Hokodo, the fast-growth European fintech enabling B2B merchants to offer their customers payment terms in real time, today announced its $12.5 million Series A.
The funding round is led by Mosaic Ventures, with participation from Notion Capital and several prominent angel investors including Taavet Hinrikus, founder of TransferWise (now Wise), Thijn Lamers, former EVP, Global Sales of Adyen, Max Bittner, CEO of Vestiaire Collective and founder of Lazada and Rich Laxer, ex-Chairman and CEO of GE Capital. Hokodo’s earliest investor Anthemis also joins the round and reaffirms its conviction in the company’s vision.
The new funds will be used to further invest in Hokodo’s proprietary technology and scale the solution across Europe, making it available to the millions of businesses currently unable to extend, or access, credit terms when trading online.
Founded in 2018 by Richard Thornton, Louis Carbonnier and Sami Ben Hatit, Hokodo provides B2B merchants with real-time trade credit solutions. With Hokodo, merchants can offer instant payment terms to their customers through a frictionless B2C-like “Buy Now Pay Later” checkout experience. Designed specifically to remove the complexity and risks associated with offering credit terms online, Hokodo’s solution integrates easily via APIs into existing e-commerce platforms and marketplaces. Behind the scenes, Hokodo automates the whole order-to-cash cycle, from credit checks to collections and working capital finance, while protecting merchants against non-payments.
BUY NOW, PAY LATER, CAN WORK WELL FOR B2B
“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”, says Toby Coppel, Co-founder and Partner at Mosaic Ventures.
Hokodo’s founding team combines over 40 years of experience in fintech and trade credit, and brings together a team of over 30 people, located in London and Paris, driven by a belief in intellectual rigour, entrepreneurial values and a passion for disrupting the trade finance industry to create a better way of doing business. To support the company’s significant growth, Hokodo will double its team by the end of 2021, and grow by another 100% in 2022, with key roles in product, tech, data science and commercial.
Patrick Norris, General Partner at Notion Capital explains: “I like the founders’ combination of skills and experience across credit insurance and risk, plus their thoughtful approach to the extremely complex task of enabling real-time credit for B2B ecommerce. They are also a very close team with a fantastic culture”.