Axle Payments has reportedly bagged $27.7m in a mixture of debt and equity to increase its market spread.
The round, which comprised of $2.7m in equity and $15m in debt, was supported by Anthemis and Techstars, according to a report from Crunchbase News.
With the debt funding, Axle plans to deploy its financing services to new markets, while the equity investment will be used to increase product development.
Axle supplies small brokers and carriers in the freight industry with working capital. Companies can leverage the solution to pay their carriers quicker, with Axle also handling invoicing, collections and payments.
The company was created due to a gap in cashflow many small businesses in the freight industry had. It claims that freight brokers earn commission through the transportation of goods. They are typically paid between 30 and 40 days later by the customers needing their goods shipped and after receiving it they would pay the transportation company.
However, bigger companies began to offer quicker payments, even the next day, which was tough for small companies to match, the article claims.
Axle co-founder and CEO BharathKrishnamoorthy told Crunchbase, “Many of the brokers may only have revenue of $10 million or $12 million, so they are not sitting on a large portion of money they can lend out. We help bridge that gap and take over all of that for them so they can focus on their business.”
Previously, Axle secured $1.4m in a pre-seed round in January 2020, with backers including Trucks Venture Capital, the article said.
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