Montonio raises EUR 500 000 to make instalment credit market more customer-friendly

We advised Montonio, a new generation fintech, in raising EUR 500 000 provided by both Estonian and international investors.

Innovation in point-of-sale financing

Montonio, which is making its mark in the hire purchase markets of Estonia and Lithuania,  has created a new point-of-sale financing solution that allows online shoppers to receive several instalment offers from competing creditors with a single credit application, from which the most suitable can be chosen. The shopper is presented with offers within a few seconds and receives a clear comparative overview of various financing options, including terms and conditions and cost.

According to Markus Lember, CEO of Montonio, the customer’s options to receive point-of-sale financing have so far been mostly tied to a single creditor who has a partnership with the trader concerned. “As a result, there is essentially no price competition in the market and unsuspecting clients pay hundreds of euros more than they should”, comments Lember.

Aiming for Scandinavia and Central Europe

Founded in 2018, Montonio has acted as a credit marketplace for a total sum of over EUR 400 000 and has entered into partnership with several of the largest merchants and banks operating in the market. Notes Markus Lember: “I am glad to say that our product has been well received by the market”, adding that the company aims to prove the product’s viability in the Estonian and Lithuanian markets and then move on to conquer the Scandinavian and Central European markets.

Interest from famed investors

Eleven investors from four countries participated in the investment round, including Charlie Songhurst, celebrated as one of the most successful angel investors of all time, as well as former TransferWise executives Triin Hertmann and Martin Sokk. The investor lineup also included Baltic and Finnish venture capital funds Practica Capital, Gorilla Capital and Lemonade Stand, several angel investors and earlier financiers of the company, Superangel, StartupWiseGuys and Jevgeni Kabanov, CPO of Bolt.

Our services and client team

We advised Montonio regarding preparing relevant transaction documents. Our client team included partner Toomas Prangli, senior associate Robin Teever and associate Mirell Prosa.