Tabs Secures $7 Million to Scale AI-Powered AR Platform
Tabs has secured $7 million in seed funding to scale its artificial intelligence (AI) accounts receivable (AR) platform.
The company’s Tabs AI platform understands and extracts business-to-business (B2B) contractual elements; automates contract ingestion, invoicing and payments; and streamlines companies’ accounting processes, Tabs said in a Thursday (April 11) press release.
“Our platform saves businesses significant time, reduces financial operational risks and provides advanced board reporting,” Ali Hussain, co-founder and CEO of Tabs, said in the release. “Longer-term we are focused on delivering company-changing insights to finance leaders that can fundamentally impact a company’s long-term value.”
Among the contracts the platform understands, structures and organizes are master service agreements (MSAs), order forms, purchase orders (POs), emails, side letters, amendments and renewals, Hussain said in a Thursday blog post.
Companies that have adopted the Tabs AI platform report that it eliminates manual work associated with calculating invoices, thereby delivering a 40% reduction in time to collect as well as the ability to take advantage of market opportunities with pricing changes, usage models and sales flexibility, according to the release.
Tabs’ seed funding round was led by Lightspeed Venture Partners, per the release. Together with a pre-seed round from Primary Ventures, it brings the company’s total amount raised to $12 million.
Justin Overdorff, partner at Lightspeed, said in the release that Tabs helps B2B businesses solve the challenge of contracts that vary from customer to customer and bog down finance teams throughout the customer lifecycle.
“Tabs is a perfect application of AI to understand, structure and then act on these contracts,” Overdorff said. “With half a billion invoices being sent annually, this is a huge problem to solve.”
PYMNTS Intelligence has found that chief financial officers (CFOs) are looking at automation to improve their AR processes.
Sixty-seven percent of CFOs say their firms “probably” need more automation, and 27% say they “definitely” need more, according to “Automation Clears the Path to Getting Paid on Time,” a PYMNTS Intelligence and Billtrust collaboration.
The report found that this interest in automation is being driven by CFOs seeking to improve AR functionality and efficiency, tackle payment delays and errors, and streamline AR processes by eliminating the need for manual procedures.
