German B2B payments company Mondu has announced a $13m series A extension round led by Valor Ventures.
The investment will be used to further its market growth and product development, as it explores new use cases for its payment products.
The series A extension takes the total investment round to $56m, having raised $43m in May last year. Since starting in October 2021, it has secured $90m in equity and debt financing.
New York venture capital firm FinTech Collective also took part in the latest funding round.
Mondu co-founder and co-chief executive officer Philipp Povel said: “Buy now, pay later in B2B has established itself as a valuable tool to meet the business buyers’ expectations, providing a ‘consumer’ checkout experience and flexible payment.
“We are confident that the demand for buy now, pay later for B2B will grow dramatically in 2023. There are many positive effects of this financial tool, not only for buyers but also merchants and marketplaces as they continue seeing basket sizes increase and enhanced loyalty of buyers.”
Andrew McCormack, founding partner of Valar Ventures, commented: “We want to accelerate the execution of their vision further as Mondu continues to build a platform of B2B payments solutions to serve a variety of industries.”
Gareth Jones, founding partner of FinTech Collective, added: “Thousands of businesses have already turned to Mondu’s solution, and the company has signed merchant customers across industries, including construction materials, electronics, beauty, cleaning, and manufacturing.”
Wired Magazine selected Mondu as one of the hottest startups in Berlin last year.
The city is one of Europe’s biggest tech hubs. A 2022 State of European Tech report ranked Berlin third behind London and Paris in capital investment.