qomodo Raises $13.9M to Expand BNPL in Italy

Qomodo Secures Series A Funding to Expand BNPL for Physical Retail

While numerous payment and financial solutions exist, the majority are geared towards online e-commerce. However, what options are available for brick-and-mortar stores? In the fourth quarter of 2023, Qomodo, a Milan-based aggregator of payment methods designed for physical merchants, announced a €34.5 million ($36.9 million) pre-seed funding round – largely comprised of debt – which garnered prior coverage, focused on extending the Buy Now, Pay Later (BNPL) model to additional sectors.

Recent Investment and Total Funding

Qomodo has now successfully raised €13.5 million ($13.9 million) in a Series A funding round. This round was jointly led by RTP Global and LMDV Capital, with contributions from Proximity Capital, Primo Capital, and prominent investors including the founders of FACEIT, Fiscozen, and Freetrade (via Lumen Ventures). This brings the company’s total funding to €48 million ($49.6 million), consisting of €18 million in equity and €30 million in credit facilities.

Company Overview and Growth

Established in 2023 by Gianluca Cocco and Gaetano de Maio, Qomodo currently serves approximately 2,500 physical merchants, primarily located in Italy.

Qomodo’s core offering enables small businesses to improve their cash flow and boost revenue by providing a BNPL solution. This allows customers to make flexible, interest-free installment payments for purchases made in physical stores.

Benefits for Retailers and Customers

This system increases the likelihood of sales for retailers. Simultaneously, it mitigates the credit risk associated with customers.

According to Gianluca Cocco, CEO and co-founder of Qomodo, the company’s software simplifies merchant transactions. This simplification aims to reduce payment fees and streamline operational processes. He describes Qomodo as a means of digitizing small and medium-sized businesses (SMBs) that have been overlooked by the fintech industry in the physical retail space.

Future Plans and Expansion

Cocco further explained that their approach is comprehensive. Beyond BNPL and Point of Sale (POS) solutions, Qomodo intends to introduce additional banking products, including cards and bank accounts.

He emphasized that they operate in a market where fintech presence is limited or nonexistent, specifically concerning physical merchants. Their primary competition consists of financial institutions offering personal loans, traditional lending products, and conventional banking services.

Investor Perspective

Louis Dussart, VP, Europe at RTP Global, stated: “Italy has been anticipating a leading B2B fintech company, and we are pleased to support Qomodo. Given Italy’s substantial domestic market and its reputation as the ‘nation of SMBs’, there is a significant opportunity to revolutionize and enhance the in-store shopping experience for both retailers and consumers.”