Monite Raises $5 Million for Embedded Finance Workflows Solution

Embedded finance workflows startup Monite has closed $5 million in seed funding.

This follows a $5 million seed round in February 2022, bringing the firm’s total seed funding to $10 million, Monite said in a Monday (March 20) press release emailed to PYMNTS.

The Berlin-based firm said it will use the new funding to develop new product features, add more payment and financial services integrations, and expand its reach in the business-to-business (B2B) payments market.

“SMBs [small and medium-sized businesses] remain technically underserved, while B2B neobanks, eCommerce and B2B SaaS [software-as-a-service] businesses have an incredible opportunity here to grow their revenue with no additional marketing expenses,” Monite Co-Founder and CEO Ivan Maryasin said in the release. “Digitalizing finance workflows through existing SaaS players is a game-changer, and we allow our clients to become an all-in-one financial OS for their industry.”

B2B payments have moved toward digitization for many years as firms — particularly larger businesses — grow more cognizant of the need to update their existing systems and of the benefits that electronic payments offer, according to the “Innovating B2B Payments Report,” a PYMNTS and i2c collaboration.

Monite offers a finance workflows application programming interface (API) that enables platforms that work with SMBs to embed invoice and supplier management into their existing interface, according to the press release.

The company provides a one-stop shop that enables SMBs to automate their administration and accounting tasks all under one roof, connecting all their bank accounts and having a single interface in which to do payable, receivables and expenses, Maryasin told PYMNTS in an interview posted in March 2022.

“They don’t have to change the interface, they don’t have to buy a new software, they can just get an upgrade,” Maryasin said at the time.

This approach can boost B2B payments automation, eliminate the need for manual processing and revolutionize a market that has been “historically resistant to innovation,” Mike Kim, partner at Third Prime, which led the latest seed round, said in the press release.

“By providing a tailored and efficient solution through its API-first finance workflows, Monite has the power to unlock an enormous opportunity for the B2B sectors, both for SMBs and the platforms serving them, in a repeatable and durable way,” Kim said in the release.