Slope, which offers businesses an easy way to offer buy now and pay later services, has had a busy half year. That’s not much of a surprise, given that the buy now, pay later market size was estimated to be $16 billion in 2021 and will grow nearly six times by 2029.
The API technology allows companies to approve the BNPL in seconds, so they can start offering the terms. At checkout, customers choose the payment terms that work for them. Slope manages lending, underwriting, and eventual collection, and pays out the company as soon as the product or service ships.
The company’s founders, Alice Deng and Lawrence Murata, are coming off an $8 million seed round announced last November and saying growth is the most important thing that has happened. During that six-month period, they saw about 121% growth month over month, enrolling enough enterprise customers to grow more than 20-fold in the quarter, with the waiting list growing each week, Deng told MovieUpdates.
“We’ve gone from a minimally viable product to scaling up with business partners, so we’re going to give a huge boost to hiring, which we weren’t doing before, so we can build things out to take on more clients,” she added. ready.
It now enables financing for more than 2,500 companies in the US and Mexico, and B2B merchant partners include PlastiQ, Frubana, Meru.com, Blue Pallet and Go4U. They say customers see average orders increase by 168%, which is almost three times the size of the shopping cart. Slope takes about 26% of a marketplace’s total gross trading value, which Deng called “promising numbers,” and “an inflection point, so we want to get ready to scale.”
They are continuing to tailwind from the global pandemic in terms of businesses shifting their payments online and their customers becoming more comfortable paying through that method. One of the areas that Murata Slope says sets it apart from other financial services companies is its focus on a developer-centric approach, where others take a finance-focused approach, and “integration and adoption has been so bad because of it,” he said. added.
From the outset, they said Slope wanted a process where companies wouldn’t have to fill out 20 questionnaires or wait days to get approved for buy now, pay later. Instead, the adoption process is fully automated and takes seconds, while the technology integration takes minutes instead of months.
In addition to the growth, the company today announced another round of funding, $24 million in Series A funding, co-led by Union Square Ventures and Monashees, with participation from Tiger Global Management, Global Founders Capital and a group of founders and executives from companies such as Dropbox , DoorDash, Opendoor, Plaid, Rappi, Deel, Brex, Faire, Affirm, Adyen and Checkout.com. The new investment gives the company total funding of $32 million.
As mentioned, Slope plans to use most of the new funding for recruiting and scaling. It now has a small team of eight and plans to expand that to thirty in the next five months.
One of the new hires already on the job is Ashish Jain, who came in as Chief Financial Officer. Previously, Jain was most recently senior vice president of C2FO, where he oversaw capital markets, card products and business development. He was also head of capital markets at SoFi and started his career in 2003 at Deutsche Bank.
One of the reasons that attracted Jain to the company was that the founders adapted the product market relatively quickly, and during his due diligence, many of the marketplaces he spoke to were “satisfied and excited” about the product.
“With the B2B market growing faster than the B2C market – it will be close to $2 trillion by 2023 and B2C $1.2 trillion, there is abundant data to analyze,” added Jain. “The framework and ground floor are there, and they are excited to build a great culture and talent. We solve for B2B through a buy now, pay later product, bringing emerging technology to market and access to capital to grow. Overall, we are building a customer-centric technology that will help democratic access to the digital economy.”
“We’ve seen a huge evolution of businesses going online, especially during COVID, so there has to be some fundamental infrastructure in place,” said Rebecca Kaden, managing partner at Union Square Ventures, of the investment. “We felt that this was lacking in the B2B category. In addition, Slope benefits from growth on two levels: as customers grow, it scales with them and gains new customers. Slope’s product is faster and easier to deploy, which is a category advantage, and the growth rate reflects that.”