Stuut has raised $52.5 million in Series B funding led by Insight Partners, with participation from Andreessen Horowitz, M12, Microsoft’s Venture Fund, and Activant, as the company expands its artificial intelligence platform across the entire order-to-cash lifecycle.
The financing comes just 10 months after Stuut’s Series A and follows rapid adoption among large enterprises.
More than 150 companies now use Stuut, including Fortune 50 and Fortune 500 businesses. More than $3 billion has moved through the platform, and Stuut said customers are reducing days sales outstanding by 47% while freeing up as much as 40% more cash flow.
Stuut initially focused on collections, addressing situations where companies had already earned revenue and issued invoices but still required finance teams to spend significant amounts of time determining why customers had not paid.
As the company began working with larger enterprises, it found that overdue invoices were frequently the downstream result of problems occurring earlier in the order-to-cash process.
Those issues could include missing purchase orders, mismatched pricing, invoices being sent to the wrong recipient or important context being lost as transactions moved among sales, operations and finance teams.
By the time a collections team became involved, employees often had to reconstruct the transaction before they could address the underlying payment issue.
Stuut estimates that businesses worldwide have $16 trillion tied up in receivables and that broken order-to-cash processes can cost a company approximately 5% of its revenue, representing close to $1 trillion annually across the Fortune 500.
The company sees AI as an opportunity to move financial software beyond identifying problems and toward actually resolving them.
Traditional collections, dispute and cash application software can identify accounts requiring attention, deductions or unmatched payments, but human employees have historically needed to handle the subsequent actions.
Stuut’s AI system is designed to perform those actions across the workflow, including contacting customers, accessing portals, investigating transaction histories, resolving exceptions, applying cash and determining what should happen next.
The platform also carries context between different steps of the process rather than requiring employees or systems to reconstruct information each time a transaction passes between departments.
Stuut has consequently expanded from collections into a broader platform spanning order management, credit, collections, payments, cash application, disputes and deductions.
Customers are already extending the technology across additional parts of their financial operations.
ZoomInfo has expanded its use of Stuut into disputes, while Honeywell runs the platform on top of legacy SAP infrastructure and is moving into quote-to-cash applications.
Bishop Lifting uses Stuut for collections, disputes and cash application across 45 branches.
Stuut said its AI can work simultaneously across thousands of customers and invoices while retaining information about how individual customers typically pay, previous problems and how those issues were resolved.
That capability is intended to address a fundamental limitation of traditional accounts receivable operations: the amount of attention a human finance team can devote to individual transactions.
The company’s technology is also designed to operate within existing enterprise infrastructure rather than requiring customers to replace long-standing ERP systems and financial processes.
Stuut integrates with existing systems, approvals and controls while creating an auditable record of its actions.
The company said every enterprise that has completed a proof of concept with Stuut has subsequently become a customer.
The Series B will support expansion to additional enterprise customers and deeper development across the financial infrastructure surrounding transactions, including credit, lending and movement of funds.
Longer term, Stuut’s goal is to automate the movement of money between businesses beyond accounts receivable.
The company envisions eventually managing a transaction from the moment a business decides to sell a product or service through the decisions, documents and payments required to complete it.
KEY QUOTES:
“We raised this round because demand for Stuut has grown far beyond where we started.”
Tarek Alaruri, CEO of Stuut
“Once the same system can understand what happened upstream and act on what needs to happen downstream, collections stops being the boundary. The job is the entire journey from order to cash.”
Tarek Alaruri, CEO of Stuut
“Our mission is to make the movement of money between businesses autonomous. Order-to-cash is where we’re starting, but over time we want Stuut to carry a transaction from the moment a company decides to sell something through every decision, document and payment that follows. The end state is much bigger: B2B commerce that runs itself.”
Tarek Alaruri, CEO of Stuut
