Berlin-based Mondu, a fintech company that provides a “Buy Now, Pay Later” (BNPL) solution for B2B merchants and marketplaces, announced that it has raised €20M in a debt round of funding from German bank Vereinigte Volksbank Raiffeisenbank.
VVRB is a cooperative bank with over 65,000 members. Its primary areas of interest are the financial and securities industries. The bank is centred in Southern Hesse and Churfranken.
It is not the first time that VVRB has used this form of lending to diversify its credit portfolio. Ralf Magerkurth, VVRB’s CEO, says, “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 Mondu’s growth.”
This is Mondu’s first loan, given to a Luxembourg-based SPV and secured by collateral. The company has raised a total of $57M from its Seed and Series A equity round.
Expansion in the Netherlands
Mondu says it will use the loan to support the company’s further expansion in domestic and international markets as well as in developing more products.
As part of its ongoing expansion plans, Mondu is expanding into the Netherlands this October, hiring local personnel and will invest in local marketing activities. A vast recruitment campaign is currently ongoing in Amsterdam.
Philipp Povel, co-founder and co-CEO of Mondu, says, “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 payment 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.”
Simplifying the financial lives of SMBs
Founded in 2021 by Malte Huffmann, Philipp Povel and Gil Danziger, Mondu is a B2B payment fintech company. It provides a “Buy Now, Pay Later” solution for B2B merchants and marketplaces, as well as payment terms in their online checkout.
Mondu has built a payment product that drives conversion rate and incremental sales for merchants, focussing on a frictionless checkout experience for business customers. The solution can be integrated with merchants and is accessible through APIs, plug-ins, and checkout widgets.
The startup enables retailers and marketplaces to provide the most popular B2B payment options, such as purchase on the invoice and SEPA direct debit as well as flexible payment periods, to their business clients via online checkouts. Working with Mondu also protects vendors from the danger of default and spares them of collections and dunning, allowing them to concentrate on their businesses and expand more quickly.
Povel says, “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, minimise operational workload, and be able to effortlessly expand their operations by selling cross-border to buyers in Germany and Austria without risk.”
Recent developments
In recent weeks Mondu expanded its C-Suite team with the appointment of Julian Kurz as Chief Commercial Officer and Lauren Hoehlein Joseph as Chief People Officer. The company now counts more than 120 members in its team.
Besides scaling its team, Mondu has also launched Split Payments. This new solution allows business buyers to divide their purchases into equal, interest-free payments – with no additional or hidden fees.
