Hokodo, which focuses on BNPL services for businesses, will use the funding for its expansion and product development, according to a press release. Hokodo operates in six European markets.
BNPL has been one of the FinTech areas that received a lot of attention — and funding — in recent years. Affirm went public last year, AfterPay was acquired for $29 billion, and Klarna reached a $45.6 billion valuation. But most BNPL companies have focused on getting consumers to use their services for payment installments.
“The B2B purchasing experience has long lagged behind its B2C counterpart, and business customers are calling for higher quality services as online sales continue to gain ground in B2B,” Hokodo co-CEO Louis Carbonnier said in a statement. “Hokodo provides merchants with a truly real-time credit solution at checkout, driving up conversion rates and enabling all parties to buy, sell and do more.”
Fintech’s ups and downs
Fintech has been a hot sector in terms of funding and valuations for a while, but it’s also been hit hard by the recent turmoil in the public markets. The sector saw several companies initiate layoffs this year, according to a Crunchbase News analysis.
Klarna, for example, announced plans to lay off 10% of its workforce last month. Most recently the company was reportedly in talks to raise money at a valuation of around $15 billion, significantly less than its last valuation of $45.6 billion.
Hokodo last raised a Series A round of about $10.8 million in June 2021, according to Crunchbase. Investors in the company include Mosaic, Korelya Capital and Opera Tech Ventures. It first raised a seed round in October 2018, according to Crunchbase.