The European fintech is aiming to reach one million businesses by 2025.
Less than a year after its Series A fundraise and following a “significant” debt raise earlier this year, Hokodo has secured $40m in funding.
The European B2B ‘buy now, pay later’ (BNPL) plans to use the equity to drive European expansion and product development.
“We’re the only BNPL provider that meets all requirements of B2B merchants, including credit scoring, fraud detection, payments, collections, financing and credit insurance,” Hokodo co-founder and co-CEO Richard Thornton said.
“We don’t 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.”
The company has recently onboarded new merchants across Spain and France following launches in Belgium and the Netherlands and will use a portion of the funding to continue working on broadening its footprint.
Its funding round, led by returning investors Notion Capital, echoed this European focus with involvement from both Spanish and French investors.
“There’s a lot of excitement around B2B BNPL at the moment, and rightly so because the B2B Ecommerce market is twice as large as B2C,” Notion Capital general partner Patrick Norris said.
“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 they’re the only one owning the end-to-end value chain.”
Some of the funding will also be put towards product development, working on new BNPL solutions for telesales and in-store purchases.
“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-founder and co-CEO Louis Carbonnier said.
“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.”
The BNPL aims to continue its international expansion and reach one million businesses by 2025.