With its novel approach to invoice factoring, Arex Markets has raised €8.8 million in a Series-A round. The Dublin-based startup uses an algorithm-based trading mechanism that opens up capital for SME’s and provides professional investors the opportunity to invest in SME assets directly without transaction costs.

Founded in 2014, Arex came into its own over the past year, growing nearly 20% month-on-month during 2021. The service integrates into customer’s software and process platforms and uses data to automate the often laborious financing process. Arex reports that 95% of all invoices submitted to the platform were financed within 24 hours.

“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,” commented CEO Airto Vienola. “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.”

The Series-A funding was led by Mosaic Ventures and LocalGlobe, who now join existing investors Lifeline Ventures and angel investor Richard Laxer, former CEO of GE Capital.