Berlin-based B2B Buy Now Pay Later (BNPL) Mondu, which got the backing of Peter Thiel’s Valar Ventures, has now secured an additional €30 million in debt financing from German bank Vereinigte Volksbank Raiffeisenbank (VVRB). Earlier last year, the company had also raised a $13M Series A extension from Valar.
Founded in 2021, this startup is tackling the complexities of B2B transactions with a focus on customer-centric solutions. Their platform streamlines the payment process for both merchants and their business customers, offering flexibility and multi-channel options that were previously unavailable.
This financing comes as an addition to the €20 million loan obtained from VVRB in late 2022, bringing the total financing to a substantial €50 million. This fresh capital injection will play a crucial role in supporting Mondu’s continued expansion across Europe.
A year of growth and expansion
In 2023, Mondu made significant strides in its European presence. The company expanded its reach into the UK and extended its services to buyers in France and Belgium. This expansion marked a pivotal year for Mondu, showcasing its commitment to becoming a key player in the B2B payments sector within Europe.
Strengthening European footprint
Mondu’s co-founder and co-CEO, Philipp Povel, expressed the significance of this financing in bolstering the company’s European expansion. The funds will facilitate an accelerated growth strategy, enabling Mondu to develop additional payment solutions for its business customers. Povel emphasised the company’s dedication to driving innovation and value in the B2B BNPL (Buy Now, Pay Later) ecosystem.
Continued partnership and confidence
VVRB’s CEO, Ralf Magerkurth, reaffirmed the bank’s commitment to Mondu’s business model and growth potential. Building on the success of their partnership in Germany and Austria, VVRB extends its support for Mondu’s expansion into other European countries. Magerkurth expressed confidence in Mondu’s vision and capabilities, highlighting the bank’s pride in being a part of Mondu’s journey to reshape the industry across Europe.
A year of achievements and collaborations
Throughout 2023, Mondu achieved significant milestones, collaborating with market-leading retailers, wholesalers, and B2B marketplaces. Noteworthy collaborations include partnerships with electronics retailer Notebooksbilliger in Germany, technology provider PCSpecialist in the UK, and wholesaler Orderchamp in the Netherlands.
Expanding presence and product offerings
Mondu’s growth was further solidified with the opening of offices in Amsterdam and London. The company successfully registered with the UK’s Financial Conduct Authority, launching services with over 25 British businesses. Mondu’s services are now available not only in the UK but also in Germany, Austria, the Netherlands, Belgium, and France.
Innovative solutions for B2B customers
Mondu introduced a Digital Trade Account, simplifying high-frequency purchases by allowing customers to consolidate recurring purchases into one statement and pay later. The company expanded its BNPL products to cater not only to online B2B purchases but also to offer flexible payments in field sales, telesales, or email orders.
Strategic partnerships for sustainable growth
Mondu solidified its position in the market by entering into strategic partnerships with notable entities such as UK payments specialist Acquired.com, composable commerce platform Spryker, and MangoPay, a modular and flexible payment infrastructure provider for marketplaces and platforms.
What we think about Mondu
While this company faces typical startup challenges of scaling quickly while maintaining efficiency and financial sustainability. They are competing in a large and fragmented B2B payments market in Europe, but believe they stand out through their rapid innovation and comprehensive, multi-channel solution.
While not disclosing plans for future funding rounds, they aim to become the go-to financial services platform for SMBs by continually adding products and services. Despite debt financing intended for optimising their receivables portfolio, they plan to strategically hire for key roles to maintain their innovative edge. With a current team of over 120 experienced professionals, the company seems poised for further growth in the competitive European B2B payments landscape.
Their relentless expansion across key markets like the UK, France, and Belgium, combined with the establishment of local offices and regulatory approvals, demonstrates a deep commitment to becoming a regional powerhouse.
Further solidifying their position are strategic partnerships with leading players like Acquired.com, Spryker, and MangoPay, solidifying access to vital technology and expertise. Mondu’s focus on innovation, evident in their new Digital Trade Account and flexible BNPL solutions, ensures they cater to the evolving needs of B2B customers.
Mondu is well-equipped to disrupt the traditional B2B payments scene and establish itself as the go-to provider for streamlined, customer-centric solutions across Europe. This rapid growth and strategic positioning not only bode well for Mondu’s future but also hold the potential to significantly impact the way businesses across the continent manage their finances, paving the way for a more efficient and innovative B2B payments ecosystem.
