Tabs Secures $55 Million to Revolutionize Financial Automation
Tabs has successfully raised $55 million in a Series B funding round aimed at accelerating the development of artificial intelligence (AI) agents tailored for finance teams. This significant investment underscores the rising demand for innovative solutions that streamline financial processes.
Transforming Financial Workflows with AI
The company’s AI-NATIVE platform automates critical functions in the cash contract cycle. With capabilities that enable faster invoicing, automated collections, and real-time income recognition, Tabs is set to enhance how financial teams operate. According to a press release dated September 16, this platform can expedite end-of-month financial processes.
Impressive Growth Since Inception
Founded in 2023, Tabs has quickly gained traction, currently serving over 200 customers and managing an impressive $500 million in annual invoice volume. This growth indicates a strong market fit for their innovative solutions, appealing to organizations looking to modernize their financial operations.
Introducing AI Billing and Collections Agents
Among the latest features introduced are two AI agents designed to enhance efficiency in billing and collections. The billing agents seamlessly integrate with customer relationship management (CRM) and enterprise resource planning (ERP) systems, while also scanning contracts to generate and send invoices. Meanwhile, collections agents diligently monitor payment due dates, facilitating automatic correspondence and payment reconciliation.
Addressing Long-Standing Financial Challenges
“Income is one of the most challenging workflows within a company,” stated Ali Hussain, CEO and co-founder of Tabs. “Financial teams often struggle with legacy ERPs. TABS aims to bring modern AI solutions directly to the CFO’s office, optimizing billing management and complex collections, thus accelerating cash flow and reducing manual effort.
Backing from Industry Experts
Justin Overdorff, a partner at Lightspeed Venture Partners, who led the recent funding round, highlighted that Tabs is eliminating manual processes that have plagued revenue flows for decades. Overdorff remarked, “The team combines deep finance expertise with AI capabilities, which speaks to the readiness of the market for this transformation.”
Past Funding Rounds and Future Prospects
Prior to this Series B funding, Tabs raised $25 million in Series A funding in October 2024 and an additional $7 million in seed financing in April of the same year. In June 2024, the company added a revenue recognition feature to its platform, enhancing its ability to help businesses comply with accounting standards while improving precision and efficiency.
Building Relationships Through Automation
The Pymnts Intelligence Report noted that adopting digital and automated accounts receivable processes can help companies bridge visibility gaps and foster stronger relationships with suppliers and customers. This is indicative of the broader movement toward automation in finance, showcasing how technological advancements can greatly benefit organizational workflows.
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