SEQL3 Sequoia

Sequoia is a Brazilian logistics company founded in April 2010 in the city of Cajamar (SP), with an initial focus on operations geared toward e-commerce and light and heavy deliveries under 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 first 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 an expanding customer base across several consumer and service segments.

Sequoia’s expansion path was marked by successive mergers and acquisitions 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 operations in the fashion and apparel segment and adding a new distribution center in Barueri, which increased the 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 for hanging garment transportation for large retailers. In 2014, the entry of 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 the company’s growing relevance in the Brazilian logistics market.

From 2015 onward, Sequoia diversified its served sectors beyond e-commerce and fashion, expanding into technology and payments, education, direct-selling cosmetics, telecommunications, and banking. The acquisition of Yeplog in 2016 strengthened the company’s capabilities in logistics for payment solutions. In 2017, the opening of a distribution network in Brazil’s South region increased national capillarity and boosted growth in the B2C delivery market. In 2018, the company obtained ISO 9001:2015 (Quality) and ISO 14001:2015 (Environment) certifications, indicating the adoption of formal quality management standards and environmental practices. From 2019, 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 significant step by entering the less-than-truckload (LTL) segment in a structured way through the acquisition of Transportadora Americana Ltda., a traditional company with more than 70 years of experience in LTL transportation. This acquisition allowed Sequoia to offer more comprehensive 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 under 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 held company with common shares traded on B3 under the ticker SEQL3, in the Novo Mercado listing segment.

After going public, Sequoia intensified its sector consolidation efforts 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 operations), and Frenet, a B2C freight marketplace integrated with dozens of e-commerce platforms and ERPs, with thousands of active sellers and a high monthly volume of freight quotes. In the same year, the acquisition of Plimor, a company from Brazil’s South region with a strong presence in light e-commerce and LTL for segments such as IT, pharmaceuticals, footwear, and apparel, strengthened its position in the South and Southeast regions. The creation of Drops, in partnership with Gigahub, introduced a pick-up and drop-off (PUDO) points model and reverse logistics, supported by a network of commercial points located mainly in 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 pickup at client facilities to final delivery to the consumer, in addition to fulfillment, warehousing, and in-house 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 delivery to end consumers, offering services such as door-to-door delivery, urgent deliveries, and next-day delivery, with contracts typically priced based on volume, weight, distance, lead time, and product characteristics. In B2B, it provides LTL services and transportation chain management between distribution centers, stores, franchises, shopping malls, and other points of sale, under 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 a declared service capacity in 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 drivers and transportation companies, using an asset-light operating structure in which most of the fleet and physical assets are outsourced or leased. This model reduces the need for investment in fixed assets and directs capital toward technology, automation, and proprietary systems for transportation management (TMS), warehousing (WMS), integration with clients’ ERPs, and real-time tracking solutions. The technology platform integrates each stage of the logistics chain, with features including 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 dependence on road transportation, 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 operations are subject to a specific regulatory framework for road cargo transportation. The company operates under free competition rules but depends on registration with the National Registry of Road Cargo Carriers (RNTRC), maintained by the National Land Transport Agency (ANTT), under the category of Road Cargo Transportation Company (ETC). ANTT is responsible for regulating and supervising land transportation, including defining operating requirements, penalties, and rules for freight payment by electronic means. In addition, the company is subject to traffic regulations and inspections by the Federal Highway Police and 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 incorporation of new operations, but it also underwent significant adjustments in 2023, with revenue contraction associated with its strategic exit from the heavy cargo segment and macroeconomic and liquidity challenges. In 2024, the company completed its 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 the portfolio of logistics solutions, with a focus on serving major e-commerce players and financial institutions in an integrated manner, while maintaining SEQL3 shares traded on B3 as the instrument for participating in the capital of the resulting company in the Brazilian capital market.