Hokodo

Hokodo is a UK-based BNPL service provider offering real-time credit to B2B merchants. As of June 2021, Hokodo’s service was available in Germany, Spain, Belgium, and the Netherlands. The platform integrates with existing e-commerce platforms through APIs for merchants to provide credit terms at the point of sale. The company uses its in-house credit scoring algorithm, HokoScore, to onboard buyers and approve credit. Hokodo claims that its service has increased its customer’s sales conversions by 40% through lower abandoned carts and higher basket values.

Furthermore, Hokodo provides invoice protection (launched in 2018) to merchants for protection against credit risk. The merchant has the option to subscribe for invoice protection but can also choose to be paid immediately after the goods are delivered to the customers. For this service, Hokodo charges between 0.25% to 1.5% of the overall invoice value.

In June 2023, Hokodo acquired an undisclosed Lithuanian payments business , for an undisclosed sum, and gained access to a European payments license. The company planned to utilize the licenses to offer a broader range of payment solutions for merchants, marketplaces, and other suppliers across Europe. It planned to set up operations in Lithuania and recruit about 30 employees over the next three years.

Key customers and partnerships

Hokodo partnered with Mangopay, a payment infrastructure provider for platforms and marketplaces, to support platform specific payment upscaling capabilities in May 2023. In April 2023, Hokodo partnered with Citi to facilitate payments for Covento, a renewable energy marketplace. Through this partnership, Hokodo planned to provide Covento’s customers with API integrated customer registration, instant credit scoring and limits setting, automated assessment and processing to allow trade credit in under 24 hours, and flexible deferred payment options through Hokodo's B2B BNPL offering. In March 2023 , Hokodo partnered with BNP Paribas to provide multinational corporations with BNPL solutions for their customers. Previously, in January 2023, the company partnered with Lemonway to help European B2B marketplaces offer trade credit online. Since 2019, Hokodo has signed product partnerships with Countingup (a UK-based small business banking app), Tide (UK-based business banking platform), Centrifuge (a decentralized finance platform), Shine (French fintech startup), Futrli (a cash flow forecasting software), and ShelfNow (an online trading platform).

As of June 2021, the platform reported more than 10,000 buyers using its service with more than 20 merchants, including YardLink (plant equipment hiring platform), Rooster (online seafood marketplace), Graindex (online grain marketplace), and Ankorstore (retail marketplace).

Funding and financials

In April 2023 , Hokodo raised an undisclosed sum of funding in a Series B extension round led by Citi. The company planned to utilize the funds to support its geographical expansion plans. This followed its initial Series B round in June 2022 , when it raised USD 40 million.

Key competitors: None comparable (Hokodo has a unique operational presence at the early stage in the B2B segment)