The B2B payments sector is one of fintech’s big growth areas at the moment, with payment solutions like subscriptions and BNPL options becoming more and more popular. Now, Berlin-based payments specialists, Mondu, has raised a new €20 million.
As economic uncertainty hits, companies of all sizes and types will naturally be seeking more flexible and smoother payment options. Not only does it help them manage finances with less stress, but it means they can offer their buyers the flexibility they crave. Subscriptions and BNPL options are currently the most common solutions – and innovation in this space is continuing to grow.
Berlin-based Mondu has been disrupting the B2B payments ecosystem since its launch in 2021. Now, it’s picked up a new investment, showing that fintech innovation is still strong and that merchants need to offer flexible payment options in this economic climate.
Funding details
The €20 million debt investment was led by German bank Vereinigte Volksbank Raiffeisenbank.
This is the first loan to Mondu, granted to a Luxembourg-based SPV and collateralized. This SPV-set-up allows Mondu to swiftly scale and diversify its refinancing with external investors – both German and International.
Philipp Povel, Co-Founder Co-CEO of Mondu, said: “This is another strategic milestone for Mondu. To have VVRB, a member of the distinguished Group of German Cooperative Banks, provide this loan gives a high level of credibility to our business. It’s proof that our payments solutions are appealing to outside creditors. The financing will further support our European expansion and allow us to develop further payment solutions that benefit business customers.”
It comes after the startup picked up €39.9 million in May this year. That round was led by Valar Ventures alongside FinTech Collective, Cherry Ventures, and angel investors from Klarna, Zalando, and SumUp, among others.
In May, the young team also announced its expansion into Austria and today has shared that it is opening an office in the Netherlands.
Ralf Magerkurth, VVRB’s CEO, commented: “We see incredible potential in Mondu and its outstanding leadership team. We believe that BNPL for B2B can have a significant impact on SMEs and we were well convinced by the concept the management team presented to us. We are excited to support Monduˋs growth.”
B2B BNPL Solutions
Founded by Malte Huffmann, Philipp Povel and Gil Danziger, Mondu has been built with an aim to simplify B2B payment transactions, enabling any B2B company to grow quickly and safely.
The fintech platform enables merchants and marketplaces to offer their business customers the most popular B2B payment methods – such as purchase on invoice and SEPA direct debit – and flexible payment terms in online checkouts. Vendors who work with Mondu are protected from default risk and save the hassle of collections and dunning, enabling them to focus on their core business and scale faster. As a result, it brings the B2B payment space in line with the B2C space, which has largely led payment innovation.
The company’s solutions are already available to business customers in Germany and Austria, and will now be available in the Netherlands and enable cross-border commerce between these countries. Mondu’s BNPL and Installments solutions offer business buyers their preferred offline payment methods in B2B and flexible payment terms in an online B2B checkout.
Philipp Povel added: “The Netherlands has a modern trade market, with 48 percent of B2B orders placed online. This year, B2B e-commerce revenue from physical goods alone will hit approximately $38 billion. By 2025, revenues are expected to grow to $54.5 billion. With Mondu’s BNPL solutions, B2B businesses in the Netherlands will be able to increase conversion rates and loyalty by allowing buyers to experience a fast and frictionless B2C-like payment experience with flexible terms. Local B2B Businesses will have better cash flow management, minimize operational workload, and be able to effortlessly expand their operations by selling cross-border to buyers in Germany and Austria without risk.”
Further, in recent weeks Mondu announced the expansion of its C-Suite team with the appointment of Julian Kurz as Chief Commercial Officer and Lauren Hoehlein Joseph as Chief People Officer. Mondu now counts more than 120 so-called ‘Monduneers’ in its team.
This new funding will help fuel these expansion plans, scale the team and develop its new Split Payments feature. The new solution allows business buyers to divide their purchases into equal, interest-free payments – with no additional or hidden fees.
