San Francisco fintech startup YayPay announced on Wednesday it secured $5.3 million in funding to further its drive to bring automation to the back-office finance operations of mid-sized enterprises. The company’s latest funding round was led by QED Investors along with co-investors Birchmere and Fifth Third Capital, the direct equity investment subsidiary of Fifth Third Bancorp, with support from 500 Fintech Fund, Aspect Ventures, Gaingels, Techstars, and Zelkova.
Founded in 2015, YayPay describes itself as an AI to accelerate cash flow and automate accounts receivables. The company’s AR workflow and CRM products notably enable “better” customer communications and “faster” cash collection, with a reduction in Days Sales Outstanding (DSO).
“YayPay dramatically improves results through data-driven and best practice processes; and increases staff productivity through collaboration tools and insightful working capital reporting and analytics. YayPay’s vision is to transform accounts receivable management with AI-enabled process automation and communications. SaaS-based, YayPay integrates with industry leading accounting and ERP systems including NetSuite, Intacct and Quickbooks, as well as custom integrations. YayPay customers are MM companies typically in technology, manufacturing, wholesale trade, professional services (legal & IT), advertising and media.”
YayPay also claimed that its customers have reduced Days Sales Outstanding (DSO) by up to 25% while dramatically improving A/R productivity because collections teams can more accurately monitor cash inflow and proactively work with slow-paying clients. Finance staff typically report 3x more efficiency and can accelerate cash flow by 10 to 25%, which means millions of dollars more in free cash flow, and massive savings.
Anthony Venus, co-founder and CEO of YayPay, stated:
“With modern software powered by machine learning, we aim to turn finance teams into revenue heroes by giving them workflow tools that finally match in robustness those used by their sales and marketing departments. The funding puts YayPay at a major inflection point in which we can now recruit more great talent, roll out a full suite of intelligent order-to-cash automation software, and accelerate sales activities.”
YayPay added it will capitalize on its momentum in the multi-billion-dollar, order-to-cash software market and use the funding to grow headcount, pursue product development, and increase sales activities.