Monite, an API-first embedded finance workflows startup, has raised a total of $10m in seed funding to start “a new wave in embedded finance.”
According to a report from TechCrunch, the round was led by New York’s Third Prime, with participation also from S16, Audeo Ventures and Long Run Capital.
The investment follows a $5m round led by Point72 Ventures in early 2022 and brings Monite’s total funding to $10m.
Monite says it has also received backing from Nium founder Prajit Nanu; Penta co-founder Igor Kuschnir; Klarna founder Victor Jacobsson; Mollie founder Adriaan Mol; ex-PayPal senior executive Phil Valka; and Plaid executive Jason Pate.
The embedded finance FinTech enables companies to connect all of their bank accounts, run invoices, expenses and payments in a single location. Its holistic platform claims it can replace more than 10 accounting tools to streamline processes.
According to recent projections, the B2B payments market is expected to soar to $200 trn by 2028.
Ivan Maryasin, co-founder and CEO of Monite, said, “Only 5-10% of SMBs use a modern finance stack, while 79% of them still do their accounts payable manually. SMBs remain technically underserved, while B2B neobanks, eCommerce and B2B SaaS businesses have an incredible opportunity here to grow their revenue with no additional marketing expenses. Digitalizing finance workflows through existing SaaS players is a game-changer, and we allow our clients to become an all-in-one financial OS for their industry.”
Mike Kim, partner at Third Prime, added, “From a demand perspective, there’s a real gap for Monite to fill. Monite’s innovative approach to B2B payments automation through better contextual distribution has the potential to revolutionize a market that has been historically resistant to innovation by streamlining payment processes and eliminating the headaches of manual processing.”
Earlier this year, B2B payments company Mondu has extended its Series A funding round by $13m, as it looks to bolster its market growth.
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