Wave: Revolutionizing B2B Credit Automation with €3.2 Million Seed Round
British startup Ontik has successfully raised a €3.2 million seed round, surpassing its original goal of €1.7 million. This funding will help Ontik automate commercial credit processes for B2B wholesalers, a sector that heavily relies on outdated manual practices.
Investment Driving Innovation in Financial Technology
The investment round was spearheaded by First Instance Capital, with contributions from notable investors including PT1, Illusian, Fj Labs, Seed X, and Tiny VC, along with strategic angel investors such as the founders of Soft and Affirm.
Enhancing Efficiency for B2B Wholesalers
Chris Smith, co-founder of Ontik, highlighted the challenges faced by B2B wholesalers: “B2B wholesalers are the financial engine of the real economy, but most always manage credit with spreadsheets, telephone calls, and handwritten notes.” Ontik aims to provide modern, automated workflows, saving wholesalers significant time and enhancing operational efficiency.
Transforming Back Office Operations
Founded by two brothers with experience in the trade sector, Ontik’s long-term vision is to fully automate back-office functions for B2B wholesalers. This includes credit management and streamlining critical processes that often bog down operations.
Addressing Industry Needs with Smart Solutions
Ontik is set to automate the order life cycle, which includes establishing payment terms, pursuing invoices, resolving disputes, and synchronizing data across key systems. Initial targets focus on the €118 billion UK building materials sector, where tight margins and stretched back office teams make efficiency vital.
Positive Impact on Cash Flow and Operations
Merchants adopting the Ontik platform report impressive results, including:
- 60%+ reduction in time spent collecting payments
- 30%+ faster cash collection
- 25%+ decrease in card processing costs
- Fewer disputes with quicker resolutions
Seamless Integration and Industry Focus
By integrating with major ERP systems such as Merlin, Unleashed, and Intact, Ontik facilitates rapid deployment for multi-branch operations. This feature supports large-scale implementations across various market locations without disrupting existing workflows.
Future Prospects and Ongoing Growth
In just 12 months, Ontik has launched in 30 branches, partnering with merchants including Gh Brooks, Aw Lumb, Fort, and Necklace and Slogan. With over €1.1 billion in transaction volumes in its pipeline and a 30% month-over-month growth rate, Ontik is quickly establishing itself as a leader in its sector.
Sam Endacott from First Instance Capital remarked, “Ontik does for commercial credit what the band has done for online payments.” With their innovative solutions, Ontik provides real-world companies with the tools to operate with the speed and efficiency of modern tech firms, demonstrating the significant impact already visible.