DataRails, an Israeli financial planning and analysis company serving small and medium-sized businesses, announced earlier this week that it raised an additional $25 million in an extension of a Series A round.
The funding comes on the heels of a funding round where DataRails raised $18.5 million in April 2021.
This doubles the company’s valuation, bring the firm’s total funding to $43.5 million to date, the announcement said.
The additional funding came through participation from existing investors Zeev Ventures, Vertex Ventures Israel, and Innovation Endeavors, along with new investor Vintage Investment Partners.
DataRails indicated that rapid growth and doubling their customer base in the first quarter of 2021 led to the large funding increase.
The company said the increased funding will go toward new hiring and managing the rapid expansion of DataRails’ customer base. The firm’s cloud-based platform serves these customers by automating monthly and quarterly reporting processes, consolidating all of a client’s data into one cloud-based database that still exists within Excel. This allows their clients to still work in the familiar Excel format, but with the complex financial transformations complete for the business to analyze, investigate, and share.
“Over the past year we were in a position to help many SMEs navigate the turbulent waters of financial reporting and show our value to our customers and investors, even as a pandemic and the resulting economic instability presented significant obstacles,” said Didi Gurfinkel, co-founder & CEO at DataRails. “Our existing investors recognized the immense potential that DataRails has to offer, and this additional funding is a vote of confidence that will help to expand the reach of our FP&A solution throughout North America and the UK, as well bring in new recruits across to manage the rising demand.”
DataRails was founded in 2015 and is headquartered in Tel Aviv, with offices in New York City and Zurich.
The pandemic has highlighted the necessity for efficient digitization, with 72 percent of small businesses digitizing more quickly due to COVID-19, the company indicated. However, company CFOs and employees spend much of their time doing manual financial data entry and analysis; automation and behavior change could save 30-40 percent of this time. This is the solution DataRails’ platform seeks to provide for small and medium-sized businesses, allowing them to use their time more efficiently and compete more effectively in their industry.
Oren Zeev, founding partner at Zeev Ventures, reflected this sentiment. “Businesses are constantly about to start, in the midst of, or have just finished a round of financial reporting—it’s a never-ending cycle,” Zeev said. “But with DataRails, FP&A can be simple, streamlined, and effective, and that’s a vision we’ll back again and again.”