OpenEnvoy Raises $15 Million to Grow AP Automation Solution

OpenEnvoy has raised $15 million in Series A financing to grow its accounts payable (AP) automation solution.

The company’s platform uses artificial intelligence (AI) to digitize invoices and perform reconciliation, eliminating billing errors and the need for interdepartmental approval processes, OpenEnvoy said in a Wednesday (May 3) press release.

“We’re thrilled to continue pushing the boundaries in AI for automation of financial processes,” OpenEnvoy CEO Matthew Tillman said in the release. “With this new round of funding, we’re well positioned to extend our industry leadership and growth.”

PYMNTS research has found that AP automation assists companies with growth.

Among the businesses surveyed, 98% believe that automated AP will improve their speed of managing payables, 91% believe it will improve their ability to pay vendors in their local currencies, and 90% believe it will enhance the visibility and transparency of payments, according to “High-Volume Accounts Payable: Achieving Long-Term Growth Through Automation,” a PYMNTS and Routable collaboration.

Every dollar counts, and reducing operational costs with AP automation can go a long way toward stretching those dollars, Tillman told PYMNTS’ Karen Webster in an interview posted Friday (April 28).

The return on investment (ROI) on a tech solution should be 10 times in hard dollar savings relative to the cost of the solution, Tillman added.

“Let’s say [OpenEnvoy] charges you $100,000 to get started for an annual contract, and that means we need to bring you $1 million in savings, otherwise you shouldn’t do the deal,” Tillman said.

OpenEnvoy’s platform processes all types of invoices but is especially well known for managing high-volume, variable-cost invoices — doing so with 99% accuracy, in real time, and with controls that protect companies from vendor fraud, according to the press release.

Jason Black, general partner at RRE Ventures, which led OpenEnvoy’s latest funding round, said in the release that the firm is poised to reshape an invoice processing task that is error-prone, tedious and no longer a human-scale problem.

“OpenEnvoy’s unparalleled AI technology paired with its integrated document digitization and processing technology fundamentally transforms the AP function, delivering immediate value and frequently saving customers millions in overpayments,” Black said in the release.

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