Finaloop, an artificial intelligence (AI)-driven, automated e-commerce accounting platform based in the US and Israel, has secured $35m in a Series A funding round.
The financing round was led by multi-stage venture capital firm Lightspeed Venture Partners. It also had the participation from Vesey Ventures, Commerce Ventures, and Finaloop’s existing investors, namely Accel and Aleph.
Lightspeed partner Tal Morgenstern said: “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.
“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.”
Finaloop aims to utilise the new capital to further invest in its AI-driven e-commerce accounting software automation and its capabilities in inventory management.
The company also intends to expand its go-to-market and partnership efforts with accounting firms as well as data-driven marketing agencies with the new fund.
The latest financing round brings the real-time e-commerce accounting platform’s total funding to $55m.
Established in 2020, Finaloop is engaged in transforming the way e-commerce and retail brands manage their finances. The firm offers an automated accounting and bookkeeping service that moves at the speed and scale of their online business.
The platform also makes all financial data accessible to e-commerce stakeholders to enable better and more profitable business decisions.
According to Finaloop, it is the first real-time, AI-driven accounting service designed for direct-to-consumer (DTC) brands selling on online stores and marketplaces along with wholesale and multi-channel businesses.
Finaloop CEO and founder Lioran Pinchevski said: “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.
“E-commerce operators were left with outdated and in many cases erroneous books using archaic software like Quickbooks, Xero, and Netsuite which were created more than two decades ago and that simply could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.”
