Grapple is set to acquire the invoice finance portfolio of Spenda, a move poised to strengthen its position in the Australian SME invoice financing market.
This acquisition is expected to bolster Grapple's market share within the sector. Prior to acquiring Spenda's portfolio, Grapple had reported robust activity, having financed over half a billion dollars in invoices since the platform's inception in mid-2021.
Stephen T. Dawson, Grapple's Chief Executive Officer and Founder, stated: "This is a highly complementary acquisition and strongly enhances our market growth. It brings new geographic and sector presence to the Grapple lending portfolio and platform. We are excited to have Spenda employees join the Grapple team and we look forward to delivering a seamless and enhanced service to our new customers."
Dawson further mentioned that the acquisition terms incentivise all parties towards a smooth transition of Spenda's clients to Grapple. "The terms of the deal are such that all parties are incentivised to ensure a smooth transition of Spenda clients to Grapple. We've also executed a two year referral agreement for any new customers Spenda send to Grapple," he added.
Grapple is also observing heightened activity in its technology partnership initiatives. The company is reportedly in advanced talks with several major lenders, as its digital platform's capabilities in mitigating risk and reducing administrative burdens gain recognition in the market.
Dawson remarked on the growing interest from Australian SMEs and lenders in Grapple's offerings, stating: "Australian SMEs and lenders are increasingly looking to Grapple for invoice financing solutions and support as this working capital product grows in popularity in Australia. We are confident that Grapple provides the best enterprise-grade platform for invoice financing in the market. We've built and stress-tested our highly scalable platform to provide real time reporting that integrates fully with widely used accounting software, credit agencies, PPSR, bank data and much more."
Additionally, Grapple is introducing new AI functionalities into its invoice financing platform. The Grapple AI tool is intended to assist operational users with technical lending advice and perform real-time checks on portfolio metrics against lender policies. It will also conduct contract and invoice validity assessments, fraud reviews, and offer online credit profile analyses for clients and debtors.
The SME business lending market in Australia has experienced significant growth in recent years, with invoice financing predicted to see substantial increases. A recent study has projected that the Asia Pacific invoice finance market will nearly triple by 2032, highlighting the sector's expansion potential.
