Waterloo Region startup Tyltgo has announced a CDN$2.3-million seed round that will help it grow its tech-enabled white-label delivery service for retailers.
The investment round was led by San Francisco-based venture capital firm TI Platform Management, according to a news release. Other investors include Y Combinator and noted angel investor Charles Songhurst. Khaled Hussein, a partner at TI Platform Management, will join Tyltgo’s board as chairman.
“Tyltgo has the potential to be one of Canada’s next great success stories, riding on the e-commerce wave from Shopify,” said Hussein. “Tyltgo’s business model combines several innovations in same-day delivery that will boost Canada’s sharing economy.” Tyltgo’s tech platform provides bricks-and-mortar retailers and e-commerce brands with same-day delivery under their own brand name (“white label”) using gig-economy drivers.
“These are uncertain times for retailers, but Tyltgo helps these merchants connect with their customers in an innovative way that will continue to serve them after lockdown restrictions lift,” said CEO and co-founder Jaden Pereira. “This capital will allow us to help more retailers across Ontario and boost local economies.”
Tyltgo says it’s aiming to serve 100 additional retailers by the end of 2021, focusing on the rapidly growing market for meal kits. The startup has nine employees and plans to double that over the next two quarters, the company says.
Pereira launched Tyltgo in 2018 while he was a biology student at the University of Waterloo. Based on his summer employment in shipping and receiving, he saw a need for a more cost-effective same-day delivery service for retailers.
In an interview, he referenced the benefits of starting and growing a company in the Waterloo Region, including access to talent through the area’s two universities, college and larger tech companies; resources such as Communitech, the Accelerator Centre, and the University of Waterloo’s Velocity program; the large number of tech companies to collaborate with; and the diversity of the community.
Pereira also praised Communitech for the range of support it has provided to him and his company, from mentorship to growth coaching to help with sourcing candidates, capital and market insights.
“Communitech has been an amazing and big part of Tyltgo’s growth,” he said.
Tyltgo has also received support through the MaRS innovation hub in Toronto. As well, it was one of 11 Canadian companies selected to participate last summer in California-based Y Combinator's exclusive program for promising startups.