Round brings Finaloop's total funding to
$55 million as it revolutionizes the
way e-commerce and retail brands handle their finances
NEW
YORK and TEL AVIV,
Israel, June 17, 2024 /PRNewswire/ -- Today,
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.
"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 "E-commerce operators were left with outdated and in many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."
"Finaloop is shaking up an industry that hasn't seen material
change in over 30 years. They are at the forefront of reshaping
accounting and bookkeeping for e-commerce by solving their biggest
pain points," said Tal Morgenstern,
Partner at Lightspeed. "We're excited to support the Finaloop team
with their goal of providing e-commerce companies real-time
financials, giving them an invaluable edge over their
competitors."
About Lightspeed
Lightspeed Venture Partners is a
multi-stage venture capital firm focused on accelerating disruptive
innovations and trends in the Enterprise, Consumer, Health, and
Fintech sectors. Over the past two decades, the Lightspeed team has
backed hundreds of entrepreneurs and helped build more than 500
companies globally including Affirm, Carta, Cato Networks, Epic
Games, Faire, Forty Seven, Guardant Health, Mulesoft, Navan,
Netskope, Nutanix, Rubrik, Sharechat, Snap, Udaan, Ultima Genomics
and more. Lightspeed and its global team currently manage
$25B in AUM across the Lightspeed
platform, with investment professionals and advisors in the U.S.,
Europe, India, Israel, and Southeast Asia. www.lsvp.com
About Finaloop
Finaloop is an AI-driven, automated
e-commerce accounting platform providing bookkeeping and accounting
services that fully reconcile all the financial data in real-time,
supplying consumer brands with flawless books, tax-ready
financials, inventory costs management, and actionable insights
24/7 with complete accuracy. Combining deep accounting domain
expertise built into software, and utilizing AI supervised by
accounting and e-commerce experts, Finaloop provides the financial
data brands need to stop wasting time and money, make smarter
decisions, and focus on growing their profits.
For additional company information, please visit
https://www.finaloop.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/finaloop-secures-35-million-in-series-a-investment-led-by-lightspeed-venture-partners-302174472.html
SOURCE Finaloop