Marmalade raises $16 million to spread its SME invoice solution

Australian invoice payment platform Marmalade has successfully raised $16 million in a fresh funding round led by Blue Stamp Company. It was joined by existing investors Paloma Capital and several family offices.

With the latest funding round, Marmalade’s total capital raised has exceeded $32 million over the past four years. The new infusion of capital is earmarked for driving customer growth and further development of its product offerings, propelling the startup’s mission to broaden the availability of risk-free working capital for SMEs.

According to Marmalade, cash flow issues – particularly those due to delayed or non-payment of invoices – are a leading cause of small business failure. Marmalade’s invoice payment solution offers SMEs the ability to get their invoices paid on-demand, relieving cash flow constraints and enabling them to concentrate on business expansion without resorting to traditional debtor finance or cash flow loans.

Marmalade integrates directly with cloud accounting platforms such as Xero, Quickbooks, and MYOB allowing businesses to cash in invoices, for a cost.

The company, founded by leaders and early investors of Afterpay, has experienced significant growth, with over half a billion dollars transacted annually.

The platform was developed in collaboration with Australian venture studio, Paloma, launching its first product iteration to customers in October 2020. Following its inception, key members from Paloma’s tech team have since joined Marmalade, bolstering its technological and engineering capabilities.

Venture studios work differently from regular VCs, startups or accelerators. They tend to be run by experienced entrepreneurs, investors and experts who create and launch multiple startups simultaneously. While it can vary, venture studios tend to take between 20-40% of equity in the companies it has formed.

Over the past year, Marmalade has seen a 65% increase in its customer base and a 100% rise in both payment volumes and revenue, year-on-year. Marmalade is targeting a payment volume of one billion dollars through its platform in 2024.

Luke Trickett, co-founder and CEO of Marmalade, highlighted the critical role SMEs play in the Australian economy and the need for innovative, flexible working capital solutions.

“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,” Trickett 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.”