Brazil’s Frete Launches in Mexico With US$20 Million Investment

Brazilian logistics platform Frete, operating in Mexico under the name Flete, has launched its first international expansion with a US$20 million investment plan over the next three years. Founded in 2013, the company functions as a digital marketplace connecting trucks with cargo. Its entry into Mexico targets a market where over 80% of goods are transported by road.

The decision to expand was based on similarities between the Mexican and Brazilian logistics sectors, both of which face challenges in connecting companies with available carriers. “Mexico and Brazil, while different economies with their own characteristics, are similar in that finding transport operators is difficult. Mexico is an exporting and manufacturing country, with significant demand for freight transport,” said Marco Reyes, Country Manager, Flete Mexico.

In Brazil, Frete reported US$14 billion in gross merchandise volume (GMV) in 2023, working with more than 900,000 active trucks, 25,000 companies served, and 20 million loads assigned. The company has established itself as the largest digital loadboard for road freight in Latin America.

Reyes explained that the company studied the Mexican market for two years before committing to entry. “To achieve scalability, you need technology, and for technology to work, you need adoption. What we see, and I have discussed extensively with Brazil, is that technological adoption is very high here. With a smartphone and mobile data, the tools already convince transport operators,” he said.

Flete began operations in Mexico a few months ago and is already recording around 600 monthly loads and 1,000 registered transport operators. By year-end, the company expects to reach 5,000 loads and handle between MX$80 million and MX$120 million in GMV.

Flete argues that its model can deliver measurable cost benefits to companies while improving profitability for transport operators. In Brazil, the company reports that clients reduced logistics costs by up to 25%, while carriers increased profitability by 40% through the platform.