Why Australian Startups Are Turning to Custom Software Development in 2025

Australia’s tech startup scene is booming, and a clear 2025 trend is emerging: companies across mining tech, healthtech, fintech, logistics, and more are swapping generic tools for custom-built software. Why the shift? Tailored apps solve Australia’s unique challenges (think remote operations, strict regulations, or massive distances) better than off-the-shelf products. Real data backs this up.

In 2024 Aussie startups raised $4.0 billion across 414 deals, and the country now boasts roughly 1,501 “scaleups” (startups raising ≥$100M) with ~$32.8B in total funding. Fintech leads the way (~240 companies, ~$7.9B raised), with healthtech close behind (~147 companies, ~$2.5B).

Experts even call Australia a potential global “Star” ecosystem – provided its founders strengthen international ties. Custom development is one way they’re doing that; teaming up with tech partners worldwide (for example, London-based Empyreal Infotech ) works seamlessly with teams in India and New York). 

Australia’s Startup Ecosystem at a Glance:

1,501 high-growth scaleups (startups raising ≥$100M), with $32.8B total funding – about 5.62 scaleups per 100k people (~2% of GDP).

 

2024 funding: $4.0B across 414 deals (up 11% from 2023).

Top sectors: Fintech (~240 startups, $7.9B funding) and Healthtech (~147 startups, $2.5B).

 

Recent momentum: In Q2 2025 alone, startups announced $812M in funding; fintech, climate tech, and biotech/medtech led the way.

 

This level of activity lets founders think long-term – often meaning building proprietary solutions. Bespoke software can offer serious advantages. As one analysis notes, tailor-made apps “improve data security, scale better with growth, and ultimately lower expenses through automation.” For startups in regulated or highly specialized industries, those benefits often outweigh the higher upfront cost. 

Fintech: Digitizing Aussie Finance

Fintech is Australia’s standout sector. The booming financial-technology scene raised about $947M in 2024, and Q2 2025 saw fintech deals dominate funding rounds. Roughly 240 Aussie fintech scale-ups now exist, including big names like Airwallex. In fact, payments unicorn Airwallex led the largest deals in mid-2025.

 

Why custom software? Because financial services demand it. Australia’s banks, wealth managers, and regulators have unique rules (e.g., open banking APIs, tax laws, and privacy standards). Startups building digital wallets, lending platforms, or payment systems typically can’t just use generic templates – they need custom code that integrates local banking interfaces, compliance checks, and security features. In short, fintech founders often build in-house platforms from the ground up so they can innovate (and satisfy regulators) on their own terms. 

Healthtech: Patient Care Goes Digital

Healthcare is another hotbed of innovation. Australian healthtech companies (around 147 scaleups) have pulled in roughly $2.5B in funding. The pandemic accelerated demand for digital health, and now startups are refining those solutions. For example, Australian telehealth firm Eucalyptus (telehealth infrastructure) and Midnight Health (online pharmacy) recently raised substantial rounds.

 

Custom software is critical here too. Medical data is highly sensitive and governed by strict privacy laws, so startups often build their own platforms for patient records, billing, and virtual care. Custom apps let them integrate directly with Australia’s My Health Record system and hospital databases – something off-the-shelf products usually can’t do smoothly.

They can also add features on the fly (like new telemedicine tools or AI diagnostics) that generic platforms lack. As one report notes, Australia’s health ecosystem is “impressively diverse,” with a surge of digital health and biotech startups delivering new patient-facing and clinical solutions. These firms need software as specialized as the problems they’re solving.

Mining Tech: Innovation in the Outback

Mining might sound traditional, but Australia is a global mining powerhouse (top in iron ore, gold, lithium, etc.), and tech startups are flocking to it. Analysts highlight that Australia can “lead innovation in traditionally low-tech sectors like mining” as AI and digital tools reshape the economy. We’re seeing proof: for instance, Melbourne’s ElectraLith (a deep-tech mining spinout) raised $27.5M in early 2025 to develop a revolutionary water-free lithium extraction process. That round was led by Main Sequence and backed by giants like Rio Tinto and Chevron – a sign that traditional miners are keen on homegrown tech. 

 

Why custom software? Mining sites are often remote with spotty connectivity, so startups build bespoke IoT and analytics platforms to manage equipment and processes. For example, a mining startup might create a custom dashboard pulling data from dozens of sensors underground to predict equipment failures or optimize ore processing in real time. No off-the-shelf tool comes with that exact configuration. Custom solutions also help meet Australia’s strict safety and environmental standards. In short, if an Aussie startup wants to modernize an outback mine (or pioneer green lithium extraction), they usually write custom code tailored to that environment. 

Logistics & Supply Chain: Moving Goods Smarter

Australia’s unique geography – huge distances and a dispersed population – makes logistics a fertile field for startups. E‑commerce is booming here:Payments CM Insights reports Australia’s e-commerce volume hit about US$89.4 billion in 2024 and is still growing. That surge means demand for smarter delivery and freight tech. Aussie innovators are answering the call.

For example, Brisbane’s Temando built an “intelligent” delivery platform and raised over $56M in funding. In Sydney, Ofload (founded 2019) raised $20M to launch Australia’s first digital road-freight platform. Another startup, Lumachain, uses computer vision AI to help meat-processing plants track their supply chains.

 

These startups need highly customized software. Routing thousands of packages or pallets across Australia requires complex optimization algorithms, integration with GPS and carrier systems, and real-time tracking – none of which comes out-of-the-box. For instance, a freight startup might code a custom engine that auto-selects the best carrier for each shipment or a logistics app that dynamically plans routes for oversized mining equipment. Those are bespoke problems needing bespoke code. No wonder logistics innovators either write their own platforms or partner with specialist developers. 

The Custom Software Advantage

Overall, the trend toward custom development is driven by clear benefits. Off-the-shelf solutions often force businesses to compromise but bespoke software fits the problem exactly. It scales with your company, adds unique features competitors don’t have, and can automate tasks in ways packaged products can’t. 

 

For Australian startups tackling niche markets or complex industries, that extra flexibility is huge. 

 

Investors notice too: as one funding report shows, Australian startups achieved record pre-seed ($1M) and seed ($3M) median deal sizes in 2024, reflecting confidence in founders’ technology and vision.

 

In practice, choosing custom means startups build more reliable products from the ground up. They aren’t shoehorning their workflows into generic software. Instead, they create platforms that can plug into local regulations and scale globally. This strategy is paying off as Australia’s ecosystem matures.

Empyreal Infotech and Global Collaboration

It takes global teamwork to build cutting-edge software, and some Aussie players are leading by example. One standout is Empyreal Infotech, a boutique development agency with roots in Australia but offices in London and India. Empyreal works on projects across Europe, Asia, and North America, often assembling teams in London, Rajkot (India), and New York to deliver client solutions. Their portfolio spans finance, healthcare, and other sectors, reflecting the same diversity we see in Australia’s startup mix. 

 

Empyreal’s recent moves highlight the global-collab ethos. In July 2025, they announced a strategic partnership with UK branding firm Ohh My Brand and Webflow studio Blushush. This alliance, planned in London, India, and New York, unites development, design, and branding into one coordinated workflow. 

 

Empyreal’s CEO emphasizes that integrating “technical development, creative design, and strategic storytelling from the inception of every project” dramatically improves quality and speeds delivery. In short, work might start in Sydney or Melbourne, but with Empyreal (and similar partners), it’s polished in studios from London to Mumbai and back.

 

This kind of cross-border teamwork is exactly what Australia’s ecosystem needs. As one innovation report warns, without strong international connections, the local scene could stagnate. By collaborating with global talent—whether it’s tapping Vietnam’s AI engineers or joining forces with a Malaysian fintech startup—Empyreal and others help Aussie startups punch above their weight.

 

Australian founders are proving that geography isn’t destiny. With the right custom tech and global partnerships, a startup in Sydney or Perth can build world-class software. The stats say the strategy is working: funding and deal sizes are up, and sectors from fintech to health to logistics are thriving on in-house innovation. In 2025, custom software isn’t just a fad for Aussie startups—it’s a competitive necessity and a ticket to global success. 

 

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