Two Funding Secures €13 Million to Transform B2B Payments Landscape

Table of Contents

1. Key Highlights
2. Introduction
3. The Growth of Two Funding
4. Expanding into New Markets
5. The Need for Flexible Payment Solutions
6. Transforming B2B Payments with Technology
7. Partnerships and Collaborations
8. The Future of B2B Payments
9. FAQ

Key Highlights

• Two Funding, a Norwegian fintech, has raised €13 million, bringing its total funding to over €40 million, with significant contributions from Idékapital, Shine Capital, and Investinor.
• The new investment will accelerate Two’s expansion into the US and Western European markets while enhancing its B2B payments infrastructure, which includes proprietary risk engines and onboarding solutions.
• Demand for flexible B2B payment terms is surging, with the B2B e-commerce market expected to double to $48 trillion by 2030, positioning Two as a key player in this evolving landscape.

Introduction

The financial technology landscape is undergoing a seismic shift, particularly in the realm of business-to-business (B2B) payments. With a staggering market projected to double to $48 trillion by 2030, the demand for flexible payment solutions that cater to the unique needs of businesses is at an all-time high. Enter Two Funding, a fintech startup from Norway that is revolutionizing B2B transactions. Recently, Two secured €13 million in new funding, which will not only bolster its presence in the competitive B2B payments sector but also enhance its innovative infrastructure designed to make B2B transactions as seamless as consumer payments. This article delves into the implications of Two's recent funding, the company's strategic vision, and the broader trends driving the B2B payments market.

The Growth of Two Funding

Founded in 2021, Two emerged with a clear mission: to simplify B2B transactions by offering flexible payment terms that mirror those found in consumer checkouts. The company’s platform provides instant upfront payments for sellers, while allowing buyers to enjoy flexible net terms. This model has proven particularly attractive, leading to rapid adoption among both large enterprises and small to medium-sized enterprises (SMEs).

With the latest funding round, led by Idékapital and Shine Capital, along with participation from Investinor and existing investors such as Antler and Sequoia Capital, Two has now amassed over €40 million in total funding. This significant capital injection is set to propel Two's expansion efforts, particularly into the US market, where it has already achieved notable revenue growth—over 20% of its total revenue comes from this region just three months after launching there.

Expanding into New Markets

The new investment will facilitate Two's strategic expansion into the US and select Western European markets. The company has identified these regions as crucial for its growth trajectory. The US market, with its vast volume of B2B transactions, presents a lucrative opportunity for Two, especially given its early success in establishing a foothold there.

Two’s infrastructure, which includes its proprietary risk engines—Frida and Delphi, as well as an end-to-end business onboarding solution—has already been deployed by over 200 merchants across the Nordics and Europe. These tools not only streamline the payment process but also enhance security through AI-powered fraud prevention measures, ensuring that transactions are both quick and safe.

The Need for Flexible Payment Solutions

The demand for flexible B2B payment terms is surging as businesses increasingly seek to optimize their cash flow and financial operations. According to Allianz Trade, 95% of B2B buyers now prefer to pay per invoice, yet fewer than 10% of sellers are equipped to offer this option online. This stark discrepancy highlights a significant gap in the market that companies like Two aim to fill.

As the B2B e-commerce market continues to grow, businesses are looking for solutions that not only improve efficiency but also provide a better user experience. Two's advanced underwriting technology and scalable payment infrastructure are well-positioned to meet these evolving expectations.

Transforming B2B Payments with Technology

Two is at the forefront of digitizing B2B payments, an area that has historically lagged behind consumer payment solutions. The company’s technology allows for instant underwriting and seamless integration, making it easier for businesses to offer flexible payment terms. This capability is crucial as companies transition away from traditional payment methods, such as checks, which still dominate the B2B landscape.

Mo Koyfman, Founder & General Partner at Shine Capital, emphasizes the massive scale of the B2B payments market, noting that it approaches $100 trillion in volume, with a significant portion still processed through outdated methods. As the industry embraces digital transformation, Two is positioned to lead this change, offering solutions that are not only innovative but also necessary for modern businesses.

Partnerships and Collaborations

Over the past six months, Two has forged significant partnerships with major players in the financial sector, including Visa, ABN AMRO, Qliro, Avarda, and Wikinggruppen. These collaborations not only enhance Two’s credibility but also expand its reach and capabilities within the B2B payments ecosystem.

The backing of prominent investors such as Sequoia Capital and Idékapital further validates Two’s approach and potential for growth. Kristian Øvsthus, Managing Partner at Idékapital, highlights the exceptional ambition and talent of the founding team, positioning Two as a global leader in B2B payments.

The Future of B2B Payments

As Two Funding prepares for its next phase of growth, the company is focused on enhancing its credit decision engine and strengthening integrations with suppliers worldwide. This proactive approach is essential as the B2B payments sector continues to evolve rapidly.

With revenue and payment volume projected to grow more than 150% year-over-year by 2025, Two is not just keeping pace with industry trends; it is actively shaping them. The company's commitment to providing scalable, credit-insured payment solutions positions it as a vital player in the future of B2B commerce.

FAQ

What is Two Funding?

Two Funding is a fintech company based in Norway that specializes in providing flexible payment solutions for B2B transactions. Founded in 2021, it aims to make B2B transactions as seamless as consumer checkouts.

How much funding has Two secured?

Recently, Two secured €13 million in funding, bringing its total funding to over €40 million.

What markets is Two expanding into?

Two is focusing on expanding into the US and select Western European markets, where it has already seen significant revenue growth.

What technologies does Two use?

Two employs proprietary risk engines, an end-to-end business onboarding solution, and AI-powered fraud prevention measures to enhance the security and efficiency of B2B transactions.

Why is the demand for flexible B2B payment terms increasing?

The demand is largely driven by businesses seeking improved cash flow management and a better user experience, as evidenced by the preference of 95% of B2B buyers to pay per invoice.

How does Two differentiate itself from competitors?

Two stands out through its combination of advanced technology, strong partnerships, and a deep understanding of the B2B payment landscape, enabling it to offer solutions that are tailored specifically for businesses.

As Two continues to push the boundaries of what's possible in the B2B payments sector, it is clear that the company is not only responding to current market needs but is also poised to lead the charge into a digital future where flexibility and efficiency are paramount.