Mondu, a Berlin-based startup, has announced a $43 Million Series A round by Valar Ventures co-founder Peter Thiel.
The startup’s goal is to make buy-now-pay-late (BNPL), a B2B model. This means that companies will have similar flexible payment options as Klarna offers to its consumer customers.
According to a Monday announcement, the raise includes participation from Cherry Ventures as well as Fintech Collective. It will be used to scale up its solution and expand into European markets. Austria is the first market to start in June.
Mondu solves several problems in B2B finance, Andrew McCormack (founder partner at Valar Ventures), stated in a press release that was issued to accompany the announcement.
The B2B payments market has grown tremendously over the past few years, with digitalization accelerating. Although the B2B ecommerce market is bigger than B2C, it is still underserved. Supply chain financing is an increasing need, especially for small businesses. McCormack says that online transactions are not available with financing options.
This Series A comes seven months after ‘s $14 million seed round in Oct. The company was established the month before.
Mondu’s funding comes in response to recent problems for BNPL players within the consumer sector. Klarna, which fired 10% of its workforce last week, citing a worsening economic outlook.
This news came after a Bloomberg report that Klarna’s borrowing costs rose to record levels due to rising interest rates . The company’s debt valuations and debt values were also affected.
