Three ANZ startups that raised $20.3 million this week

Payments technology was the real theme of this week’s startup raises, with three businesses across Australia and New Zealand scooping up new funding.

Keep reading to learn more about Archa, RedOwl, and Qippay.

Melbourne fintech Archa has raised $11 million to develop its business credit card platform and improve access to working capital without the need for personal guarantees.

The raise, at an undisclosed valuation, was backed by execs and founders from Zip, The Iconic, BetaShares and Netspace, alongside US investor The Fintech Fund and former Macquarie executives. It will be used to ramp up product development, including AI tools to check purchases against company spending policies.

Alongside an $11 million equity raise, Archa also secured a $50 million debt facility, according to a statement provided to SmartCompany.

Founded a decade ago by former corporate M&A lawyer Oliver Kidd, originally as a neobank, Archa Money initially raised around $3.8 million in its first five years, before pivoting to corporate credit in 2021, and counts former Wallaby Quade Cooper and fitness influencer Emily Skye among its backers.

The new debt facility will support lending based on business performance, without requiring directors to put personal assets on the line.

RedOwl, which runs a digital governance platform helping organisations check how payments are signed, delivered, billed, and paid, has raised a $5.3 million seed round.

The raise reportedly gives the Melbourne business a valuation of $38.4 million.

The Australian Financial Review reports Tidal Ventures led the round, which also saw input from prior RedOwl investor CP Ventures.

Founded by Jitto Arulampalam and Thushan Shanmugarajah, RedOwl promises to make the work of financial governance easier and more transparent for a business’ accounting and finance teams.

The platform helps those professionals spot leakage in margin, revenue, and payments, by analysing if final outcomes actually match agreed contract terms, policies, and commercial rules.

RedOwl has partnered with Mastercard through the global payment giant’s StartPath Program, and reportedly offers its platform to customers including Aussie Broadband and Vicinity Centres.

The startup intends to use that funding to expand its client base and build out its technical platform.

Read more at The Australian Financial Review.

Five-year-old Auckland fintech Qippay has raised $4 million (NZ$5 million) with Australian All Roads Wholesale Fund taking a 25% stake in parent business, Qippay Group.

The deal, expected to complete this week, will support Qippay’s growth in New Zealand, including new financial and data infrastructure capabilities, as the fintech also explores a potential Australian expansion using the Consumer Data Right (CDR).

Founded in 2021 by Ashley Lake-Johns and Wayne Deas, Qippay has developed open banking infrastructure connecting payments with CDR for businesses to reduce payment costs and automate administration and access more up-to-date financial information.

Lake-Johns, Quippay’s CEO, said the investment will support the company’s next stage of growth, more staff and extending its tech into broader financial and data infrastructure.

The fintech is based at Auckland Council’s GridAKL innovation hub, and currently employs six full-time staff, with plans to grow the team to 12-15.

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