We are thrilled to announce our investment in Mimo, the platform simplifying global payments, cash flow, and financial management for SMBs and accountants. We’ve led this €18m round with participation from Cocoa Ventures, Seedcamp, Upfin VC, Fost Capital, and various angel investors including founders and early operators from Stripe, GoCardless, Wayflyer, and Anyfin.
Despite the fintech innovation of the past decades, when it comes to SMBs, payments and cashflow management continue to be a pain point. The processes are usually handled by a director on top of other duties or by a fractional CFO and involve a lot of manual work. Cashflow management is a timing problem and payments management a workflow problem. Beyond that, companies often fly blind, lacking real insights on their actual cash positions and future cashflows, which hampers their ability to properly plan ahead.
Over the years, we have spoken to multiple founders and fractional CFOs and repeatedly come across the time-consuming and fragmented processes SMBs face when managing money. The payer wants to pay as late as possible, while the payee wants to receive money as fast as possible. Without much negotiating power, small businesses are generally tight on cash; their options are to either take out expensive SME loans or pay their suppliers late to preserve and collect cash.
Today, SMBs often rely on a disjointed network of applications, including house banks, SaaS tools, and FX brokers, to manage their finances. Workflows are clunky and companies often keep track of their invoices in their email inbox, spreadsheets, or tools such as Xero. Furthermore, approvals between individuals go through a variety of touchpoints that are not purpose-built, creating unnecessary back-and-forths.
Over the past decade, we’ve seen a wave of neobanks and banks catered to SMB needs (including FINOM, also a Northzone portfolio company). While these banks replace old and unadapted incumbents, the administrative and cashflow challenges remain. In the UK, the average SME is owed a staggering estimated £22,000 in late payments every year.
Enter: Mimo. Founded by Henrik, Alexander, and Andreas, Mimo is solving this problem with their holistic platform that simplifies global payments, cash flow management, and financial management for SMBs and accountants.
By providing a suite of financial tools that bundles the features needed for SMBs to better understand and control their cash flow, Mimo enables businesses, accountants, and bookkeepers to manage finances through a single platform. The platform allows SMBs to pay suppliers with a click, access working capital, and get paid faster by customers, in any currency. Mimo’s credit offering minimises risk and optimises working capital, empowering businesses to send and receive payments on their own terms.
Our Partner, Jessica Schultz, adds, “Having known Henrik for years, we are very excited to partner up with him and his co-founders Alexander and Andreas, who previously worked together at iZettle and know well what it takes to build and win in the financial SMB market. Companies today face a real pain when it comes to coherently managing payments, cash flow, and financing. We believe Mimo’s vision for a true financial management platform aligns well with our thesis. The commercial success Mimo is already seeing today is a testament to the team’s drive and market edge.”
With this new funding, Mimo will accelerate product development, expand its platform, and continue its commercial success. If you’re an SMB or finance professional looking to streamline your financial processes, join the Mimo movement at mimohq.com.
