The AI-powered accounting startup based in Miami has secured a significant new round of financing: $200 million in capital and debt.
This company, specializing in accounting, finance, and bookkeeping for small and medium-sized businesses (SMBs), raised $50 million in a Series B round and obtained a $150 million credit line, according to TechCrunch.
This new funding comes just seven months after the fintech announced it had raised $10 million, bringing the total funds raised since its founding in 2018 to $305 million, including $235 million in credit lines and $74 million in capital.
Félix Rodríguez, inspired by the experiences of his Dominican family who started several businesses in the U.S., and after facing his own challenges in launching his ventures, realized that many small businesses did not have equal access to accounting and working capital. This insight led him to start the company in 2018, together with his wife, Glennys Rodríguez. They initially began by helping SMBs manage their finances and later teamed up with Edwin Mejía to formalize the creation of the company.
Over time, the company’s offerings have evolved, and today they provide AI-powered accounting services as well as a corporate card with advanced expense management features. Last year, they also added an AI-driven accounting system with business banking functions.
Finally, the company competes with firms like Brex and Ramp, as they also offer corporate cards and expense management solutions. However, it positions itself as a “multi-product platform,” offering services like payroll processing, among others.
Rodríguez explained that their platform is particularly valuable for small business owners, who, due to their heavy workload, don’t have time to learn multiple tools to manage their accounting and finances. “It’s crucial for SMB owners to understand financial metrics like cash flow and cash consumption,” he said.
Since announcing its $95 million Series A funding round in March 2022, the company has experienced 300% annual revenue growth, although it hasn’t disclosed exact figures. Currently, it serves over 1,500 companies in the U.S., generating income from SaaS subscriptions, interchange fees, and interest margins.
While the startup didn’t share its exact valuation, it mentioned that the Series B was an “up round.” PeakSpan provided the capital, while Encina offered the $150 million credit line. The company’s plans include strengthening its sales and marketing teams, as well as adding features like a global hiring module and more support for financial payments.
It also plans to continue expanding its workforce, which has grown from 95 employees last year to over 220 now. Notable new hires include Roy Duvall, former CTO of Calendly, who joins as Chief Technology Officer.
Jack Freeman, a partner at PeakSpan Capital, noted that his firm had been evaluating the accounting automation space for years before meeting Rodríguez. “We were impressed by his all-in-one vision,” Freeman told TechCrunch. According to him, Finally not only develops software but also integrates data and financial products to become a “one-stop shop” for SMBs.
Other startups in the accounting space have also raised significant funds recently. In June, AccountsIQ, founded in Dublin, raised €60 million to develop a next-generation financial platform for mid-sized companies, while Pennylane, focused on SMBs, raised $40 million in February, reaching a valuation of over $1 billion.
By: Nestor Castillo, ForAllTechNews Director