Tabs, an AI-powered accounts receivable platform for B2B businesses, has successfully closed a $7m seed funding round.
The investment was led by Lightspeed Venture Partners, with additional contributions from previous investor Primary Ventures. This recent financial injection has increased the total capital raised by Tabs to $12m.
Located in New York, Tabs leverages artificial intelligence to transform the accounts receivable (AR) processes for companies. By automating the extraction and management of contract-related data, Tabs helps businesses streamline invoicing and payment collections. This automation is particularly crucial in today’s economic environment where efficient cash flow management is a significant challenge for many companies.
The funds from this round will be utilised to further develop Tabs’ proprietary technology and expand its market reach. The goal is to mitigate the risks associated with B2B financial operations and enhance the efficiency of cash flow systems, which is increasingly important as businesses seek flexibility and speed in their billing processes.
In addition to the funding news, Tabs has demonstrated substantial impact on its clients’ operational efficiencies. Companies using Tabs, such as Findigs, Pinata, and Inspiren, have reported a 40% reduction in time required to collect payments. This efficiency gain is attributed to the reduction of manual tasks in the billing process and the utilisation of dynamic billing capabilities that adjust to real-time market changes and customer usage.
Lightspeed partner Justin Overdorff said, “Tabs is tackling a massive problem in B2B. Most B2B businesses have contracts that vary a lot from customer-to-customer. This variability not only bogs down finance teams throughout the customer lifecycle, but starts to stifle overall company growth and flexibility as a business grows. Tabs is a perfect application of AI to understand, structure, and then act on these contracts. With half a billion invoices being sent annually, this is a huge problem to solve.”
Tabs CEO Ali Hussain highlighted the broader vision for the platform, stating, “With this funding, Tabs is set to revolutionize AR and how finance understands the customer. Our platform saves businesses significant time, reduces financial operational risks, and provides advanced board reporting. Longer-term we are focused on delivering company-changing insights to finance leaders that can fundamentally impact a company’s long-term value. Partnering with new investors like Lightspeed and existing investors Primary Ventures allows us to accelerate our growth and enhance our offerings.”
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