Melbourne fintech RedOwl has raised A$5.3 million in seed funding. Sydney venture firm Tidal Ventures led the round.
According to The Australian Financial Review, the deal values the AI firm at close to A$40 million.
CP Ventures, another Sydney investor, also joined the round. The RedOwl seed funding follows a pre-seed round the company closed in March 2025.
RedOwl’s software helps businesses spot and stop margin leakage, which is profit lost through billing and spending errors.
For example, it flags suppliers who charge more than the agreed price. In addition, it picks up unbilled work and spending that breaks company policy.
RedOwl plans to use the funds to improve its product and gain more clients.
Its customers include ASX-listed internet provider Aussie Broadband and shopping centre owner Vicinity Centres.
Kieran O’Neill, Principal at Tidal Ventures, said finance teams must now make decisions faster, even as their systems grow more complex. Yet the details they need are still scattered, he noted.
Jitto Arulampalam and Thushan Shanmugarajah founded RedOwl in 2024.
In the same year, Mastercard chose RedOwl for its global startup programme, which began their partnership.
Tidal Ventures has also backed personal safety firm Sonder and Operata, which runs cloud-based contact centres.
Featured image: Edited by Fintech News Australia, based on image by RedOwl via its website and Magnific.
