Berlin-based Monite, an API-first embedded finance workflows startup, announced on Monday, March 21, that it has secured $5M (approximately €4.6M) in a Seed round of funding led by Third Prime.
S16, Audeo Ventures, and Long Run Capital also participated in the round.
The investment follows a $5M Seed round of funding led by Point72 Ventures in February 2022, bringing Monite’s total Seed funding to $10M (approximately €9.3M).
Monite is also backed by Prajit Nanu (Nium founder), Igor Kuschnir (Penta co-founder), Victor Jacobsson (Klarna founder), Adriaan Mol (Mollie founder), Phil Valka (ex-PayPal senior executive), and Jason Pate (Plaid executive).
The German firm says it will use the funds to develop new product features, cover more payment and financial services integrations, and expand its reach in the growing B2B payments market.
Monite has ten clients in Europe and the US, and plans to close more deals in the next few months.
Monite: Embedded B2B payments platform
According to Monite, the B2B payments industry is projected to reach a staggering $200 trillion by 2028.
However, numerous small and medium-sized enterprises (SMEs) depend on manual payment processing and utilise various tools to oversee their transactions, leading to delayed invoicing and reduced income.
Founded in 2020 by Andrey Korchak and Ivan Maryasin, Monite allows B2B platforms, marketplaces, neobanks, and vertical SaaS companies to integrate high-end finance automation features.
With Monite’s embeddable API, its customers can automate their finance features, compliant account payable automation, invoicing, and expense management for their own customers on a single platform.
The fintech firm claims that this helps businesses increase retention and get access to new revenue streams.
The company’s finance workflows API offers a new opportunity for platforms that cater to small and medium-sized businesses such as SaaS providers, neobanks, and marketplaces.
By leveraging this API, these platforms can generate additional revenue streams by charging payment processing fees and earning extra income from SaaS without investing significant time and resources to develop and operate their financial tools.
Maryasin, who is also the CEO of Monite, says, “We are happy to be backed by thought leaders of the embedded finance space with huge expertise and hands-on experience in FinTech, who clearly understand the needs of the current market.”
“Digitalising finance workflows through existing SaaS players is a game-changer, and we allow our clients to become an all-in-one financial OS for their industry,” adds Maryasin.
The Investor
Third Prime is a venture firm focused primarily on the FinTech, PropTech, and Crypto sectors.
The VC invests in entrepreneurs at the earliest stages and supports them over the long haul.
Mike Kim, Partner at Third Prime, says, “Monite’s innovative approach to B2B payments automation through better contextual distribution has the potential to revolutionise a market that has been historically resistant to innovation by streamlining payment processes and eliminating the headaches of manual processing.”
“By providing a tailored and efficient solution through its API-first finance workflows, Monite has the power to unlock an enormous opportunity for the B2B sector, both for SMBs and the platforms serving them, in a repeatable and durable way,” adds Kim.
