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.
The Australian reports that alongside an $11 million equity raise, Archa also secured a $50 million debt facility.
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.
Archa says annual recurring revenue grew 184% in the past 12 months and it processes more than $200 million in annualised spending.
Kidd said corporate card spending is “one of the most obscure problems in finance”,” he told The Australian.”.
The company estimates manual expense claims and difficulties in accessing credit cost Australia $1.3 billion in productivity annually.
