B2B payments company Accrualify, based in California, announced its first venture capital funding round.
Reports Wednesday (May 10) said Accrualify raised more than $600,000 from investors. The round was led by Scott Lee, an executive at Envestnet, as well as seed fund Swan Venture Fund. The firm said it plans to use the money to strengthen its existing accrual and spend management platform.
Accrualify provides a procure-to-pay platform that supports payments, vendor management, invoice and accrual automation and other features.
In an interview with PYMNTS last year, Accrualify CEO Ben Portusach highlighted the need for end-to-end solutions within the enterprise, noting that some procure-to-pay solutions have missing elements like purchase order modules and accrual management capabilities.
“It’s a nightmare,” Portusach said of the manual process many businesses must endure to send thousands of emails to vendors requesting price estimates for services they have so far incurred but have not yet been invoiced. “There hasn’t been any innovation, and ERP companies have turned a blind eye to it.”
Purchase order management has similarly been ignored, he said, explaining that POs are key to understanding on what a company is spending its money.
“If you don’t have a PO in place, it’s just all over the place. It’s like the wild, wild west — spending like crazy,” the executive said. “We’ve had situations where a company doesn’t know what they’re spending on, and they’re paying all these invoices — in some cases, the invoices that are coming in are not kosher.”
Venture capitalists have expressed moderate interest in the procure-to-pay space. Last year, Nexus Systems, another P2P platform, revealed it raised $28 million from Mainsail Partners and other backers.