Tabs, an innovative company at the forefront of technology for finance teams, has recently announced that it has secured $55 million in a Series B funding round. This significant investment was led by Lightspeed Venture Partners. It included participation from multiple distinguished investors such as General Catalyst, Primary Venture Partners, and the World Innovation Lab, also known as WiL. With this new funding, Tabs has now raised over $91 million since its inception, showcasing strong support and confidence in its mission to transform how finance departments operate.
During a time when various financial processes have undergone significant evolution, areas such as payments, spend management, and payroll have witnessed numerous technological advancements. However, one crucial aspect has often been overlooked: revenue workflows. This category encompasses essential processes, including billing, collections, revenue recognition, and reporting. Many finance teams continue to rely on outdated systems, often combining manual enterprise resource planning (ERP) workflows with a mix of different software solutions and spreadsheets. Research shows that finance teams can spend as much as 50% of their time managing billing and collections. Alarmingly, invoice error rates can be as high as 20%. These inefficiencies result in delayed cash inflows, missed revenue opportunities, and countless hours wasted attempting to reconcile data across multiple systems.
To put the scale of the problem into perspective, it is essential to consider that there are approximately $125 trillion worth of global business-to-business (B2B) transactions conducted annually. This figure highlights a massive opportunity for automation in the area of revenue management, as businesses look to find more efficient ways to handle their finances.
Tabs aims to address these pressing challenges through its AI-native platform that automates the entire contract-to-cash cycle. This means that businesses can benefit from quicker invoicing, automated collections, real-time revenue recognition, and faster month-end closures. By streamlining these key processes, Tabs allows finance teams to focus more on strategy and analysis rather than getting bogged down in tedious tasks.
As part of its ongoing innovation, Tabs is launching several new features designed to enhance its platform further. The introduction of billing agents will significantly improve the invoicing process. These agents can efficiently read contracts, create and send invoices promptly, and ensure that all necessary information is synchronized with both customer relationship management (CRM) systems and ERP software. On the collections side, new automation will help teams track payment due dates, automatically matching and reconciling payments without requiring manual intervention. By incorporating these tools, Tabs significantly reduces the workload for finance teams and minimizes the chances of errors.
Over the past year, Tabs has experienced notable growth, having expanded its services to more than 200 customers, including well-known companies such as Cursor and Statsig. The platform has successfully automated over $500 million in annual invoice volume, resulting in a fivefold increase in its annual recurring revenue. Many clients report that they are now able to automate more than 80% of the manual tasks related to billing and invoicing, freeing up valuable resources to focus on critical strategic initiatives.
The need for automation in revenue management is more pressing than ever. Finance and accounting leaders are grappling with increasingly complex pricing models, primarily driven by the growing prevalence of usage-based and hybrid contracts. Compounding these challenges is the demographic shift within the accounting profession, with about 75% of accountants nearing retirement and the number of new certified public accountants (CPAs) decreasing by 30% in the past decade. Facing this landscape, many Chief Financial Officers (CFOs) are realizing that simply adding more personnel is not a sustainable solution. Instead, they are turning to artificial intelligence (AI) as a means to automate billing and revenue management tasks, enabling faster cash cycles and significantly reducing manual workloads.
The new funding will be essential for Tabs as it works to accelerate the development of its agent roadmap, expand its engineering and AI research teams based in New York, and promote greater adoption of its innovative technology among rapidly growing technology and B2B companies.
KEY QUOTES:
“Revenue in is the hardest and most valuable workflow in the enterprise, yet finance teams are still stuck with legacy ERPs. Tabs is bringing modern AI agents to the CFO’s office, starting with billing, complex enterprise contract management, and collections, so companies can collect cash faster and reduce time spent on manual work.”
Ali Hussain, CEO and co-founder of Tabs
“Tabs is fundamentally changing how finance teams work, eliminating manual processes that have plagued revenue workflows for decades. The team has combined deep finance expertise with purpose-built AI agents for revenue processing and tracking, and the rapid customer adoption we’re seeing validates just how ready the market is for this transformation.”
Justin Overdorff, Partner at Lightspeed Venture Partners
