Finaloop, a real-time e-commerce accounting platform, has successfully completed a $35m Series A funding round.
This round was led by Lightspeed Venture Partners and saw contributions from Vesey Ventures, Commerce Ventures, and previous backers Accel and Aleph.
The company, which was established in 2020 and operates out of New York and Tel Aviv, offers an innovative solution in accounting for the e-commerce sector. Its services cater specifically to the needs of retail brands operating in dynamic online markets, enhancing financial transparency and efficiency.
With the fresh injection of capital, Finaloop plans to further develop its AI-driven software for e-commerce accounting automation and inventory cost management. Additionally, the funds will support expanding market operations and partnerships with accounting firms and data-driven marketing agencies, enhancing their reach and service capability.
Finaloop is pioneering in providing instantaneous, AI-driven accounting services tailored specifically for direct-to-consumer brands on major online platforms like Shopify, Amazon, and Walmart, as well as for wholesale and multi-channel enterprises.
Their system enables complete financial data access, empowering stakeholders to make better, more informed decisions that drive profitability and growth.
Since its inception, Finaloop has demonstrated significant growth, increasing its customer base by 400% over the past year. It now serves thousands of brands and manages over $13bn in gross merchandise value across its platform.
Central to Finaloop’s technological advancement is Rico©, a pioneering AI-driven reconciliation engine that has successfully automated the categorization and reconciliation of more than 94% of 70 million transactions. This efficiency underscores Finaloop’s commitment to modernising financial management within the e-commerce sector.
Finaloop CEO and founder Lioran Pinchevski remarked, “The entire e-commerce industry is built on an advanced technological stack with players like Shopify, Amazon, Gusto, Stripe, and others but the accounting and bookkeeping solutions used by these companies were lightyears behind every other tool in their arsenal.
“E-commerce operators were left with outdated books using archaic software like Quickbooks, Xero, and Netsuite which were created more than two decades ago and that simply could not keep up with the pace of their unique business. I experienced it myself when I founded my own DTC brand. The result was inventory mismanagement, incorrect pricing decisions, and completely unreliable financial reporting.”
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