Automated accounting software startup Aiwyn raises $113M

Revenue management lifecycle automation software provider Aiwyn Inc. said today it has closed on $113 million in fresh funding.

The round was led by the global investment firm KKR, which participated through its Next Generation Technology III Fund, and Bessemer Venture Partners. The round is significant, bringing the startup’s total amount raised to date to $127 million.

Aiwyn has emerged as one of the leading providers of accounting automation software, and claims to serve more than 130 of the top 500 certified public accounting firms in the U.S. Its flagship platform, PracticeOS, is described as an artificial intelligence-driven practice automation platform that helps accounting providers simplify their full revenue management lifecycle processes.

PracticeOS provides tools for automating manual payments and collections workstreams, while performing other essential tasks such as reconciling payments and invoices for CPS and their end clients.

The startup claims that its software makes quite an impact, with the average customer reporting a 51% increase in cash flow speed and a 41% rise in overall collections. Moreover, its customers report that 69% of their invoices are paid within seven days thanks to its Smart Statements feature, while its automated reminders ensure that 89% of invoices are paid within two weeks.

Aiwyn says the biggest difference it makes is that it helps accounting firms to adopt high-technology systems, which is something that has been problematic in the industry. It points to a survey earlier this year by Rightsworks, which found that while 88% of companies believe tech has a positive impact on their efficiency, 60% suffer from disconnected systems, inconsistent processes and a lack of standardized workflows.

The startup cites a second study highlighting the need for the kind of software it offers. According to a survey by rival accounting software firm QuickBooks Ltd., 93% of accountants believe that those companies which make more use of technology are better positioned to survive periods of high inflation and interest rates.

Aiwyn Chairman and Chief Executive Justin Adams said the money from today’s round will support its vision of evolving its payments and collections tools into a more comprehensive practice management platform. To do this, it intends to create what it believes is the industry’s first client experience portal, which will enable CPA firm’s clients to access all of their engagements from a single interface.

In addition, the funds will help Aiwyn to integrate new AI features into its platform. “With this investment, we are poised to redefine how firms manage their operations from the CRM to the General Ledger while setting a new benchmark for client experiences,” Adams said.

Jackson Hart, a Principal on KKR’s Technology Growth team, said the accounting software industry has long been served by legacy companies and is ripe for disruption, and he thinks Aiwyn is well-placed to do that. “Aiwyn is solving a clear functionality gap in the market with a solution that is easily adopted and rapidly delivers tangible enhancements to the customer experience, most noticeably through significant reductions in days sales outstanding,” he said.

Image: SiliconANGLE/Freepik AI