Germany-based startup Topi has raised USD 45 million in equity and debt financing to provide hardware-as-a-service for B2B merchants who can choose to pay in installments for necessary equipment. The company is looking to offer similar services as Klarna and Affirm, payments in installments, to help B2B merchants purchase or rent hardware for their businesses to ensure a steadier cash flow.

Topi was launched in December 2021 with a USD 4. 5 million in funding to take BNPL services to another level by allowing B2B companies to benefit from rentals and subscriptions through a partnership with German electronics retailer Gravis. Hardware-as-a-service Topi’s business model is selling a hardware-as-a-service product that allows merchants to either rent out the necessary equipment or pay for it in installments.

Based on the B2B’s industry specifics, customers can rent smartphones, PC monitors, laptops, printers, robotic arms, and other machines. Moreover, when handling business with Topi, merchants can choose the terms for each product from their shopping basket, so that they get the best of two worlds – paying in monthly installments or renting, depending on the liquidity level of their company. This way, the German startup aims to not only help new startups with their cash flow but can also solve another operational problem – purchasing expensive hardware and equipment only for it to become outdated or obsolete in just a few years.

Hard times call for smart solutions Topi’s business model comes in handy not only for startups looking to maintain a steady cash flow but also for SMEs or established businesses that faced a hard time during the COVID-19 pandemic and the following worldwide economic crisis. In times of need, with tight budgets and companies looking to let go employees, Topi’s product for hardware equipment rental could prove the lifeboat for some merchants. The startup also brings together different components of the same ecosystem a seller might need to offer, including insurance, logistics, and refinancing providers, so merchants can easily build rentals into their existing online channels through Topi’s APIs.

For instance, if an electronics retailer wants to offer a laptop for a pre-agreed monthly fee payable over three years with an included fully warranty, after the three years, the merchant can decide to either upgrade to the latest existing model, return the device, or pay the remaining balance and own the laptop. If the customers knows upright that they want to own a specific item, Topi also offers a sustainable BNPL service, in which merchants can pay in installments. Finally, Topi supports up-front purchases for enhanced flexibility when opting for more than one item.

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