Mondu, a Berlin-based business, has raised $43 million in a Series A round-headed by Valar Ventures, which PayPal co-founder Peter Thiel founded.
The firm wants to introduce buy now and pay later (BNPL) to the B2B market, allowing businesses to take advantage of the flexible payment options as Klarna’s consumer clients.
According to a statement made on Monday, the funds will be used to scale the company’s solution and expand into other European markets, starting with Austria in June.
In a news statement accompanying the announcement, Andrew McCormack, founding partner of Valar Ventures, noted that Mondu helps overcome various difficulties in B2B finance.
According to McCormack, the B2B payments sector is enormous, and its digital transformation has accelerated in recent years. The B2B e-commerce industry is greater than the B2C market, but present services underserve it, and supply chain finance is becoming more important, especially for small businesses. Financing alternatives for online transactions are restricted.
This Series A comes just seven months after the company raised $14 million in a seed round in October. The firm had just been around for a month when it was created.
Mondu’s investment comes from recent consumer sector troubles for BNPL companies. Klarna laid off 10% of its workers last week, citing a bleak future for the firm in the present economic situation.
The announcement came after Bloomberg reported that Klarna’s borrowing costs had reached new highs due to rising interest rates, which had impacted the company’s debt and stock prices.