Docyt, an accounting automation software platform that works with small-and-medium-sized businesses, this week announced an $11.5 million Series A fundraising round. It was led by Lobby Capital with additional participation from First Rays Venture Partners and Morado Ventures. The funding will be used to increase staffing and for customer acquisition.
Pronounced “docket” the company’s technology works with accounting ledgers like QuickBooks by using machine learning to intelligently automate financial data collection, digitization, categorization and reconciliation. By replacing multiple income, spend management, document collection, and collaboration tools which don’t communicate with each other, Docyt creates one native, end-to-end, cloud-based accounting workflow solution. This allows small-and-medium-sized businesses to streamline their financial operations into one efficient, transparent workflow.
“Small and medium-sized companies are realizing that an efficient finance and accounting back office can make them agile and conserve costs,” said Sidharth Saxena, the company’s co-founder and CEO. “With Docyt, real-time accounting is made possible, enabling better-informed, faster decisions to cope in an uncertain world.”
By connecting bank accounts and scanning or emailing receipts, bills and revenue statements, Docyt’s machine learning will extract data to power workflows, categorize and reconcile bank and credit card transactions with uploaded documents, and sync everything into an accounting ledger.
“Docyt’s AI-powered financial workflows and accounting automation give small and medium-sized businesses powerful tools to run their back-office”, said Eric Carlborg, general partner at Lobby Capital. “We’re thrilled to be part of (its) mission to disrupt the accounting software market by providing businesses with financial visibility, across all locations, in real time.”
This is the latest of several fundraising rounds the company has attracted. In late February of 2021 Docyt announced a $1.5 million seed extension round that was led by First Rays and Morado. Unnamed angel investors also participated.
Morado Ventures also participated in an earlier $2.2 million seed round. AME Cloud Ventures, Westwave Capital, Xplorer Capital, Tuesday, and angel investors also participated.