Why We Invested Again: Denim (formerly Axle Payments)
When we first invested in Denim (then Axle Payments) back in 2020, on the cusp of a global pandemic and attendant supply crunch, we held the firm conviction that the financial system backstopping global supply chains was ripe for technological improvement.
From underwriting to collections, Denim deployed a 21st-century financial solution to help small logistics companies and larger freight intermediaries alike. In the US, the freight broker market is valued at $134 billion, and the total freight trucking market is valued at $791 billion.
Despite being a brand-new startup, Denim’s nascent 2020 growth indicated to me that they had tapped into an essential market need: working capital bolstered by easy-to-use administrative and workflow management tools. In addition to its Quickpay offering, we believe in Denim’s potential to reduce the average steps per job by 75% through automating invoicing, collections, and payments.
This year, Denim has facilitated nearly 60,000 jobs valued at $130 million. Denim has also more than tripled its headcount to 100 employees, and it’s still actively recruiting for open positions.
Denim grew its revenue 4x in 2021 by connecting more than 7,000 freight brokers, shippers, and carriers on its financial enablement platform. Denim’s unique ability to deliver rapid funding turnaround times and its premier customer service team have earned the company a 4.7 star rating on TrustPilot and a net promoter score over 70, rivaling beloved brands like Apple, Starbucks, and the Ritz Carlton.
I’m also super excited by Denim’s rebrand. I love denim! It’s the best! Trusty and versatile, the fabric revolutionized workwear and fashion. Denim (the company) is poised to revolutionize the logistics industry.
