Logistics payments fintech PayCargo has secured new investment worth up to $130 million to support its expansion in the US and internationally.
The capital will also support the development of new products, as well as potential growth opportunities through mergers and acquisitions.
PayCargo provides a cloud-based payments network that enables payers to “quickly and securely” pay air and ocean carriers, maritime ports, ground handlers, freight forwarders, and customs brokers.
The Florida-headquartered fintech relies on key integrations with transportation management systems, enterprise resource planning and terminal operating systems entities across ocean, air, rail, and trucking. These now number at more than 50.
More than 40,000 businesses reportedly use its platform, both in North America and as the fintech expands in Europe and other regions.
PayCargo, which has been “profitable since an early stage”, is already investing in software updates, development and enterprise-grade security to support expected growth.
Its new tools include advanced real-time customer reporting and invoicing, workflow enhancements to streamline partial payments and reconciliation, advance payments, and automated refunds in any currency.
PayCargo’s new investor, Blackstone Growth, believes the fintech is already a “category leader”.
Vini Letteri, senior managing director and head of financial services at Blackstone Growth, said: “PayCargo is a category leader, operating at the intersection of several of our highest-conviction investment themes—including the continued proliferation of electronic payments, the digitisation of the supply chain, and the modernisation of business-to-business payments.”
“We believe that these attractive tailwinds, combined with the strength of PayCargo’s offering, positions the company well for its next phase of growth.”
Blackstone, through its private equity, infrastructure, and real estate businesses, has invested significantly in the broader logistics, supply chain, and ecommerce space, including acquiring a port operator in North America and more than 1.1 million sq ft of warehouse assets globally.
This activity makes Blackstone a prime partner for PayCargo, according to chief executive officer Eduardo Del Riego.
Del Riego said: “Our partnership with Blackstone plays an important role in furthering our commitment to transforming the movement of goods and fostering increased efficiencies through PayCargo’s payment platform. Like Blackstone, we share the same mission and vision—serving the needs of our customers by building the largest independent freight payments network.”
“Blackstone’s experience in the logistics, supply chain, and ecommerce space will be invaluable for PayCargo as we continue to expand globally.”