The bookkeeping, accounting, and finance startup for small businesses has finally raised $50 million in a Series B funding round and secured a $150 million credit line, as first reported by TechCrunch.
The funding comes just seven months after the fintech company announced it had raised $10 million in funding, bringing the total amount the Miami-based company has raised since its founding in 2018 to $305 million in debt ($235 million in credit facilities) and equity ($74 million).
Felix Rodriguez came up with the idea after watching his Dominican-born family start businesses in the U.S. He also experienced challenges when starting his own business and concluded that not all small businesses operate on an equal footing when it comes to bookkeeping and working capital.
There, after also working as a network engineer, Rodriguez and his wife, Glenys Rodriguez, started helping small businesses manage their finances in 2018. The couple then teamed up with Edwin Mejia to launch finally. The company's services have evolved over time, and today it offers AI-powered bookkeeping, accounting, and financial services. It also offers a business card that provides spending insights, and last year added an artificial intelligence-powered ledger that offers business banking capabilities.
It will ultimately compete with companies like Brex and Ramp in that it offers expense management and corporate cards, but the company bills itself as a “multi-product platform” that also offers payment processing, for example.
“Finally is especially useful for small business owners who don't have time to learn 20 different apps for their bookkeeping and financial functions,” says Felix Rodriguez. “Small business owners often have many priorities and limited time, but one of the most important aspects of running a business is understanding financial metrics like cash burn and cash flow.”
The company finally announced a 300% increase in annual revenue, though it did not disclose specific figures, since announcing its $95 million Series A in March 2022. The company serves more than 1,500 businesses in the U.S. and generates revenue from a combination of SaaS subscription fees, interchange fees and interest income.
The company also declined to disclose its valuation, saying only the Series B was an “upround.”
PeakSpan is providing the equity portion of the capital increase, and Encina is providing a $150 million credit facility. The company plans to increase investments in sales and marketing, add new features to its recruiting product, such as a module for global recruiting, and provide more financial support for payments.
The company plans to keep hiring: It now has more than 220 employees, up from 95 at the same time last year. Among its hires this year was the appointment of former Calendly CTO Roy Duvall as chief technology officer.
Jack Freeman, a partner at Peakspan Capital, said his firm had been evaluating the bookkeeping automation space for “several years” before meeting Rodriguez. The firm also funded the company's $10 million funding round earlier this year.
“We were immediately drawn to his 'all-in-one' vision,” he told TechCrunch. “While other spend management software providers focused on building software features, the company finally intuitively understood that the only value of software is the value of the data you can feed into it.”
Finally, he said the company aims to act as a “one-stop shop” for small and medium-sized businesses by ingesting data, integrating with other software and offering built-in credit products along with its software products.
Finally isn't the only startup in the space to raise significant funding recently. In June, Dublin-founded accounting technology company AccountsIQ raised €60 million (about $65 million) to build the “finance function of the future” for mid-sized businesses, a cloud-based automation service powered by AI to help accounting departments operate faster and more intelligently. And Pennylane, another accounting startup focused on the small business market, raised $40 million in February at a valuation of more than $1 billion.
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