Swedish B2B buy now pay later (BNPL) company Treyd has raised $10.5m (£8.4m) in a Series A funding round led by Nineyards Equity to expand in the UK -United.
The extension, shared exclusively with UKTNwill see Treyd operate from Stockholm and London, as will consumer-facing BNPL giant Klarna.
Founded in 2019, Treyd provides BNPL services for international supply chains. It pays suppliers and gives companies 120 days to pay the balance. It aims to free up capital for a business so that it can instead invest in growth.
Treyd said UKTN that he chose the UK because he sees the country as a “leader” that strikes a balance between “openness for business and consumer protection”.
Treyd added that the UK is good in terms of “regulatory, data and e-commerce penetration”.
The Series A round saw additional capital coming in from Zenith Venture Capital, J12, Njord Ventures, DHS Ventures. Treyd has also received backing from a number of high-profile angel investors, including Tetra Pak heir Magnus Rausing. Initial investor Antler provided a follow-on investment.
“We have proven that B2B subsequent payment works in Sweden, and this cycle allows us to spread this idea around the world. Treyd will be able to free up capital and create new opportunities for thousands instead of hundreds of businesses,” said Peter Beckman, CEO and co-founder of Treyd.
Treyd UK launch comes amid BNPL crackdown
It comes as UK financial watchdogs are set to introduce regulations for BNPL products, which often integrate with online checkouts to allow consumers to pay for goods in instalments.
More than 17 million UK consumers had used a BNPL company to make an online purchase by the end of last year.
Treyd said UKTN that while not directly affected by upcoming BNPL regulations in the UK, as it provides credit to businesses and not consumers, he sees regulatory clarity as a “positive for startups rapidly evolving”.
UK households have recently been warned against resorting to BNPL financing to cover soaring energy costs.
“Peter, Sameh and an exceptional support team pioneered B2B subsequent payment in Sweden, BNPL’s home country for consumers, and aim to expand their model globally with this latest fundraiser” , said Teddy Himler, Partner, Antler.
Treyd was founded in 2019 by co-founders Peter Beckman and Sameh El-Ansary. Its total funding to date is $12m (£7m).
“The Treyd team’s deep understanding of SME financing with real-time data analysis and strategy makes it a class leader in this growing industry,” added Himler.