Mondu raises $43m in a Series A funding round for International expansion

By Joy Dumasia

Mondu announced a $43 million Series A round led by US-based venture capital fund Valar Ventures. The funding will enable Mondu to scale its BNPL for B2B solutions 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. 

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 is hiring for a wide range of senior and junior positions across the company, including its tech, risk, sales, and operations teams. 

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.”

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 $57 million. Mondu helps simplify the financial lives of SMBs so that they can focus on their business. Its BNPL solution for merchants and marketplaces offers payment methods in B2B and flexible payment terms in their online checkout. 

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.”

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 can 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.”