Finaloop, a real-time e-commerce accounting platform, announced it has raised a $35 million Series A round. Lightspeed Venture Partners led the round, which was joined by Vesey Ventures, Commerce Ventures, and existing investors Accel and Aleph.
This 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 and inventory management capabilities and 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 transforming 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 financial data accessible to e-commerce stakeholders, driving better, more profitable business decisions, from periodic accounting to real-time finance metrics. And Finaloop is the first real-time and AI-driven accounting service tailored for direct-to-consumer (DTC) brands selling on Shopify, Amazon, Walmart, and many other online stores and marketplaces, and wholesale and multi-channel businesses.
This funding round follows Finaloop’s success in demonstrating that the e-commerce market is craving a better solution for running its financial operations. In the year, Finaloop grew its customer base by 400%, now working with thousands of brands and managing over $13 billion in GMV on its platform.
At the heart of Finaloop’s automation capabilities is Rico, which is the first AI-driven reconciliation engine. Out of 70+ million transactions, Finaloop has automated the categorization and reconciliation of over 94% of those transactions.
Used by some of the best DTC brands in the industry like Heart & Soil, Duradry, Crossnet, Netrition, and Marcella NYC, Finaloop helps e-commerce founders, operators, bookkeepers, accountants, etc. make smarter data-driven decisions by removing the financial blind spots. And the result is faster growth, better cash flow management, and more accurate COGS and inventory planning.
KEY QUOTES:
“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 E-commerce operators were left with outdated and in many cases erroneous books using archaic software like Quickbooks, Xero, and Netsuite which were created more than two decades ago and that simply could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. 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.”
- Lioran Pinchevski, CEO and founder of 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.”
- Jack Benzaquen, CEO of Duradry and one of Finaloop’s earliest customers
“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.”
- Tal Morgenstern, Partner at Lightspeed
