Gaviti, a software-as-a-service (SaaS) platform that helps manage and collect invoices, raised $9 million in series A funding. This will help fund growth, improve existing tools that help companies stay on top of unpaid invoices and build out additional financial management services.
Companies use enterprise resource planning (ERP) software to track all aspects of company finances. Gaviti’s platform ingests data from the most popular ERP platform to help automate the various tasks involved with identifying late payments and automating the collection process. Gaviti helped enterprises collect $6.2 billion in receivables in 2021. How Gap Inc. is leveraging the modern data-stack and building AI to solve age-old customer problems457.5K129Play VideoData SummitWatch Full Session
Gaviti CEO Yan Lazarev told VentureBeat that he conceived of the idea with CTO Alex Komarovsky when he was the finance manager at Cornerstone OnDemand. At the time, he was looking for a robust SaaS solution to meet their collection needs. “Shockingly, there was no adequate solution on the market, which brought us to begin developing an easy-to-use solution that streamlined collection processes, the same way sales and marketing teams have their own cloud-based SaaS tools,” he said.
Keeping finance in sync
Most ERP systems hold all data relevant to the collections process, but it remains inactive until a finance team member decides to pull the data and discusses whether to reach out to a client. Once that decision is made, all communications and follow-ups are done manually, including initial communication, follow-up messages, phone calls and entry logging.ADVERTISEMENT
Gaviti automated all relevant analytics and customer interactions around collections according to default or custom workflows. In particular, the service helps teams automate industry best practices demonstrated to help finance teams reduce day sales outstanding (DSO), a popular metric that tracks aggregated payment delays
The software also helps improve security, communication and coordination between finance teams, other departments, and customers involved in late payments. One existing challenge is that many people are often involved in collections, but they are not necessarily in sync. As a result, some departments build out their own tools to facilitate collaboration or automation but may neglect some security aspects.
Plugging into ERP
ERP systems are optimized for record-keeping and recording terms of all deals with vendors and customers. Gaviti extracts the accounts receivable collection data from these ERP systems. There are hundreds of ERP vendors in the U.S. alone, and each record system has structured its data a bit differently. Gaviti has developed tools to rapidly convert data from the ERP systems into a format optimized for collections analytics and processing.
Gaviti claims to be able to convert data from old, new, legacy, industry-specific and even customer ERP solutions into a standard format in only a few hours. “These capabilities allow us to easily onboard clients without friction and have them up and running in a concise time frame,” Lazarev said. ADVERTISEMENT
The company competes with accounts receivable modules provided by the ERP vendors themselves, custom-developed accounts receivable tools and billing-oriented services like Bill.com, Plooto and Invoiced.com. Lazarev said Gaviti has focused on delivering an enterprise-level product that is rapidly deployed and operates intuitively, making it easy for teams to utilize. It is also set at a price range that shows most companies obvious and immediate ROI.
Gaviti has raised a total of $11.5 million overall. U.K.-based Flashpoint led the recent series A funding with participation by Moneta VC, North First Ventures, TAU Ventures, and LETA Capital. The new funds will go towards aggressive growth and expansion in North America and Europe and introducing additional FinTech solutions in Q2 and Q3 of this year. These include funding, factoring and receivables insurance products, to help ensure a more reliable cash flow for enterprise customers.