Berlin-based Mondu is expanding quickly intending to permanently upend B2B payments. The business just received an additional €12 million in a Series A extension as the need for flexible payment alternatives keeps rising.
The additional investment will be utilized to support future product development and market expansion.
The Series A extension round, which was co-led by Valar Ventures and FinTech Collective, raised €12 million.
Leading investors Valar Ventures, Cherry Ventures, the FinTech Collective, and German bank VVRB have collectively invested around €83.5 million in the firm in the form of stock and debt investment.
The forecast for the economy in 2023 has started with some apprehension and uncertainty. Prices are rising, investments are declining, and financial uncertainty is mounting throughout Europe. As a result, both companies and individuals are searching for payment solutions that are more flexible and straightforward.
Businesses want to handle their finances less stressfully, but they also want to give flexibility and personalization so that individuals and organizations may continue to make purchases in the manner that is most convenient for them.
Buy Now Pay Later and subscription-based solutions in particular have become more well-liked as a result. Berlin-based Mondu, one of the city’s fastest-growing fintech, has been upending this market since 2021. Now that it has obtained an extension to its Series A investment, an exciting year is in store for the company.
Philipp Povel, co-founder and CEO of Mondu, said: “Buy Now, Pay Later in B2B has established itself as a valuable tool to match the business buyers’ expectations by offering a “consumer” checkout experience and flexible payment options. We are convinced that by 2023, there will be a significant increase in demand for Buy Now, Pay Later for B2B.”
Philipp added, “This financial tool has several advantageous consequences on consumers as well as on retailers and marketplaces, who continue to experience rising basket sizes and increased customer loyalty.”
Malte Huffmann, Philipp Povel, and Gil Danziger founded Mondu in 2021, and the company has had rapid expansion since then. It has quickly scaled, penetrated new areas, and introduced many financial products. The inventors from Berlin want to upend the B2B payments industry by offering payment solutions that let any B2B business expand rapidly and securely.
The firm gives retailers and marketplaces the ability to offer the most common B2B payment options together with flexible payment terms during an online checkout to their business clients.
Purchase on the invoice, SEPA direct debit, and installment payments are among the Buy Now, Pay Later options. Businesses that use Mondu are also shielded from the possibility of default and spared the nuisance of collections and dunning.
The eye-catching capital rounds completed in 2022, including a €39.9 million round in May and a €20 million debt investment in October, are supplemented by this fresh cash. The fledgling business also grew into Austria and the Netherlands in 2022.
According to Valar Ventures’ founding partner Andrew McCormack, “We have great confidence in Mondu’s potential to pioneer B2B payments innovation. The company showed amazing growth in both organizational maturity and its product offering and customer base last year.”
Added Andrew “As Mondu continues to develop a platform of B2B payments solutions to support numerous industries, we want to hasten the implementation of their goal even further.
The company, which is based in Berlin, has a goal of bringing B2B payments into line with B2C payments, placing customers at the center of the payment flow, and guaranteeing they receive a seamless, cutting-edge experience.
The outcome is a win-win scenario: business clients have the freedom to buy and pay whenever they want, which increases the supplier’s conversion rate and basket size. It’s obvious that investors are paying attention to it and that businesses are finding it to be popular.
With this additional cash, the team hopes to advance product development and market expansion. Mondu is looking into new omnichannel use cases for its B2B payment products.
FinTech Collective’s founding partner, Gareth Jones, said, “We have supported the Mondu team from the start and have been consistently impressed with the team’s rigorous execution. With this additional funding, the Mondu team can continue to set the bar for other businesses in this quickly expanding fintech sector and elevate itself beyond the competition.”
Gareth went on to say, “Numerous companies have already used Mondu’s solution, and the company has signed merchant clients from a variety of industries, including manufacturing, electronics, beauty, and cleaning products. ChefsList, a marketplace for the restaurant sector and its producers and suppliers, is one example of a Mondu client.
The mission of ChefsList, according to its founder André Klein, is to be a partner and solution provider for wholesalers, facilitating and streamlining their transition into the digital age. We are gaining a cash flow advantage for our customers and stabilizing operations with the use of Mondu’s BNPL solution.”
“Our economy is based on the food business. No matter what the situation—a pandemic or an energy shortage—it guarantees that we all have reliable and secure access to fresh food every day. We are helping industry participants undertake a crucial digital shift with our technologies, André continued.
Image Credit: Mondu