While numerous payments and financial solutions flood the online e-commerce space, the physical retail sector often remains overlooked. In 2023, Qomodo, a Milan-based aggregator of payment solutions for brick-and-mortar merchants, successfully secured a pre-seed funding round of €34.5 million ($36.9 million), primarily through debt. This funding aims to extend the buy now, pay later (BNPL) model into various additional sectors.
The company has now achieved a further €13.5 million ($13.9 million) in a Series A funding round. This funding was co-led by RTP Global and LMDV Capital, with participation from Proximity Capital, Primo Capital, and several prominent investors, including the founders of FACEIT, Fiscozen, and Freetrade, the latter joining through Lumen Ventures. Consequently, Qomodo’s total funding has reached €48 million ($49.6 million), breaking down to €18 million in equity and €30 million in credit facilities.
Launched in 2023 by entrepreneurs Gianluca Cocco and Gaetano de Maio, Qomodo now claims to serve approximately 2,500 physical merchants, predominantly in Italy.
The platform allows small businesses to enhance their cash flow and boost revenue by offering a BNPL solution that permits customers to make flexible, interest-free payments for their in-store purchases.
This approach increases the likelihood of retail sales while simultaneously lowering the credit risk associated with customers.
In an interview with TechCrunch, Gianluca Cocco, the CEO and co-founder of Qomodo, stated: “Our software essentially simplifies transactions for merchants, helping them minimize payment fees and enhance operational efficiency. We are essentially digitizing small and medium-sized businesses that fintech has largely neglected in the physical world.”
“We offer a comprehensive approach,” he continued. “In addition to our BNPL and POS solutions, we plan to introduce additional banking products, including cards and bank accounts.”
He noted that they occupy a niche where fintech solutions are scarce: “This is specifically targeted towards physical merchants. Traditional financial institutions typically offer personal loans and conventional lending products, which represent our main competition.”
Louis Dussart, VP of Europe at RTP Global, remarked: “Italy has been in search of a B2B fintech leader, which is why we are excited to support Qomodo. Given Italy’s substantial domestic market and reputation as the ‘nation of SMBs,’ there is considerable potential to transform and enhance in-store shopping experiences for both retailers and consumers.”
Qomodo has successfully established partnerships with renowned retailers, including Decathlon, Calzedonia, Moschino, Samsonite, Nike, and Pandora.
Compiled by Techarena.au.
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