PayCargo Raises $130M for Global Expansion

Logistics payments firm PayCargo raised $130 million in a Series C funding round from a single investor, Blackstone Growth, to further the startup’s global expansion efforts across Asia, the Middle East and Latin America.

Headquartered in Coral Gables, Florida, and founded in 2009 by Chief Operating Officer Juan Dieppa and Chairman Sergio Lemme, PayCargo helps companies in the ocean, air, trucking, and rail industries facilitate and manage payments.

PayCargo raised $125 million in a Series B round in 2021, bringing its total capital raised to $290 million. The valuation of the company wasn’t disclosed, but PayCargo CEO Eduardo Del Riego told the Wall Street Journal that it was more than last year.

See also: E2open Teams With PayCargo to Drive Freight Payments

Del Riego told the WSJ that PayCargo was attracted to Blackstone as an investment partner because of its connection to the logistics and warehousing space, which could assist the startup in its expansion efforts.

The company’s platform provides real-time reporting and invoicing as well as workflow tools for payments and reconciliation. Because Paycargo powers transactions between different companies in the ecosystem, it has deep data about the sector’s operations.

Related: IoT Helps Freight Companies Tackle Inflation

More than 5,000 logistics vendors are in PayCargo’s network including major ocean carriers including MSC, Ocean Network Express, ZIM, Maersk, Evergreen, Yang Ming and other terminals and CFS stations, according to its website.

“Over 1,000 of these vendors release the cargo within an hour of receiving the ‘Payment Approval’ alert from PayCargo. All other Vendors release cargo no later than the following morning,” per the website.

Read more: ‘Ship Now, Pay Later’ Helps Manufacturers Clear Supply Chain Hurdles, Get Vendors Paid

Ships backed up at the Port of Los Angeles are just one example of the cash crunch in the supply chain because “people still need to be paid all throughout that cycle of activity,” Josh Allen, chief commercial officer at Inxeption, told PYMNTS.

Inxeption’s ship now, pay later product enables companies to reduce the amount of capital tied up in shipping-related expenses while waiting for buyer payments.