Mondu Raises €20 Million in Debt Financing from VVRB

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B2B payment company Mondu has raised a €20 million funding round from German bank Vereinigte Volksbank Raiffeisenbank.

This is the first loan to Mondu, granted to a Luxembourg SPV and secured. This SPV setup allows Mondu to quickly expand and diversify its refinancing with external investors – German and international.

In parallel, as part of its growth plans, Mondu is expanding to the Netherlands in October.

Founded at the end of 2021, Mondu launched a Buy Now, Pay Later for B2B solution for merchants and marketplaces. The company’s solutions are already available for business customers in Germany and Austria, and will now be available in the Netherlands and enable cross-border trade between these countries. Mondu’s BNPL and Remittance solutions offer business buyers their preferred B2B offline payment methods and flexible payment terms in an online B2B checkout.

Since inception, Mondu has raised a combined $57 million through seed and Series A funding rounds from investors including Valar Ventures, Cherry Ventures, FinTech Collective and angel investors.

Philipp Povel, co-founder and co-CEO of Mondu, said: “This is another strategic step for Mondu. Having VVRB, a member of the Distinguished Group of German Cooperative Banks, grant this loan lends a high level of credibility to our business. This is proof that our payment solutions are attractive to external creditors. The funding will further support our European expansion and allow us to develop other payment solutions that benefit business customers.

This is not the first time that VVRB has used this innovative form of lending to diversify its credit portfolio. Ralf Magerkurth, CEO of VVRB, said: “We see incredible potential in Mondu and its exceptional management team. We believe that BNPL for B2B can have a significant impact on SMEs and we were very convinced by the concept that the management team presented to us. We are delighted to support the growth of Mondu.

As part of its expansion, Mondu plans to open a new office in the Netherlands, hire local staff and invest in local marketing activities. A vast recruitment campaign is currently underway in Amsterdam. Expansion into the Dutch market is a logical next step in Mondu’s continued growth sequence.

Philipp Povel added: “The Netherlands has a modern commercial market, with 48% of B2B orders placed online. This year, B2B e-commerce revenue from physical goods alone will reach approximately $38 billion. By 2025, revenues are expected to reach $54.5 billion. With Mondu’s BNPL solutions, B2B businesses in the Netherlands will be able to increase conversion rates and loyalty by enabling buyers to enjoy a fast and seamless B2C-like payment experience with flexible terms. Local B2B businesses will have better cash flow management, reduce operational workload, and be able to scale their operations effortlessly by selling overseas to buyers in Germany and Austria risk-free.

In recent weeks, Mondu announced the expansion of its C-Suite team with the appointment of Julian Kurz as Chief Commercial Officer and Lauren Hoehlein Joseph as Chief Human Resources Officer. Mondu now has more than 120 Monduneers in its team.

In addition to expanding its team, Mondu has also launched split payments. The new solution allows business buyers to split their purchases into equal interest-free payments – with no additional or hidden fees.

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