Singapore-based Financial firm ApexPeak has acquired the Tech start-up Cashnomix for an undisclosed amount. The 100 percent acquisition will provide ApexPeak a footprint in the Middle East and will complement its presence in other emerging markets, such as Southeast Asia and Africa.
The Dubai based Tech startup Cashnomix, a cloud based platform that offers invoice discounting solution by enabling small businesses to get immediate cash against invoices that are not due to get paid for 60 or 90 days.
ApexPeak is a capital provider to small and medium enterprises (SMEs) and those transacting on electronic invoicing networks. It eases the cash flow problems encountered by most SME owners by offering them early payments on their invoices.
A graduate of 88mph accelerator in Cape Town, ApexPeak has expanded in the last 18 months securing US$1.84 million of follow-on funding in September 2013, hand Kenyan financial tech startup Umati Capital a finance line expected to grow to up to US$7 million, and secure a US$23 million deal with citrus fruit grower Karu Exporters.
Gakim Solomons, co-founder of ApexPeak, said the credit scoring application had far reaching consequences for Southeast Asia and Africa.
Cashnomix recently completed a prototype credit scoring algorithm for invoices and has built a deal book in the United Arab Emirates (UAE) worth US$1.2 million.
Sujith Kurup, founder and chief executive officer (CEO) of Cashnomix said, “Everybody thinks the Middle East is flush with cash. While it is true to some degree, that cash does not readily reach small businesses. The process for small businesses to get short-term finance is difficult and, furthermore, the cost of borrowing from traditional lenders is very high, between 18 and 30 per cent per annum.”
Kurup added that, “The algorithm we have built collects signals from a large variety of sources to determine a score and a confidence index for each invoice.”
Sujith Kurup will assume the role of managing director of Middle East operations, and roll out ApexPeak’s suite of working capital products in the Dubai market first, before exploring growth in other parts of the UAE.
“Small-enterprises in Dubai will be able to upload an invoice onto the ApexPeak platform, and get a rapid decision supported by our scoring algorithm. We will bring alternative finance to a part of the world where finance for small-enterprise owners is desperately needed.”