The Hokodo team is pleased to announce a Series B fundraise of $40 million that will help them to fulfil their ambition of “enabling 1 million businesses to access a better way to pay by 2025.”
As businesses continue to feel the economic impact of the pandemic, all while facing rising interest rates and an impending recession, “access to trade credit has never been so vital for their survival.”
That’s why, at Hokodo, they’ve “successfully engaged a number of European investors and raised a significant series B round of $40 million, to continue redefining the way that businesses transact.”
Their Series B investment round was “led by Notion Capital, a VC fund who participated in [their] Series A raise last year.”
Patrick Norris, General Partner at Notion Capital, stated:
“We’ve been following Hokodo since the beginning and made an initial investment as part of their Series A. We’re delighted to lead their Series B and double down on our support of Hokodo. There’s a lot of excitement around B2B Buy Now, Pay Later (BNPL) at the moment, and rightly so because the B2B e-commerce market is at least twice as large as B2C.”
Norris added:
“We concluded that the capability and maturity gap between Hokodo and their competitors is enormous. Not only are they the only provider to offer pan-European coverage, but they’re the only one owning the end-to-end value chain. As a result Hokodo is the only firm able to deliver a cutting-edge purchasing experience across the continent.”
Further investment “comes from continental European investors Korelya Capital (FR), Mundi Ventures (ES), and Opera Tech Ventures (FR), reflecting the enthusiasm for Hokodo’s product in a variety of markets.”
Additional funding was “sourced from existing investors including Anthemis and Mosaic Ventures.”
As mentioned in a blog post, businesses want the option “to buy and sell on payment terms – as they’ve always done – but offering trade credit online is both complicated and risky.”
Since launching their Buy Now, Pay Later solution in 2019, the firm has “spearheaded a movement that has modernized the way businesses trust and trade with each other – and quickly become a category leader in Europe.”
Louis Carbonnier, co-founder and co-CEO at Hokodo, said:
“The B2B purchasing experience has long lagged behind its B2C counterpart, and business customers are calling for higher quality services as online sales continue to gain ground in B2B. Hokodo provides merchants with a truly real-time credit solution at checkout, driving up conversion rates and enabling all parties to buy, sell and do more. Hokodo is currently the only pan-European Buy Now, Pay Later provider in B2B, and this funding will allow us to continue our international expansion to enable 1 million businesses to access a better way to pay by 2025.”
So far, more than 30,000 businesses have chosen “to pay later while shopping with the 30+ merchants and marketplaces that currently have [their] BNPL solution integrated into their online checkout.”
This new funding will help them “to complete our mission of enabling 1 million businesses to access better payment terms by 2025.”
For more details on this update, check here.