FinTech Truck Funding BasicBlock Raises $78M

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BasicBlock Inc., a FinTech that provides financing to the trucking industry, raised $78 million in funding and debt.

The Nebraska-based company said the funding will help it expand its services, strengthen its staff and improve customer support. The round was led by Autotech Ventures, Clear Haven Capital Management, Emergent Ventures and Nelnet, with continued investment from Revolution’s Rise of the Rest Seed Fund, SaaS Ventures and TNT Ventures.

Founded in 2018, BasicBlock started life as a trucking document capture tool that allowed drivers to scan and send loading documents. It evolved into a payment platform for carriers. The company says the new capital will allow it to focus on factoring while adding and expanding its services.

Taylor Monks, CEO and co-founder of BasicBlock, said he spent six months traveling the country with truckers to get a full picture of the company before it launched.

He found that “96% of commercial trucking companies in the United States have fewer than six trucks, and one of their biggest problems is access to capital. We launched BasicBlock with a freight factoring app to get drivers paid as quickly as possible and have evolved to provide essential working capital to fleets that can’t secure it through traditional financial institutions.

The company also plans to move its operations to Chicago after seeing a 50% increase in the number of drivers it serves and a 60% increase in factoring volume, said Brett Byman, chief operating officer of BasicBlock. .

“Establishing an office in Chicago, one of the premier freight technology cities in the United States, will allow us to meet the needs of our growing national customer base and enhance our already state-of-the-art customer service. industry,” he said.

Read more: Truckers consider multi-pronged approach to cash flow

PYMNTS looked at the challenges truckers faced funding their fleets last year in an interview with Andy Lupo, Vice President of Strategic Partnerships at Pilot Company.

He said that when businesses look for external financing products, they should bear in mind the benefits of factoring, given the scourge of late payments the industry faces.

“Given these slow payment trends, which have impacted fleets of all sizes [as well as] new carriers entering the market, factoring has become essential to keep businesses on the road,” Lupo told PYMNTS.

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