Hokodo, which enables B2B merchants offer customers payment terms in real-time, has closed its Series A on $12.5m.
Mosaic Ventures acted as the lead investor, with commitments also coming from Notion Capital and Anthemis. Several angel investors also joined the round, including TransferWise founder Taavet Hinrikus, former Adyen EVP, global sales Thijn Lamers, Vestiaire Collective Max Bittner CEO and ex-Chairman and CEO of GE Capital Rich Laxer.
With the capital injection, the FinTech hopes to further invest into its technology and scale across Europe.
Founded in 2018 by Richard Thornton, Louis Carbonnier and Sami Ben Hatit, the company supplies B2B merchants with real-time trade credit solutions. By leveraging the solution, companies can offer their clients services like buy now pay later.
Its platform can integrate with existing technology through APIs and in the back-office, it will automate whole order-to-cash cycle, from credit checks to collections and working capital finance, while protecting merchants against non-payments.
Hokodo co-founder and co-CEO Richard Thornton said, “Credit terms are a crucial lever to grow sales, especially as the economy unlocks following COVID. But current processes for offering trade credit are not fit for purpose – especially for online sales. With Hokodo, merchants can offer payment terms instantly at the check-out, even on a customer’s first visit; and our merchants are guaranteed to get paid no matter what.”
The toal value of the B2B market in Western Europe is estimated to be worth over $12trn, with $680bn of these sales taking place online, according to Hokodo. The FinTech company is hoping to capitalise this with a $15bn revenue opportunity, which is believes will double every five years.
Mosaic Ventures co-founder and partner Toby Coppel said, “The B2B purchasing experience has long lagged behind its B2C counterpart, and trade customers are calling for more.
“Hokodo is building a next generation platform for digital commerce, offering real-time credit to make it easier for businesses to purchase goods and easier for merchants to convert sales and grow. We have seen the enormous impact of “buy now, pay later” technology in the consumer market and, by solving the complexity of real-time trade finance, Hokodo is now bringing it to B2B.”
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