Freight payment platform PayCargo said today it has raised a $125 million Series B investment from global venture capital and private equity firm Insight Partners.
The announcement by the Coral Gables-based fintech comes on the heels of impressive growth. This year, PayCargo is on track to process $10 billion of freight-related payments, a 250% increase from 2020, the company said.
Founded in 2008, PayCargo says it is the largest independent freight payments network of its kind with over 67,000 active users remitting and receiving payments on the platform and thousands more joining each month. Now with more than 5,000 vendors on its platform, including FedEx, DHL, UPS and United Cargo, its cloud-based network enables payers to pay air and ocean carriers, maritime ports, ground handlers, freight forwarders and customs brokers quickly and securely. PayCargo says its vendors will typically release cargo within one hour of payment approval.
“The incredible growth PayCargo has experienced since our initial investment is a testament to the confidence the industry has in their platform,” said Ryan Hinkle, Managing Director at Insight Partners. “We are thrilled to continue our partnership with Eduardo and team to pursue excellence for their global customers through new and exciting digital payment tools.”
PayCargo, which has quadrulpled its workforce since last summer and now has about 100 employees, integrates with over 20 leading TMS, ERP, and Terminal Operating Systems via the ocean, air, rail, and trucking. The company, which has been profitable since its early years, already had a strong presence in North America when it entered the European market in 2018. It is rapidly expanding there, as well as in Asia. CEO Eduardo Del Riego told Crunchbase there is still a massive growth opportunity as PayCargo only handles less than 5% of the logistics payments market.
“PayCargo was founded on the vision of building a modern freight payment network that lowers transaction costs, accelerates cargo release, and increases business agility and growth across the entire supply chain,” said Del Riego, who joined PayCargo as CEO in 2013, after years of experience launching and leading freight and software companies. “We are excited to accelerate our mission to bring modern payment solutions to our increasingly global base of customers.”
In 2020, Insight Partners invested $35 million in a Series A round. In total, the company has raised $160 million, according to Crunchbase. “This next round of investment will ensure we continue to grow and expand into new markets with a focus on security and data protection, to fit every part of the supply chain,” said Thomas Vieweg, PayCargo’s Global Chief Growth Officer.
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