RedOwl, a Melbourne-based FinTech using AI to stop businesses losing money through billing and spending errors, has secured $5.3m in a seed funding round led by Tidal Ventures, a deal that puts the company’s valuation at almost $40m.

Sydney-based venture capital firm CP Ventures also took part in the round, according to The Australian Financial Review. The raise comes after RedOwl completed a pre-seed round in March of last year.

RedOwl plans to put the new capital towards further development of its technology and towards bringing on more customers. Its existing client roster already features Aussie Broadband, the telecommunications provider listed on the ASX, as well as Vicinity Centres, which owns shopping centres.

The startup operates an intelligence and governance platform built to help organisations spot and stop margin leakage. The system flags frequent mistakes that eat into profits, including suppliers charging more than the price agreed in a contract, work that has been carried out but never invoiced, and expenditure that breaches internal company rules.

RedOwl was established in 2024 by Jitto Arulampalam and Thushan Shanmugarajah. In that same year, the business was chosen to join Mastercard’s worldwide start-up engagement programme, marking the beginning of its relationship with the payments company.

Tidal Ventures Kieran O’Neill said, “Finance teams are being asked to make faster decisions across increasingly complex systems, but the context they need remains fragmented.”

Source link