Axle Raises $10M Series A for Freight Financing

Axle Secures $10 Million in Series A Funding

Axle has recently announced the successful completion of a $10 million Series A financing round, following a period of significant growth. This investment round was spearheaded by Crosslink Capital, with contributions from FJ Labs, Flexport, Tribeca Early Stage Partners, and existing investors like Anthemis Group, Techstars, and Plug and Play Ventures.

Significant Growth and Platform Capabilities

According to a company press release, Axle experienced an impressive 850% growth in volume over the last year on its specialized payments and financing platform. This platform is specifically engineered for the needs of freight brokers and carriers.

The company’s offerings enable established businesses to modernize their operations and effectively compete with emerging startups in the freight sector. Axle streamlines processes by automating carrier payments, invoicing, and collections.

This automation allows operators to integrate and manage all facets of their freight operations more efficiently.

Future Plans for Capital Allocation

The newly acquired capital will be strategically allocated to several key areas. Axle plans to expand its operational capacity, introduce innovative new services, and further enhance its core payment and financing platform.

Company History and Funding

Axle was established in 2019 by co-founders Bharath Krishnamoorthy and Shawn Vo. The company’s initial funding included a $1.4 million pre-seed round from Trucks VC in 2020.

This was followed by a $2.7 million seed round backed by Techstars and Anthemis Group, and subsequently a combined $27.7 million debt and equity round later in the same year.

Statements from Leadership

Krishnamoorthy, CEO and co-founder, stated that Axle’s unique technology creates a more equitable competitive landscape for its customers. He emphasized the platform’s role in empowering freight intermediaries to achieve rapid growth and differentiation.

“We’re excited to partner with Crosslink to transform the freight and logistics industry,” Krishnamoorthy added.

Investor Perspective

David Silverman, a partner at Crosslink Capital, highlighted the accomplishments of Krishnamoorthy and Vo in establishing Axle as a leader in freight factoring and payment processing. He noted the company’s substantial growth over the preceding year.

Silverman expressed enthusiasm for supporting Axle’s continued expansion, stating, “We look forward to helping them scale operations.”