Slope Raises Capital to Build B2B Payments Platform

Slope: Revolutionizing B2B Payments with Buy Now, Pay Later

Alice Deng and Lawrence Murata, formerly employed within the artificial intelligence sector, drew inspiration from their families’ entrepreneurial ventures to establish Slope. This innovative platform provides businesses with a streamlined method for incorporating buy now, pay later (BNPL) services.

The Shift to Online B2B Payments

Before the onset of the global pandemic, suppliers commonly offered net payment terms of 30 days. However, Murata explained to TechCrunch that building credit proved challenging for smaller enterprises at that scale.

The pandemic significantly accelerated the transition of business-to-business (B2B) payments to online platforms, as Murata conveyed to TechCrunch. Their goal was to facilitate this shift at the point of sale and empower businesses with readily accessible capital.

How Slope Works

Businesses can achieve approval within seconds and immediately begin offering installment options to their customers. Customers, in turn, can select payment terms that align with their financial capabilities.

Slope assumes responsibility for all aspects of lending, including underwriting and debt collection. Funds are disbursed to the business only after the product or service has been shipped.

Founders and Rapid Growth

Deng and Murata are experienced founders, having previously participated in the Y Combinator program, most recently in the 2021 summer cohort. They initially entered the program with a different concept, ultimately pivoting to the current Slope business model, which launched in August.

The company has experienced remarkable growth, with a 15-fold increase in gross merchandise volume over the past 30 days. Over the last three months, they have onboarded merchants from the U.S., Canada, Mexico, India, and Singapore.

Expansion is ongoing, with merchants from China, Brazil, and Europe soon to be added from the existing waitlist.

Seed Funding and Future Plans

Slope recently announced $8 million in seed funding, backed by investors including Global Founders Capital and founders from companies like Dropbox, DoorDash, Opendoor, Plaid, PlanGrid, Mercury, and Pilot.

The primary focus of this funding will be to expand the Slope team, enhance the infrastructure supporting customer experiences, and onboard merchants currently on the waitlist.

The Expanding B2B Payments Market

The global B2B payments market was valued at $870 billion in 2020 and is projected to reach $1.9 trillion by 2028. Payment flows attributed to B2B transactions are currently estimated at $127 trillion, with expectations of rising to $200 trillion by 2028.

Vision and Competitive Advantage

“Our vision is to be Stripe for global B2B,” Deng stated. She emphasized that success in the B2B sector necessitates building robust infrastructure and developing a core competency in international cross-border transactions, challenges that business-to-consumer (B2C) players like Affirm and Afterpay haven’t faced.

Prior to product development, the co-founders conducted extensive interviews with small businesses, confirming a significant demand for BNPL solutions and securing agreements even before Slope’s official launch.

Investor Perspective

Don Stalter, a partner at Global Founders Capital, highlighted Slope’s “impressive” growth trajectory, describing it as one of the fastest-growing companies they’ve encountered at its current stage and with its lean team structure.

Traditional business loans from banks have often been a cumbersome “janky process.” Stalter believes that any technological solution capable of improving this process fivefold will be a significant disruptor, and a 100-fold improvement could revolutionize the industry.

He is confident that Deng and Murata can achieve this by leveraging artificial intelligence and innovative technology to unlock new opportunities for businesses within the substantial B2B payments market.