Business specialist fintech Archa has pulled in $24 million through its pre-Series A funding round, with the capital injection to support the company’s growth and new product development objectives.
Archa said a number of high-profile investors were drawn to its latest capital raise, which alone brought in $4 million.
Among the more notable of these investors include chief executive and founder of neo-lender Wisr, Anthony Nantes, who led the investment round.
Alongside Nantes are a coterie of high-profile investors including Betashares chief executive and Apex Capital founder Alex Vynokur, co-founder of online fashion retailer The Iconic and engineering consultant Hatch, Adam Jacobs, and former Macquarie Capital executives John Prendiville and Michael Carapiet.
Archa founder and chief executive Oliver Kidd welcomed the “high calibre of investors”, which he said reflected the growing demand in the SME market for providers of alternative business banking products.
“The problems faced by businesses when it comes to banking and payments is immense – so is the opportunity. We’re building a product designed around modern-day business processes to help save owners time and money so they can grow more efficiently.”
Another $20 million was raised through an institutional debt facility – recognised as a “huge milestone” for Archa – provided through Roadnight Capital.
“Ultimately, working closely with Roadnight will allow us to grow faster, and more efficiently. Together, we’ll be able to serve substantially more customers,” the fintech said.
“This new funding allows us to materially accelerate our hiring, invest more in our growth and speed up our feature delivery over the next 6 [to] 12 months.
“This will include richer expense management features, a desktop portal and much more.”
The fintech, founded in 2016, provides dedicated finance management and credit services for SMEs, including the issuance of corporate cards and a spend management platform, which provides reporting and user management functions as well as native integration with a number of well-known accounting platforms.
Being an issuer of corporate cards, the fintech says that it has “unrivalled connection and insight into [businesses’] spending operations”.
The fintech this year launched a Xero bank feed integration – the first of its kind for an Australian non-bank business credit card.
Archa claims to process more than $600,000 in transactions each month, with new customer growth increasing 30 per cent month-on-month.