B2B buy now, pay later service provider Hokodo has picked up $40m in funding as it looks to expand into new European markets and build new products.
Notion Capital led the funding round, with participation also coming from European investors Korelya Capital, Mundi Ventures and Opera Tech Ventures. Existing Hokodo backers Anthemis and Mosaic Ventures also joined the round.
It is currently exploring solutions for telesales and in-store purchases, as well as new verticals ?currently underserved by payments companies.p>
The funding comes a year after its Series A, which closed on $12.5m in June 2021.
UK-based Hokodo offers buy now, pay later solutions to the B2B market, providing customers with instant, frictionless, interest-free payment terms.
Hokodo co-founder and co-CEO Richard Thornton said, ?Were the only BNPL provider that meets all requirements of B2B merchants, including credit scoring, fraud detection, payments, collections, financing and credit insurance.
?We dont rely on any third party to make credit decisions as we can do it much quicker in-house. This means we can accept more buyers at a faster rate, which our merchant partners love.p>
Hokodo solutions are underwritten by SCOR Syndicate 2015, SCOR SE corporate syndicate at Lloyd of London. This allows it to guarantee its merchants 100% of their payments.
Speaking on the investment, Notion Capital general partner Patrick Norris said, ?There a lot of excitement around B2B BNPL at the moment, and rightly so because the B2B Ecommerce market is twice as large as B2C.
?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 theyre 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.p>
Another European B2B buy now, pay later service to raise funds recently is Mondu. The German company raised $43m for its Series A in May 2022.
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