Finaloop, the real-time e-commerce accounting platform, announced it has raised a $35 million Series A round. Lightspeed Venture Partners led the round with participation from Vesey Ventures, Commerce Ventures, and existing investors, Accel and Aleph. The latest funding round, which brings Finaloop’s total funding to $55 million, will be used to further invest in its AI-driven e-commerce accounting software automation, its inventory management capabilities, as well as to expand its go-to-market and partnership efforts with accounting firms and data-driven marketing agencies.
Launched in 2020 with offices in New York and Tel Aviv, Finaloop is revolutionizing the way e-commerce and retail brands handle their finances by offering an automated accounting and bookkeeping service that moves at the speed and scale of their online business.
Finaloop makes all financial data accessible to e-commerce stakeholders, driving better, more profitable business decisions — from periodic accounting to real-time finance metrics. Finaloop is the first real-time, AI-driven accounting service tailored for direct-to-consumer (DTC) brands selling on Shopify, Amazon, Walmart, and many other online stores and marketplaces, as well as wholesale and multi-channel businesses.
The financing round comes following Finaloop’s success in demonstrating that the e-commerce market is craving a better solution to run its financial operations. In the last 12 months, Finaloop grew its customer base by 400%, now working with thousands of brands and managing over $13 billion in GMV on their platform.
At the heart of Finaloop’s automation capabilities sits Ricoⓒ, the first AI-driven reconciliation engine. Out of more than 70 million transactions, Finaloop has successfully automated the categorization and reconciliation of over 94% of those transactions.
Also Read: Bridgeline Launches Athena Update with GenAI Smart Responses
“The entire e-commerce industry is built on an advanced technological stack with players like Shopify, Amazon, Gusto, Stripe, and others but the accounting and bookkeeping solutions used by these companies were lightyears behind every other tool in their toolkit,” said Lioran Pinchevski, CEO and founder of Finaloop. “E-commerce operators were left with outdated and in many cases erroneous books using archaic software like Quickbooks, Xero, and Netsuite which were created more than two decades ago and that simply could not keep up with the pace of their unique business. I experienced it myself when I founded my own DTC brand. The result was inventory mismanagement, incorrect pricing decisions, and unreliable financial reporting.”
“We’re excited to be joining forces with Lightspeed who share our vision of becoming the financial source of truth for all retail brands. We’re seeing a tectonic shift in the e-commerce market from growth at all costs to profit-driven and financial management. By providing real-time, financial visibility, Finaloop helps brand founders develop their financial IQ and propels them to become not just great marketers, but also great overall operators.”
Used by some of the most well-known DTC brands in the space like Heart & Soil, Duradry, Crossnet, Netrition, and Marcella NYC, Finaloop helps e-commerce founders, operators, and forward-thinking bookkeepers and accountants make smarter, data-driven decisions by removing the financial blind spots. The result is faster growth, better cash flow management, and more accurate COGS and inventory planning. Jack Benzaquen, CEO of Duradry and one of Finaloop’s earliest customers, swears by Finaloop: “The magic of Finaloop is that they simplify the financial process and finally give me trust in my numbers. Having this visibility is key and it never existed before.”
SOURCE: PRNewswire