Investors are flocking Invest in logistics and shipping business in Latin America, ”wrote my old friend Jon Shieber in 2019. But after a catastrophe, despite instability caused by global oil prices, it is time to revisit.
Nowports (YC W19) is a good starting point in comparison. In February 2019, the Mexican startup has now graduated from Y Combinator, and the words Shieber, “sett[ing] itself will be Flexport in Latin America. ”Fast forward to today, and Nowports has raised $ 92.6 million in investments, including a $ 60 million in Series B led by Tiger.
Examples like this have proliferated as investors have shown courage in delivering cargo around the world. The spread has played a role in improving the supply chain, highlighting how important supply chains are. But business capital continues even as COVID-19 dwindles, recent reports suggest.
This month alone, TechCrunch reported on three fundraising events around the world of freight forwarding. The Seattle-based colony is valued at about $ 3.8 billion after the $ 260 million Series E round. OnePort Nigeria has received a $ 5 million investment that will help it expand into three African centers by the end of the year. And in Latin America, DeltaX is eyeing the Andean region and $ 1 million bank.
Scheduling freight forwarding is a global challenge because the department still lacks efficiency and transparency. Latin American startups have high mountains to climb, but this also drives them to create something new and help each other in exciting ways.
More than copies
In Latin America, the problem is not only that cargo transmission is still very high analog — it has also been improved. In the region, “trucks drive off-road power, yet 40% of the time the cars are empty,” according to a Mexican startup. BeGo (YC W20).
According to Jonathan Lewy, whose investments in Investo are backed by BeGo and Nowports, the two start-up companies representing the major segments of the segment: markets and freight forwarders. Other examples would be Brazil CargoX on the market side and Nuvocargo on the cargo side.
However, business models in Latin America are often mixed, and Nuvocargo is a good example of this.