Four Aussie startups that raised $28 million this week

This week’s funding round-up includes a health tech company with the largest seed round for an Australian startup, a cash management platform offering high-yield products to SMEs, an end-of-life planning solution and an innovative take on cold brew teas.

Keep reading to find out more.

Kismet: $20 million

Kismet startup raise. — The Kismet team. Source: supplied

Healthtech startup Kismet leads this week’s funding round-up with a $20 million addition to its seed funding round.

The additional funds bring the startup’s total seed funding to $32.5 million and come six months after it raised $12.5 million in a round led by global consumer internet group Prosus Ventures and prominent VC firm Airtree Ventures.

Co-founder and CEO Mark Woodland confirmed to SmartCompany earlier this week that the startup’s seed round was split into two parts “for efficiency”, with existing investors also contributing to the second seed round.

A new investor, Singapore-based MassMutual Ventures, also participated in this second tranche of funding, alongside continued support from Prosus and Airtree.

The total round represents the largest seed round for a startup in Australian history, according to Kismet, which was launched in early 2023.

The startup’s ultimate goal is to “transform healthcare” using artificial intelligence-driven solutions, with a particular focus on the NDIS and aged care sectors.

It’s well on the way to achieving that aim, having become one of the largest plan managers in the National Disability Insurance Scheme (NDIS) in the country, serving more than 20,000 NDIS participants.

Woodland confirmed the startup is actively pursuing international expansion opportunities, but plans to keep its team “small and lean”.

Primary: $3.5 million

A cash management platform aimed at SMEs and startups has raised $3.5 million in its second round of venture capital funding, bringing its total funds raised to $4.75 million.

Primary was founded in 2022 by CEO Ben Buckingham, and offers SMEs higher-yield interest products than those typically on offer from traditional lenders.

The oversubscribed seed funding round was led by Carthona Capital and included participation from Macdoch Ventures, Archangel, AfterWork Ventures, No Brand and Resolution Ventures.

The investment will also see Carthona Capital partner Damian Fox join the Primary board of directors.

Primary’s product offering includes term deposits, high-interest bank accounts and fixed-income funds, with wholesale clients given access to interest rates above 5%. However, some of the products are only available to enterprises with a minimum deposit of $500 million.

In a statement provided to SmartCompany, Primary said it has more than $150 million of funds under administration and is working with 40 customers, including the likes of Eucalyptus, Lyka, Vow, Kismet and Sekuro.

It has partnerships with prominent financial institutions Morgan Stanley, Macquarie and State Street Global Advisors.

Buckingham said his previous roles at Allens Linklaters, Mckinsey & Company and Identitii helped him understand the extent to which small businesses and startups are often under-served by large business banks.

“Business banks have become complacent, and take advantage of smaller businesses who have few options,” he said in the statement.

“Primary is here to change that, by making it seamless for smaller wholesale companies to access a range of institutional-grade yield products”.

Carthona’s Damian Fox added that Primary’s “sophisticated” cash management strategies help SMEs ensure “their idle cash works as hard as they do”.

Willed: $3 million

Online will-writing and end-of-life planning startup Willed also raised this week, locking in $3 million from Seven West Media’s early-stage venture fund as well as an option to double that investment.

Willed was founded in 2020 by Aaron Zelman, Dave Kaplan and Tim Glasson and has previously been named among Victoria’s leading startups.

The startup raised $6 million in 2022, in a round led by Bell Potter Securities and including individual investors like Paul Dwyer, the founder of PSC Insurance, and institutional investors like Ellerston Capital.

Willed focuses on simplifying the process around wills, probate applications and cremations, as well as making them more affordable and accessible.

In a statement provided to SmartCompany, Willed said the new investment will accelerate the company’s growth over the next two years.

According to Willed, more than 50% of Australian adults do not have valid wills and many do not have funeral plans.

The startup plans to increase awareness of its services via the Seven West Media (SWM) network, which it says reaches 19 million Australians each month.

Other investors in Willed include Thorney Investment Group and Morgans’ Hugh Robertson.

“This strategic investment from SWM is a game-changer for Willed because of their unparalleled reach and media expertise. This investment means we can accelerate our growth faster than ever before,” said Willed co-founder and CEO David Kaplan.

The investment is well-timed, continued Kaplan, given the massive generational wealth transfer underway in Australia, which makes it “more important than ever before for people to have their affairs in order”.

“This investment not only validates our company’s mission but also comes at a critical time when the rising cost of living is putting serious strain on all Australian households,” he added.

Willed says it has helped more than 100,000 Australians write their wills online, with more than $500 million bequeathed to charities from these wills.

East Forged: $1.5 million

East Forged startup raise cold brew tea — L-R: East Forged founders Tania Stacey and Kym Cooper. Source: Supplied.

Brisbane-based East Forged has secured $1.5 million in funding from the venture capital arm of a leading agricultural business in Vietnam, as it works towards taking its unique cold brew nitro tea to global markets.

East Forged produces ready-to-drink teas made using an innovative cold-brewing process that incorporates nitrogen infusion at the canning stage, and is carving out a position in the burgeoning craft tea sector.

The business was founded in 2020 by Tania Stacey, a World Tea Brewing Champion, and Kym Cooper, a leading hospitality tea consultant, and is now available from 200 stockists, including Harris Farm supermarkets, WHSmith outlets, and select IGAs.

The new funding comes from Global Mind Agriculture Australia (GMAA), which is the venture capital arm of Vietnamese agribusiness TTC AgriS.

East Forged plans to use the $1.5 million in funding to expand its production capabilities and expand into key Asian markets, including South Korea and Japan, as well as secure ranging in premium retail outlets, boutique cafes, and online platforms that are geared towards health-focused products.

The funding from GMAA represents the largest external capital investment in the business to date, however, East Forged previously received $125,000 in grant funding from the federal government’s Boosting Female Founders (BFF) program before the program was discontinued.

Two of the business’ early SAFE note holders, Jamie Bayssari and Oz Ozluk from the company’s main distribution partner Caplan Distribution, have also converted to minor shareholders.

“We are thrilled to have GMAA as a key investor and partner in our journey,” says Stacey.

“This investment will enable us to scale our operations and reach new markets, while staying true to our core mission of offering consumers a healthy, premium tea experience.”