Archa raises AUD 61 million to expand business credit in Australia

Archa has raised a total of AUD 61 million, equivalent to USD 42.7 million, to expand its business credit and spend management platform in Australia. The funding includes AUD 11 million (USD 7.7 million) in equity and a new AUD 50 million (USD 35 million) debt facility.

The equity round was backed by family offices, venture investors and entrepreneurs. Archa plans to use the capital to address a recurring problem for Australian businesses, where access to corporate credit cards can require personal guarantees, personal liability or the use of founders' own credit cards for business spending.

Debt facility increases Archa's lending capacity

Archa has assigned different purposes to the two parts of the raise. The equity will support product development and growth, while the AUD 50 million debt facility will increase its capacity to provide working capital without requiring personal guarantees.

Founder and CEO Oliver Kidd said the funding allows Archa to move beyond spend management and develop additional financial products focused on capital access, spending visibility and rewards. He also pointed to the wider impact of limited access to credit, including tighter cash flow, delayed supplier payments and lost investment opportunities.

Archa was created around access to business credit

Kidd founded Archa after experiencing difficulties obtaining a corporate credit card for his own profitable company. Discussions with other business owners showed that similar problems were common, which the company views as a systemic barrier for Australian businesses.

Archa also points to the administrative burden created by manual expense management. The company estimates that Australian businesses spend the equivalent of more than 13,000 full-time roles processing expense claims manually, representing around AUD 1.3 billion (USD 910 million) in lost productivity each year.

ARR increased 184% over the past year

The funding follows 184% growth in Archa's annual recurring revenue over the last 12 months. Thousands of Australian businesses now use the platform, including National Rugby League club Sydney Roosters and construction company Higgins.

Customers manage more than AUD 200 million (USD 140 million) in annualised spending through Archa. The company says customers have saved more than 60 hours of staff time per month by replacing manual expense claims with controlled corporate cards and automated reconciliation.

New capital expands direct credit funding

The round is Archa's largest capital raise since earlier investments from technology and finance entrepreneurs and executives associated with companies including The Iconic, Hatch, BetaShares, Netspace and Zip. Other backers include US venture capital firm The Fintech Fund, former Macquarie executives and individual investors from sport and fitness.

With the new debt facility in place, Archa can fund more credit directly. The company plans to use this capacity to expand access to corporate cards and working capital for Australian businesses without requiring founders to put personal assets at risk.