Data-Driven SME Financing Fintech AREX Markets Acquires €8.8M in Capital to Better Serve UK, Spain Markets

AREX Markets, the data-driven Fintech that aims to lower financing costs for small businesses and enables them with accessing cash a lot quicker, reveals that its €8.8 million Series A round has been finalized. The funds acquired will be used to expand the firm’s business operations across the UK  and Spain.

Mosaic Ventures, which has considerable Fintech and small business financing expertise, and LocalGlobe led AREX’s latest investment round. Existing investors Lifeline Ventures and angel investor Richard Laxer, ex- Chief Executive at GE Capital also made contributions.

AREX had previously acquired 3 million Euros in seed funding back in 2016.

AREX’s approach to streamlining the invoice factoring sector led to strong interest in its round, along with its established track record in the Nordics region and steady business growth at around 20% MoM (for this year).

Airto Vienola, CEO of AREX, stated:

“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.”

Airto added:

“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 unfavorable 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.”

With this funding, AREX will be offering its proprietary tech in the UK and Spain. It aims to provide embedded lending services that can be added to accounting platforms, enabling SMEs to seamlessly access a diverse financing marketplace.

The AREX tech integrates into customers’ software applications and related processes by using data to support automation and enhanced financing workflows.

The AREX platform aims to offer an alternative to conventional invoice financing, providing a live, algorithm-based trade that enables small businesses to access cash that may be trapped in their debtor book. This approach allows professional investors to make investments in SME assets  without paying high transaction fees.

The COVID-19 crisis has put a lot of pressure on SMEs, with many reporting slow or even suspended payments. AREX aims to assist them by financing as much as 95% of all invoices sent to the platform within one business day.

Toby Coppel, Partner of Mosaic Ventures, noted:

“AREX is creating much needed cash flow opportunity, flexibility and access for SMEs – just as so many of these are coping with major pressures on their company finances. The business’ mission to change the face of SME lending, has already seen tremendous successes in the Nordic markets. As they expand further into the UK and Spain, it is an exciting time to come on board and partner with the management team to support their international growth.”

Timo Ahopelto, Founding Partner, Lifeline Ventures, added:

“The AREX team is building an entirely new asset class and a critically important platform for SME financing that is game changing. SMEs in the UK and Spain will benefit from this alternative cash flow approach and be able to rebuild and scale their businesses after what has been a turbulent year.”

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