BNPL is dead - B2B BNPL is the future 🤑; Meta is finally killing Novi ❌; Stablecoins are crypto killer app 🥊

Good Morning FinTech, 5 July

Good day Everyone,

And happy Tuesday! Today’s issue is super exciting as we’re looking into three different yet really important developments - why BNPL is dead and B2B BNPL is the future (it might be the hottest FinTech vertical in this bear market!), Meta finally killing Novi (and what’s the root cause of it), and why stablecoins is a crypto killer app (you can’t ignore this one!). Let’s jump straight into the exciting stuff:

BNPL is dead - B2B BNPL is the future 🤑

Following the money 💸 Despite Klarnageddon that’s spreading beyond just Buy Now, Pay Later firms, there’s one FinTech vertical that currently seems to be immune to the harsh market conditions.

Not the easiest of acronyms, B2B BNPL is bucking the bearish trend in tech and having its moment in the sun.

More on this 👉 Let us take a brief look at what’s happening in this space. And it’s quite hot as in the past few weeks alone 3 B2B BNPL FinTechs raised fresh capital:

• London-based Playter closed a $55M equity and debt funding round.

• London & Paris HQed Hokodo has raised $40M equity in a Series B round.

• London-based Tranch came out of stealth after raising £3.5M in pre-seed equity.

• Berlin-based Billie quadrupled its last valuation in November of 2021 to $640M following a $100M equity funding round as well as a credit line of $200M per month (it’s the most well-funded player in Europe right now; Klarna also invested and partnered with Billie for their B2B proposition).

• While in May, Berlin-based Mondu won the backing of Peter Thiel’s Valar Ventures as the lead investor in its $43N Series A — a mere 7 months after its seed round. 

Obviously, funding and valuations is more a vanity metric than anything else (we should have learned this by now) but it does show an interesting trend. And the trend is pretty obvious - despite being more cautious and risk-averse, VCs continue pouring money into B2B BNPL startups.

Why? 🤔 Most probably because BNPL is dead, and B2B BNPL is the future. Here’s the takeaway: