OCTA, a UAE-based fintech startup focused on transforming accounts receivable management for small and medium-sized enterprises (SMEs), has announced the successful close of its $2.25 million pre-seed funding round. The round was co-led by Quona Capital and Sadu Capital, alongside participation from Sukna Ventures, Plus VC, 500 Global, and several notable angel investors. This fresh capital will fuel OCTA's mission to enhance cash flow management for businesses and scale its operations across the Middle East, particularly in Saudi Arabia.

Addressing the Critical Pain Point of Cash Flow for SMEs

Founded in early 2024 by Jon Santillan, Nupur Mitta, and Andrey Korchak, OCTA is tackling one of the most persistent challenges faced by SMEs: managing cash flow and accounts receivable. SMEs often struggle with late payments, leading to disruptions in growth. On average, 60% of business-to-business (B2B) invoices in the UAE are paid late, with companies spending up to 40 days chasing overdue payments.

"Collecting payments isn’t just a finance problem—it’s a business problem," explains Santillan, OCTA’s co-founder and CEO. “Imagine trying to grow your business while constantly worrying about cash flow or handling disputes over invoices. It’s crippling for many SMEs.”

The OCTA Solution: Automating the Accounts Receivable Process

OCTA's platform simplifies and automates the process of collecting payments. Businesses can upload contracts, generate invoices, and allow OCTA to handle follow-ups and reminders using an AI-driven approach. The platform integrates with a company’s existing accounting software and assigns each customer a collection score, which determines the timing and frequency of payment reminders. It also offers dispute resolution by referencing contract terms automatically, minimizing the back-and-forth that typically delays payments.

Furthermore, the platform provides businesses with quick access to financing and helps streamline debt recovery, thus improving liquidity without relying on external financial institutions. This capability has already made an impact, with OCTA processing $28 million in receivables for clients like Careem, Lean Technologies, Ogram, Money Hash, and Gameball.

Growing Confidence in OCTA’s Vision

The funding round attracted participation from several high-profile investors, including angel investors such as Pawel Iwanow, Chief Payment Officer at Fresha, and Dom Monhardt, Director of Product Design at Tap Payments. These investors were drawn to OCTA's innovative approach to solving a pervasive issue for SMEs.

“Our investment in OCTA is a testament to the potential we see in their platform to streamline accounts receivable collections and support businesses in managing cash flow more effectively,” said Monica Brand Engel, co-founder and managing partner of Quona Capital. Engel also emphasized the broader significance of fintech innovation in the Middle East, where there has been a deliberate effort to create an environment conducive to technological and financial growth.

Qusai AlSaif, Partner at Sadu Capital, echoed this enthusiasm: “Jon, Nupur, and Andrey have impressive track records in fintech, and their deep expertise is evident in the solutions they’ve built with OCTA. By addressing a critical pain point for SMEs, they are unlocking significant growth potential for regional businesses.”

Regional Expansion and Future Ambitions

With the fresh capital, OCTA aims to expand its operations within Saudi Arabia, a key market in the Middle East. Saudi Arabia’s burgeoning SME sector presents a significant opportunity for OCTA, as businesses in the region increasingly seek innovative ways to manage their finances efficiently.

Santillan highlighted the importance of the region in OCTA's growth strategy: "We’re building a global company from the Middle East to change how businesses collect payments and manage cash flow. Saudi Arabia is our immediate focus, and we’re confident that the solutions we’ve built will resonate with businesses across the region."

A Vision Beyond the Middle East

OCTA's long-term ambition is to scale its platform globally. The startup’s innovative use of AI and machine learning in accounts receivable management is expected to resonate with businesses worldwide, not just in the Middle East. OCTA is also laying the groundwork for future expansion by developing a robust infrastructure that can support different markets’ unique requirements while maintaining its focus on automating and optimizing cash flow processes.

Amal Dokhan, Managing Partner at 500 Global, emphasized the importance of OCTA's mission: “By addressing the cash flow collection problem for SMEs, OCTA is tackling a significant market challenge. We’ve backed Jon before, and we believe this team has the potential to scale their solution across multiple markets.”

OCTA’s $2.25 million pre-seed funding marks a significant milestone for the fintech startup as it aims to transform the way SMEs handle accounts receivable and manage cash flow. With a strong focus on automation, dispute resolution, and liquidity management, the company is well-positioned to make a lasting impact in the Middle East and beyond. Backed by some of the region’s top investors and led by a seasoned founding team, OCTA is poised to address the pressing cash flow challenges faced by businesses and help them grow more sustainably.

Santillan concluded, "This round is just the beginning. We're on a mission to help businesses stop chasing payments manually and focus on growth. We're excited for what lies ahead."