Sequoia-backed fintech Two raises €18m Series A #

Norwegian fintech startup Two has raised €18m in a Series A funding round led by Shine Capital and Antler, with participation from Sequoia Capital, Day One Ventures, and LocalGlobe, among others.

Two offers a B2B buy now, pay later (BNPL) solution to businesses, enabling them to spread costs over 14 days to 12 months across all B2B sales channels. The company’s quarterly growth in the Nordics and UK was 243%, while it captured 58% of the B2B payments through the online channels of its nearly 200 active merchants. The funding will help Two expand to new markets across Europe and beyond.

B2B BNPL is a short-term financing tool designed to help companies manage their cash flow, with Two charging sellers a transaction fee lower than the cost of processing cards from a business customer. To manage risk, Two partners with third-party companies, including Allianz and Santander, for larger multinational deals. The company underwrites transactions in less than a second with an approval rate of more than 90%. The investors in the funding round included Sequoia Capital, LocalGlobe, The Visionaries Club, and Alliance VC.

Two faces competition from companies such as Billie, Mondu, Treyd, Hokodo, and Playter, but the company’s offering of the cheapest and best customer experience could make it a B2B BNPL fintech success. The funding will allow Two to expand globally, including in the US.