B2B Payments Company Mondu Secures $43M Series A for International Expansion
Mondu has today announced a $43M Series A round led by US-based venture capital fund Valar Ventures. The funding will enable Mondu to scale its BNPL for B2B solution for merchants and marketplaces by investing in its product and customer acquisition. Mondu plans to expand into more European countries later this year, starting with Austria this summer.
Previous investors Cherry Ventures, FinTech Collective, and tech entrepreneurs and senior executives from Klarna, Zalando, and SumUp have continued to support Mondu in its Series A. To date the company has raised $57M.
Mondu helps simplify the financial lives of SMBs so that they can focus on their business. Its BNPL solution for merchants and marketplaces offers the favourite payment methods in B2B, as well as flexible payment terms in their online checkout.
Malte Huffmann, Co-Founder and Co-CEO of Mondu, said, “The concept of BNPL isn’t new in the B2B world – offline business trade has enjoyed it for decades. But as more companies increasingly move to digital, the need for BNPL for B2B online will grow immensely. We are on the verge of a “digitalisation boom” and Mondu wants to be part of that revolution by driving innovation within the B2B payments space.”
Philipp Povel, Co-Founder and Co-CEO of Mondu, added, “While B2B BNPL is behind the consumer BNPL market, we believe there is a $200Bn opportunity just in Europe and the US, which is bigger than the global consumer BNPL market. This Series A and the backing of our European and US investors will support us to rapidly scale our product and customer reach ahead of further expansion in Europe later this year.”
Since October 2021, Mondu has focussed on creating a highly attractive product, growing its merchant customer base and the number of businesses it serves, and scaling its team.
Mondu has built a consumerised payment product to drive conversion rate and incremental sales for merchants, focussing on a frictionless checkout experience for business customers. The solution easily integrates with merchants, and is accessible through APIs, plug-ins, and checkout widgets.
Almost 50 per cent of the existing Mondu team is focussed on product, tech, and risk management. The company has developed best-in-class risk management capabilities for high approval rates at checkout, with a low risk cost for Mondu. With high approval rates being a key metric for merchants, Mondu is able to provide rates of over 90 per cent.
Mondu has already served thousands of businesses through its solution and has signed merchant customers across industries, including beauty, cleaning, and manufacturing. One example of a Mondu customer is Ionto Comed, a manufacturer in the beauty sector that supplies salons with everything from massage treatment tables to apparative cosmetic equipment.
Andrew McCormack, Founding Partner of Valar Ventures, commented, “BNPL for B2B sits at the intersection of three huge markets that are all in transition. The B2B payments market is immense, and its transition to digital has been accelerated over the past couple of years. The B2B e-commerce market is larger than B2C but is underserved by current offerings, and supply chain financing is a growing need, particularly for SMBs. Online transactions with financing options are limited. Mondu fixes all of these problems with its solution. It’s a game changer.”
Earlier this year, Mondu appointed former Klarna Legal Director Miyu Lee as its Chief Legal Officer and General Counsel to build a dynamic and modern legal and compliance team to match Mondu’s ambitions.
Mondu is hiring for a wide range of senior and junior positions across the company, including its tech, risk, sales, and operations teams.