The SMB-focused bookkeeping, accounting and finance startup finally has raised $50 million in a Series B round of funding and secured a $150 million credit line, TechCrunch is the first to report.
The financing comes just seven months after the fintech company announced it had raised $10 million in funding, and brings Miami-based finally’s total raised since its 2018 inception to $305 million in debt ($235 million in credit facilities) and equity ($74 million).
Felix Rodriguez came up with the idea for finally after seeing his Dominican Republican-born family start their own businesses in the United States. He’d also experienced his own challenges firsthand when starting his own companies, and concluded that not all small businesses were on a level playing field when it came to bookkeeping and working capital.
So in 2018, after also having worked as a network engineer, Rodriguez and his wife, Glennys Rodriguez, began helping small and mid-sized businesses manage their finances. The couple then teamed up with Edwin Mejia to start finally. The company’s offering has evolved over time and today, finally offers AI-powered bookkeeping as well as accounting and financial services. It also offers a corporate card with insights into spending and last year, it added an artificial intelligence-powered ledger that offered business banking functions.
In some respects, finally competes with the likes of Brex and Ramp as it offers expense management and a corporate card. But the company maintains it’s “a multi-product platform” that, for example, also offers payroll processing.
“finally is especially useful for SMB owners that don’t have time to learn 20 different apps for their bookkeeping and finance functions,” Felix Rodriguez said. “SMB owners have many priorities and often limited time. But one of the most important parts of running a business is understanding financial metrics, including cash burn and cash flow.”
Since announcing its $95 million Series A in March of 2022, finally says it has seen annual revenue growth of 300%, although it declined to reveal hard figures. The company serves over 1,500 business in the United States, and makes money through a combination of SaaS subscription fees, interchange fees and interest income.
Finally also declined to share its valuation, saying only the Series B was “an up round.”
PeakSpan provided the equity portion of the raise while Encina is offering the $150 million credit facility. The company plans to deepen its investment in sales and marketing and add new features such as a module for global hiring in its hiring product and more support for payments on the finance side.
It also plans to keep hiring. Presently, finally has more than 220 employees, up from 95 this time last year. Among its hires this year was the appointment of Roy Duvall, former CTO at Calendly, to serve as its chief technology officer.
Jack Freeman, partner at PeakSpan Capital, said his firm had been evaluating the bookkeeping automation space for “several years” prior to meeting Rodriguez. The firm also provided capital in finally’s $10 million raise earlier this year.
“We immediately fell in love with his ‘all-in-one’ vision,” he told TechCrunch. “While other spend management software providers are focused on building out software features, finally understands intuitively that software is only as valuable as the data you can feed it.”
finally, he said, ingests data, integrates with other software and offers embedded credit products alongside software products in an effort to serve as a “one-stop shop” for an SMB.
finally is not the only startup in this space to raise a significant amount as of late. In June, AccountsIQ, a Dublin-founded accounting technology company, raised €60 millio (about $65 million) to build “the finance function of the future” for midsized companies: cloud-based, automated services boosted by AI to help accounting departments work faster and more intelligently. And Pennylane, another accounting startup that focuses on the SMB market, raised $40 millio at a valuation of over $1 billion in February.
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