Freightpay, a payment platform for global logistics, 3PLs, and freight forwarders, has raised $2 million in funding. Defy.vc led the round with participation from other backers that included Better Tomorrow Ventures, BAM Ventures, Flexport and Socially Financed.
LOS ANGELES, CA – March 10, 2022 – Freightpay, a payment platform for global logistics, 3PLs, and freight forwarders, today announced that it has closed $2 million in initial funding. The round was led by Defy.vc with Better Tomorrow Ventures and participation from BAM Ventures, Flexport and Socially Financed. A number of strategic angels joined, including Jett McCandless and Jason Duboe of project44. This cash infusion will significantly enhance Freightpay’s ability to help customers improve cash flow and streamline financial operations by digitizing payments, reconciliations, and discrepancies with their shippers and carriers.
Intermediaries, like forwarders, are struggling to scale due to complex, manual financial processes. Freightpay allows finance teams to automate hours of payment processing and accounting work, freeing team members to focus on growth.
“Today, more than $140 billion is disputed every day between shippers, forwarders, and carriers across the world,” said Joe Magee, CEO of Freightpay. “As consumers continue to experience supply chain volatility, logistics intermediaries like forwarders wrestle with billing disputes, late payments, and poor cash flow. Freightpay digitizes payments, automates financial operations, and provides creditworthiness insights in order to help forwarders weather volatility and scale their businesses.”
Co-founded by Joe Magee and Brandon Brotsky, Freightpay’s mission is to increase the speed and efficiency at which freight forwarders respond to and transact through intelligent and automated payment processes. Joe was inspired to enter supply chain and logistics by his father and grandfather, both of whom worked in air and ocean cargo in Northern Ireland, and his vast experience in payments. His decade of building vertical fintech, combined with witnessing firsthand how manual processes diminish the financial health of a logistics operator, provides Joe a unique perspective in the emerging freight payments space.
CFOs and controllers are buried in multiple payment methods, disparate systems, and manual processes hampering the financial back office. The lack of automation causes billing errors, increased invoice aging, and slow revenue recognition. By connecting invoices, payments, and freight data, Freightpay’s platform is the connective layer that reconciles and eventually predicts payment discrepancies.
“The trillion dollar international freight forwarding industry is rife with payment disputes due a lack of a recognized system of record for transactions. Freightpay is building a much-needed payments workflow, processing, and dispute resolution tool for the industry and has strong validation from customers and industry insiders,” said Bob Rosin, Partner at Defy.vc.
Freightpay’s mission is to enable the global supply chain to transact more efficiently. Founded in 2021 by Joe Magee and Brandon Brotsky, Freightpay is headquartered in Los Angeles. The Freightpay platform digitizes payments and connects remittance data thereby reducing AR/AP errors and streamlining finance operations.