Finaloop secures $35 million in Series A investment led by Lightspeed Venture Partners

The round brings Finaloopa’s total funding to

$55 million

because it is revolutionizing the way e-commerce and retail brands handle their finances

NEW YORK

AND

Tel Aviv, Israel

,

June 17, 2024

/PRNewswire/ — Today

Final

real-time e-commerce accounting platform, announced that it has raised approx

$35 million

Series A, round.

Partners of the Lightspeed venture

led the round with participation from

Vesey Ventures,

Commercial ventures

and current investors,

Speed ​​up

AND

Aleph

. The latest round of funding that increases Finaloop’s total funding

$55 million

will be used to further invest in AI-based e-commerce accounting software automation, inventory management capabilities, as well as to expand go-to-market efforts and partnerships with data-driven accounting firms and marketing agencies.

Launched in 2020 with offices in

New York

AND

Tel Aviv

Finaloop is revolutionizing the way e-commerce and retail brands handle their finances by offering an automated accounting and bookkeeping service that adapts to the speed and scale of their online businesses.

Finaloop makes all financial data available to e-commerce stakeholders, enabling them to make better and more profitable business decisions – from periodic accounting to real-time financial metrics. Finaloop is the first real-time, AI-powered accounting service 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 funding round follows the success of Finaloop, which showed that the e-commerce market needs a better solution to conduct its financial operations. Over the last 12 months, Finaloop has grown its customer base by 400%, now working with thousands of brands and managing over

$13 billion

in GMV on their platform.

At the heart of Finaloop’s automation capabilities is Rico

^ⓒ

, the first AI-powered reconciliation engine. Of over 70 million transactions, Finaloop has successfully automated the categorization and reconciliation of over 94% of these transactions.

“The entire e-commerce industry is built on an advanced technology stack with players like Shopify, Amazon, Gusto, Stripe and others, but the accounting and bookkeeping solutions used by these companies are light years behind every other tool in their toolkit ” said Lioran Pinchevski, CEO and founder of Finaloop. “E-commerce operators were left with outdated and in many cases buggy ledgers using archaic software such as Quickbooks, Xero and Netsuite that were created over two decades ago and that simply couldn’t keep up with the pace of their unique business. I have experienced this. I did this myself when I started my own DTC brand, resulting in poor inventory management, poor pricing decisions, and unreliable financial reporting.

“We are excited to join forces with Lightspeed, who shares our vision of being the financial source of truth for all retail brands. We are seeing a tectonic shift in the e-commerce market from growth at all costs to profit-driven and financial management, by providing real-time financial visibility, Finaloop helps brand founders develop their financial IQ and makes them not only great marketers, but also great cinematographers in general.

Used by some of the most well-known DTC brands in the market, such as Heart & Soil, Duradry, Crossnet, Netrition and Marcella NYC, Finaloop helps founders, operators and forward-thinking CPAs and CPAs create smarter, data-driven decision-making by removing financial blind spots . The result is faster growth, better cash flow management, and more accurate COGS costs and inventory planning.

Jack Benzaquen

CEO of Duradra and one of Finaloop’s first customers, swears by Finaloop: “The magic of Finaloop is that they simplify the financial process and finally give me confidence in my numbers. This visibility is crucial and has never existed before.”

“Finaloop is shaking up an industry that has not seen significant changes for over 30 years. The company is leading the way in transforming accounting and bookkeeping for e-commerce, solving the biggest problems,” he said

Tal Morgenstern

, Partner at Lightspeed. “We are excited to support the Finaloop team in their goal of providing e-commerce companies with real-time financial data, giving them an invaluable competitive advantage.”

About Lightspeed

Lightspeed Venture Partners is a multi-stage venture capital firm focused on accelerating breakthrough innovations and trends in the enterprise, consumer, health and fintech sectors. Over the past twenty years, the Lightspeed team has supported hundreds of entrepreneurs and helped build over 500 companies worldwide, including Affirm, Carta, Cato Networks, Epic Games, Faire, Forty Seven, Guardant Health, Mulesoft, Navan, Netskope, Nutanix, Rubrik, Sharechat, Snap, Udaan, Ultima Genomics and more. It is currently managed by Lightspeed and its global team

$25 billion

in AUM on the Lightspeed platform, with investment professionals and advisors in the USA,

Europe

,

India

,

Israel

AND

Southeast Asia

. www.lsvp.com

About Finaloop

Finaloop is an AI-powered, automated e-commerce accounting platform that provides accounting and bookkeeping services that fully reconcile all financial data in real-time, providing consumer brands with error-free books, tax-ready financial statements, inventory cost management and actionable insights 24/ 7 with full accuracy. By combining deep accounting knowledge built into the software and leveraging artificial intelligence overseen by accounting and e-commerce experts, Finaloop gives brands the financial data they need to stop wasting time and money, make smarter decisions, and focus on increasing their profits.

Additional information about the company can be found on the website

https://www.finaloop.com

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SOURCE Finaloop