Amsterdam-based B2B payments platform Sprinque has raised a fresh €6 million in seed funding. According to the company, the capital will be used to further expand its pay-by-invoice solution throughout Europe. Since early 2021 the startup has raised approximately €7.8 million.
Spinque’s seed funding was provided by lead investor Connect Ventures, with Kraken Ventures, Inference Partners, and SeedX participating. Existing investors Antler, Volta Ventures, and Force Over Mass also re-upped their commitments.
Over the past few years, the B2B payments space has seen tremendous growth, topping out at just over an estimated $900 billion in 2021, and is forecast to reach an eye-watering valuation of over $1.6 trillion by 2028. These numbers should come as no surprise, as B2B e-commerce figures are already eclipsing B2C numbers at a rate of 5x.
And yet, for all the solutions available on the market, the B2B payments space is still struggling to not only keep up with current demand but digitise in the process. When their most common/understood/familiar with method of payment, that of invoicing is absent, according to Sprinque, so too are the conversions.
“We’ve identified this problem across every B2B industry. Buyers won’t convert and be retained if the ability to pay by invoice is not given to them, but the existing offline and manual processes B2B merchants rely on are not adequate to manage risk and serve hundreds of online buyers across multiple geographies,” says Sprinque co-founder and CEO Juan Espinosa. “Sprinque has been built to enable merchants and marketplaces to offer pay by invoice with payment terms in the most seamless way possible for the most ambitious merchants.”
Sprinque offers B2B merchants a solution that helps up both conversion and retention numbers by mitigating risk by taking on all defaults and fraud risk, as well as automating the end-to-end process of offering pay by invoice with net payment terms at scale.
Offered as a white-label solution, Sprinque enables sellers the ability to embed their offer via API plugins (Magento, Prestashop, and WooCommerce, for example). When a buyer selects the pay-by-invoice option, Sprinque performs an instant fraud and credit risk assessment (with a +95% approval rate). Once approved, a revolving credit line is issued, one that buyers can use for multiple purchases. Sprinque then removes the risk of default by paying the merchant when the final invoice is issued.
Sprinque is initially targeting merchants in the Netherlands, Spain, and Germany, but is looking to expand to other countries quickly. Something that this new round of funding it expected to accelerate.
On the investment, lead backer Connect Ventures’ Rory Stirling commented, “Sprinque’s founding team has a deep understanding of B2B commerce and how to help their customers improve conversion, retention and cash flow. They recognise that a B2C-style BNPL payment method doesn't translate into a B2B context, so instead they are building a differentiated product designed specifically for the breadth and complexity of B2B commerce."