UAE based OCTA Raises $2.25M to Simplify SME Payment

by | Oct 11, 2024 | Startups News | 0 comments

OCTA, a UAE-based fintech startup, raised $2.25 million in its pre-seed funding round. The round was co-led by Quona Capital and Sadu Capital, with participation from Sukna Ventures, Plus VC, 500 Global, and notable angel investors like Pawel Iwanow and Dom Monhardt. OCTA aims to simplify payment collections for small and medium-sized enterprises (SMEs), improving cash flow management and easing the pain of accounts receivable.

Addressing Cash Flow Challenges for SMEs

Founded in 2024 by Jon Santillan, Nupur Mittal, and Andrey Korchak, OCTA focuses on solving late payment issues. In the UAE, 60% of B2B invoices are paid late, with businesses spending an average of 40 days chasing overdue payments. These delays put a strain on SMEs trying to manage cash flow.

According to Santillan, collecting payments is not just a finance issue but a business problem. Late payments, managing multiple invoicing tools, and debt recovery slow business growth. OCTA’s platform automates payment collections to reduce these challenges.

How OCTA Works

OCTA automates the payment collection process. The platform syncs with a business’s accounting software, tracks invoices, and assigns collection scores to customers. It also manages reminders and follow-ups, offering financing options if needed. In cases of disputes, OCTA checks contracts to avoid unnecessary delays.

By automating these processes, OCTA allows businesses to focus on growth instead of chasing payments. This improves cash flow and unlocks liquidity, which is crucial for business expansion.

Expanding into Saudi Arabia

it  has also expanded into the Saudi market. Since its launch, the platform has facilitated over $28 million in receivables. Companies like Careem, Lean Technologies, Ogram, Money Hash, and Gameball use OCTA to streamline their payment collections.

Santillan emphasized the company’s goal: “We are building a global company from the Middle East to revolutionize how businesses manage cash flow.”

Investor Confidence in OCTA

Investors see strong potential in OCTA. Monica Brand Engel, co-founder of Quona Capital, highlighted that OCTA’s AI-driven platform helps businesses focus on growth. Similarly, Qusai AlSaif of Sadu Capital pointed out that the startup addresses a critical pain point for SMEs by simplifying accounts receivable management.

Future Plans

OCTA plans to use the pre-seed funding to expand its offerings and reach. The company is positioned to transform how SMEs handle cash flow, turning receivables into growth capital.

As Santillan said, “This round is just the beginning. We’re helping businesses collect payments faster, so they can focus on growing.”

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