Sydney fintech Primary raises $3.5m seed round
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The news: Cash management platform Primary has raised $3.5 million in a seed round led by Carthona Capital, with participation from local funds Macdoch Ventures, Archangel, AfterWork Ventures and No Brand, as well as fintech specialist Resolution Ventures.
The numbers: The raise is the second round of VC funding for Sydney-based Primary, and brings its total funding to $4.75 million.
The startup currently has over $150 million of funds under administration and works with 40 customers, including Eucalyptus, Lyka, Vow, and Kismet.
The context: Founded in 2022, Primary is a cash management platform that helps startups and SMEs get stronger returns on idle cash.
Through partnerships with financial institutions such as Morgan Stanley, Macquarie and State Street Global Advisors, Primary gives customers access to a range of low-risk, high-yield financial products, including term deposits, high interest bank accounts and fixed income funds.
What they said: Primary's CEO and founder Ben Buckingham, who previously worked at Allens Linklaters, McKinsey & Company, and at ASX-listed regtech Identitii, said: "Deposits from small and medium sized businesses make up a significant proportion of a business banks’ deposit volume.
"These deposits are being used to finance high-interest loans to other businesses, however depositors are receiving very little interest.
"One of the big four business banks offers 0.25% to 1% interest on savings accounts, while charging over 10% on business loans.
"Business banks have become complacent, and take advantage of smaller businesses who have few options.
"Primary is here to change that, by making it seamless for smaller wholesale companies to access a range of institutional-grade yield products”.
Carthona Capital partner Damian Fox, who will join Primary’s board of directors following the raise, said: "When Silicon Valley Bank began collapsing in March 2023, I flew to San Francisco the very next day.
"This 'black swan' event underscored how relying on a single bank creates a critical point of failure for too many businesses.
"Primary offers sophisticated cash management strategies to SMEs, safeguarding their treasury while providing access to high-yield products — ensuring their idle cash works as hard as they do."
The source: Primary media release
