The startup specializing in accounting, bookkeeping and finance focused on SMEs Finally has raised $50 million in a Series B funding round and secured a $150 million credit line, TechCrunch was the first to report.
The funding comes just seven months after the fintech company announced it had raised $10 million in fundingand brings the total raised by Miami-based Finally since its inception in 2018 to $305 million in debt ($235 million in credit facilities) and equity ($74 million).
Felix Rodriguez was inspired to create Finally after seeing his Dominican-born family start their own businesses in the United States. He also experienced his own struggles when starting his own businesses and realized that not all small businesses were equal when it came to accounting and working capital.
So in 2018, after also working as a network engineer, Rodriguez and his wife, Glennys Rodriguez, started helping small and medium-sized businesses manage their finances. The couple then partnered with Edwin Mejia to launch FinallyThe company’s offering has evolved over time and now finally offers AI-powered accounting as well as accounting and financial services. It also offers a corporate card with expense insights, and last year it added an AI-powered ledger that offers banking capabilities for businesses.
Finally, Finally competes in some ways with companies like Brex and Ramp, because it offers expense management and a corporate card. But the company maintains that it is “a multi-product platform” that, for example, also offers payroll processing.
“Finally is especially useful for small business owners who don’t have the time to learn 20 different apps for their accounting and finance functions,” said Felix Rodriguez. “Small business owners have many priorities and often limited time. But one of the most important aspects of running a business is understanding financial metrics, including cash burn and cash flow.”
Since the announcement of his $95 million Series A In March 2022, Finally said it had posted 300% annual revenue growth, though it declined to disclose specific numbers. The company serves more than 1,500 businesses in the U.S. and makes money through a combination of SaaS subscription fees, interchange fees, and interest income.
Finally, he also declined to share his valuation, saying that only the Series B was “an upside round.”
PeakSpan provided the equity portion of the funding round while Encina provided the $150 million credit facility. The company plans to deepen its investment in sales and marketing and add new features such as a global recruiting module in its recruiting product and more support for payments on the financial side.
The company also plans to continue hiring. Finally currently has more than 220 employees, up from 95 at the same time last year. This year’s hires include the appointment of Roy Duvall, formerly Calendly’s CTO, as CTO.
Jack Freeman, a partner at PeakSpan Capital, said his firm had been evaluating the accounting automation sector for “several years” before meeting Rodriguez. The firm also provided capital in Finally’s $10 million funding round earlier this year.
“We immediately fell in love with their vision of ‘all-in-one,’” he told TechCrunch. “While other expense management software vendors focus on developing software features, Finally intuitively understands that the value of software is solely dependent on the data you can feed it.”
Finally, he said, it ingests data, integrates with other software and offers integrated credit products alongside software products with the aim of serving as a “one-stop shop” for an SME.
Finally, it is not the only startup in this field to have recently raised a significant amount. In June, AccountsIQ, an accounting technology company founded in Dublin, raised 60 million euros (about $65 million) to build “the finance function of the future” for midsize businesses: cloud-based, automated services powered by AI to help accounting departments work faster and smarter. And Pennylane, another accounting startup focused on the SMB market, raised $40 million for a valuation of more than $1 billion in February.
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