Sprinque raises EUR 6 million to expand its Pay by Invoice service

The seed funding round was led by Connect Ventures, with participation from Kraken Ventures, Inference Partners, and SeedX. However, existing investors such as Antler, Volta Ventures, and Force Over Mass also made their own contributions to the round. Sprinque's B2B payments platform was designed to allow merchants and marketplaces to offer Pay by Invoice with net payment terms to buyers online without taking on additional risk or raising operating costs. 

This white-labelled solution can be incorporated via the merchants’ APIs, Magento, Prestashop, and WooCommerce plugins, or it can be used offline through the company’s Merchant Control Centre.

How does Pay by Invoice work? 

Whenever buyers register for a merchant account or choose the Pay by Invoice option at checkout, Sprinque conducts a real-time fraud and credit risk assessment. Qualified customers receive a revolving credit line from Sprinque, which can be used for various transactions. After eliminating the risk of default, Sprinque pays the merchant when the last invoice is sent. 

According to siliconcanals.com, businesses are transitioning quickly to online transactions, but marketplaces and retailers still face certain difficulties. For instance, net payment periods of 15, 30, or 60 days or longer, as well as buyers’ expectations of invoices for their purchases, still pose significant challenges to permitting online B2B transactions. 

Sprinque representatives emphasised that buyer conversion and retention is impacted by the ability to Pay by Invoice is not given to them, but at the same time, the existing offline and manual processes B2B merchants rely on are not adequate for risk management. Sprinque’s solution was created to provide Pay by Invoice services with payment terms in a seamless manner in order to help their customers improve conversion, retention, and cash flow.

What will Sprinque do with the new capital?

Sprinque wants to expand into the European market and even extend its capabilities beyond this Pay by Invoice offering. According to Sprinque, the majority of Europe is covered by the company’s buyer coverage, which allows for seamless international shopping. Sprinque is primarily focusing on Dutch, Spanish, and German retailers, but it plans to expand to other countries in the near future. 

According to the official press release, Sprinque can support different purchasing flow types, including a standard B2C-like checkout purchase, as well as more complex business purchasing flows such as gated purchasing and quote-to-cash.