IDB Invest invested R$95m in FreteBras, a Brazilian freight marketplace, through its Clean Technology Fund. As part of the investment, FreteBras will improve its carrier matching process to reduce idle truck capacity. The Clean Technology Fund is a US$5.5b multilateral investment vehicle established in 2008 by the World Bank, the IDB, the African Development Bank, the Asian Development Bank, and the European Bank for Reconstruction focused on providing concessional financing to middle-income countries’ public and private sector initiatives to foster development in four sectors: renewable energy, low carbon technologies, energy efficiency, and clean transport.
(IDB Invest) – IDB Invest, a member of the IDB Group, granted a $14.4 million equity investment to FreteBras, the largest freight marketplace in South America. The funds will help the company to develop significant tech improvements in its platform, specially related to safety features for both carriers and shippers, thus accelerating its growth.
The investment will also play an important role to help 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 decrease trucks’ idle time significantly, thus contributing to an increase in truck drivers’ income and a reduction in the environmental impacts caused by the sector.To ensure user safety, shippers interested in publishing loads through FreteBras are obliged to undergo a strict validation process, thus guaranteeing the quality and safety of the loads available. Carriers, on the other side of the marketplace, also have to register their trucks in order to access loads via the app. In addition, FreteBras also has a dedicated team to deal with issues reported by its users. Carriers and shippers that do not abide by the company’s safety policies are banned from the platform.
The transaction consists of an IDB Invest equity investment of $9.9 million plus a $4.5 million blended finance concessional equity contribution from the Clean Technology Fund (CTF), which will enable the development of a robust greenhouse gas (GHG) emissions avoidance tracking methodology. This methodology will leverage CargoX’s model for data optimization to increase the efficiency of the trucking industry, helping the company measure their environmental impact to create a standard methodology for data optimization models.
In the first half of 2020, FreteBras reached 2 million truck loads published in its platform, a 50% increase when compared to the first half of 2019. This represents around R$20 billion in freights distributed to carriers using the app. The company has over 10,000 shippers and recorded over 1,4 million app downloads from carriers searching for loads.
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 $12.1 billion in asset management and 333 clients in 24 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
Founded in 2008, in Catalão (Goias), FreteBras is the largest freight marketplace in South America. The company uses technology to efficiently connect shippers and carriers, investing in innovative solutions to improve the road freight segment. With over 430,000 registered carriers, FreteBras allows shippers to find trucks for their loads in minutes, thus optimizing their operations and reducing freight costs.