PayCargo raises $130mn Series C from Blackstone Growth

Logistics payments and data infrastructure platform PayCargo has announced a new investment of up to $130 million in Series C round from funds managed by Blackstone Growth (BXG).

"BXG's investment will support the company's continued expansion both domestically and internationally, development of new products, as well as potential growth opportunities through M&A," according to an official announcement from PayCargo.

"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," says Vini Letteri, Senior Managing Director and Head of Financial Services, Blackstone Growth. "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 e-commerce space, including acquiring a leading port operator in North America and over 1.1 billion sq ft of warehouse assets globally, the statement 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," says Eduardo Del Riego, CEO, PayCargo. "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 e-commerce space will be invaluable for PayCargo as we continue to expand globally."

PayCargo's cloud-based payments network enables payers to quickly and securely pay air and ocean carriers, maritime ports, ground handlers, freight forwarders and customs brokers. "PayCargo integrates with over 50 leading Transportation Management Systems (TMS), Enterprise Resource Planning (ERP), and Terminal Operating Systems (TOS) entities across various transport modes: Ocean, Air, Rail, and Trucking. Today, PayCargo's network of more than 40K businesses is the leading independent payment platform focused on expediting the movement of cargo in North America and is rapidly expanding in Europe and other geographies."

With over 5,000 active vendors in the PayCargo network, customers can instantly make payments for same-day or overnight release of cargo to major carriers like MSC, Ocean Network Express, ZIM, Maersk, Evergreen and Yang Ming and terminals and CFS stations, the statement said.

PayCargo had secured a $125 million Series B investment from global venture capital and private equity firm Insight Partners on June 15, 2021.