BNPL Mondu scores €20m in debt financing from VVRB

B2B payments firm Mondu has raised a €20m debt investment round from German bank Vereinigte Volksbank Raiffeisenbank (VVRB).

The money adds to the previous $57m the Berlin-based ‘buy now, pay later’ (BNPL) raised in a combination of seed and Series A funding.

Mondu raised $43m in its Series A in May from investors including Valar Ventures, Fintech Collective and a number of angel investors, to expand to Austria and across Europe, and is set to branch into the Netherlands this month.

“This is another strategic milestone for Mondu,” Mondu co-founder and co-CEO Philipp Povel said.

“To have VVRB, a member of the distinguished Group of German Cooperative Banks, provide this loan gives a high level of credibility to our business.

“It’s proof that our payments solutions are appealing to outside creditors.”

This financing will support the company’s European expansion, and allow it to develop more payment solutions for business customers, according to Povel.

A relatively new kid on the BNPL block, Mondu provides a B2B solution for merchants and marketplaces.

It was founded late last year, is available in Germany and Austria and is expanding to the Netherlands to enable cross-border commerce between the three countries.

Currently, 48 per cent of B2B orders are placed online in the Netherlands , and e-commerce revenue from physical goods is expected to hit around $38bn this year, growing to $54.5bn by 2025.

“Local B2B Businesses will have better cash flow management, minimize operational workload, and be able to effortlessly expand their operations by selling cross-border to buyers in Germany and Austria without risk,” Pavel said.

As part of the expansion, Mondu plans to open a new office in the Netherlands, hire local personnel and invest in local marketing activities, according to the company.

Mondu expansion also continued in the form of its C-suite last month with the appointment of Julian Kurz as chief commercial officer and Lauren Hoehlein Joseph as chief people officer and brought on Klarna’s legal director Miyu Lee earlier in the year.