Hokodo raises $12.5 million
London-based Hokodo announced its $12.5 million in Series A funding. The round is led by Mosaic Ventures, with participation from Notion Capital, Anthemis and several angel investors including Taavet Hinrikus, founder of TransferWise (now Wise), Thijn Lamers, former EVP, Global Sales of Adyen, Max Bittner, CEO of Vestiaire Collective and founder of Lazada and Rich Laxer, ex-Chairman and CEO of GE Capital.
Founded in 2018, Hokodo’s first product was an invoice protection product that protects SMEs against non-payment of their customers. Now, the startup also offers merchants “trade credit as a service” similar to the “buy now pay later” model. Hokodo’s solution integrates via APIs into ecommerce platforms and marketplaces. Behind the scenes, Hokodo automates the whole order-to-cash cycle, from credit checks to collections and working capital finance, while protecting merchants against non-payments.
“Credit terms are a crucial lever to grow sales, especially as the economy unlocks following COVID. But current processes for offering trade credit are not fit for purpose – especially for online sales. With Hokodo, merchants can offer payment terms instantly at the check-out, even on a customer’s first visit; and our merchants are guaranteed to get paid no matter what.” – Richard Thornton, Hokodo’s cofounder and co-CEO.
“Hokodo’s Buy Now Pay Later solution is helping the whole supply chain by removing the hassle associated with payment terms. Everyone wins: trade customers can buy now and pay later, while merchants win more business and streamline their order-to-cash cycle. Merchants using Hokodo see an average 40% increase in revenue and achieve unprecedented levels of customer satisfaction.” – Louis Carbonnier, Hokodo’s cofounder and co-CEO.
“The B2B purchasing experience has long lagged behind its B2C counterpart, and trade customers are calling for more. Hokodo is building a next generation platform for digital commerce, offering real-time credit to make it easier for businesses to purchase goods and easier for merchants to convert sales and grow. We have seen the enormous impact of “buy now, pay later” technology in the consumer market and, by solving the complexity of real-time trade finance, Hokodo is now bringing it to B2B.” – Toby Coppel, cofounder and partner at Mosaic Ventures.