Finaloop announced that it had raised a Series A round of $35 million. Lightspeed Venture Partners led this round, with participation from Vesey Ventures and Commerce Ventures. Existing investors Accel and Aleph also participated. Finaloop will use the latest funding round to invest in its AI driven e-commerce software automation and inventory management, as well to expand its partnership efforts with data-driven marketing agencies and accounting firms.
Finaloop, a new accounting and bookkeeping platform that will be launched in 2020 in New York and Tel Aviv with offices in both cities, is revolutionizing how e-commerce brands and retail businesses handle their finances.
Finaloop provides all financial data to ecommerce stakeholders to help them make better and more profitable decisions. This includes everything from periodic accounting to real time finance metrics. Finaloop is a real-time AI-driven accounting solution for direct-to consumer (DTC), wholesale, and multi-channel brands.
Finaloop has demonstrated that the ecommerce market wants a better way to run its financial operations. Finaloop has grown its customer base 400% in the last year. They now work with thousands of brands, and manage over $13 billion GMV through their platform.
Ricoc is the first AI-driven engine for reconciliation. It’s at the core of Finaloop’s automation capabilities. Finaloop has automated the categorization of over 70 million transactions.
The e-commerce industry relies on a technological stack that is advanced, with players such as Shopify, Amazon and Gusto. But the accounting and bookkeeping tools used by these companies are outdated. They use software from more than 20 years ago, like Quickbooks, Xero and Netsuite, which simply cannot keep up with their unique business. When I started my own DTC brand, I went through the same thing. “The result was inventory mismanagement and incorrect pricing decisions. Financial reporting was also completely unreliable.”
“We are excited to join forces with Lightspeed, who share our vision for becoming the financial source truth for all retail brands. We’re witnessing a tectonic change in the ecommerce market, from growth at any cost to profit-driven financial management. Finaloop’s real-time financial visibility helps brand founders improve their financial IQ, and propels them into becoming not only great marketers, but great operators.
Finaloop is used by some of the biggest DTC brands, including Heart & Soil and Duradry. It also helps forward-thinking accountants and bookkeepers make better, data-driven business decisions by removing financial blind spots. Finaloop helps businesses grow faster, with better cash flow management and accurate COGS and Inventory planning. Jack Benzaquen is the CEO of Duradry, one of Finaloop’s earliest clients. This visibility was never available before.
Finaloop is reshaping an industry that hasn’t changed in over 30 years. They are leading the way in reshaping bookkeeping and accounting for ecommerce by solving the biggest pain points,” stated Tal Morgenstern, Partner of Lightspeed Venture Partners.