202204 Aug

Kontempo raises fresh capital amid boom for B2B BNPL –

Summary

Contempo, a startup that offers buy now, pay later (BNPL) and interest-free repayment plans to business-to-business (B2B) customers, today announced that it has raised a $30 million starting round in a mix of equity ($6. CEO and co-founder Matthew Meehan tells businesstraverse.com that the new money will be used to hire staff, expand Kontempos trading network and further develop the technology underlying the platform.While BNPL has garnered a lot of attention in the consumer market, with giants like Klarna, Afterpay and Affirm doing their best to corner it, alternative installment-based payment plans have been slower to penetrate the traditionally conservative business. Alternatively or in addition, companies can use Kontepos API to implement a BNPL option at checkout that does not require credit card or bank account information.Meehan says that to mitigate risk, Kontempo collects data from trading partners to feed an algorithm that determines creditworthiness. The algorithm which takes into account a range of factors Meehan declined to disclose allows Kontempo to reach a wider segment of small and medium-sized enterprises (SMEs) that are typically turned down for credit.Kontempo sees an opportunity with its BNPL product to increase the use of digital payments in the B2B space, drive sales for both online and offline distributors and suppliers to SMBs, and be an early mover in building critical payment infrastructure for the still small but rapidly growing B2B e-commerce market, said Meehan. These 26 trading partners represent access to more than 100,000 SME buyers or end users of our product, Meehan said when asked about Kontempos early market appeal and near-term growth prospects.

Source: Businesstraverse

Funding

$25M
Amount
Aug 04 2022
Date
-
Investor
Kontempo
Company

Classifications

Companies