Finaloop raises $35 million in Series A round for e-commerce accounting platform

Finaloop, which develops an accounting platform for e-commerce companies, raised $35 million in a Series A funding round. The round was led by Lightspeed Venture Partners and included participation from Vesey Ventures, Commerce Ventures and existing investors Accel and Aleph. This means that the total value of investment in the company since its inception was USD 55 million. The last round of financing was carried out at a much higher valuation than the previous one, and all the funds went to the company’s account

According to the company’s CEO and founder, Lioran Pinchevski, the valuation increase and successful financing round can be attributed to a fourfold increase in customer numbers and a sevenfold increase in revenue. “We process 70 million transactions. The company’s business model is subscription-based, with fees ranging from $1,000 to $30,000 depending on customer size. Our largest client generates sales of $100 million. We serve very small companies up to $100 million in sales, but we do not serve corporations.”

Finaloop provides an accounting solution tailored to the unique needs of US e-commerce businesses. The platform makes all financial data available to e-commerce stakeholders, from periodic billing to real-time financial metrics. The AI-powered real-time accounting service is tailored for direct-to-consumer (DTC) brands selling on Shopify, Amazon, Walmart and many other online stores and platforms, as well as wholesale and omnichannel businesses.

The company was founded in 2020 by Pinchevski, a former partner at PwC specializing in US and international taxes and a lecturer in these fields at Tel Aviv University. While establishing his own e-commerce brand, Lioran encountered a technological gap in accounting, which led to poor pricing decisions and difficulties in creating reliable financial reports.

Finaloop currently serves thousands of e-commerce brands, managing $13 billion in total sales volume. Their notable clients include Heart & Soil, Duradry, Magic Brand, Crossnet and Marcella New York. The company employs 65 people, most of whom work in Tel Aviv and the rest in New York.

“I started the company in 2020. In my last position before founding Finaloop, I was an M&A partner at PwC and also founded several e-commerce companies simultaneously. My experience in tax and trading helped me identify a significant problem in gaining insight into the financial side of a business and the only way to obtain information was through accounting services who often provided it late and incorrectly, and today every e-commerce entrepreneur has to manage the books for legal purposes This usually happens through accounting firms using inappropriate software. We replace both software and accountants, providing a real-time financial system. All financial reports are generated in real time, ensuring full visibility,” Pinchevski said.