AI Artificial Intelligence words are seen in this illustration taken, May 4, 2023. REUTERS/Dado Ruvic/Illustration
(Corrects paragraph 7 to say annual recurring revenue has doubled in the past 12 weeks, not 12 months)
(Reuters) -Rillet, a startup developing AI-powered accounting software, has raised $70 million in a fundraise co-led by venture capital firms Andreessen Horowitz and ICONIQ in a bid to disrupt an industry dominated by tools from Oracle and Microsoft.
The company did not disclose the valuation it secured in the Series B funding round. A source close to the deal said the startup was valued at around $500 million.
The round was joined by Sequoia, Oak HC/FT and FOG Ventures, the company said on Wednesday, and comes just over two months after Rillet raised $25 million, bringing its total funding to more than $100 million.
Founded by Nicolas Kopp, former U.S. head of digital bank N26, Rillet makes AI-powered ledger software that helps companies automate accounting tasks. Its more than 200 customers include AI-assisted coding tool Windsurf and e-commerce marketing platform Postscript.
Rillet said its platform allows finance teams to close books in hours rather than weeks thanks to integrations with systems from companies such as Salesforce, Stripe and Brex.
Kopp told Reuters in an interview the startup aims to replace legacy systems that function as "dumb databases" by offering a platform that pulls in data directly and uses AI to automate tasks and deliver real-time insights.
The efforts have helped the startup double its annual recurring revenue over the past 12 weeks and led to tie-ups with accounting firms such as Armanino and Wiss.
Rillet plans to use the funds to speed up development of the platform and build out its team, including by hiring more engineers.
Andreessen Horowitz general partner Alex Rampell and ICONIQ general partner Seth Pierrepont are joining the company's board as part of the fundraise.
(Reporting by Aditya Soni in Bengaluru; Editing by Shailesh Kuber)
