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Exclusive: Tabs raises $7M to automate receivables

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Apr 11, 2024
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Tabs, which has built an accounts receivable platform for B2B companies, raised $7 million in seed funding, the company tells Axios exclusively.

Why it matters: Manual processes slow down billing, and the company's software speeds up the process of collecting payments.

How it works: Tabs uses AI to ingest B2B contracts and extract relevant information from them. That information is then used to automate invoicing and payments.

  • The company says early customers, which include Findigs, Pinata, and Inspiren have seen a 40% reduction in their time to collect payments.

Context: The Lightspeed Venture Partners-led funding, which included participation from existing investor Primary Ventures, brings Tabs out of stealth.

  • The company has now raised a total of $12 million in funding.
  • CEO Ali Hussain says he founded the company because accounts receivable was not being addressed while other ERP functions — like payroll and spend management — were being innovated on.
  • "Everyone's figuring out how to automate the spending of money, but no one's focused on... accounts receivable," Hussain says.

Between the lines: Hussain argues that few companies are trying to solve the AR problem partly because most B2B sales are negotiated at the order or contract level.

  • "The type of data you need to translate to automate [AR] is one of the more difficult types of unstructured data," Hussain says.

Zoom in: While a number of vertically focused software platforms have emerged to solve the problem of collections for specific industries, Hussain says virtually any type of B2B company can use Tabs.

  • "Because we don't rely on any structured, vertical-specific data, we're pretty agile... And because of the way we're applying AI, we don't have any limitations to structure," he says.
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