Brazil‘s SK Tarpon, through Niche Partners, and together with private equity manager Greenbridge, announced an investment of BRL 500 million ($99.4 million) in NSTech, its logistics technology holding company. The platform’s capital increase follows the merger of NSTech with Praxio, a tech solutions hub for road transport cargo and passengers. NSTech was officially presented in May this year, formed by acquiring four groups of companies (Buonny, Opentech, AT&M, and Brasil Risk).
The main goal of the platform’s capitalization is its expansion across Latin America. According to a statement sent to the press, this expansion will occur organically and through new acquisitions – 65% of the raised amount will be dedicated to acquisitions. NSTech currently has an M&A pipeline of more than 15 companies, with which the holding intends to create a portfolio strong enough to offer a one-stop-shop logistic platform.
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With the merger, NSTech now serves a wider range of customers: 28,000, including cargo carriers, shippers, drivers, insurance companies and insurance brokers specialized in transport, in addition to companies dedicated to the transport of passengers. The company’s portfolio also grows to 14 products – eight of them, according to the company, market leaders in their segments.
Like other companies in the industry, the “pain” that NSTech tries to solve is the inefficiency of the transport network, using data technology to bridge the gap between shippers and transporters with a straightforward objective: not to let trucks run empty. In addition, the company says that it helps customers reduce costs, CO2 emissions and mitigate problems arising from theft and accidents.
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As for the types of cargo, NSTech works mainly with electronics, chemicals, and the so-called Fast Moving Consumer Goods (packaged food, beverages, hygiene products, sweets, cosmetics, medicines, dry goods, among others).
“New business with current and potential customers will also be facilitated with the merger. We will also prepare the new company for going public (IPO), which should happen within three years”, says Vasco Oliveira, partner at SK Tarpon and CEO of Niche Partners, which has accumulated over 20 years of experience in the logistics market.
Greenbridge, a private equity manager who invests globally in tech companies, was founded by Swedes Ola Rollen and Melker Schorling (respectively CEO and main shareholder of Hexagon AB), together with the Brazilian Eduardo Steinberg, was already a shareholder of Praxio.
According to the company, NSTech now has annual recurring revenue (ARR) of $70 million (90% of its total revenue).
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The company claims to have the largest database in the sector, with more than 1.8 million registered drivers and BRL 12.5 trillion of registered loads per year, in addition to more than 90 million loads per month.
For 2021, NSTech projects an EBITDA of approximately BRL 100 million ($19.8 million), not counting any new acquisitions.