Updated

Lenders move on StrongRoom AI’s bank accounts amid police inquiries

Tess Bennett, Amelia McGuire and Gus McCubbing

Updated Mar 28, 2025 – 5.42pm, first published at 11.46am

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A specialist research and development financier has called in receivers to take control of StrongRoom AI’s bank accounts as the pharmacy software start-up reels from allegations it misrepresented its finances to prospective investors, sparking a row among shareholders.

Paddington Street Finance, part of the Sherman Group, which specialises in lending up to $15 million to smaller companies, brought in Walsh & Associates as administrators of the StrongRoom funds, according to filings with the corporate regulator on Friday morning.

Tess Bennett is a technology reporter with The Australian Financial Review, based in the Brisbane newsroom. She was previously the work & careers reporter.

Amelia McGuire covers technology from the AFR's Sydney newsroom. She was previously the aviation, tourism and gambling reporter for The Sydney Morning Herald and The Age.

Gus McCubbing is a journalist at the Australian Financial Review in Melbourne.