How Mõnnakas scales its business with revenue-based funding

Every online store eventually faces the same question: how to take growth to the next level. Often, it requires investing in product development, marketing, or inventory management. But for a growing business, finding the necessary resources isn’t always easy. Here’s the story of how merchant financing can give an e-commerce business the boost it needs.

Mõnnakas – a true ecommerce success story

Mõnnakas is an Estonian online store best known for its oversized, ultra-soft hoodie blankets – the perfect cozy companion both at home and outdoors. In recent years, the brand has expanded rapidly and broadened its product range: today you can also find raincoats, cooling products, duvets, and pillows in their store.

The company’s founder, Tambet Nugin, says that even as their product range evolves, their mission stays the same – to offer a first-class customer experience and set an example in Estonian e-commerce: “I believe our customer service is on par with the biggest brands. Even when issues arise, we do everything we can to resolve every customer concern quickly and successfully.”

What led to the need for financing?

Seasonality plays a big role – and managing cash flow around it can be challenging. “Every year, our summer sales make it hard to fully prepare for the winter season. We’ve never been able to reach our full potential in Q4 simply because we didn’t have enough resources to invest in winter stock,” explains Nugin. In addition, a fast-growing company like Mõnnakas needs to invest in product development and marketing to keep up the momentum.

At some point, every online store faces the same question – how to take growth to the next level. It often takes investment in product development, marketing, or stock management to get there.

The team had explored various funding options, but traditional banks weren’t an option – as a young, seasonal business, they didn’t meet the strict lending criteria. Smaller credit providers also offered terms that were too unfavorable to be sustainable.

Discovering revenue-based financing

Mõnnakas has used MakeCommerce payment solution from day one. One day, they received an email announcing MakeCommerce’s partnership with the new funding platform SoftLoans, and that became the start of their next growth chapter.

What sets SoftLoans apart is that funding decisions are based on the company’s actual performance – sales data, marketing efficiency, and other key e-commerce indicators. To the Mõnnakas team, it felt like a fresh and perfectly fitting approach. “It is a very modern and e-commerce-friendly solution – we were honestly impressed,” Nugin recalls.

For young businesses, meeting traditional bank loan requirements can often be difficult. That’s where SoftLoans comes in – their funding decisions are based on the company’s actual revenue and performance.

After connecting the necessary data to the SoftLoans platform, they quickly received a funding offer. Nugin highlights that simplicity and transparency made the whole experience stand out: “The terms were fair, and the entire process was incredibly smooth.”

Repayments are revenue-based – when sales are lower, payments decrease; when sales grow, the loan is repaid faster. Everything happens automatically, without any manual actions from the merchant.

The right support at the right time

Mõnnakas used 85% of the funding to grow inventory and the rest for marketing. According to Nugin, the impact was immediate and visible – the company entered the winter season with a larger stock than ever before and was able to execute several marketing campaigns that would otherwise have stayed on paper.

“Our sales potential for the fourth quarter is about 20% higher than in previous years – before we had funding from MakeCommerce and SoftLoans,” says Nugin.

He adds that the cooperation has left a lasting positive impression: “If I had to describe the experience in one word, I’d say: excellent. I’m very excited about the future of our company, because with MakeCommerce and SoftLoans, I have funding partners who help me keep developing the business actively.”

“I’m very excited about the future of our company, because with MakeCommerce and SoftLoans, I have funding partners who help me keep developing the business actively.”

MakeCommerce merchant financing helps online stores grow at their own pace – right when the extra boost is needed the most.

Learn more about financing opportunities