We’re excited about our Series B investment in Klarity, the leading document automation platform for finance and accounting organizations.
Financial document automation is a market primed for AI innovation. In today’s digital age, software has proliferated across industries, yet numerous document-dependent workflows persist, particularly when external parties are involved. From sales to procurement to accounting, every functional group within a company continues to exchange documents like contracts, order forms, invoices, and purchase orders. This exchange requires the manual entry of data into various systems like CRM, ERP, and billing platforms, essentially transforming unstructured data into structured data and vice versa.
When it comes to finance and accounting, the margin for error is zero. Finance leaders and auditors, who bear the responsibility of signing off on financial statements, risk harsh legal consequences if they don’t get it right. Historically, companies have attempted to solve these manual workflows with horizontal document extraction or RPA technologies, but these solutions require massive implementations, are incredibly brittle, and have ultimately failed to deliver the ROI promised. Faced with these challenges, even the most sophisticated technology companies have resigned to throwing in-house armies at the problem or outsourcing these processes to BPOs, spending millions to manually enter and check the data between documents and systems.
Klarity has created a best-in-class application for these finance and accounting professionals. By leveraging state-of-the-art AI solutions, Klarity automates document-heavy workflows, ensuring data quality and accuracy across internal systems. This innovative approach enables companies to reduce their reliance on outsourced BPOs and reallocate internal resources to more value-additive responsibilities.
Klarity is the clear winner in the space
Having founded Klarity in 2017, Andrew Antos and Nischal Nadhamuni have been working on document processing and incorporating LLMs long before ChatGPT brought it into the mainstream. After joining Y Combinator in 2018 and making a couple product pivots, the team decided to apply their AI expertise to helping CFO and accounting organizations solve their most time-consuming tasks through AI-driven workflows. Using a suite of bleeding-edge AI models, they’ve achieved best-in-class automation throughput and accuracy rates. They’ve constructed a purpose-built platform that pulls and pushes all the necessary data from the core systems (CRM, ERP, Billing) and provides users with a workflow tool to handle any exceptions with ease. Pairing this product offering with a strong GTM motion, Klarity has become the clear choice automation platform for leading companies like UiPath, OpenAI, Zoom, Blackline, Coupa, Doordash, and Cloudflare.
There is a massive surface area for Klarity to continue to innovate, especially with the rapid pace of advancements in AI models. We couldn’t be more excited to partner with Andrew, Nischal, and the rest of the Klarity team on this journey to build the next defining financial software company. We are glad to join Nat Friedman, Daniel Gross, Tola Capital, Picus Capital, Invus Capital, and Y Combinator in this round.
