Highlights:
- Using artificial intelligence, the startup’s platform automates a significant portion of the task’s manual labor. Vic.ai has reportedly helped corporations save roughly USD 200 million in expenses by improving accounting processes.
- Organizations are frequently required to approve supplier invoices before payment. Vic.ai claims its platform automatically distributes each supplier invoice to the appropriate executive for review.
XFO Financials Inc., a startup in accounting automation doing business as Vic.ai, has raised USD 52 million in a newly announced investment round.
Existing investors in Vic.ai like GGV Capital, and ICONIQ Growth led the Series C funding round. Cowboy Ventures and Costanoa Ventures, two additional returning investors, also participated. The corporation has received a total of USD 115 million from outside sources.
Vic.ai is a software platform business used to handle the accounts payable process or pay vendors for goods and services. Using Artificial Intelligence (AI), the startup’s platform automates a significant portion of the task’s manual labor. Vic.ai has reportedly helped corporations save roughly USD 200 million in expenses by improving accounting processes.
To process a supplier invoice, an organization must extract the invoice’s transaction details and add them to its enterprise resource management system. Traditionally, this task was performed manually. Vic.ai asserts that their platform’s AI models can automatically extract data from invoices to save the finance team’s time.
There are additional products on the market capable of automating invoice processing workflow similarly. However, according to Vic.ai, competing technologies frequently experience accuracy concerns when a company receives a bill in a format that differs from its usual suppliers. Vic.ai asserts that its platform minimizes these accuracy difficulties and is easier to deploy.
Organizations are frequently required to approve supplier invoices before payment. Vic.ai claims its platform automatically distributes each supplier invoice to the appropriate executive for review. In addition, the AI models analyze how a business handles supplier payments and, over time, learn when payments can be automatically accepted.
Vic.ai offers an analytics dashboard for monitoring the performance of accounts payable tasks. According to the startup, users can track how long it takes for various business units to process orders. The startup platform can also track additional indicators, such as the expenses a business spends on products from each supplier.
Alexander Hagerup, co-founder, and CEO of Vic.ai, wrote in his blog, “Every day we push the envelope of what AI can do – processing invoices 24/7 with up to 99% accuracy, boosting customers’ total productivity by 500%, mastering quick and accurate turn-around times for faster month-end closes, and beyond. And our intelligence dashboard tracks it all, providing invaluable finance and performance data insights.”
Vic.ai claims that more than 10,000 businesses use its platform. Over the past year, the startup’s active user base has risen by 280%, while its contracted yearly recurring revenue has tripled. The fundraising round of USD 52 million announced recently would allow Vic.ai to continue acquiring new customers.
As a part of its growth strategy, the business plans to introduce several additional financial tools in the coming year. The tools will enable companies to track business expenditures and issue corporate credit cards more effectively. In addition, Vic.ai hopes to add AI technologies that automatically recommend ways for businesses to optimize their expenditures.
Hagerup stated, “We envision a near future when AI technology will handle over 90% of cost transaction processing on behalf of finance teams and facilitate autonomous purchasing.”