Qomodo Secures €34.5M, Payment Solutions for Physical Retailers

Milan-based fintech startup Qomodo has come up with a mission to revolutionize in-store payment experiences. The company recently raised €34.5 million in a pre-seed funding round, marking one of Italy’s largest early-stage investments in the fintech sector.

Company Overview

Founded in 2023 by entrepreneurs Gianluca Cocco and Gaetano De Maio, Qomodo positions itself as an aggregator of payment systems tailored for physical retailers. Both founders bring a wealth of experience, having previously contributed to the growth of physical stores through the distribution of new digital products in Italy. Their vision for Qomodo is to simplify retail transactions by enabling immediate, secure, and transparent collections for retailers, while offering flexible payment options to consumers.

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Funding Amount

The significantly large €34.5 million pre-seed funding round was led by London-based Fasanara Capital, known for its investments in transformative financial technologies. The round also saw participation by some notable investors, including Exor Ventures, Proximity Capital, Notion Capital, Octopus Ventures, and Lumen Ventures. 

In addition, prominent angel investors such as Simone Mancini, CEO of Scalapay, and Freddy Kelly, founder of Credit Kudos, contributed, portraying quite high confidence in Qomodo’s potential to disrupt the retail payment landscape.

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Smart Payment Solutions to Enhance in-Store Shopping Experience

Qomodo is poised to launch a suite of smart payment solutions aimed at increasing the convenience of shopping in-store for customers:

• Buy Now, Pay Later Option: Qomodo understands how unexpected expenses can potentially weigh down customers, hence it is providing an interest-free BNPL service. With this option, more effortless management of purchases on their necessities would mean increased purchasing power and satisfaction from customers.
• Payment Aggregation Platform: Qomodo’s platform will aggregate different methods of payment under one roof. This will, therefore, create a single interface for retailers who can easily settle transactions and consequently improve operational effectiveness. This aggregation offers instant and safe collections, simplifying the processing of multiple payment providers.

Benefits to Physical Retailers

Upon embracing Qomodo’s services, physical retailers will enjoy the following benefits:

• Boosted Customer Retention: Versatile payment mechanisms such as BNPL will most likely increase consumer satisfaction, leading to repeat business, which is essentially loyalty.
• Enhanced Cash Flow The platform guarantees timely as well as risk-free payments so that retailers achieve a healthy flow of cash as required for performing and growing functions. 

The Competitive Edge Innovative payment solutions often help retailers take a competitive position in the market, by attracting a significant number of convenience and flexibility looking customers. 

Read also: Paris-based startup Hyperline has raised $10M to Automated Billing for SMEs

Future Programs

Qomodo intends to use the substantial venture capital injection for:

• Expand Market Reach: It will first be targeting the Italian market, and then expand further into Europe in areas where retail is still highly physical.
• Improve Technological Infrastructure: Advanced technology to ensure the platform remains secure, scalable, and user-friendly for both retailers and consumers. It will make use of the following sources: 
• Develop Strategic Partnerships: Work with financial institutions and retail associations to ensure smooth integration and sensitivity to industry needs.

Summary

Milan-based fintech startup Qomodo raised a pre-seed funding round worth €34.5 million from the lead investor, Fasanara Capital. This company intends to improve the way physical retail transactions are processed using smart payment solutions, which now include Buy Now, Pay Later (BNPL) options for essential and surprise expenses to help increase customer satisfaction and turn-over business.