Axle Payments, a freight and logistics financial enablement platform, is rebranding itself as Denim following the close of a $126 million Series B round, comprised of $26 million in equity funding and $100 million in debt financing.
The equity funds are being earmarked to scale its platform, while the debt financing will go towards providing working capital to freight brokerages and field product expansion, according to a press release Thursday (Sept. 15).
The round was led by Pelion Venture Partners, with participation from Crosslink Capital, Anthemis, Trucks VC, FJ Labs, Tribeca Early Stage Partners and Refashiond Ventures. Denim has raised a total of $165 million in three years, per the release.
Related: FinTechs Haul Freight Brokerages into the Digital Age
“The core challenge our clients face is adapting to the pressures of an increasingly complex and unpredictable supply chain,” said Bharath Krishnamoorthy, CEO and co-founder of Denim. “Freight brokers — and the shippers and carriers they work with — must find ways to evolve how they do business together with smarter tools.
“Denim is pioneering the financial enablement market to meet this challenge, benefiting all parties along the supply chain. With the support of our investors, we’ll continue to scale and serve our clients while strengthening our position as a payments ecosystem that powers the supply chain.”
Denim quadrupled its revenue last year and so far, 2022 has seen the startup facilitate close to 60,000 jobs between shippers, carriers and freight brokers, according to the release. The brand also scaled its workforce by 200% this year.
Read more: Freight Bottlenecks Spotlight Need for Faster Payments at US-Mexican Border
Co-founded in 2019 as Axle Payments by Krishnamoorthy and Chief Technology Officer Shawn Vo, the company aims to help freight brokers grow by automating their back office and providing fast, affordable working capital. Denim also automates invoicing, collections and payments.
“Denim’s innovation within the freight and logistics space has connected thousands through a payments infrastructure that streamlines the flow of money and data — an area where we see a great need for technological advancement and one where Denim will continue to capitalize,” said Blake Modersitzki, managing partner at Pelion Venture Partners.
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