Klarna-backed buy now, pay later firm Billie raises $100m

Berlin-based startup Billie has raised $100m to boost its buy now, payer later offering

Billie founders                                 
Billie founders from left to right: Aiga Senftleben, Matthias Knecht, Christian Grobe – Photo: Billie
                                

Berlin-based business-to-business (B2B) payments startup Billie has raised $100m (£72m) in a new Series C funding round, it announced in a company statement.

The round was led by B2B investor Dawn Capital, iZettle, Soldo and Copper, with participation from payments giant Klarna and Tencent. Existing investors Creandum, Speedinvest, Picus and Global Founders Capital also took part in the round.

The Series C marks the largest single funding round to date for a B2B buy now, pay later (BNPL) firm, and has quadrupled Billie’s valuation to $640m since its last funding round in 2019 where it raised $35m in Series B financing.

Adoption of the buy now, pay later trend

The funding round further cements the growing popularity of the buy now, pay later trend as more retailers look to provide payment options on larger purchases and aid flexible payments.

Earlier this month, Atome announced a multi-product partnership with Standard Chartered to target the BNPL market in Asia, while Mastercard announced it was looking to provide lenders with a variety of instalment payment options for digital purchases. 

US-based payments firm Square acquired Australian BNPL provider Afterpay in a bid to move into the BNPL sector and target Generation Z shoppers.

While Billie’s offering differs to traditional business-to-consumer (B2C) players and caters exclusively to firms looking to boost their digital payment services, it’s still operating in a crowded space.

Frictionless B2B payments

Billie will use the new funding to grow its 130-person team and expand into new georgraphies, as well as develop its technical integrations with payment providers and enhance its in-house product called ‘Billie Boost’.

“BNPL has radically changed the payment behavior in e-commerce in the last couple of years. Consumers pay easily and conveniently when and how they want,” says Matthias Knecht, co-founder of Billie.

“Today, B2B buyers from larger companies to individual retailers are going ‘digital-first’ and are already used to automated and frictionless processes in the B2C space. However, ‘buy now, pay later’ for business customers is still at a very early stage, and worldwide, there is nearly no provider of a BNPL product like what Klarna offers for B2C. We aim to close this gap,” he adds.

“BNPL for B2B is still in its infancy phase – even though the demand has never been higher. We are here to solve problems and by being able to offer this service to our merchant partners together with Billie, we are doing just that. Something we also underline with our investment in Billie, ” adds Sebastian Siemiatkowski, CEO and co-founder at Klarna.

Further reading: British digital lender Zopa raises £220m in SoftBank-led round

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