Berlin-based Monite, an API-first embedded finance workflow startup, announced on Monday March 21 that it has secured $5 million (approximately €4.6 million) in a seed round of funding led by Third Prime.
S16, Audeo Ventures and Long Run Capital also participated in the round.
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The investment follows a $5M Seed funding round led by Point72 Ventures in February 2022, bringing Monite’s total Seed funding to $10M (approximately €9.3M).
Monite is also backed by Prajit Nanu (Nium founder), Igor Kuschnir (Penta co-founder), Victor Jacobsson (Klarna founder), Adriaan Mol (Mollie founder), Phil Valka (ex-PayPal senior executive) and Jason Pate (Plaid ) executive).
The German firm says it will use the funds to develop new product features, cover more payment and financial services integrations and expand its reach in the growing B2B payments market.
Monite has ten customers in Europe and the US, and plans to close more deals in the coming months.
Monite: Built-in B2B payment platform
According to Monite, the B2B payments industry is projected to reach a staggering $200 trillion by 2028.
However, many small and medium-sized businesses (SMBs) rely on manual payment processing and use disparate tools to monitor their transactions, leading to delayed billing and reduced revenue.
Founded in 2020 by Andrey Korchak and Ivan Maryasin, Monite enables B2B platforms, marketplaces, neobanks and vertical SaaS companies to integrate advanced financial automation capabilities.
With Monite’s built-in API, customers can automate their finance functions, compliant automation of accounts payable, invoicing and expense management for their own customers on a single platform.
The fintech firm claims this helps businesses increase retention and access new revenue streams.
Image credit: Monite
The company’s finance-workflow API offers a new opportunity for platforms that cater to SMEs such as SaaS providers, neobanks and marketplaces.
By leveraging this API, these platforms can generate additional revenue streams by charging payment processing fees and earning additional revenue from SaaS without investing significant time and resources to develop and operate their financial tools.
Maryasin, who is also the CEO of Monite, says: “We are delighted to be supported by embedded finance thought leaders with vast expertise and hands-on experience in FinTech, who clearly understand the needs of the current market.”
“Digitizing financial workflows through existing SaaS players is a game changer and we allow our customers to become an all-in-one financial OS for their industry,” adds Maryasin.
The investor
Third Prime is a venture firm focusing mainly on the FinTech, PropTech and Crypto sectors.
VC invests in entrepreneurs at the earliest stages and supports them for the long term.
Mike Kim, partner at Third Prime, says: “Monite’s innovative approach to B2B payment automation through better contextual distribution has the potential to revolutionize a market that has historically been resistant to innovation by streamlining payment processes and eliminating the headache of manual processing.”
“By offering a tailored and efficient solution through its API-first finance workflows, Monite has the power to unlock a huge opportunity for the B2B sector, both for SMEs and the platforms that serve them, in a repeatable and lasting way,” adds Kim.
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