Tech

Juni, a “vertical” neobank for e-commerce and online marketing companies, raises $ 21.5 million – TechCrunch

European e-commerce is expected to grow 30% this year $ 465 billion, And it is creating a new ecosystem of services built to cater to e-commerce merchants. In the latest development JuniDesigned specifically for companies selling online, Neobank closed Series A for $ 21.5 million in just 12 weeks of its official launch.

Series A is co-led by D’s partnersST Global and Felix Capital are also attended by former backers Cherry Ventures and other early investors. Gothenburg-based Juni had previously raised € 2 million ($ 2.4 million) in seed rounds when it was still in standby list mode in November.

Part of the reason why the latest funding came so quickly is that Juni has taken a very strong three-month short life. Juni co-founder and CEO Samir El-Sabini told TechCrunch that the startup has signed up for 300. Business from 3,000 waiting lists. This represents about 500% customer growth each month. According to him, the customers were mainly those who sold their inventory. A drop shipper that sells on behalf of retailers. Performance marketers who have moved to selling products.

Another reason is that Juni works so well both in terms of investors and customers because Juni is building it to identify, understand and modify.

El-Sabini and his two co-founders Anders Oresdal (CTO) and Jonathan Sanders (COO) all have backgrounds in e-commerce and fintech (in fact, one was formerly a startup). I was sacrificing Pleo, but this week Announced major rounds of financingThe other two worked for different cost management startups, so they are familiar with the shortcomings of many banking services when it comes to providing services to run their business online.

As El-Sabini explained, traditional banks have long sought SMB as a customer, but they have never really understood the dynamics, challenges, and peculiarities of running an e-commerce business, and therefore These companies.

“What we do is provide insight and knowledge in the e-commerce industry,” he said. “And because we understand all cost centers, we can keep our risk profile low. We understand what Taboola is and we know Shopify.” El-Sabini usually e He said commerce companies are distributing money across a variety of services such as advertising networks, payment gateways and banks.

“That’s why we provide a unified view of all these dashboards. Then we derive insights based on all of their activities and provide the’right number’. This gives you an idea of ​​how much your company’s cash flows and deposits and withdrawals are for all of these services, so you know how much you need. Invest or use in advertising in other areas, especially to attract more customers.

“It’s all about the rewards and liquidity of advertising costs,” says El-Sabini.

He added that cash flow also works with payment cards that Juni offers as part of its service.

“I need a card with high spending restrictions.” This is mainly to explain how to spend a month’s money and repay it late (because of the time it takes for revenue to clear the payment gateway, etc.). Without a limit, your card may be rejected when you use it to pay for marketing or advertising campaigns.

“If the card is rejected, the advertising campaign won’t work,” he said. Because Google and others usually demote you with algorithms when that happens. “Old companies had a lot of declines, so they switched cards quarterly.” Of course, it’s a hassle to organize and you have the time to grow your e-commerce business. It’s not something you want to spend.

El-Sabini also states that in the event of a problem, the customer service representative speaks the same language as the customer, allowing them to address and address the problem appropriately.

To summarize all of the above, Juni sympathized with others just by building the kind of bank the founder wanted in the previous company, and El-Sabini was “tremendous, full of money and hope.” It brought about what we called “growth.” A good example: According to a press release sent in last week’s article, Juni had 250 customers across Europe, but by the time we talked, that number had exceeded 300.

There’s something else interesting about what Juni is doing. This probably points to a bigger trend in FinTech that is worth noting.

Online banks have made significant inroads into the financial world, providing consumers with a larger, more modern user experience, more personalized and often better rates than existing banks. .. Huge evaluation, Big customer growthAnd now, slowly, the first Of them Open to the public..

Nowadays, a second wave of very powerful Neobanks is emerging, which are not very widely targeted and are aimed at more concrete and vertical opportunities.These can be like targeting rural, Or freelancer, Or SMB, or specifically a company that works in e-commerce like Juni.

In that regard, there are really many FinTech startups currently targeting small businesses using banking services.They are included Finom, smart, hatch, Novo And many others. Especially within the e-commerce neobank, there are also competitions with the following companies. Viva wallet, Incard (It doesn’t seem to start yet), Yang, And maybe trying to cater to the same people as Juni.

So far, it stands out because of how quickly it was adopted and how they set out to own this space. This will allow Juni to move to a wider range of products to meet more needs for running an e-commerce business, including more types of credit products to maintain cash flow. This is one of the reasons why well-known investors like DST are interested.

“In just three months, Juni has already proven that it has the potential to become the next big technology solution for merchants around the world. This product solves clear problems and takes the time to digital entrepreneurship We’re resonating with our customers by getting them back home, “Felix Capital investors Joseph Pizzolato and Susan Lin said in a joint statement. “As investors, we look for signs of” customer love “and” digital cues “in every investment. The waiting list of over 3,000 SMEs for Juni’s products is better than ever. We quickly connect with the team and firmly believe in their vision. By paying attention to the details and understanding of your customers’ needs, you can be in the ideal position to win in this market. “

“Samir, Anders, Jonathan, and the team continue to amaze us,” added Sophia Ventures, a partner at Cherry Ventures. “Since the beta release of Juni, they have experienced a very impressive month-on-month transaction volume in such a short period of time. They are also world-class across compliance, finance, technology and marketing features. We have fostered a deep commitment to building teams and building credibility with the community. They are on the road to becoming a reliable financial companion for e-commerce entrepreneurs around the world. This was just the beginning and I couldn’t get any more excited to continue to support this team. “

Juni, a “vertical” neobank for e-commerce and online marketing companies, raises $ 21.5 million – TechCrunch

Source link Juni, a “vertical” neobank for e-commerce and online marketing companies, raises $ 21.5 million – TechCrunch

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