Blackstone invests in PayCargo

In the newest development in the private investing space for the fintech industry, freight payment platform PayCargo announced on 15 June that it has secured a $130mn commitment from the Blackstone Group, as part of its Series C fundraising round. This is the largest funding round for the 13-year-old company, which previously closed $125mn from Insight Partners, another notable private equity firm.

PayCargo is a B2B online payment platform for the global freight and cargo industry. Founded in 2007 by Juan Dieppa and Sergio Lemme, the business has grown to over 100 employees and $40mn in annual revenue. By automating the payment process, customers have been able to pay their vendors via PayCargo and get their cargo released within an hour, which is something previously unimaginable. The company’s patented technology has over 4,000 vendors in its network, which has potential to grow exponentially.

Blackstone Growth, which is the management behind these funds, focuses on high-growth companies that often come from the tech space. As it raises billions of dollars to fund its investments, it has the backing of parent company Blackstone, which manages $915bn in global alternative assets including private investments like this one. “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 digitization of supply chains and the modernization of B2B payments,” said Vini Letteri, senior managing director at Blackstone Growth. Last year, PayCargo processed more than $10bn in B2B freight payments.

“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. Blackstone’s experience in the logistics, supply chain, and e-commerce space, will be invaluable for PayCargo as we continue to expand globally,” said Eduardo Del Riego, PayCargo CEO. Having been profitable since its early days, the business is always investing in software development and security upgrades. Today, PayCargo’s new innovations include real-time reporting and invoicing, as well as automated refunds in any currency.