Australian platform Marmalade raises AU$16m to support SMB financial health

Australian invoice payment platform, Marmalade, has successfully raised AU$16 million in funding, in a drive to assist Australian small and medium businesses (SMBs) handle cash flow challenges and secure risk-free working capital.

Cash flow issues, specifically the delayed or non-payment of invoices, are often cited as the leading cause of small business failure in Australia. Marmalade aims to alleviate this stress by offering a service that allows SMBs to get paid for their invoices on-demand, removing the need for traditional debtor finance arrangements. The funding initiative was spearheaded by the Blue Stamp Company and also saw participation from existing investors including Paloma Capital.

Marmalade is setting the pace in the Australian market, processing over half a billion dollars in annual invoice value. This fresh injection of capital will be funnelled towards encouraging new customer growth as well as product development. Luke Trickett, Co-Founder and CEO of Marmalade, explains, "SMBs are the lifeblood of the Australian economy with entrepreneurs and leaders taking incredible risks to build a business that grows."

"Often frustrated by the limited support of traditional banking products, our customers are looking for new, innovative ways of managing their working capital and seeking a flexible, debt free alternative that puts their business growth back in their own hands, not the banks. Its been exciting to see the continued diversification of our customer base to now also appeal to the mid-market, across various industries," Trickett says.

Since its inception by a leading team including early investors in Afterpay, Marmalade has witnessed phenomenal growth. In the last year alone, customer numbers have increased by 65 percent and payment volumes and revenue have soared by 100 percent year-on-year. This recent round of funding takes the total finance raised by Marmalade over the last four years to more than AU$32 million, highlighting the continuous investor trust in the company's vision and prospects for expansion. The company's ambitious target for 2024 is to reach a payment volume of one billion dollars through the platform.

Existing investor, Ash Fogelberg, General Partner at Paloma Capital, commended the Marmalade team for providing an innovative solution to pressing long-time problems faced by SMBs. He stated, "Marmalade helps businesses manage their cash flow gracefully with a product that is truly unique in market...We have developed a deep level of conviction in the team's capability, integrity, and passion."

Marmalade directly integrates with cloud accounting platforms like Xero, Quickbooks or MYOB, allowing invoices to be cashed in for a minimal one-off fee. This feature provides owners and finance teams with an always-on, debt-free finance solution designed to cater to the changing needs of their business. This tech solution is underpinned by a standout risk management platform, providing an affordable avenue for Marmalade to scale into a complex and diverse customer base.

Marmalade was created in partnership with Paloma, Australasia's leading venture studio. The first version of the product was launched with its debut customer in October 2020, and since then, two former-Paloma tech team members, including the Head of Technology & Engineering and a Senior Software Engineer, have joined the Marmalade team, reinforcing the fintech's future plans for ambitious growth.