OCTA could transform small business finances

Fintech startup OCTA has raised $2.25 million in pre-seed funding to automate accounts receivable for small and medium-sized businesses in the Middle East. Late payments in the region often disrupt growth, prompting the need for solutions.

The round was co-led by Quona Capital and Sadu Capital, with additional backing from Sukna Ventures, Plus VC, 500 Global, and several angel investors. OCTA was founded in early 2024 by Jon Santillan and Nupur Mitta, both former Careem executives, and Andrey Korchak, who previously served as CTO of a fintech supported by Peter Thiel’s Valar Ventures.

Late payments disrupt SME growth

In the UAE, about 60% of business-to-business invoices are paid late. Businesses lose an average of 40 days each year chasing overdue payments, time that could be used for expansion or daily operations. Santillan said the issue creates a significant obstacle for companies trying to grow.

The platform connects with existing accounting software, letting businesses upload contracts or create invoices from templates. It monitors payments, assigns a collection score to each customer, and sends automated reminders. If disputes occur, OCTA examines the contract to speed up resolution. The system also provides financing options.

Since launching, the startup has facilitated $28 million in receivables for clients like Careem and Lean Technologies.

Investors bet on founders with regional experience

Monica Brand Engel of Quona Capital described the Middle East as an area ripe for fintech innovation, pointing to efforts to update financial infrastructure. Qusai AlSaif of Sadu Capital noted the founders’ background at Careem, where Santillan sold his previous company and Mitta led Careem Pay.

Amal Dokhan of 500 Global said OCTA is addressing a key market challenge by unlocking liquidity for SMEs. Asher Siddiqui of Sukna Ventures expressed enthusiasm about supporting the team as they grow into a platform that assists businesses with their working capital needs.

Santillan stated the aim is to help businesses stop chasing payments manually, collect faster, and ultimately focus more on growth. Many SMEs in the region still depend on manual processes or basic tools, so scaling the platform may take time.

For now, OCTA offers a straightforward benefit: quicker payments, fewer disputes, and more time for core business activities. If successful, the approach could change how small companies handle cash flow in markets where late payments are common.