A Kansas City-area company that relies on technology to lease big rigs has hauled in a load of capital.
FoxPoint Trucks LLC, which operates as OTR Leasing, said Wednesday that it raised $85 million in capital from Boston-based Gordon Brothers. CEO Jeff Dema said the money, a debt financing arrangement, will fuel the company’s growth.
“Demand for freight is just so strong right now,” Dema said. “We’re leasing as many trucks as we’re able to acquire. That’s why we need more dry powder.”
OTR Leasing has a track record of rapid growth. The company, based in Pleasant Valley in the Northland, ranked No. 31 on the Kansas City Business Journal’s Fast 50 list of the area’s fastest-growing companies in 2019, based on a three-year annual growth rate of 50.58%. For that list, OTR Leasing had $14.8 million in 2019 revenue.
Dema said the company grew at a rapid clip last year and revenue now is about double the 2019 figure. With the new capital, he said OTR Leasing can build its fleet of trucks.
OTR Leasing differentiates itself in two ways.
Most other truck leasing companies purchase trucks, then offer them to customers, Dema said. But OTR Leasing uses technology to source trucks and drivers at the same time.
“When we’re selling lease agreements and they come to pick up the truck, that’s the first time they see the truck,” he said.
The approach means the company’s business model is more scalable and efficient.
The company also separates itself with its support for drivers after they sign a lease. This includes business education for drivers becoming owner-operators for the first time, and connections with other companies to provide everything from fuel discounts to tax advice.
“All truck drivers know how to drive,” Dema said. “They don’t all know how to run a business.”
Gordon Brothers is a Boston-based company that provides services ranging from financing to disposition of industrial and retail assets. Dema said the company is providing financing to OTR Leasing, but also has expertise in the trucking industry that also can help OTR Leasing grow.
