API-first fintech Monite, providing hassle-free finance automation for B2B platforms, has secured a €5.5 million top-up round, bringing its total seed funding to $16 million. The round was co-led by Valar Ventures and Third Prime, with continued support from existing investors. The company intends to use the funds to consolidate its position as a European embedded finance leader and to expand its footprint in the US.
Most B2B payments are slow and inefficient: of the US $27 trillion B2B transaction volume in 2022, the largest portion – around $12 trillion – used cash or checks. In this case, one of the most favorable scenarios for businesses is to get automated financial operations within the B2B platforms they use every day: banks, neobanks, payment providers, verticalized SaaS, and more.
With 64% of SMBs expressing interest in using financial services embedded in the platforms they use daily and consider their ‘system of record’, these B2B companies are striving to meet the demand and become one-stop shops for their business clients. For these B2B players, success in handling customer payments lies in efficiently managing the entire sequence of activities leading up to the transaction. The real opportunity here is to offer solutions that enable companies to streamline and own payment-related workflows, such as order-to-cash and procure-to-pay workflows invoice mapping, internal approvals, and regulatory compliance adherence.
Monite helps B2B platforms offer robust revenue & spending management workflows to their clients within 4-5 weeks using flexible APIs and SDKs. In days, not months, platforms can start providing a comprehensive invoicing solution designed to facilitate payments for SMBs, incorporating compliant quotes, reminders, payment links, and seamless accounting integrations. Monite also enables the embedding of cutting-edge accounts payable automation, including email capture, OCR, approval workflows, and a range of suitable payment methods.
While research by Axios has indicated that venture capital interest in fintech fell by 40% in 2023, Monite’s remarkable 10x increase in monthly recurring revenue and 5x year-over-year customer growth piqued the interest of Valar Ventures, backers of Xero, N26, Qonto, and other notable fintech startups.
James Fitzgerald, Founding Partner at Valar Ventures, commented: “The SMB market remains underserved, especially within finance automation. We see many startups and incumbents attacking this problem, but Monite’s unique infrastructure lets companies add bill pay, invoicing and other payment solutions to their offering quickly and cheaply simply through Monite’s APIs. It also enables platforms serving SMBs to add new revenue streams by offering their clients more real value. Monite’s customizable embedded workflows for B2B platforms align perfectly with our vision of how finance automation will be evolving in the next years.”
Ivan Maryasin, CEO and founder of Monite, said: “We are thrilled to get continuous support from existing backers like Third Prime and welcome Valar Ventures among our investors. Valar has a history of picking stars in the B2B finance and payment space. They recognize talent and growth potential and offer hands-on support in the company’s development. Our ambition, backed by impressive achievements against bold targets, makes Monite a perfect fit for Valar.”
Building on the additional funding, Monite plans to double down on product development and expand its suite of embeddable financial services for US B2B platforms and their customers. The company has already taken strategic steps to enter the US market signing clients such as Capital on Tap and OpenSolar, both of which undertake extensive operations in the United States. It has launched Invoicing and Bill Pay solutions for US clients, adding payment rails for ACH and check payments, and ensuring that the service aligns with local regulatory standards.
