B2B BNPL startup Mondu has added $13 million to its Series A round.
The latest top-up brings the total raised in the Berlin-based startup’s Series A to $56 million, according to a tech.eu report. The investment was led by Valar Ventures, with participation from FinTech Collective.
When the company announced the initial $43 million raise in May, it said the funds would be used for product development and to further its European expansion.
In 2022, B2B buy now, pay later providers emerged as one of the hottest FinTech trends of the year. Mondu’s co-founder and co-CEO agreed.
“While B2B BNPL is behind the consumer BNPL market, we believe there is a $200 [billion] opportunity just in Europe and the U.S., which is bigger than the global consumer BNPL market,” Philipp Povel said at the time of the initial Series A announcement.
The rise of B2B BNPL comes as businesses look to modernize their payment processes and meet the speed and convenience of consumer transactions.
Describing the need for such solutions, Matthias Knecht, the co-founder and co-CEO of Billie, another Berlin-based B2B BNPL firm, told PYMNTS that business payments were ripe for modernization, creating an opportunity for an equivalent digital solution to do what companies like Klarna have achieved in the consumer space.
“The consumer world has been completely transformed over the last 15 years. However, if you turn to the business sector, B2B payments are still stuck somewhere in the 90s,” he emphasized.
To rectify this problem, Knecht said Billie (and by extension, its peers in the B2B BNPL space) is attempting to “[consumerize] the business shopping experience” and remove bottlenecks associated with older, pre-digital payment methods.
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