⇤ Back to edition

Citi Ventures just poured fresh funding into Hokodo, a B2B-focused buy-now-pay-later firm.  

While incumbent financial firms have long provided trade credit and short-term loans to business customers, a new swath of fintechs is trying to make the process faster and easier. 

SMBs often need trade credit to pay for their business purchases, but, historically, the payment process has involved filling out forms and waiting several days for approval. Not anymore.  

Business-focused buy-now-pay-later startup Hokodo just raised a Series B extension from Citi Ventures to make trade credit management a breeze. The firm declined to disclose the amount of the funding, but said it adds to the $40 million it raised last June.   

Citi said it looks forward to deepening its relationship with the firm.  

“Digital marketplaces are increasingly important to our clients and their evolving business models,” according to Citi Treasury’s global head of trade and working capital solutions, Chris Cox. Those clients “require always-on and real-time digital trade and working capital solutions.” 

Hokodo sets itself apart from competitors in the space because its product includes credit scoring, fraud checks, payment processing, financing, insurance, and collections, all built in-house, spokesperson Ethan Cumming told Insights Distilled. That allows the firm “to be more agile and offer better payment terms to a higher number of buyers,” he added.  

This is just the latest well-funded fintech to take on BNPL for business, including Billie, Mondu, Insight Partners’ portfolio company Resolve, and Tranch. Though each platform is a little different, they generally tout easy applications, greater transparency and flexibility, and faster cash flow as an improvement over typical short-term loans.