Our Fintech Startup Simplifies Finances for SaaS Companies ($60K/Month)
Hello! Who are you and what business did you start?
My name is Ivan Maryasin, I’m the CEO and co-founder of Monite. Monite is a Berlin-based fintech company on a mission to revolutionize financial management for B2B SaaS companies.
We let B2B platforms embed financial workflows like invoicing, payables automation, expense management, and accounting for their clients and become super-apps within their vertical industries. A comprehensive set of developer tools, including SDKs and widgets, coupled with world-class APIs, dramatically reduces integration time for B2B platforms.
Monite allows partners to offer a broad range of financial products to their customers, optimizing efficiency, quality, and user experience, all while generating additional revenue. Backed by Third Prime, P72, founders of Klarna, Mollie, Nium, and execs from Plaid and PayPal, the company has been increasing its revenue and enlarging the client roster in recent times, currently boasting over 20 clients.
We're proud to be pioneers in the rise of multifunctional SaaS platforms powered by embedded finance.
What's your backstory and how did you come up with the idea?
My journey in the tech industry laid the foundation for Monite. I have more than ten years of experience in growing startups, having worked with companies like Penta, People.ai, and BrightEdge. My expertise in fintech and the world of startups provided valuable insights into the needs and challenges businesses face, particularly in financial management.
The concept of Monite crystallized during my tenure leading to growth for Penta, a German B2B neobank. Observing the struggles of SMEs in managing their administrative and accounting tasks, it became apparent that they were utilizing an array of tools, leading to inefficiencies and time wastage.
The "aha" moment occurred when I connected with Andrey Korchak, my co-founder and Monite's CTO. With experience in developing an SME super-app for one of the largest banks in Eastern Europe, complete with integrated tax and accounting services, we recognized the opportunity to create a unified platform that could streamline financial and administrative tasks for European SMEs.
Founding a company requires a delicate balance between not getting too deep into details and not staying too detached from them.
Take us through the process of building the first version of your product.
Creating the first version of Monite was an exciting and challenging journey. We set out to design a neobank with extended functionality. Our focus was on designing user interfaces that were intuitive and user-friendly, making it easy for businesses to manage their finances. We worked on features such as invoicing, expense management, and the automation of accounting tasks.
Early version of Monite
With a small team of just two developers, we managed to build a fully functional product in eight months. This achievement was remarkable, considering the complexity of the platform and the limited resources available.
We also had to address regulatory and legal considerations to ensure data security and compliance, further emphasizing the uniqueness of our approach. However, at that juncture, we recognized the potential for our creation to become a trailblazer in the embedded finance market. To achieve this, we decided to shift our focus from creating a standalone neobank to building an API-first platform tailored for B2B companies. This strategic pivot allowed us to develop a robust infrastructure, setting the stage for Monite to emerge as a leader in the evolving landscape of embedded finance.
One of the key factors that contributed to our customer retention success was our emphasis on exceptional onboarding practices and the simplification of complex financial scenarios.
Describe the process of launching the business.
Monite's strategy was founded on a deep understanding of our target market, SMEs, and freelancers. We conducted extensive research, studying over 3,000 businesses across Europe to identify their needs.
Our platform's core value proposition was clear by the time we had an MVP: 76.5% of businesses preferred to use a single platform for admin needs instead of juggling multiple tools.
The strategy was to create a seamless customizable solution and provide a unified financial management experience through vertical SaaS platforms working with SMEs. This approach aimed to replace the need for multiple, narrowly focused tools, ultimately saving users both time and money while significantly boosting productivity.
The launch was marked by a strong online presence, with a user-friendly website that communicated our value proposition effectively. We initially financed the business through a combination of investor funding and personal resources.
First, we bootstrapped for eight months and built an MVP, attracting early angel investors. After further bootstrapping and facing resource limitations, we launched our first massive fundraising campaign.
The COVID pandemic shifted investor relations from in-person to online, enabling quicker funding decisions and lessening the impact of face-to-face meetings on funding opportunities making the whole process much faster.
Despite facing rejections, our persistence led to securing our first investor, followed by others. This challenging period of financial constraints and heavy workloads has now transitioned us into scaling our company and expanding into major markets like the US and UK.
Since launch, what has worked to attract and retain customers?
The first clients that we got were from referrals. Referral through our networks, as well as through our investors. One of the key factors that contributed to our customer retention success was our emphasis on exceptional onboarding practices and the simplification of complex financial scenarios.
We understood that when new tech teams embarked on building fintech products, they needed to integrate finance-related functionalities quickly. To facilitate this, we provided our customers with a server-side API that handled the majority of finance-related use cases. These APIs operated in our cloud, allowing engineers to plug them into their platforms seamlessly.
We also went the extra mile to offer support to our customers by working on public software development kits that streamlined complex finance-related flows on the tech side. By enabling our clients' engineers to install these SDKs directly into their platforms and connect them to their applications, we simplified the integration process significantly. These SDKs generated numerous customizable screens for various business cases directly into their interfaces, improving UX and expediting development.
Our approach had a transformative effect on both the cost and speed of delivering integrations for B2B platforms. By providing the necessary tools and resources, we empowered tech teams to build on top of our existing API swiftly and efficiently. This approach removed barriers, making it accessible to smaller teams with limited budgets, including early-stage startups, and let us skyrocket client retention.
What's working well on customer acquisition now is our online presence. Wherever there is a conversation going on regarding embedded AP/AR, we try to be there. We do that by creating relevant content and distributing it through our socials + thought leadership, interviews, podcasts, and speaking at events.
Next to that, we set up our content (website + marketing materials) to answer questions that our ICP may have. And we try to distribute it through channels where we know our ICP will be on, whether it's on Search or other Social Media Channels.
Eventually what helps with retaining clients is by continuously providing support. We support the integration process and aid with product design and GTM as well. And we have our head of client success leading these efforts. As long as our clients become successful, they stay with us.
Through starting the business, have you learned anything particularly helpful or advantageous?
Founding a company requires a delicate balance between not getting too deep into details and not staying too detached from them. Losing sight of the big picture can lead the company off course, missing trends, misinterpreting market dynamics, or misunderstanding what's happening. At the same time, diving too much into details can make a founder lose sight of the business and its driving factors.
A great example is controlling the pricing strategy. The CEO should probably be the one to decide on the best pricing models for their business. However, tasks such as competitive analysis, customer segmentation, and the entire testing and feedback processes can surely be delegated. The CEO should maintain overall control, although the temptation to dive deep can be quite strong.
So maintaining a balance when hiring top-notch people is crucial to avoid micromanaging and demotivation. This is my most significant learning: that people are the key factor in a company's success, influencing its direction.
What have been the most influential books, podcasts, or other resources?
The most influential resources in shaping my perspectives and guiding my approach to business include What You Do Is Who You Are: How to Create Your Business Culture by Ben Horowitz and No Rules Rules: Netflix and the Culture of Reinvention, the book by Erin Meyer and Reed Hastings. These have been instrumental in understanding the importance of cultivating a strong organizational culture.
For product management insights, User Story Mapping: Discover the Whole Story, Build the Right Product, and Inspired: How to Create Tech Products Customers Love have proven invaluable, offering crucial knowledge in navigating the complexities of product development.
Additionally, Dr. Joe Dispenza's Becoming Supernatural and Sadhguru's Inner Engineering has been transformative in addressing personal limitations and fostering personal growth, particularly in my role as a CEO. These resources provide profound insights into overcoming challenges and expanding one's mindset, essential qualities for navigating the complexities of leadership.
Advice for other entrepreneurs who want to get started or are just starting out?
Firstly, it is essential to introspect and understand what truly drives you. Knowing your motivations provides clarity and purpose in navigating the challenges of building a business.
Additionally, maintaining a keen awareness of your limitations is crucial. Recognizing what you don't know allows for continuous learning and the humility to seek guidance when needed. Moreover, focusing on people and cultivating a strong organizational culture is paramount.
Building a company is not just about products or services; it hinges on the individuals who contribute to its growth. Great people thrive in an environment where a great culture fosters collaboration, innovation, and shared values.
Acknowledging the reality of challenges and failures is inevitable. Creating a culture within the company that embraces and learns from these setbacks is a powerful strategy for long-term success. Openly discussing shortcomings creates an environment where individuals feel free to contribute their insights, fostering a culture of continuous improvement.
In the face of challenges or uncertainties, emphasizing the importance of long-term thinking and planning is key. Taking a strategic and forward-looking approach enables entrepreneurs to navigate obstacles with resilience and adaptability.
Lastly, recognizing the value of creating a knowledge base for frequently asked questions or relevant topics is a practical step in streamlining communication and ensuring consistent understanding within the team. This proactive measure contributes to the overall efficiency and cohesion of the business.
Where can we go to learn more?
- Ivan Maryasin on LinkedIn
- Monite’s Guide to Accounts Payable Automation for Founders
- Monite’s Guide to Accounts Receivable Automation for Founders
- The Company’s Website
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