As we speak Tallinn-based Montonio finance, has introduced elevating €500Okay in a brand new pre-seed spherical. The buyers on this spherical embrace Charlie Songhurst (Katana Capital, ex-Google), Triin Hertmann and Martin Sokk (former COO and first head of product at TransferWise respectively), Gorilla Capital (Finland), Practica Capital (Lithuania), Superangel (Estonia) and Jevgeni Kabanov (CPO at Bolt).
Based in 2018, Montonio some extent of gross sales financing answer that enables internet buyers to obtain a number of installment affords from competing collectors with a single credit score utility, from which probably the most appropriate one might be chosen.
In line with Montonio, the buyer has very restricted choices relating to level of gross sales financing and is typically tied to the one creditor who has a partnership with the mentioned service provider. Montonio acts as a credit score market, the place the shopper’s credit score utility is submitted to their associate collectors. Thus, the credit score is offered at a way more aggressive charge in comparison with the opponents. Not like different rent buy suppliers, similar to Klarna, Montonio doesn’t present the credit score themselves.
The corporate makes use of the various credit score models of their companions to maximise the variety of constructive credit score selections for the entire portfolio. The CEO of the corporate, Markus Lember feedback, that “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%.”
The corporate has entered into profitable partnerships with the native branches of TF Bank, Svea Ekonomi and IPF Digital. “The product has been well-received, many bigger banks and merchants are showing an active interest in the collaboration,” says Lember. “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,” he provides.
Montonio is without doubt one of the fifteen corporations taking part within the Mastercard Lighthouse programme this 12 months. The programme is meant to supply the members with direct connections to the largest gamers available on the market, together with SEB, Swedbank and Mastercard itself.
The investor lineup consists of Charlies Songhurst (Katana Capital), Triin Hertmann and Martin Sokk (ex-TransferWise), Jevgeni Kabanov (CPO of Bolt), Gorilla Capital (Finland), Practica Capital (Lithuania), Lemonade Stand (Estonia), Superangel (Estonia), Startupwiseguys (Baltics), in addition to numerous Estonian and Lithuanian angel buyers.