Accounting Platform Docyt Closes $11.5M Series A

Docyt, an accounting automation software platform for small- to medium-sized businesses (SMBs), has raised $11.5 million in a Series A funding round.

As the company said in a Wednesday (April 6) news release, Docyt (pronounced “docket”) will use the money to expand its workforce and double down on customer acquisition.

Read more: Docyt Talks Big Picture of SMB Finance

Based in Santa Clara, California, Docyt uses machine learning to automate financial data collection, digitization, categorization and reconciliation. The company said it replaces multiple tools that don’t communicate with each other with a single, native, end-to-end cloud-based accounting workflow tool that lets businesses streamline their financial operations.

“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, co-founder and CEO of Docyt. “With Docyt, real-time accounting is made possible, enabling better-informed, faster decisions to cope in an uncertain world.”

The company said that its machine learning can connect client bank accounts and scan receipts, bills and revenue statements to extract the information so that it can power workflows, categorize and reconcile bank and card transactions with uploaded documents, and sync everything into their accounting ledgers.

The funding round was led by Lobby Capital with participation from First Rays Venture Partners and Morado Ventures. Docyt said it grew its revenues by six-fold last year while quadrupling its customer base.

PYMNTS spoke with Saxena in March about the numerous solutions designed to streamline the way SMBs manage, receive and send money. While these tools are valuable, Saxena said these players may all be missing a larger pain point in the SMB finance world.

“When you start scratching the surface, money movement is just the tip of the iceberg,” he said. “Whenever money changes hands — especially in a B2B scenario — ultimately that money has to be accounted for.

While offering tools to track funds from Point A to Point B can be very lucrative for a FinTech, these offerings can fail to make sure that data moves along with that money. And Saxena added that this strategy can make it even more difficult for a business owner to actually access that information and glean valuable, actionable information.