Fintech in Australia Grapple the company has raised $6.5million in order to expand its reach in the $3billion SME financing sector. It plans to upgrade its platform and increase its funding capacity. Grapple will also make its state of the art lendtech available for intermediaries and other lenders.
Grapple’s new platform release for select invoices and whole-of-turnover invoice financing follows years of development and has been built with feedback from Australian SMEs, who are looking for ready and flexible funding solutions on their terms.
“The pandemic has made the importance of cash flow management and access to finance even more important. Grapple developed and implemented lending technology and services to assist Australian businesses in their growth. The current system’s complicated approvals, paperwork, and administration continue to frustrate SMEs and their accountants. Grapple’s digital platform integrates easily into existing accounting systems to ensure a super-fast approval process,” Steve Dawson, Grapple CEO and founder, spoke.
Grapple raised funds from high-profile investors both in Australia and overseas. John Mullen, Telstra chairman, and Morgan Stanley MD Adam Merino (US) are just a few of the high-profile investors who have increased their stakes. Robert Millner is an investment doyen and Souls Patts Chairman. The bulk of the funds raised can be used to increase growth by forming partnerships in the sector and further product development.
Grapple’s team was strengthened by two experienced fintech executives: Tommy Braas, ex NAB business head and Jarrod Baker, ex PayPal and Facebook marketing manager.
Grapple CEO Steve Dawson, founder and CEO of Grapple, founded the company in 2017. This was after he saw how technology could be used in the UK to facilitate and expand similar markets. Invoice financing is much more common in the UK. Grapple, with a total of more than 100,000 invoices processed to the tune of $70million by Australian SMEs, has a strong competitive advantage and provides a path to scaling the business.
“We’ve built a great platform that’s intuitive and easy to use. We’ve used technology to automate and simplify what’s been a laborious process. We’re also using data and smart integrations to make decisions more accurately than ever before which has reduced the risk for our partners and our customers,” Steve Dawson.
“The COVID hangover is still very real for a lot of Australian SMEs and is being felt across their entire business ecosystem. The need for working capital is increasing due to FX movements, peak unit price changes and congestion in supply chains. We’ve seen a surge in enquiries for our lendtech financing from professional services, trades and SMEs in the ‘post-farmgate’ sector. They need ready access to funding that’s in pace with their business that the banks and larger financiers simply can’t provide. Being an Australian owned company ourselves we’re pleased that Grapple is an accessible solution that can help SMEs across the country,” Steve Dawson.