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The PayCargo platform is providing a seamless way for companies in the business of shipping and cargo services, to pay each other.
PayCargo, a fintech firm that offers payment solutions and logistics services to the shipping and cargo industry, has announced the completion of a Series C funding round of $130 million. According to the announcement, the fund will be focused on expanding the platform, which is currently based in the US.
Interestingly, the round had the backing of only one investor, Blackstone Growth.
PayCargo to Widen Its Reach with New Funding
By virtue of its more physical nature, the shipping and cargo business has always favoured a more hands-on approach in one of its critical aspects, payments. But not anymore.
Today, the PayCargo platform is providing a seamless way for companies in the business of shipping and cargo services, to pay each other. And using the $130 million it just raised in the funding round, PayCargo will focus majorly on extending its tentacles to other regions.
Additionally, the remaining portion of the funding will be used to increase its range of products and offerings.
Thriving in the Absence of Competition?
While its valuation remains undisclosed, PayCargo is notably a successful startup. Since its inception in 2009, the fintech has managed to stay profitable, and raising funds has never been a problem either.
But this level of success could be attributed to its seeming monopoly of the services it renders. And of course, for as long as there are little or no competitions, PayCargo is bound to continue on its massive growth curve.
Speaking more about the firm’s success in an interview, CEO Eduardo Del Riego said:
“Last year we moved over $10 billion in payments, and we are now on pace for $20 billion in 2022.”
Reduced e-Commerce Activities will Pose No Problems, says CEO
For what it’s worth, the activities and success of PayCargo may be closely linked with the e-commerce industry. But that’s not to say that it is entirely dependent on it.
The world is slowly moving back to the physical world after the Covid-19 episode. However, Riego is also certain about PayCargo continuing to enjoy its revenues in the ways it did before now. He insists that although Covid-19 may no more be a major factor, other things like war and embargoes still play a part in the way things are being moved around. And while this may be a problem for some other companies, it isn’t for PayCargo.
Del Riego insists that the company has a flat fee on each transaction, no matter the size of that transaction.