Railz, which develops an API letting financial institutions (FIs) and FinTechs access real-time data of their customers’ accounting data, has raised $12 million in Series A funding, according to a press release. The investment will let Railz expand its efforts by continuing to build out its sales and engineering team.
Nyca Partners led the recent round, with participation from Susa Ventures, Vestigo Ventures, Entrée Capital Global Founders Capital, Plug and Play Ventures, N49P and Hack VC.
“Railz provides a single API that integrates with all major accounting platforms used by small businesses, which enables on-demand access to financial transactions, analytics, insights and reports,” the release stated.
According to Sohaib Zahid, CEO of Railz, “While there are many players who focus on collecting data across various accounting packages, the challenge of understanding what the data actually means, and how to categorize it, continues to be a major hurdle for the users of this information. Railz’s data normalization solution, coupled with our insights and analytics engine, is the secret sauce that can address this challenge – and tackle it more accurately and quickly than any other service offering in the market.”
Railz primarily serves FinTechs, big U.S. banks and wealth management firms that need more reliable financial data in order to build financial applications for the lending, audit, cash flow and trade finance verticals. By utilizing that data, financial firms will be able to make more informed decisions, the release noted.
Jeremy Solomon, partner at Nyca Partners, who is joining the board, said that businesses “use accounting software as a single source of truth to record the financial health of their company. Sharing this data with another party is currently a manual process that is slow, expensive, and error-prone.”
Osidon CEO Hennie Ferreira recently told PYMNTS that the role for traditional accountants is changing, and that many of the tasks traditionally performed by accountants can now be done by artificial intelligence (AI). That has freed up accounting professionals for advisory roles, which could bring “greater value” for clients.
Selected by EFXA