When individuals make purchases online, they place items in the digital shopping cart and use a credit or debit card to complete the transaction instantly. Businesses work differently and typically want to pay later on an agreed time frame between a week and 90 days. Most of these net transactions are still handled manually through paper invoices.
Two, a startup from Oslo, Norway aims to change that by bringing the world of net payments online and speeding up transactions by making them digital. Today, the company announced an investment of €18 million (approximately $19 million).
Two co-founder Andreas Mjelde says his company is taking a process that’s largely paper-based and offline, essentially transforming it into a purchasing process that’s faster than a consumer using a card to make a purchase online.
“By adopting our solution, you can now offer your business buyers or customers the ability to checkout and complete a purchase in about 30 seconds. And in those 30 seconds you onboard them yourself as an official customer via Two. We underwrite and take care of both credit and fraud risk, verify that the user is who they say they are and enable the buyer to complete the transaction [instantly]Mjelde told australiabusinessblog.com.
Small business owners can purchase a no-code solution, while larger businesses can use an API-driven approach that interfaces with their other systems. “Small businesses can get started without code. There is an out-of-the-box solution to start making their orders and accepting payments through our system. Medium and large companies typically integrate with our API. Our API is built to serve the merchant’s or seller’s normal order flow,” he said.
Mjelde recognized the need for such a product when he previously ran an e-commerce business and encountered issues with corporate payments, which typically had larger transactions than individuals, but the net terms process was difficult to navigate and required a lot of paperwork. This friction and complexity often led to a loss of turnover.
He started Two in 2020 to build a solution to make it easier for online businesses to handle this type of payment. He launched the product in the second quarter of 2021 and has reported growth of 243% per quarter since then. Today the company has 70 employees. Mjelde says being a remote company with employees all over the world has helped him build diversity in his workforce.
Today’s €18 million round was led by Shine Capital and Antler with participation from Sequoia Capital, Day One Ventures, Alumni Ventures, LocalGlobe, The Visionaries Club, Alliance VC and other undisclosed investors. The latest investment brings the total raised by the company to €28 million (approximately $30 million).