Small business factoring fintech pockets $16 million raise

A Melbourne small business invoice payment platform built with a venture studio has raised $16 million.

The round for Marmalade was led by Blue Stamp Company, supported by existing backer Paloma Capital and several family offices.

The capital will be used to fund new customer growth and product development.

The fintech was built in partnership with venture studio Paloma, which helped with product development as well as investing, along with former team members joining Marmalade, including the head of tech and software engineers.

Cofounder and CEO Luke Trickett a former stockbroker and national swimmer, shipped his first product in October 2020. The following year COO Richard Johnson, the former dead of data, analytics and risk at Afterpay, joined him as cofounder.

The fintech integrates with accounting platforms such as Xero, Quickbooks or MYOB pulling invoices into Marmalade where they be cashed in for a one-off fee.

The new funding takes the total Marmalade has raised in four years to $32 million.

Tricket said he hopes to hit $1 billion in payment volume annually by the end of 2024.

“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 bank’s.,” he said.

“It’s been exciting to see the continued diversification of our customer base to now also appeal to the mid-market, across various industries.”

Paloma’s Ash Fogelberg said the Marmalade product that “is truly unique” in market.

“Having worked with Luke and the team from early whiteboard concepts, through launch and growth of the Marmalade platform, we have developed a deep level of conviction in the team’s capability, integrity, and passion,” he said.

“Marmalade solves an extremely complex set of problems while still offering the end customer a simple and world-class experience.”