Eindhoven-based in3, a Buy-Now-Pay-Later (BNPL) platform, announced on Wednesday that it has secured $85.3M (approximately €81M) in a Series B debt and equity round of funding.
The funds came from the British VC Force over Mass, US institutional asset manager Waterfall Asset Management LLC, and Dutch investor Finch Capital.
This development follows in3’s $11.1M Series A funding round just two months ago in March, 2022. To date, the company has raised a total of $96.4M in funding.
About in3
Founded in 2018 by Hans Langenhuizen, in3 provides more than 1,500 online and offline merchants with ‘Buy Now Pay Later’ payment solutions. Working with payment partners, the fintech platform offers consumers the ability to pay for purchases in three instalments at zero costs: no interest – or transaction costs and without credit registration.
Unlike in3, other BNPL payment methods generally charge between 10 per cent to 14 per cent.
Since the company offers a duration of 60 days to pay in three instalments, registration in the credit registers is not required. This, in turn, gives consumers the possibility to buy what they want.
Unlike other BNPL payment methods, in3 chooses not to earn money from consumers. Hans Langenhuizen says, “The BNPL market is growing rapidly but we are mindful of protecting consumers against over-credit. This starts when placing an order where we perform an advanced check within a second.”
“The revenue of many BNPL payment methods is built on fines and consumers suffer from this. We have a reversed business model and we benefit when the consumer pays on time. We are the first BNPL party at the European level to have set up the business model in this way and we believe that this is of decisive importance to be successful. With this positioning in the market, we are a disruptor with the aim of changing the entire ecosystem for the benefit of the consumer,” Langenhuizen adds.
Some of its customers include Kwik Fit, EP, La Souris, Matt sleeps, and Dekbed-Discounter among others.
According to a statement from in3, the BNPL payment ecosystem in the Netherlands is expected to grow by 74.8 per cent in 2022, reaching $7.6B. BNPL payment adoption is expected to grow at a CAGR of 32.8 per cent over the next 6 years.
Capital utilisation
CEO Hans Langenhuizen says, “We’re thrilled to have secured this funding round. It is a testament to the scale and growth of our proposition in the BNPL community. We will be expanding further in the Netherlands through the partnership with Mollie and plan to launch in Germany soon.”
“Over the past year, we have invested in our tech stack and team to prepare for the next phase of the business. The new funds will help us process transactions on a larger scale, both online and in physical stores. We’re grateful to all our investors as we enter our growth phase,” Langenhuizen adds.
According to a statement, in3’s revenues have increased 300 per cent year-on-year since 2018 as it scales reach and operations.
Partnership with Mollie
Besides the funding, in3 has also announced a nationwide partnership with Mollie, an Amsterdam-based company that builds a platform for integrating payments into a site or app. With this partnership, in3 will now be offered to millions of consumers via almost every payment service provider in the Netherlands.
Mollie supports more than 130,000 merchants in selling and growing their business online with a simple and clear payment API and a checkout that is optimised for conversion.
Ken Serdons, CCO of Mollie, says, “We are excited to partner with in3 to offer an alternative, interest-free BNPL payment method, where payment to our merchants is guaranteed. In addition, in3 also attaches great importance to the importance of localisation by offering iDEAL, which is an important core value of Mollie. We look forward to exploring similar opportunities in Germany and other European countries together with in3,” adds Serdons.
On partnering up with Mollie, Hans Langenhuizen says, “This partnership presents a significant growth opportunity for us to expand our offer and help more consumers across the country and region in time. Mollie accounts for a large share of the online payment traffic in the Netherlands. I am sure this collaboration will be a success for both parties. We already have healthy partnerships with various payment service providers, including Worldline, making it very easy for merchants to offer our product. An important part of the landscape that we were missing was Mollie.”
About the Investors
Waterfall Asset Management, LLC is an SEC-registered institutional asset manager/hedge fund focused on structured credit, like asset-backed securities and loans, and private equity investments. It was founded in 2005 by Tom Capasse and Jack Ross, two individuals who were early leaders of the ABS industry, and who together have over 60 years of proven ABS/Loan credit analysis, trading, banking and servicing experience. Currently, Waterfall has approximately $7.7B in assets under management.
Finch Capital was founded in 2013 and is a Series A/B investor in high-growth financial technologies companies. Its mission is to fund and support the ‘best’ entrepreneurs creating products that will shape the future of finance.
Force Over Mass Capital is an FCA regulated venture capital firm focused on early-stage technology investments across the UK and Europe. The firm invests in B2B innovation across four verticals: Fintech, Artificial Intelligence, SaaS and Industry 4.0. Force Over Mass operates both Seed and scale-up funds to support early-stage businesses through their growth journey.
