Can OCTA Revolutionise Cash Flow for SMEs?
Hey, have you heard about OCTA? It's a fintech startup that's shaking things up in the accounts receivable management space, especially for SMEs. They just closed a pre-seed funding round of US$2.25 million, which is pretty exciting! The round was co-led by Quona Capital and Sadu Capital, and they got backing from other investors like Sukna Ventures, Plus VC, 500 Global, and some notable angel investors.
So, here’s the background: OCTA was founded in early 2024 by Jon Santillan and Nupur Mitta. Jon has previous experience with 500 Global, while Nupur comes from BCG. They both worked at Careem, which is where Jon sold his last company, and Nupur was involved in leading Careem Pay. They teamed up with Andrey Korchak, who used to be the CTO of a fintech startup backed by Peter Thiel’s Valar Ventures, to tackle a major problem for SMEs: cash flow management and the headaches that come with collecting payments.
Jon has pointed out that collecting payments isn’t just a finance issue; it’s a crucial business challenge. In the UAE, around 60 percent of B2B invoices are paid late, and businesses are spending an average of 40 days just chasing overdue payments. That can really slow down growth, right? It’s tough trying to grow when you’re constantly worried about cash flow and dealing with disputes or trying to recover money owed to you.
That’s where OCTA comes in. Their platform automates the entire payment collection process, starting from when a contract is signed until the cash hits the business account. Users can easily upload contracts or create invoices using templates, and OCTA takes care of everything else. It syncs with existing accounting software, tracks invoices, and even assigns a collection score to each customer. This allows the platform to send automated reminders and follow-ups, plus offer financing options. If there’s ever a dispute, OCTA checks the contract to streamline communication.
They’ve already facilitated US$28 million in receivables for clients like Careem and Lean Technologies, helping them speed up their accounts receivable processes.
Monica Brand Engel from Quona Capital shared her excitement about investing in OCTA, emphasising the region’s focus on creating an environment for innovative fintech. Qusai AlSaif from Sadu Capital also highlighted the founders’ impressive track record and the significant growth potential for regional businesses.
Amal Dokhan from 500 Global noted that OCTA is addressing a crucial market challenge by unlocking liquidity for SMEs. And Asher Siddiqui from Sukna Ventures expressed enthusiasm about supporting the team as they grow into a platform that assists businesses with their working capital needs.
Jon wrapped it up by saying this funding round is just the beginning. OCTA aims to help businesses across the Middle East stop chasing payments manually, collect faster, and ultimately focus more on growth.
Isn’t that a game-changer for SMEs?
