Mexican shipping startup Nuvocargo announced on Tuesday it had raised $36.5 million USD in a new round led by QED Investors, as nearshoring offers new trade opportunities between Mexico and the U.S.
The round, which also included participation from NFX and Tiger Global, will allow Nuvocargo to cover the areas responsible for 70% of U.S.-Mexico cross-border freight volumes, a rise from its current 40% reach, the company told Reuters.
The round set the company’s valuation at more than $250 million, an increase of around 40% from its 2021 valuation, it said.
The company offers a digital platform for freight forwarding and brokerage, customs brokerage, cargo insurance, and supply chain financing. It competes with players such as C.H. Robinson, Coyote, and digital freight firm Convoy.
Nuvocargo, which launched in 2019, said it plans to keep expanding services that have been boosted by the trend of nearshoring, as companies move production to North America and away from Asia.
“We are bullish on the nearshoring opportunity and have already seen increased demand for services specialized in the US-Mexico trade lane,” Nuvocargo’s Chief Executive Officer Deepak Chhugani told Reuters.
“We expect this trend to continue growing.”
Mexico’s government said earlier this year that nearshoring could add up to 1.2 percentage points to GDP, without specifying a time frame.