Ontik Raises $3.7 Million to Transform B2B Wholesale Credit Management
In a significant boost for the fintech industry, Ontik, a London-based startup, has successfully raised $3.7 million (approximately €3.28 million) in a seed funding round. This amount surpasses its original goal of $2 million, demonstrating strong investor confidence in its innovative solutions for business credit automation.
Revolutionizing B2B Wholesale Credit
Ontik is focused on automating B2B wholesale commercial credit processes, replacing outdated manual methods with efficient digital systems. Co-founder Chris Smith noted that many B2B wholesalers still rely on spreadsheets, phone calls, and handwritten notes to manage credit. “We provide them with modern workflows that save time and enhance operational efficiency,” he stated.
Funding and Investor Backing
The funding round was led by Firstminute Capital, with participation from notable investors such as PT1, Illusian, FJ Labs, Seed X, Tiny VC, and strategic backers including the founders of Slack and Affirm. Sam Endacott, a partner at Firstminute Capital, emphasized Ontik’s role in commercial credit, likening its impact to that of Stripe in online payments.
Targeting the Construction Sector
Founded by brothers John and Christopher Smith, Ontik has its sights set on the British construction sector, a market worth £100 billion. Many companies in this field still utilize pen-and-paper systems for essential operations. Ontik aims to replace these traditional methods with advanced digital tools, particularly in industries where extended payment terms are commonplace.
Smart Automation for Wholesalers
The Ontik platform streamlines credit workflows for B2B wholesalers, focusing first on commercial credit and expanding into back-office operations. Its primary goal is to reduce the administrative burden on teams, allowing them to concentrate on customer service and scaling their businesses.
AI-Driven Solutions for Improved Efficiency
Describing itself as the “real economy band,” Ontik plans to broaden its impact across various wholesale trading processes. The platform automates crucial tasks such as order processing, task management, payment terms delivery, invoice tracking, dispute resolution, and data synchronization. By leveraging AI, Ontik minimizes manual effort, enhancing overall efficiency.
Impressive Results and Rapid Growth
Users of Ontik have reported significant improvements: a 60% reduction in time spent on payment follow-ups, over 30% faster cash collection, and more than 25% lower incidence of disputes. The platform seamlessly integrates with ERP systems like Merlin, Unleashed, and Intact, facilitating deployment across multi-branch operations while preserving existing workflows. In just 12 months, Ontik has expanded into over 30 branches with clients such as GH Brooks, AW Lumb, and Fort and Catchpole, boasting a transaction volume pipeline exceeding £1 billion and a growth rate of 30% month-over-month.
Conclusion
As Ontik continues to innovate within the B2B wholesale credit space, its automated solutions promise to transform the way businesses operate. By addressing the inefficiencies of traditional credit management, Ontik not only enhances productivity but also elevates the standard for operational excellence in the financial aspects of wholesale trade.