Last Updated on 10/09/2024 by Arun jain
PastPay , a Hungarian startup that offers businesses buy-now, pay-later services for invoicing, has raised $13.3 million in Series A funding.
Based in Budapest, PastPay says it offers merchants flexible payment terms through factoring, a process in which a company sells its accounts receivable to improve liquidity and free up cash flow.
Companies typically provide invoices for services, but payment timelines can be difficult with 15 to 90 day windows for transfers. Once merchants are approved, PastPay says it provides cash to businesses awaiting invoice payment within 24 hours – minus charges.
The market for B2B BNPL is growing as part of a broader push to digitize payments, with small and medium-sized businesses particularly underserved, Benjamin Bereni, CEO of PastPay, told Business Insider.
“We wanted to bring an embedded finance solution for invoicing and accounting systems but found the sales cycle to be long, but in the B2B e-commerce market, things are moving faster,” he added.
The company operates across Central and Eastern Europe, taking online and offline transactions for users through its tech platform. According to PastPay’s pitch deck shared with BI, its service is supported in 22 countries. Startups in the BNPL space have often seen their models compared to Swedish payments giant Klarna, but the B2B market is completely different.
The Series A funding round was led by Platina Capital with backing from MBH Bank, Advance Global Capital, Quantic Financial Solutions, STRT and BNL Start Partners.
“Funding was not easy. We initially went out later The war started in 2022 But a more concrete conversation took place in 2023, and we found that we really clicked with Platina,” said Bereni. “Our approach to digitizing financial solutions has opened up multiple sales channels for us and helped keep fraud rates low.”
PastPay’s funding will go towards continued investment in its fraud prevention infrastructure and scaling its offering into new geographies in Western Europe.
The company has about 18 staff but expects to double this as it continues to grow, Bereni added.
Check out PastPay’s 11-slide pitch deck below:
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