Swedish B2B buy now pay later (BNPL) company Treyd has raised $10.5m (£8.4m) in a Series A funding round led by Nineyards Equity to expand into the UK.
The expansion, shared exclusively with UKTN, will see Treyd operate out of Stockholm and London – just like consumer-facing BNPL giant Klarna.
Founded in 2019, Treyd provides BNPL services for international supply chains. It pays suppliers and gives companies 120 days to pay the balance. It aims to free up capital for a business so that they can instead invest in growth.
Treyd told UKTN that it chose the UK because it sees the country as a “leader” that strikes a balance between “being open for business and protecting consumers”.
Treyd added that the UK is good in terms of “regulation, data, and ecommerce penetration”.
The Series A round saw additional capital come from Zenith Venture Capital, J12, Njord Ventures, DHS Ventures. Treyd also received backing from a slew of high-profile angel investors, including Tetra Pak heir Magnus Rausing. Initial investor Antler provided a follow-on investment.
“We have proven that B2B pay-later works in Sweden, and this round allows us to take that idea to the world. Treyd will be able to free up capital and create new opportunities for thousands instead of hundreds of companies,” said Peter Beckman, CEO and co-founder, Treyd.
Treyd UK launch comes amid BNPL crackdown
It comes as UK financial watchdogs are set to introduce regulation for BNPL products, which often integrate at online checkouts to allow consumers to pay for goods in instalments.
More than 17 million UK consumers had used a BNPL company to make an online purchase as of the end of last year.
Treyd told UKTN that while it’s not directly affected by the UK’s upcoming BNPL regulations as it provides credit to businesses not consumers, it sees regulatory clarity as a “positive for fast-moving startups”.
UK households were recently warned about using BNPL financing to cover surging energy costs.
“Peter, Sameh and a stellar supporting team have pioneered B2B pay-later in Sweden, the home country of BNPL for consumers, and aim to take their model global with this latest fundraise,” said Teddy Himler, partner, Antler.
Treyd was founded in 2019 by co-founders Peter Beckman and Sameh El-Ansary. Its total funding to date is $12m (£7m).
“The Treyd team’s deep understanding of SME finance with real-time data analysis and strategy makes them a category leader in this burgeoning sector,” added Himler.