Monite, a FinTech company offering finance automation for B2B platforms, has secured a $6m top-up to its seed funding.
The funding round was co-led by Valar Ventures and Third Prime, with continued support from existing investors. Monite’s ambition is to solidify its status as a leader in European embedded finance while extending its footprint into the lucrative US market.
Monite addresses a critical inefficiency in the B2B payment landscape, where the majority of the US’ $27 trillion transaction volume in 2022 relied on outdated methods like cash or checks. The company aims to revolutionize this space by enabling automated financial operations within B2B platforms, including banks, neobanks, payment providers, and verticalized SaaS. This approach promises to streamline the cumbersome order-to-cash and procure-to-pay workflows, thereby enhancing efficiency and compliance adherence for small and medium-sized businesses (SMBs).
The newly acquired funds are earmarked for product development and the expansion of Monite’s suite of embeddable financial services in the US. With a focus on providing comprehensive invoicing solutions and accounts payable automation, Monite intends to support B2B platforms in becoming indispensable partners for their business clients. This initiative is in response to the significant interest expressed by 64% of SMBs in utilizing financial services integrated into their daily platforms.
Despite a reported 40% decline in venture capital interest in FinTech in 2023, Monite has demonstrated exceptional growth, achieving a 10x increase in monthly recurring revenue and a 5x year-over-year customer growth. This remarkable performance attracted the attention of Valar Ventures, a firm known for investing in successful FinTech startups like Xero, N26, and Qonto. “The SMB market remains underserved, especially within finance automation. We see many startups and incumbents attacking this problem, but Monite’s unique infrastructure lets companies add bill pay, invoicing, and other payment solutions to their offering quickly and cheaply simply through Monite’s APIs,” James Fitzgerald, Founding Partner at Valar Ventures, commented on the investment.
Ivan Maryasin, CEO and founder of Monite, expressed his enthusiasm for the continued support from existing backers and the addition of Valar Ventures to their investor roster. “We are thrilled to get continuous support from existing backers like Third Prime and welcome Valar Ventures among our investors. Valar has a history of picking stars in the B2B finance and payment space. They recognize talent and growth potential and offer hands-on support in the company’s development. Our ambition, backed by impressive achievements against bold targets, makes Monite a perfect fit for Valar,” Maryasin said.
Building on this momentum, Monite is poised to enhance its product offerings and further penetrate the US market, with strategic partnerships already established with clients like Capital on Tap and OpenSolar.
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