SEQL3: quote, dividends and indicators for Sequoia

Sequoia is a Brazilian logistics and transportation company founded in 2010 by Armando Marchesan Neto and Décio Honorato Alves, originating in Cajamar (SP) and initially focused on logistics for e-commerce and B2C deliveries of both light and heavy cargo. The company consolidated its structure through strategic acquisitions and organic expansion, incorporating brands and operations such as Completa Logística and Delivera Express in its early years, as well as Linx Fast Fashion, which marked its entry into the fashion segment with a distribution center in Barueri. In 2012, investment bank BR Partners joined the company as a shareholder, financing growth and structure. Beginning in 2013, with the acquisitions of Celote Logística and Sete Estradas Logística, Sequoia expanded its presence in the apparel segment, surpassing 1,000 employees and starting to migrate its operations to distribution centers in Embu. In 2014, the entry of private equity fund Warburg Pincus enabled significant investments in tracking technology, infrastructure and expansion of the client portfolio, including the lease of a mega distribution center in Embu, with 60,000 square meters.

Over the following years, Sequoia went through a continuous process of sector diversification and geographic expansion, with an increasing focus on logistics for technology, payment methods, education, direct sales cosmetics, telecommunications and the banking sector. The acquisition of Yeplog in 2016 strengthened its role in logistics focused on payment methods. In 2017, the company opened a distribution network in the South region of Brazil and recorded strong growth in B2C deliveries. In 2018, it obtained ISO 9001:2015 (Quality) and ISO 14001:2015 (Environment) certifications, reflecting standardized processes and structured environmental management practices. In 2019, the acquisitions of Lótus Logística Integrada (TEXLOG) and Nowlog expanded B2C delivery reach, mainly in the Southeast region and in Northeastern states, surpassing the milestone of more than 2,000 municipalities served. In 2020, the acquisition of Transportadora Americana marked a meaningful entry into the less-than-truckload (LTL) segment, allowing Sequoia to operate as a more integrated logistics operator.

The company consolidated its access to the capital markets in October 2020, with an initial public offering of shares and listing on the Novo Mercado segment of B3 under the ticker SEQL3, starting to operate as a public company with governance practices aligned with the requirements of that listing level. From 2021 onwards, Sequoia intensified its acquisition and digital solutions strategy. The acquisition of Prime strengthened its operations in e-commerce for large products, in the “medium road” and “heavy road” segments, while Frenet brought a freight marketplace integrated with dozens of e-commerce platforms and ERPs, with thousands of connected sellers and a high volume of monthly quotes. The acquisition of Plimor expanded its presence in light e-commerce and LTL in the South region, serving sectors such as IT, pharmaceuticals, footwear and apparel. In the same year, the creation of Drops, in partnership with Gigahub, added a pick-up and drop-off (PUDO) point-based solution for deliveries and reverse logistics, leveraging a dense network of commercial points across the country. These moves consolidate its profile as an integrated logistics platform, combining physical operations, proprietary technology and digital services.

Sequoia’s business model is based on providing logistics and transportation services within a single operating segment, with revenue concentrated in B2B transportation and logistics for banking items. The structure is predominantly asset light, with around 97% of the fleet outsourced or leased and operating properties leased or used via partners, which contributes to lower capex requirements and greater flexibility to adjust capacity. The company focuses on express transportation, full truckload (FTL), dedicated operations and less-than-truckload (LTL), in addition to specialized banking logistics. Its main solutions include door-to-door deliveries, urgent services, next-day deliveries, dedicated operations with exclusive vehicles, transfers between units, cross docking, door to door and reverse logistics, both for B2B and B2C. Contract compensation is usually variable, based on weight, distance, delivery time and cargo characteristics, with customized projects for different sectors.

Banking logistics, operated mainly by subsidiary Flash Courier, is one of Sequoia’s business pillars. Flash Courier has been operating for over 30 years in the delivery of credit, debit and prepaid cards, security tokens, POS equipment, electronic TAGs and regulatory documents, requiring high standards of traceability, information security and operational control. The banking logistics network serves 1,559 municipalities, covering more than 80% of Brazil’s GDP and over 70% of the Brazilian population, through a network of exclusive franchises, strategic suppliers and complementary use of Correios in more remote areas. Tracking technology has been used since the 1990s, with proprietary real-time monitoring systems, a 24/7 control tower and BI Analytics tools for performance management, which creates significant entry barriers and positions the company as a partner to major banks and fintechs.

In the B2B transportation segment, Sequoia connects companies of various sizes in more than 4,000 cities, which represents around 92% of Brazil’s GDP, without relying on Correios to meet deadlines. The operation combines express transportation for medium-sized cargo, FTL for consolidated volumes and dedicated operations for recurring demand, serving sectors such as telecommunications, consumer electronics, apparel, cosmetics, education, manufacturing and brick-and-mortar and online retail. The company offers a vertical structure by client segment, with specialized customer service teams and a back office dedicated to incident resolution. Its proprietary technology includes order management platforms, smart routing, registration and management of partner drivers and fleet, real-time tracking and systems integrated with clients, enabling end-to-end visibility across the logistics chain.

Sequoia’s geographic presence was consolidated by concentrating distribution centers in the greater São Paulo area (Embu and surroundings) and expanding its network to strategic regions such as the South and Northeast, including a distribution branch in Recife dedicated to the region. The acquisitions of regional companies such as TEXLOG, Nowlog and Plimor expanded its coverage to thousands of municipalities in all regions, with a particular focus on the Southeast and South, but also with a relevant presence in the Northeast. Banking logistics, in turn, ensures coverage across a large part of the national territory, given the need to serve banking and financial networks in municipalities of different sizes. Sequoia concentrates its revenue in the Brazilian domestic market and there is no indication of material revenue abroad.

From a regulatory standpoint, as Sequoia operates in road cargo transportation, it is subject to the Brazilian regulatory framework involving the Ministry of Transport, the National Land Transport Agency (ANTT), the National Registry of Road Cargo Carriers (RNTRC), as well as authorities such as the Federal Highway Police and the National Traffic Council (CONTRAN). The company is registered as a Road Cargo Transport Company (ETC) with the RNTRC, complying with requirements such as being headquartered in Brazil, ownership or lease of vehicles, a qualified technical manager, financial capacity and good standing of its partners. Its operations must follow standards for road safety, cargo transport, any specific rules for hazardous products and civil liability limits in the event of loss, damage or delays in delivery. The relationship with self-employed and affiliated drivers is regulated by specific legislation, which defines the commercial nature of contracts, without employment ties, under the conditions established by law.

In environmental, social and governance matters, Sequoia incorporates relevant elements into its operating practices. ISO 9001 and ISO 14001 certifications indicate the adoption of formal quality and environmental management systems in its operations, including process control, monitoring of environmental impacts and the pursuit of continuous improvement. The asset-light model, with intensive use of technology, tends to favor route optimization and waste reduction, although the company is exposed to the volatility of inputs such as fuel, which is directly linked to the road transportation sector. In terms of governance, listing on B3’s Novo Mercado with SEQL3 shares implies adherence to practices such as voting capital only, structured boards and greater transparency of information, aligning the company with high corporate governance standards in the Brazilian market.