the advantages inherent to interconnected communities.
The startup has quickly grown to approximately 42 employees and expects to serve around 50,000 business users by the end of Q2 this year. Some of Nuvo’s prominent early enterprise clients include Great Dane, Southern Glazer’s Wine & Spirits, and renowned musical instrument manufacturer Fender. Businesses subscribing to Nuvo gain the ability to verify partners instantly, lower administrative overhead, slash instances of fraud, and improve transaction efficiency.
Sequoia partner Bryan Schreier underscored the scale potential of Nuvo, noting parallels with industry giants the firm had previously backed, such as PayPal and Stripe. “The potential for powerful network effects here is remarkable,” Schreier said. “As new customers onboard, they attract their existing trade partners, rapidly expanding Nuvo’s reach and functionality.”
Although competitors such as HighRadius provide related functionalities, Remsudeen contends that Nuvo offers a uniquely collaborative network approach that sets it apart in this market.
Currently serving key sectors including food and beverage, building materials, chemicals, distribution, foodservice, and manufacturing, Nuvo plans to leverage its fresh funding round to enlarge its customer base, expand internationally into markets such as Mexico, Latin America, Europe, and Asia-Pacific, and add advanced features including payment tools and intelligent AI integration.
