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.