We are pleased to announce that portfolio company, Auditoria.AI, recently announced the completion of an oversubscribed $15.5M Series A. Leading the round was Venrock with additional participation from Workday Ventures as well as previous investors including B Capital Group, Engineering Capital, Firebolt Ventures, and Neotribe Ventures. This latest capital injection brings Auditoria.AI’s total capital raised to $22M; moving forward, the company plans to accelerate innovation in artificial intelligence (AI), machine learning (ML), Natural Language Processing (NLP), and data science to transform the corporate finance back office, accelerating the reality of a zero-touch self-driving back office.
Why this transaction?
The York IE team chose this as our transaction of the week to discuss growth in the Business Process Automation (BPA) market. BPA solutions automate manual processes and workflows enabling organizations to greatly reduce cost and time associated with these tasks. According to a new market research report, the BPA market is expected to grow at a 12.2% CAGR from 2020-2026; by that time, we will see a market size for BPA of nearly $20B. Many of the benefits to automation such as reduced cost/time, improved data quality, and reduced maintenance requirements have caused the rise in popularity of BPA solutions. As this market continues to expand, more industries will be looking for ways to implement these solutions into their own processes. With a market size of $49B in 2020, the Employee Resource Planning (ERP) market is a perfect opportunity to implement BPA solutions. Auditoria provides a solution purpose-built for ERP applications; their platform augments the work of human accountants by streamlining the collections and procurement processes of finance teams. By leveraging their AI-driven automation products and Natural Language Processing (NLP) engine, which includes intent detection and classification for accounting and audit terms, Auditoria can offer ERP-centric solutions for any back-office finance team. When asked about their involvement in the Auditoria’s latest round, Venrock partner Brian Ascher explained, “Finance operations automation is the future for corporate finance…We envision a day when every global finance team is using Auditoria to streamline and automate back-office operations”. As stated above, the BPA market is expected to reach nearly $20B by 2026; with this type of expected growth, Ascher’s projections, in terms of automation within corporate finance, may not be far off.
True Size of the Employee Resource Planning Market
The continued resiliency and growth of the ERP market is directly correlated with its ability to revolutionize business processes across a wide range of industries. Given the recent surge in demand for data-driven decision-making, along with continued technological advancements, ERP solutions are more sought after than ever. According to a recent market study, the top 10 ERP software vendors, which include companies like SAP, Oracle, Intuit, and Fiserv, account for roughly 32% of global ERP applications. With a current market valuation of nearly $50B and only ⅓ of that market being served by top 10 vendors, there is ample opportunity for companies like Auditoria and others to gain significant market share across their respective industries.