Swiss small and medium enterprise (SME) financing startup Tradeplus24 has raked in $225 million in a mix of equity and debt financing, Australian Financial Review (AFR) reported.
Of the total funding, $25 million is in equity financing and the remaining $200 million is in debt financing.
The biggest investment in this round came from existing investors Credit Suisse, SIX Group, and Berliner Volksbank. A European family office also participated in the round, the report noted. The round precedes a larger Series B raise scheduled for early next year.
Founded in 2016, Zurich-headquartered Tradeplus24 provides flexible and easy funding to SMEs looking to improve their liquidity. Businesses can take 30-180 days to clear due invoices which keep capital tied up. Therefore, Tradeplus24 extends a credit line against outstanding payments to help improve the immediate liquidity position of SMEs.
The startup lends between $500,000 and $10 million using a borrower’s receivables as security. It also buys insurance against missed payments to minimise risk. The startup provides funding for receivables from both domestic and international debtors.
In 2019, the startup expanded to Australia which is emerging as Tradeplus24’s fastest-growing market. According to the AFR report, Australia is expected to become Tradeplus24’s largest market by mid-2022. The startup has already funded nearly 25 SMEs in Australia with almost $100 million in debt facilities.
The fresh funds will boost Tradeplus24’s lending capabilities as well as its acquisition goals aimed at bolstering its technological proficiency, the report said. With its increasing success in Australia, the firm is looking to bring on board Australian strategic investors in its next funding round, the report added.
Featured image credit: Tradeplus24