A FinTech behind alternative financing solutions to help SMEs solve the issue of cash flow has launched in the UK.
AREX Markets, now based in Barcelona, has launched in the UK and Spain with £7.5 million Series A financing.
Mosaic Ventures and LocalGlobe led the round, joining existing investors Lifeline Ventures and angel investor Richard Laxer, former CEO of GE Capital.
The data-driven FinTech company had previously raised seed funding of €3m in 2016. Its technology delivers embedded lending into existing accounting systems, allowing SMEs frictionless access to a competitive financing marketplace.
AREX says it has a proven track record in the Nordics and sustained business growth at nearly 20% month-on-month during 2021.
“Our goal is to level the playing field for SME financing. Banks remain reluctant to lend to SMEs, often leading to them feeling trapped when it comes to their business finances,” said CEO Airto Vienola.
“We listen carefully to our partners’ and customers’ requirements and liberate the liquidity within their business.
“We’re already seeing a sharp rise in demand for this service and a willingness for business owners to finally reappraise their financing options, which have been so unfavourable for so long.
“Closing the Series A raise with such supportive and significant partners on board is a major milestone in AREX’s growth and continued expansion.”
Toby Coppel, Partner of Mosaic Ventures, added: “AREX is creating much needed cash flow opportunity, flexibility and access for SMEs – just as so many of these are coping with major pressures on their company finances.
“The business’ mission to change the face of SME lending, has already seen tremendous successes in the Nordic markets. As they expand further into the UK and Spain, it is an exciting time to come on board and partner with the management team to support their international growth.”
Timo Ahopelto, Founding Partner, Lifeline Ventures, said: “The AREX team is building an entirely new asset class and a critically important platform for SME financing that is game changing.
“SMEs in the UK and Spain will benefit from this alternative cash flow approach and be able to rebuild and scale their businesses after what has been a turbulent year.”
Julia Hawkins, General Partner, LocalGlobe, added: “SME financing is massively underserved and is ripe for a digital first solution. AREX’s unique approach has been extremely effective in the Nordics, and we are now excited to help SMEs in the UK and Spanish markets access their capital much quicker.
“They are a team with proven execution, which can transform the SMEs growth trajectory.”