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PayCargo raises $125M from NY venture capital firm

Freight payment platform rapidly adds new tools, customers

PayCargo is a multi-modal freight payment platform. (Photo: (Photo: Jim Allen/FreightWaves at DFW Airport))

Freight payment platform PayCargo has received a $125 million follow-on investment from private equity firm Insight Partners to help fund its expansion into new markets, with a focus on security and data protection.

The Series B investment announced Tuesday is substantial, signaling that PayCargo is well beyond the development stage and that its valuation is rising. The average estimated capital raised in a Series B round is $33 million, according to startup database Fundz.

In September, Insight Partners put $35 million into PayCargo. Its cloud-based payment system allows air and ocean carriers, ports, ground handlers, freight forwarders, and customs brokers to automatically notify customers that an invoice is available in the online portal for review and approval. Payments are completed within hours.

The freight technology firm said it is on track to process $10 billion in freight-related payments this year, a 250% increase from 2020. The COVID pandemic and increased interest in contactless payment has accelerated use of digital payment systems like PayCargo. More than 67,000 active users in all transport modes remit and receive payments on the platform.

PayCargo’s largest customers include 3PLs such as Kuehne + Nagel, DHL, DB Schenker, BDP International, SEKO Logistics, UPS and Yusen Logistics; ocean carriers Hapag-Lloyd, Hamburg Süd; airport ground handlers Alliance Ground International and Swissport; and airlines AirFrance and LAN Cargo.

“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, in a statement. 

PayCargo, which was founded in 2009, has a strong foothold in North America and is expanding in Europe and other regions. It integrates with more than 20 transportation management, enterprise resource planning and terminal operating systems. Recent technology updates include real-time customer reporting and invoicing, workflow tools to streamline partial payments and reconciliation, advance payments, and automated refunds in any currency.

“Working with Insight Partners, we have doubled our team and developed new cutting-edge solutions as well as new partnerships, continuing to support the freight industry through this challenging last year,” said Thomas Vieweg, PayCargo’s global chief growth officer. 

New York-based Insight Partners’ portfolio includes Delivery Hero, Imperfect Foods, project44 and Twitter. 

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.


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Eric Kulisch

Eric is the Supply Chain and Air Cargo Editor at FreightWaves. An award-winning business journalist with extensive experience covering the logistics sector, Eric spent nearly two years as the Washington, D.C., correspondent for Automotive News, where he focused on regulatory and policy issues surrounding autonomous vehicles, mobility, fuel economy and safety. He has won two regional Gold Medals from the American Society of Business Publication Editors for government coverage and news analysis, and was voted best for feature writing and commentary in the Trade/Newsletter category by the D.C. Chapter of the Society of Professional Journalists. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. Eric is based in Portland, Oregon. He can be reached for comments and tips at [email protected]