Amsterdam-based B2B payments platform Sprinque has raised a fresh €20 million in debt funding via Avellinia Capital. According to the company, the capital will be used to further expand its pay-by-invoice solution throughout Europe with an ability to finance up to €200 million in transactions per year.
“In light of the economic situation, the Senior Loan Facility further extends our support to B2B e-commerce merchants across Europe. In addition, Sprinque's financing vehicle, combined with this facility, creates a solid foundation to continue expansions across Europe and in our core merchant markets of Germany, Spain, and the Netherlands.” - Bas Kentie, Head of Legal and Compliance.
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 method of payment, that of invoicing is absent, according to Sprinque, so too are the conversions.
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 +90% 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.
On the investment, Avellina Capital’s Christoph Pfundstein commented, “Avellinia Capital is delighted to provide a flexible multi-jurisdiction and multi-currency financing line to Sprinque, supporting them in their quest to provide online point-of-sale working capital solutions.”