SEQL3

Sequoia is a Brazilian logistics company founded in April 2010 in the city of Cajamar (SP), initially focused on operations geared toward e-commerce and light and heavy deliveries in the business-to-consumer (B2C) model. The company was created by Armando Marchesan Neto and Décio Honorato Alves, who from the outset structured a model targeted at the e-commerce market, then in a phase of strong expansion in Brazil. In its early years, the group operated with two main brands, Completa Logística and Delivera Express, gradually consolidating its offering of warehousing, transportation, and distribution services. Over the following decade, the company went through significant cycles of organic and inorganic growth, supported by strategic acquisitions and the expansion of its customer base across several consumer and service segments.

Sequoia’s expansion trajectory was marked by successive merger and acquisition transactions aimed at gaining scale, geographic capillarity, and sector specialization. In 2012, the company received an investment from the investment bank BR Partners and acquired Linx Fast Fashion Ltda., strengthening its presence in the fashion and apparel segment and adding a new distribution center in Barueri, which increased total operating area to approximately 25,000 square meters. The following year, it acquired stakes in Celote Logística e Transportes Ltda. and Sete Estradas Logística Ltda., consolidating a relevant position in fashion logistics, especially in the transport of hanging garments for major department stores. In 2014, the entry of the private equity fund Warburg Pincus, through WP XI C FIP, provided capital for investment in tracking technology, automation, and workforce expansion, in a context of growing relevance of the company in the Brazilian logistics market.

Starting in 2015, Sequoia diversified the sectors it serves beyond e-commerce and fashion, moving into technology and payment systems, education, direct-sales cosmetics, telecommunications, and banking. The acquisition of Yeplog in 2016 strengthened the company’s expertise in logistics focused on payment methods. In 2017, the opening of a distribution network in the South of Brazil increased nationwide capillarity and boosted growth in the B2C delivery market. In 2018, the company obtained ISO 9001:2015 (Quality) and ISO 14001:2015 (Environment) certifications, signaling the adoption of formal quality management standards and environmental practices. From 2019 on, new acquisitions such as Lótus Logística Integrada Ltda. (TEXLOG) and Nowlog expanded regional coverage, especially in the Southeast and Northeast, helping Sequoia to serve more than 2,000 municipalities with its delivery operations.

In 2020, the company took a major step by entering the less-than-truckload (LTL) segment in a structured way with the acquisition of Transportadora Americana Ltda., a traditional company with more than 70 years of experience in LTL transportation. This acquisition enabled Sequoia to offer more complete B2B and B2C logistics solutions, bringing its profile closer to that of an integrated logistics operator. Also in 2020, the acquisition of Direcional Transportes, specialized in LTL and e-commerce with operations in models such as cross docking, door to door, milk run, and reverse logistics, reinforced this position. In October 2020, Sequoia carried out an initial public offering of shares, becoming a publicly traded company with common shares listed on B3 under the ticker SEQL3, in the Novo Mercado listing segment.

After going public, Sequoia intensified its sector consolidation drive, with acquisitions aligned with its digital strategy and network expansion. In 2021, it completed the acquisitions of Prime, focused on transportation and logistics for e-commerce of large products (medium road and heavy road transport), and Frenet, a B2C freight marketplace integrated with dozens of e-commerce platforms and ERPs, with thousands of active sellers and a high volume of monthly freight quotes. In the same year, the acquisition of Plimor, a company from Southern Brazil with a strong presence in light e-commerce and LTL for segments such as IT, pharmaceuticals, footwear, and apparel, strengthened its presence in the South and Southeast regions. The creation of Drops, in partnership with Gigahub, introduced a pick-up and drop-off (PUDO) and reverse logistics model, anchored in a network of retail locations distributed mainly across the Center-South and Northeast regions.

Sequoia’s business model is based on being a complete “one-stop-shop” transportation and logistics solution, covering everything from collection at client facilities to final delivery to consumers, as well as fulfillment, warehousing, and in-plant logistics services. The company’s activities are essentially divided into three fronts: B2C transportation, B2B transportation, and logistics services. In B2C, the company has a strong presence in last mile deliveries to end consumers, offering modes such as door-to-door delivery, express deliveries, and next-day deliveries, with contracts typically remunerated based on volume, weight, distance, lead time, and product characteristics. In B2B, it provides LTL services and management of transportation chains between distribution centers, stores, franchises, shopping malls, and other points of sale, in contracts that combine fixed and variable compensation. In logistics services, it operates distribution centers with fulfillment, storage, quality inspection, and technical services, including assembly and installation, with projects tailored to each client’s profile.

Sequoia’s operations are concentrated in Brazil, with declared capacity to serve more than 4,000 cities that together account for most of the country’s Gross Domestic Product. The company has developed a network based on partnerships with independent truckers and transportation companies, using an asset-light operating structure in which most of the fleet and physical assets are outsourced or leased. This design reduces the need for investment in fixed assets and directs capital toward technology, automation, and proprietary transportation management systems (TMS), warehousing (WMS), integration with clients’ ERPs, and real-time tracking solutions. The technology platform integrates each stage of the logistics chain, with features that include routing, document issuance, GPS monitoring, interactive maps, and delivery status updates.

In market terms, Sequoia positions itself as a relevant operator among private logistics companies focused on e-commerce in Brazil, serving a broad set of clients, including large online retailers, e-commerce platforms, and companies from several sectors such as fashion, technology, cosmetics, telecommunications, education, pharmaceuticals, and banking. The company reports a base of thousands of active clients, with at least one client accounting for more than 10% of net operating revenue in 2023. The Brazilian logistics market, characterized by high fragmentation and strong reliance on road transport, offers room for consolidation and scale gains, a scenario in which the company seeks to advance through both organic growth and new acquisitions.

Sequoia’s logistics operation is subject to a specific regulatory framework for road freight transportation. The company operates in a free-competition environment but depends on registration with the National Registry of Road Cargo Carriers (RNTRC), maintained by the National Land Transport Agency (ANTT), in the category of Road Cargo Transport Company (ETC). ANTT is responsible for regulating and supervising land transport, including defining operational requirements, penalties, and rules for payment of freight through electronic means. In addition, the company is subject to traffic laws and inspections by the Federal Highway Police and to resolutions issued by the National Traffic Council (CONTRAN). In terms of environmental, social, and governance practices, ISO 9001 and ISO 14001 certifications stand out, as they structure quality and environmental management processes in transportation and logistics operations.

In the recent period, Sequoia experienced strong revenue growth between 2020 and 2022, driven by the expansion of e-commerce and the integration of new operations, but it also underwent significant adjustments in 2023, with a revenue contraction associated with the strategic exit from the heavy cargo segment and macroeconomic and liquidity challenges. In 2024, the company completed a merger with Grupo Move3, which adds a franchise network, automated distribution centers, and its own monitoring system, resulting in the formation of Grupo MOVE3 | Sequoia. This combination expands the operating base and logistics solutions portfolio, with a focus on serving major e-commerce players and financial institutions in an integrated way, while keeping SEQL3 shares traded on B3 as the instrument for participating in the capital of the combined company in the Brazilian capital market.