Oslo-based Two, a prominent B2B payments platform, has successfully raised €13 million in funding, elevating its total financial backing to over €40 million. This investment signifies a crucial step in the company’s journey to expand its footprint in the U.S. and Western Europe. A dynamic player in the B2B payment sector, Two stands apart by offering flexible payment solutions tailored to business needs, rather than repurposing consumer tools. Their innovative approach includes advanced risk management and fraud prevention systems, which have already benefited numerous merchants across the Nordics and Europe.
In previous years, Two concentrated on enhancing its presence in the European market, where it established strategic collaborations with well-known financial entities like Allianz and ABN AMRO. The emphasis was previously on creating a robust foundation through an agile platform that could cater to diverse business needs. Today’s developments build on that groundwork, as Two now aims to leverage its partnerships and established systems to make further inroads into new territories and expand its audience reach.
Strategic Investment and Its Implications
The recent funding round was spearheaded by Idékapital and Shine Capital, alongside contributions from new and existing investors, including Investinor and Sequoia Capital. Kristian Øvsthus, Managing Partner at Idékapital, highlighted the ambition and talent within Two’s team, stating that the company is well-positioned to become a global leader. Øvsthus emphasized the immense potential of the B2B payments market, which remains largely untapped.
Through this investment, Two plans to enhance its B2B payment infrastructure, introduce an advanced onboarding solution, and extend its suite of products to larger enterprise businesses. This expansion reflects a strategic alignment with institutional investors who have a long-term investment perspective. Mo Koyfman from Shine Capital noted the shift towards digital solutions in B2B payments, fueled by demands for more efficient, seamless transactions.
Two’s Vision for Payment Innovation
Founded in 2021 by Andreas Mjelde and Kiran Thomas, Two originated from a need to address inefficiencies observed in B2B transactions. They sought to create a system where merchants could experience smoother transactions with instant payment facilitation and deferred options for buyers. This vision is supported by AI-driven systems that aim to streamline processes and reduce fraud risks. According to Mjelde, Two has made strides in this area and plans to leverage the new funds to solidify its position in the market further.
Real-time underwriting and unique partnerships define Two’s approach, allowing them to deliver on their promise of revolutionizing the global B2B commerce landscape. Their ability to rapidly scale and their collaboration with over 200 merchants illustrate the effectiveness and demand for their offerings.
The perspectives of investors like Egil Garberg from Investinor affirm the confidence in Two’s potential to bring the B2B payments sector on par with its consumer counterpart. They are focused on tapping into fintech’s vast, untapped opportunities, with trillions still funneled through outdated manual processes.
Two’s strategy to build foundational infrastructure for global B2B commerce is ambitious, yet supported by a proficient team and strong investor backing. This aligns with the broader industry movements toward digitalization, setting the stage for significant sector improvements. The company’s integration of real-time banking solutions further enhances its competitive edge, setting a new standard for business payment systems.
