On a mission to shake up B2B payments for good, Berlin-based Mondu is growing fast. The startup has just secured an additional €12 million in an extension of its Series A as demand for flexible payment solutions continues to grow.
The economic outlook for 2023 has begun with a degree of uncertainty and concern. Across Europe, prices are rising, investments are dropping and financial uncertainty is growing. As a result, both businesses and individuals are looking for more flexible and smoother payment options. Not only do businesses want to manage finances with less stress, but they also want to offer flexibility and personalisation – so that people and businesses keep spending in the way that is most accessible to them.
As a result, Buy Now Pay Later and subscription-based solutions in particular have grown in popularity. Berlin-based Mondu has been disrupting this market since 2021, marking itself as one of Berlin’s fastest-growing fintechs, and now, it’s received an extension to its Series A round – showing that an exciting year is on the cards.
Funding details
- €12 million ($13 million) raised in a Series A extension round led by Valar Ventures and FinTech Collective
- The startup has now raised over €83.5 million in equity and debt financing from leading investors Valar Ventures, Cherry Ventures, the FinTech Collective, and German bank VVRB
- The new funding will be used to fuel further market growth and product development
Mondu Co-Founder and Co-CEO Philipp Povel: “Buy Now, Pay Later in B2B has established itself as a valuable tool to meet the business buyers’ expectations, providing a ‘consumer’ checkout experience and flexible payment. We are confident that the demand for Buy Now, Pay Later for B2B will grow dramatically in 2023. There are many positive effects of this financial tool, not only for buyers but also merchants and marketplaces as they continue seeing basket sizes increase and enhanced loyalty of buyers.”
Founded in 2021 by Malte Huffmann, Philipp Povel and Gil Danziger, Mondu has had an impressive growth story so far. It’s scaled fast, expanded into new markets and launched different financial products. The Berlin-based innovators are aiming to shake up the B2B payments ecosystem, providing payment solutions that enable any B2B company to grow quickly and safely.
The company enables merchants and marketplaces to offer their business customers the most popular B2B payment methods with flexible payment terms in an online checkout. It’s Buy Now, Pay Later solutions to include, purchase on invoice, SEPA direct debit, and Installments. In addition, businesses that use Mondu are protected from default risk and save the hassle of collections and dunning.
This new funding adds to eye-catching funding rounds made in 2022 – including a €39.9 million round in May and a €20 million debt investment in October. 2022 also saw the young company expand into Austria and the Netherlands.
Andrew McCormack, Founding Partner of Valar Ventures: “We strongly believe in Mondu’s ability to become a leader in B2B payments innovation. Last year the company demonstrated incredible growth not only in its product offering and customer base but also in terms of organizational maturity. We want to accelerate the execution of their vision further as Mondu continues to build a platform of B2B payments solutions to serve a variety of industries.”
The Berlin-based team has a vision of bringing B2B payments up to par with B2C payments, putting customers at the heart of the payment flow and ensuring they have a seamless, modern and state-of-the-art experience. The result is a win-win story: business customers have the power to purchase and pay when they want, which translates to a higher conversion rate and basket size for the supplier. Clearly, it’s proving popular with businesses and catching the attention of investors.
With this new funding, the team plans to drive forward further market growth and product development. Mondu is exploring new use cases for its B2B payment products, such as an omnichannel solution.
Gareth Jones, Founding Partner of FinTech Collective: “We have backed the Mondu team since the beginning and have continued to be impressed with the team’s methodical execution. With this extra capital, the Mondu team can continue to distinguish themselves from their peers and become the gold standard for merchants in this rapidly growing category of fintech. Thousands of businesses have already turned to Mondu’s solution, and the company has signed merchant customers across industries, including construction materials, electronics, beauty, cleaning, and manufacturing. One example of a Mondu customer is ChefsList, a marketplace for the restaurant industry and its suppliers and producers.”
ChefsList Founder André Klein: “ChefsList’s goal is to be a solution provider and partner for wholesalers, making their next step into the digital future easier and more efficient. With our launch of Mondu’s Buy Now, Pay Later solution, we are stabilizing processes and securing a cash flow advantage for our customers. The food industry is the backbone of our economy. It ensures that we all have consistent and safe access to fresh food daily, whether there’s a pandemic or an energy crisis. With our innovations, we are assisting industry players in implementing much-needed digital transformation.”
