With the aim of becoming a European leader in the B2B BNPL space, Hokodo has just raised over €37.8 million in Series B funding. The startup has developed a solution that enables businesses to benefit from instant, interest-free payment terms.
The payments industry is undergoing a transition and it seems that the Buy Now Pay Later approach is becoming the new standard. Having developed a solution that is bringing cutting-edge payment solutions to businesses across Europe, London-based Hokodo is growing fast. The startup just raised over €37.8 million in fresh capital, less than a year after its Series A.
The funding was led by Notion Capital, which participated in Hokodo’s Series A, with further investment from continental European investors Korelya Capital (FR), Mundi Ventures (ES), and Opera Tech Ventures (FR). Additional support came from existing investors including Anthemis and Mosaic Ventures.
Founded in London with a strong European footprint, Hokodo’s BNPL solution is tailored to the B2B market, enabling business customers to benefit from instant, frictionless, interest-free payment terms. The solutions are underwritten by SCOR Syndicate 2015, SCOR SE’s corporate syndicate at Lloyd’s of London, allowing the fintech to guarantee its merchants 100% of their payments, even when the buyer is unable to pay.
Richard Thornton, co-founder and co-CEO at Hokodo, explained: “We’re the only BNPL provider that meets all requirements of B2B merchants, including credit scoring, fraud detection, payments, collections, financing and credit insurance. We don’t rely on any third party to make credit decisions as we can do it much quicker in-house. This means we can accept more buyers at a faster rate, which our merchant partners love.”
Founded in 2018, the fintech startup recently onboarded clients in France (Paris Fashion Shops) and Spain (Katoo), following launches in Belgium and the Netherlands (Ankorstore) earlier this year.
This new funding will see the brand double down its efforts to become the B2B BNPL category leader in continental Europe, replicating its reputation and success to date in early markets. It’ll also be used to develop new BNPL solutions for telesales and in-store purchases as well as to venture into new verticals currently underserved by payments companies.
Louis Carbonnier, co-founder and co-CEO at Hokodo, added: “The B2B purchasing experience has long lagged behind its B2C counterpart, and business customers are calling for higher quality services as online sales continue to gain ground in B2B. Hokodo provides merchants with a truly real-time credit solution at checkout, driving up conversion rates and enabling all parties to buy, sell and do more. Hokodo is currently the only pan-European Buy Now, Pay Later provider in B2B, and this funding will allow us to continue our international expansion to enable 1 million businesses to access a better way to pay by 2025.”