Brazil’s RoutEasy invests in advanced AI to streamline logistics

Brazilian logtech RoutEasy is investing in the development of solutions based on advanced AI to expand its business, while assessing the potential of new technologies based on emerging AI platforms.

“ChatGPT can help analyze, in real time, traffic information, weather and peak hours in certain locations to make route adjustments based on these important variables for logistics and operations,” RoutEasy founder and CEO Caio Reina told BNamericas.

“In addition, the demand forecast analysis area can also benefit from generative AI, bringing more detail to the scenario as a whole,” he added. Supply and customer interaction are other applications of ChatGPT in logistics, added the executive.

The company developed an algorithm that reportedly saves up to 40% in costs for its more than 300 customers.

RoutEasy's technology also allowed for an 8% reduction in the distance traveled by one of the largest gas and electric power distributors in Brazil, according to the company. The startup's software also led to a 7.5% reduction in CO2 emissions and an 80% cut in overtime of the distributor’s own team, it added.

In December 2022, the company joined the NSTech logistics solutions ecosystem. RoutEasy's customers include retailers such as Shopee, Royal Canin, Rodonaves, GPA, DHL and Magalu.

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Another Brazilian logtech, CargOn, raised 5.3mn reais (over US$1mn) in a fourth investment round.

The startup plans to use the proceeds for marketing and to enhance its portfolio, with a goal of doubling annual revenues to 30mn reais by April 2024.

Of the total invested, over 3mn reais were raised through a share offering on EqSeed, an equity crowdfunding platform. The rest came from existing investor VIasoft, which increased its stake in CargOn to 30%.

The logtech reports around 30 customers, including ArcelorMittal, Lojas Renner and Atlas Eletrodomésticos.

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Preliminary data from the Latin America Private Equity and Venture Capital Association (Lavca) shows US$800mn in VC investments in the region in Q1, down 73% year-on-year and 25% over 4Q22.

According to Lavca, venture debt saw the highest investor appetite.

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The SlingHub platform said that April's funding volume of LatAm companies surged 78% compared to March to US$463mn. 

According to SlingHub’s monthly tracking, April was the second most active month this year, behind January with US$733mn. However, the amount was 48% down on April 2022 and 66% lower than the same month 2021. 

“Contraction is even sharper in Brazil, where the US$110mn in funding represented a 71% drop compared to 2022 and 2021,” said SlingHub.

Overall, Latin America saw 61 funding rounds in April, down 39% year-over-year and by 2% from March. Brazil, Mexico and Chile led in number of rounds while in volume terms, Mexico, Brazil and Colombia were the leaders.

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Brazilian power distributor Copel selected Vox Capital to manage its newly created corporate venture capital arm. 

Copel said it aims to invest approximately 150mn reais (US$30mn) by 2030 in startups with solutions in the following areas: renewables, energy-as-a-service, smart cities, innovative internal processes and asset management.

Vox Capital’s latest investments include Bitfy, Aprova Digital, Cubos Academy, Seedz, Omens, ISA Lab, Mevo and Endpoint Health.

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Brazilian oil & gas group Ocyan launched a new edition of its startup investment program Ocyan Waves Booster.

The company is looking for mature startups focused on new energies and digital services and who are in the growth phase, that is, with solutions already validated by some clients.

Energy transition and efficiency, operational asset management and smart maintenance are the main focuses. Applications can be made at www.ocyanwaves.com/booster until May 26.

In 2022, the program focused on cleantechs. Over six months, three startups were accelerated: CarbonAir Energy from Rio de Janeiro, Atlas Power from Florianópolis and TidalWatt from Santos.

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Chile’s Manutara Ventures raised US$28mn for its third fund to invest in early-stage startups in Spanish-speaking Latin America.

Manutara's first fund was launched in 2017. 

The VC firm focuses on late seed stage/pre series A rounds, with around US$1mn in investment in technology companies with high potential for international scaling.

Its main focus is software and biotech companies with market validation.

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Argentine unicorn Globant went shopping again and acquired ExperienceIT, a US-based digital transformation consultancy firm focused mostly on the healthcare industry.

With the acquisition, Globant intends to expand its services in North America and reinforce its portfolio in the health sector. 

Together with the purchase, Globant announced the opening of an office in Minneapolis, Minnesota. Investment figures were not disclosed.