Buy Now Pay Later (BNPL) is quickly becoming one of fintech’s main growth areas at the moment. Bringing this flexible payment offering to the B2B space, Berlin-based Mondu has just secured more than €39.9 million in fresh funding and the young startup is eyeing up international growth.
Leading the capital was Valar Ventures with the participation of existing seed investors FinTech Collective, Cherry Ventures, and angel investors from Klarna, Zalando, and SumUp, among others
Founded last year in August 2021 by Philipp Povel, Malte Huffmann and Gil Danziger, the German fintech company has been growing fast – already the team counts more than 100 members.
Malte Huffmann, Co-Founder and Co-CEO of Mondu, explained: “The concept of BNPL isn’t new in the B2B world – offline business trade has enjoyed it for decades. But as more companies increasingly move to digital, the need for BNPL for B2B online will grow immensely. We are on the verge of a “digitalisation boom” and Mondu wants to be part of that revolution by driving innovation within the B2B payments space.”
Mondu is entering the space with the aim of simplifying the financial lives of SMBs so that they can focus more time and energy on growing their business and less time on handling financial matters. The Mondu solution for merchants and marketplaces offers flexible payment terms in online checkouts as well as offering the preferred payment methods in the B2B sector.
The B2B BNPL market offers a huge market potential on an international scale. In Europe and the US it’s believed to be worth around $200 billion – giving Mondu incredible growth opportunities. BNPL gives businesses the chance to have more flexible payments – and its certainly soaring in popularity.
Philipp Povel, Co-Founder and Co-CEO of Mondu, added: “While B2B BNPL is behind the consumer BNPL market, we believe there is a $200Bn opportunity just in Europe and the US, which is bigger than the global consumer BNPL market. This Series A and the backing of our European and US investors will support us to rapidly scale our product and customer reach ahead of further expansion in Europe later this year.”
Since its launch, the young startup has been focusing on developing an attractive product and building a strong client base. It now has already served thousands of businesses to date, with customers ranging from sectors like beauty and cleaning all the ay to manufacturing and raw materials.
What makes Mondu stand out in the space is the commitment to usability. Mondu has built a consumerized product that will drive conversion rates and sales whilst being frictionless for customers. The solution easily integrates with merchants and is accessible through APIs, plug-ins, and checkout widgets.
The new funding will enable Mondu to scale its solution for merchants and marketplaces by investing in its product and customer acquisition. Mondu plans to expand into more European countries later this year, starting with Austria this summer.