Berlin-based Embedded Finance platform Monite raises $5M to improve payment handling for SMEs.
Monite, an Embedded Finance platform, has secured $5M in funding to help small and medium-sized businesses (SMEs) overcome the challenges of manual payment handling and outdated transaction tracking methods. The funding round was completed by Third Prime, with participation from S16, Audeo Ventures, and Long Run Capital. Monite’s total financing now stands at $10M following a $5M seed round led by Point72 Ventures in early 2022. Victor Jacobsson, Adriaan Mol, Phil Valka, Jason Pate, Jonathan Weiner, and Ralph Müller contributed to the previous round of funding, bringing the total amount of funding to $11.3M.
Embedded Finance and Customized Automation Solutions for SMBs
SMEs continue to handle payments manually and rely on various tools to keep track of transactions, resulting in delayed invoicing and reduced profits, despite the projected $200 trillion value of the B2B transfers market by 2028. Monite offers customized automation solutions that integrate with the existing platforms commonly used by SMBs, resulting in faster invoice processing and increased profitability. Monite’s tailored automation solutions address these issues by seamlessly integrating with the systems that SMBs use, enabling them to streamline their payment processes and improve their financial performance.
API-First Finance Workflows and Integration of High-End Finance Automation Tools:
Andrey Korchak and Ivan Maryasin created Monite in 2020. Monite allows the integration of high-end finance automation tools into B2B platforms, marketplaces, neobanks, and vertical SaaS businesses. With its API-first approach and integration of payments and financial services, Monite is the first to offer AP/AR functionalities. This unique approach sets Monite apart from its competitors and enables businesses to streamline their payment processes.
With the additional funding, Monite aims to further develop its platform and expand its customer base. Monite’s embedded finance platform has the potential to revolutionize the way SMEs handle payments and improve their financial performance.
Neobanks, marketplaces, and SaaS providers have integrated Monite’s financial solutions into their platforms to provide business clients with a full range of invoicing and billing services. By leveraging Monite’s tailored automation solutions, these platforms offer a simplified payment process and increased efficiency. This reduces the cost of processing invoices for businesses by 80%, enabling platforms to increase revenue per user by 2–5 times without having to invest 1-2 years in building an expensive internal payment infrastructure.
The additional funding will be used to extend the company’s presence in the growing B2B payments market. Additionally, it will cover more payment and financial services integrations, and develop new product features.
Monite’s co-founder and CEO, Ivan Maryasin, said:
“The company is pleased to have the support of thought leaders in the embedded finance sector who have a wealth of knowledge and practical experience in FinTech and who are acutely aware of the requirements of the current market. While 79% of SMBs still manage their accounts payable directly, only 5-10% of them use a modern finance stack. Despite the growth in technology, SMBs are still not being adequately served, while B2B neobanks, eCommerce, and B2B SaaS companies have a significant opportunity to boost revenue. These companies have a chance to increase their profits without extra marketing costs by leveraging this opportunity. A game-changer is the digitalization of finance workflows through existing SaaS players. Therefore, we enable our customers to develop the all-in-one financial OS for their sector.”
Mike Kim, Partner at Third Prime said:
“There’s a real gap for Monite to fill from a demand perspective. Monite’s innovative approach to B2B payments automation through better contextual distribution has the potential to revolutionize the market. By streamlining payment processes and eliminating the need for manual processing, Monite can simplify payment management and make it more accessible.”
Mike Kim added:
“Monite’s API-first finance workflows offer a great opportunity for the B2B sector with its customized and efficient solutions. SMBs and platforms serving them can benefit greatly from Monite’s tailored automation solutions.”
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Unique Approach to B2B Payments Automation using Embedded Finance:
Monite considers the internal development of functionalities or utilizing a stand-alone white-label solution as its primary competition. Unlike Monite’s tailored automation solutions, the white-label solution lacks integration with the main application. With its API-first approach and integration of payments and financial services, Monite is the first to offer AP/AR functionalities. This unique approach sets Monite apart from its competitors and enables businesses to streamline their payment processes.