Finally, an SMB-focused bookkeeping, accounting, and finance startup 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, bringing 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 Republic-born family start their own businesses in the United States. He 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.
After working as a network engineer, Rodriguez and his wife, Glennys Rodriguez, began helping small and mid-sized businesses manage their finances in 2018. 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, accounting, and financial services. It also offers a corporate card with insights into spending and added an artificial intelligence-powered ledger that offered business banking functions last year.
Finally is especially useful for SMB owners that don't have time to learn multiple apps for their bookkeeping and finance functions. 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 2022, Finally says it has seen annual revenue growth of 300%, although it declined to reveal hard figures. The company serves over 1,500 businesses 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.
Finally plans to keep hiring, with over 220 employees presently, 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.
Finally is not the only startup in this space to raise a significant amount recently. In June, AccountsIQ, a Dublin-founded accounting technology company, raised €60 million (about $65 million) to build 'the finance function of the future' for mid-sized 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 million at a valuation of over $1 billion in February.
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