Nowports Raises $16M to Revolutionize Latin American Shipping

Nowports Secures $16 Million in Series A Funding

Nowports, a digital freight forwarder automating processes in Latin America, has successfully closed a $16 million Series A funding round.

Mouro Capital – a venture capital firm specializing in fintech and related sectors, backed by Banco Santander – spearheaded the investment in the Monterrey, Mexico-based company.

Investment Details

Foundation Capital also contributed to the financing, alongside existing investors including Broadhaven Ventures, InvestoVC, Monashees, Base10 Partners, and Y Combinator.

Several angel investors participated, notably Ricardo Weder, founder of Justo.mx, Carlos Salinas of Luuna, and Justin Mateen, a co-founder of Tinder. This latest funding brings Nowports’ total raised capital since its 2018 launch to over $24 million.

Innovating Freight Forwarding in Latin America

Nowports initially secured seed funding in 2019 following its participation in Y Combinator’s Winter 2019 program.

The company’s core mission is to modernize the freight forwarding sector, specifically aiding small and medium-sized enterprises (SMEs) in streamlining their import procedures.

Its software solutions provide comprehensive tracking of freight shipments from ports to their final destinations throughout Latin America. The company has since broadened its services to include automated insurance policies and financing options for its clientele.

“Our aim is to empower clients to increase both their import and export activities, fostering business growth and enhancing the region’s foreign trade landscape,” stated Alfonso de los Rios, CEO and co-founder of Nowports.

Significant Revenue Growth

The year 2020 proved highly successful for Nowports, witnessing a remarkable 605% increase in revenue compared to 2019.

De los Rios projected continued growth, stating, “We are targeting a 400% to 600% revenue increase in 2021.”

Expansion Plans

Currently operating with offices in Mexico, Chile, Colombia, and Uruguay, Nowports intends to utilize the new capital to expand its 160-person team, including establishing a presence in China.

Further expansion is planned for its logistics and financial services, with a focus on “strengthening its key transportation routes.”

De los Rios previously explained that their platform, leveraging AI and integrations, enables companies to manage their shipments effectively and optimize freight movement timing based on their specific needs.

“With this Series A funding, we are focused on becoming the leading digital freight forwarder in the region and expanding our venture financing solutions,” he added.

Addressing Inefficiencies in Latin American Shipping

Latin America handles tens of millions of container imports and exports annually, yet nearly half experience delays or are lost due to poor management.

Approximately 50% of shipping containers encounter delays stemming from disorganized procedures or transport errors, resulting in substantial financial losses for businesses. This presents a significant market opportunity.

Nowports assures shippers that its digital management software will provide complete tracking of each container.

“Outdated, inefficient, and manual processes in international logistics are out of sync with today’s technological advancements,” commented Maximiliano Casal, co-founder and COO of Nowports. “Clients are seeking solutions to enhance their logistics processes and address the current challenges of international trade.”

The Founding Story

The two co-founders initially connected at a program hosted by Stanford University. De los Rios brings family expertise in the shipping industry, while Casal gained practical experience by working with a Kansas City-based freight forwarder with over 30 years of operation.

Michael Sidgmore, a co-founder and partner at Broadhaven Ventures, described the team as “visionaries” who are building an operating system for the shipping industry, comparable to Carta’s role in equity ownership.

The recent blockage of the Suez Canal by the Ever Given highlighted the critical need for supply chain digitization and tracking, Sidgmore noted.

“Nowports has developed leading-edge technology to help customers make informed decisions regarding freight movement,” he stated.

Chris Gottschalk, senior advisor at Mouro Capital, emphasized that the Nowports platform delivers both “transparency and technology” to a global customer base.