B2B Payments Firm Mondu Secures €30m in Debt Financing

Buy now, pay later (BNPL) specialist Mondu has secured €30 million (US$32.7m) in debt financing from Vereinigte Volksbank Raiffeisenbank (VVRB).

This latest funding provides the fast-growing firm with the means to continue driving innovation in the B2B payments space and expanding further across Europe. 

Since launching in 2021, Berlin-based Mondu has raised in excess of €115m, with a total of €50m coming from German bank VVRB. 

“This financing will significantly bolster our European expansion, enabling us to ramp up expansion across the European market and develop additional payment solutions to benefit business customers,” comments Philipp Povel, Co-founder and Co-CEO at Mondu.

“This step further strengthens our commitment to driving innovation and value in the B2B BNPL ecosystem. We are grateful for the continued trust and support from VVRB and look forward to our ongoing partnership.”

Simplifying B2B payments

Mondu was founded by entrepreneurs Malte Huffmann, Philipp Povel and Gil Danziger with the aim of simplifying B2B payment transactions and putting customers at the heart of the payment flow, thus ensuring a seamless, state-of-the-art experience.

The company has grown to the point where it has offices in Germany, the Netherlands and the UK, not to mention a diverse team of talented professionals with experience from across the technology ecosystem. 

Mondu's solution enables merchants and marketplaces to offer business customers across Europe the most popular B2B payment methods and flexible payments terms in a multi-channel setting, both online and offline. 

This is empowering business customers to purchase and pay when they want, translating to a higher conversion rate and average order value, and ultimately driving growth for merchants and marketplaces.

Equity and debt financing over the past two-and-a-half years has come from leading investors Valar Ventures, Cherry Ventures, the FinTech Collective and VVRB.

Mondu looks to build on successful 2023

Last year was significant for Mondu from a growth perspective. 

The firm opened offices in Amsterdam and London, and successfully registered with the UK’s Financial Conduct Authority, launching its services with more than 25 British businesses. 

Overall, Mondu is available to businesses in the UK, Germany, Austria and the Netherlands, as well as to buyers in Belgium and France. 

A host of market-leading retailers, wholesalers and B2B marketplaces have begun benefitting from Mondu’s solutions, including German electronics retailer Notebooksbilliger, British tech provider PCSpecialist, and Dutch wholesaler Orderchamp.

What’s more, Mondu recently launched a Digital Trade Account solution, simplifying high-frequency purchases by letting customers consolidate recurring purchases into one statement and pay it later. 

BNPL products were expanded in 2023 to not only serve online B2B purchases, but offer flexible payments in field sales, telesales or email orders. 

Mondu also signed a series of partnerships for continued customer growth, including with Acquired.com, Spryker and MangoPay.

“Building on the success of our partnership in Germany and Austria, we remain steadfast in our belief in Mondu’s business model and its potential for growth,” adds Ralf Magerkurth, CEO at VVRB. “Our commitment extends beyond borders, as we are excited to support their expansion into other European countries.

“This step is a testament to our confidence in Mondu’s vision and capabilities, and we are proud to be a part of their journey towards reshaping the industry across Europe.”

******

Check out the latest edition of FinTech Magazine and sign up to our global conference series – FinTech LIVE 2024. 

******

FinTech Magazine is a BizClik brand.