Berlin-based Mondu, a B2B payments company, announced on Thursday that it has secured $13M (€11.9M) in a Series A extension round of funding led by Valar Ventures alongwith FinTech Collective.
The announcement comes a couple of months after raising €20M in a debt round of funding from German bank Vereinigte Volksbank Raiffeisenbank.
The latest funding takes the total investment in the round to $56M. Since its inception in 2021, the German fintech company has raised $90M million in equity and debt financing from Valar Ventures, FinTech Collective, Cherry Ventures, high-profile business angels, and VVRB.
Mondu says it will use the funds to accelerate market growth and product development. The company is also exploring new use cases for its B2B payment products, such as an omnichannel solution.
Mondu co-founder and co-CEO, Philipp Povel, says, “Buy Now, Pay Later in B2B has established itself as a valuable tool to meet the business buyers’ expectations, providing a ‘consumer’ checkout experience and flexible payment. We are confident that the demand for Buy Now, Pay Later for B2B will grow dramatically in 2023. There are many positive effects of this financial tool, not only for buyers but also merchants and marketplaces as they continue seeing basket sizes increase and enhanced loyalty of buyers.”
Mondu: What you need to know
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 during 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.
After its last Series A funding in May 2022, the German fintech company introduced payment by installments and expanded its operations into Austria and the Netherlands with a second office in Amsterdam.
The Mondu team has grown from 20 people at the start of 2022 to 140 people.
Mondu says thousands of businesses already use its solution, and the company has signed customers across industries, including construction materials, electronics, beauty, cleaning, and manufacturing.
Valar Ventures is a venture capital fund that invests in globally high-margin, fast-growing financial technology companies pursuing huge market opportunities, such as Xero, Wise (formerly TransferWise), N26, Bitpanda, Qonto, and others.
Andrew McCormack, Founding Partner of Valar Ventures, says, “We strongly believe in Mondu’s ability to become a leader in B2B payments innovation. Last year the company demonstrated incredible growth not only in its product offering and customer base but also in terms of organisational maturity. We want to accelerate the execution of their vision further as Mondu continues to build a platform of B2B payments solutions to serve a variety of industries.”
FinTech Collective is a venture capital firm that backs entrepreneurs who are rewiring how money moves through the world. The VC firm manages over $750M in regulatory assets and has invested in 88 portfolio companies.
Gareth Jones, Founding Partner of FinTech Collective, says, “We have backed the Mondu team since the beginning and have continued to be impressed with the team’s methodical execution. With this extra capital, the Mondu team can continue to distinguish themselves from their peers and become the gold standard for merchants in this rapidly growing category of fintech.”