Fintech Two Acquires €18M via Series A to Streamline B2B Payments

At Two, they’re working relentlessly to make B2B transactions as frictionless as consumer payments.

Now they’re pleased to announce their €18 million Series A investment round. This brings our total capital raised “to €28 million, previously unannounced.”

This funding round was “led by Shine Capital, and Antler with participation from Sequoia Capital, Day One Ventures, Alumni Ventures, LocalGlobe, The Visionaries Club, Alliance VC and more.”

Since launching in Q2 2021, they’ve “grown 243% quarterly and won 79% of competitive sales processes.”

Despite representing $120 trillion in annual payment volume, B2B commerce has lagged behind the payment innovations “that have transformed the consumer space in the last two decades.’

Purchasing as a business is “still a manual, time-consuming and inefficient experience.”

This is because businesses “need to send each other invoices then wait 30, 60 or even 90+ days for payment.”

Unlike the consumer space, 94% of B2B transactions “occur offline, with sellers typically sending invoices to customers who then pay via manual bank transfer or cheque.”

As a result, business sellers “are effectively taking the role of their customers’ bank” and are forced to:

  • Shoulder credit and fraud underwriting risk
  • Manage working capital tied to receivables
  • Determine payment days
  • Navigate complex collections processes

Removing these requirements for businesses “can and will unlock substantial economic growth. In fact, the EU Commission estimates that 6.5 million jobs can be created in the Eurozone alone by minimizing late B2B payments.”

A much needed development “considering 1 in 5 companies go bankrupt due to late payments.”

As noted in the update, Two makes it “as easy to accept business orders on net terms as it is to accept card payments from consumers, solving the b-commerce (B2B commerce) problem.”

In fact, the largest order accepted through Two to date “at €450K was end-to-end completed at checkout in less than 45 seconds.”

By taking care of credit and fraud underwriting, paying sellers upfront, and overseeing the receivables and collection processes, Two allows sellers “to focus on delivering exceptional products.”

What sets Two apart is their unrivalled acceptance rate combined with one solution across all sales channels for our merchants, “helping to shift B2B transactions online.”

Their unique operating model “maximizes order acceptance by using multiple credit underwriters to assess the same order, of which Two’s proprietary credit engine is one of the possible underwriters.”

Unlike competitors that are “building B2B payment solutions similar to B2C, they follow the end-to-end buyer and seller experience, offering one streamlined solution across all channels, ensuring availability where B2B transactions happen.”

‍As a “world first,” the recently announced partnership “with Allianz and Santander also  enables Two to support large, multinational merchants across all of Europe and North America and offer instant net terms to their business customers through one API solution.”

They also support “all small and medium sized merchants in the UK, Norway, Sweden and the Netherlands.”

Mo Koyfman, CEO and founder at Shine Capita provides his thoughts:

“Global business-to-business payments remain woefully analog, significantly lagging the innovation we’ve seen in consumer payments over the last decades. The world-class Two team is building an end-to-end global solution for B2B transactions across all sales channels. This has already led to explosive growth with businesses in the U.K. and the Nordics, and, with their recently announced banking partnerships, Two can now offer a truly global B2B solution for large multinational corporations.”

Moreover, buyers using Two come back for more. Andreas Mjelde, CEO and co-founder of Two, elaborates:

“As of early 2022 the average buyer already bought more than 15 times per year. This has now grown to more than 50 purchases per year. In fact, Two captures a 58% share of wallet of all B2B payment volume through the online channels of our 175+ active merchants, more than twice of our internal targets.”

Martell Hardenberg, Global Investment Partner at Antler, adds:

“Two’s rapid growth is a testament to the large pain points they are solving, by allowing merchants to offer their clients seamless payment and access to credit, while boosting online sales and customer loyalty for their merchants. We are excited to support the exceptional Two team, with an obsessive product-oriented mindset and a compelling approach to become a global leader in a massive market.”



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