Melbourne fintech RedOwl has banked $5.3 million in a Seed raise that values the business at $38.4m.
The round was led by Tidal Ventures, with participation from existing investors including CP Ventures.
The funding will go towards developing the financial controls platform, rolling it out to large businesses and growth here and overseas.
RedOwl was founded in 2024 and joined Mastercard’s Start Path startup program that year. The founders developed the business after examining an invoice fraud existing systems and audit processes failed to detect.
The platform is designed to identify and prevent financial losses across supplier payments, customer billing and business spending before transactions are completed. It uses AI to check contracts, company policies, rate cards, approvals and previous decisions, comparing it with ransaction information to help finance teams check whether a payment or expense complies with agreed terms.
The issues it targets include invoices charged above contracted rates, services delivered without being billed and spending outside company policy.
The software sits above businesses’ existing financial systems, drawing together information that would otherwise be held across separate records. It covers accounts payable and card payments, allowing staff to review discrepancies before money is transferred.
