Business

Tiger Global-backed Nowports lands $60 million to modernize cargo handling in Latin America

If you look around your house or office there’s a high probability that 90% of the things you see have already been in a ship’s container. The global logistics industry is worth trillions of dollars and involves a complex chain: from importers to last-miles delivery companies.

Mexican logtech Nowports is developing a solution to digitalize the import and export logistics experience of Latin American companies. This Thursday, the company closed a $60 million round, led by Tiger Global, with participation from SoftBank and DST.

READ ALSO: A brand new Brazilian unicorn: Olist raises $186 million eyeing aggressive portfolio expansion

Founded in 2018, in Monterrey (Mexico), the startup operates as a digital cargo agent, simplifying international trade processes in the region. In addition to logistics, the company also offers financing and insurance services for foreign trade companies.

In its series A, which ended in July this year, the startup raised $24 million. The new investment, series B, had the return of investors from previous rounds, such as: Mouro Capital, monashees, Base10 Partners, Broadhaven Ventures and Foundation Capital.

“We are excited by the challenges that we will face with this new investment, starting with faster growth in the countries where we are already present, and also in strengthening the relationship with Asian countries from which we import the most. Without forgetting the digital transformation that brings more efficient tools and financial facilities”, says the co-founder and CEO of Nowports, Alfonso de los Ríos.

The biggest challenge [of the logistics chain] is digitizing the entire experience to avoid silos. It is an industry that involves between 11 and 12 players for each transaction

Alfonso de los Ríos, CEO of Nowports

All eyes on Latin America

The $60 million check will be used to drive growth in the region. This means building the capacity of the company’s current offices, which operates in Mexico, Chile, Colombia, Uruguay, Peru and Brazil.

READ ALSO: SoftBank-backed Frete.com joins unicorn club with $ 200 million funding

The founder of Nowports explains that Latin American countries have peculiarities, which makes the development of its solutions a challenge that can only be solved with the know-how of local teams.

Alfonso de los Ríos and Maximiliano Casal, the founders of Mexican logtech Nowports. Photo: Courtesy

In 2022, the company hopes to increase its team to 1,000 employees (currently there are around 200). “We are developing our own teams for this very significant moment of expansion”, says Ríos.

Recently, the startup arrived in Brazil. With the largest maritime trade and a key element for the region, the country should receive between US$ 24 and US$ 30 million in investment in the coming months.

ALSO READ: Edenred’s logistics startup Freto raises BRL 22.5 million round aiming to expand in LatAm

The logtech is also expected to increase the credit offer to its customers — according to Nowports, more than $100 million will be allocated to financing inventories in its new platform.

With its inventory financing tool, the startup hopes to stimulate the growth of its customers in a fundamental phase of the economic reopening.

“The current supply chain crisis emphasizes the need for greater transparency and efficiency in the complex global logistics network. Nowports platform brings international commerce to the internet. We are excited to support this team’s mission to modernize cargo handling in Latin America,” says SoftBank investor Matt Pieterse.

This post was last modified on December 17, 2021 11:06 am

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Tiago Alcantara

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