Spanish invoice finance firm Arex Markets has bagged €8.8m in a Series A funding round that has enabled it to accelerate its launch in the UK and Spain.
The funding round was led by Mosiac Ventures and LocalGlobe, who joins existing investors Lifeline Ventures and GE Capital CEO Richard Laxer.
Founded in 2014, Arex is a data-driven FinTech firm that seeks to drive down financing costs for SMEs and enable them to secure access to cash quickly.
Arex’s first product is an automated receivables exchange platform where SME invoices are converted into a tradable asset class called Exchange Traded Receivables (ETR). These are them sold onto an open market where a single ETR can be purchased by one or multiple investors using automated trading bots.
According to Arex, its technology seamlessly integrates into customers’ software and processes by using data to drive automation of the financing workflow.
Arex said, “The global pandemic has put immense pressure on SME businesses, with many suffering from slow or frozen payments. Arex helps them by unlocking their time and cash flow, financing up to 95% of all invoices sent to the platform within 24 hours.”
Arex CEO Airto Vienola added, “Our goal is to level the playing field for SME financing. Banks remain reluctant to lend to SMEs, often leading to them feeling trapped when it comes to their business finances. We listen carefully to our partners’ and customers’ requirements and liberate the liquidity within their business.
“We’re already seeing a sharp rise in demand for this service and a willingness for business owners to finally reappraise their financing options, which have been so unfavourable for so long. Closing the Series A raise with such supportive and significant partners on board is a major milestone in AREX’s growth and continued expansion.”
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