Business

Brazil's logistics startup RoutEasy receives funding of BRL 5.8 million

The startup was born from a master's project and plans to grow 290% this year

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  • Created in 2018, Kangu uses small neighborhood stores as collection and delivery points for parcels;
  • Mercado Libre plans to invest BRL 10 billion in 2021 and also announced earlier this month two new distribution centers in Brazil.

Brazil‘s logistics startup RoutEasy, which works with artificial intelligence to optimize routes in the so-called “last mile”, received an investment of BRL 5.8 million from UVC, a venture capital fund from Ultra Group.

With the investment, the startup plans to expand across the country and launch a new product of deliveries made on the same day of the request.

The company was born in 2016 as a consequence of the master’s project of founder and CEO Caio Reina, who developed a routing algorithm by the faculty of Transport Engineering at the Polytechnic School of the University of São Paulo.

According to Reina, the increase in digital shopping in Brazil has caused e-commerce companies to start vying for the ground for better, faster deliveries. “RoutEasy was born with an optimization, management and visibility approach for traditional distribution operations, and with this investment, we will be able to bring the same performance to dynamic operations, which are carried out on the same day, unlocking many growth possibilities for our clients,” said Reina.

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

As e-commerce companies vie for the fastest delivery, with moves such as Mercado Libre buying delivery platform Kangu, RoutEasy has benefited from the market heat and seen its demand for logistics services jump by 54% from the beginning to the current moment of the pandemic. The company recorded growth of over 200% from 2019 to 2020 and projects a 290% climb for 2021.

Through a SaaS (Software as Service) model added to an algorithm based on artificial intelligence, logtech claims it can reduce transport costs by up to 40%. The platform allows real-time management of the operation’s execution. Among the startup’s main clients are Light, Royal Canin, Solística (Femsa), Infracommerce, Logbee (which was bought by Magalu), Labi Exames and IBL Logística.

READ ALSO: How the Brazilian startup CargoX is helping small carriers to maintain the transport of essential goods

Today, RoutEasy has a mostly Brazilian operation but has operations in other Latin American countries such as Colombia, Mexico, and Costa Rica.

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