IDB Invest drives innovation in freight marketplace with investment in FreteBras
IDB Invest, a member of the IDB Group, granted an equity investment of US$14.4 million to FreteBras, the largest online freight transport marketplace in South America. The funds will help the company to develop important technological improvements in its platform, especially related to security measures for both carriers and cargo shippers, thus accelerating its growth.
The investment will also play an important role in helping to develop the transportation segment in Brazil from a social and environmental perspective. With FreteBras technology, together with IDB Invest's experience, it will be possible to significantly reduce truck idle time, thus contributing to an increase in truckers' income and a reduction in the environmental impacts caused by the sector.
To guarantee the safety of users, carriers interested in advertising loads through FreteBras are required to undergo a strict validation process, thus guaranteeing the quality and safety of available loads. Carriers across the market also have to register their trucks to access loads through the app. In addition, FreteBras has a dedicated team to deal with problems reported by its users. Carriers and shippers who do not comply with company security policies are banned from the platform.
The transaction consists of an IDB Invest equity investment of US$9.9 million plus a US$4.5 million contribution in mixed-finance concessional capital by the Clean Technology Fund (CTF), which will allow the development of a solid greenhouse gas (GHG) emission-saving monitoring methodology. This methodology will leverage CargoX's model for data optimization to increase the efficiency of the trucking segment, helping the company measure its environmental impact to create a standard method for data optimization models.
In the first half of 2020, FreteBras reached 2 million truck loads advertised on its platform, 50% more than in the first half of 2019. This represents around R$20 billion in freight distributed to carriers using the app. . The company has more than 10,000 freight forwarders and recorded more than 1.4 million app downloads from shippers searching for freight.
This agreement potentially contributes to three of the United Nations Sustainable Development Goals (SDGs): Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), and Climate Action (SDG 13).
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of US$12,088 million in assets under management and 333 clients in 24 countries, IDB Invest provides innovative financial solutions and advisory services that respond to the needs of its clients in a variety of sectors.
Founded in 2008, in Catalão (Goias), FreteBras is the largest online freight marketplace in South America. The company uses technology to efficiently connect freight shippers and carriers, investing in innovative solutions to improve the road freight segment. With more than 430,000 registered carriers, FreteBras allows shippers to find trucks for their loads in minutes, thus optimizing their operations and reducing freight costs.