TruKKer, the digital freight platform announced that it has signed a $10M strategic venture debt agreement with San Francisco-based lending firm, Partners for Growth (PFG). The transaction marks the first venture-debt deal of this scale for technology business in the Middle East, as well as the first deal for PFG in the region.
The debt will be used to finance the working capital needs required for the instant payment of thousands of transporters operating on TruKKer’s network. The deal follows a $23M equity raise by TruKKer in late 2019, with participation from STV, IFC, and Endeavor Catalyst, among other prominent regional and international investment funds.
Since its inception in 2016, TruKKer brings together a fleet of 25,000+ trucks and 500+ B2B customers on to its platform, including leading multinational consumer products companies.
Amit Agarwal, TruKKer’s Group CFO said, “We are disrupting a very fragmented industry, both operationally and commercially, by using advanced data science and technology tools. One of our essential capabilities is the ability to finance instant payments to the small transporters and owner-operators while offering standard credit terms for enterprise clients. We have a very diverse and high-quality client base with three years of consistent payment cycles. Having demonstrated performance and substantial growth, financing our expanding working capital needs with a structured debt facility was an obvious next step for us. We are very happy and proud to have a world-class institution like PFG on board.
“We are proud to be in a position to finance this very enterprising and hard-working group that currently faces unorganized processes and poor access to conventional financing products. TruKKer’s core business and technology offer key data-driven metrics that allow us to service their needs in a mutually beneficial way.”