Railz, an API developer that helps connect financial institutions and fintechs with their customers’ accounting information in real-time, has secured an investment of $12 million. The Series A round, led by Nyca Partners, takes the Toronto, Ontario, Canada-based company’s total funding to more than $15 million.

“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 CEO Sohaib Zahid said. “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 market.”

Also participating in the Series A were Vestigo Ventures, Susa Ventures, Plug and Play, N49P, Hack VC, Global Founders Capital, and Entrée Capital. The company plans to use the new capital to add more talent to its sales and engineering teams.

Railz offers a single API that integrates with all major, SME-oriented accounting platforms to enable on-demand access to financial transactions, analytics, and insights. The fast, low-cost, accounting-data-as-a-service solution gives small businesses the ability to be better served by financial institutions by giving them an easier, less cumbersome way to share their critical financial information.

“Businesses use accounting software as a single source of truth to record the financial health of their company,” Nyca Partner Jeremy Solomon said. “Sharing this data with another party is currently a manual process that is slow, expensive, and error-prone.”

With just a few lines of code, Railz claims that it can get customers up and running with its technology in less than a day. The company’s real-time financial analytics and insights offer risk scoring and fraud identification, in addition to standardized accounting entries that use a universal format for easier modeling and reporting. Founded in the summer of 2020, Railz says its customers have benefitted from up to a 53% reduction in costs and a 75% reduction in fraud.

Photo by Irina Iriser from Pexels

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Source: https://finovate.com/accounting-data-as-a-service-innovator-railz-raises-12-million/