After quietly raising $43 million over the last six months of 2020, Relay Payments is on its way to raising an additional round for its electronic payment platform.
According to a filing with the U.S. Securities and Exchange Commission last week, the Atlanta-based company is looking to raise $60 million, noting it has already raised $44.7 million from four investors since earlier this month.
Relay aims to provide a more efficient and safe process for shippers, brokers, fleet managers and drivers to manage payments on the road, specifically lumper payments that tend to come out of the drivers’ pockets and are reimbursed at a later date.
Past investors in Relay Payments include Addition, Overline, Service Provider Capital, Ribbit Capital, Spark Capital and 9Yards Capital. Its last raise put the company’s post valuation at $143 million, according to Pitchbook.
Since Relay’s last raise, the company has partnered with less-than-truckload carrier Old Dominion Freight Line (NASDAQ:ODFL) to digitize the carrier’s lumper payment processes.
With over 10,000 drivers, Old Dominion was happy to find a systematic way to process the millions of dollars in lumper transactions that would also improve the unloading transactions for its customers.
“We have entrusted Relay to process millions of dollars in volume annually, and we’ve already been able to realize millions in savings through data integration, digitalization of receipts and simplified reimbursements,” said Old Dominion Vice President of Pricing Services Todd Polen.
“On top of it all, our customers are happier than ever, which is the most important to us,” he said in the announcement release.
Related article: Digital payments provider Relay partners with Old Dominion
Ontario-based Bayview Flowers, which became a Relay Payments customer after referral from a delivery, explained the importance of this type of technology for its company drivers.
“Previously, once a driver received the total for the lumpers, they would have to call for a check and then wait for the lumper to process the payment. This could take up to a couple of hours. It also means drivers do not need to carry cash, and we receive lumper receipts immediately,” said logistics coordinator Peggy Cote in a Relay company blog.
“The dispatch team no longer gets after-hours calls from drivers requiring money for lumpers, and our office staff no longer have to go to the bank to ensure the driver has cash on hand for lumpers,” she explained.