Estonia-based Fintech agency Montonio has secured €500,000 in capital by a brand new pre-seed funding spherical.
Charlie Songhurst from Katana Capital and (beforehand) Google, and Triin Hertmann (former COO at TransferWise) and Martin Sokk (first head of product at TransferWise) took half within the spherical.
Different buyers in Montonio’s operations embrace Finland’s Gorilla Capital, Practica Capital from Lithuania, Tremendous angel from Estonia, and Jevgeni Kabanov, the CPO at Bolt.
Established in 2018, Montonio affords a degree of gross sales (POS) financing platform that lets web shoppers entry varied installment affords from competing collectors. Shoppers solely must fill out one credit score software, to be able to probably qualify for these affords.
Montonio’s founders felt that customers don’t have too many choices on the subject of POS financing and sometimes must work with one creditor that has partnered with the service provider offering the services or products.
As first reported by EU Startups, Montonio goals to function a credit score market, the place the buyer’s credit score software is submitted and reviewed by their associate collectors. Credit score might be offered at extra inexpensive charges when in comparison with what opponents are providing, the corporate claims.
Montonio clarified that, in contrast to different rent buy suppliers (for instance, Klarna), the corporate itself doesn’t provide the credit score.
The Fintech agency says that it makes use of varied credit score models that belong to its companions, to be able to maximize the variety of accredited credit score functions.
Markus Lember, CEO at Montonio, said:
“The maximum number of customers will receive a positive credit decision increase by partnering with numerous creditors whose target customer segment ranges from super-prime to subprime. That increases the sales closing rate for the merchant using the solution. Our current rate of positive decisions is around 85%, which is significantly higher than the market average of 50-60%.”
Montoni revealed that it has partnered with the native branches of TF Bank, Svea Ekonomi and IPF Digital.
Lember claims that the corporate’s product has been “well-received.”
“Many bigger banks and merchants are showing an active interest in the collaboration. Our goal is to validate the product in our current markets, create long-standing partnerships with local household names and then take on the bigger Scandinavian and Central European markets.”
Montonio is among the 15 companies which can be collaborating within the Mastercard Lighthouse program, which goals to supply direct connections to contributors. These connections with massive gamers available in the market, embrace the chance to work with SEB, Swedbank and Mastercard.