Rillet Secures $25M from Sequoia to AI-Power General Ledger Automation
▼ Summary
– The general ledger system is the core of accounting departments, centralizing financial data for accurate statements.
– Julien Bek of Sequoia Capital initially doubted VC investment in new general ledger software due to high switching costs and complexity.
– Rillet uses AI and machine learning to automate accounting reports, reducing book-closing time from weeks to hours for mid-sized companies.
– Rillet has grown rapidly, attracting 200 customers and replacing legacy systems like NetSuite, leading to a $25M Series A funding round.
– Rillet’s AI simplifies data migration from old systems, cutting the process from months to weeks, and currently lacks direct AI-powered competitors for mid-sized firms.
Modern accounting teams rely heavily on their general ledger systems—the central nervous system that consolidates financial data and generates critical reports. These platforms form the backbone of corporate finance, making any transition between systems a high-stakes operation.
Julien Bek, a partner at Sequoia Capital, once doubted whether venture capitalists would ever back startups attempting to disrupt this space. Convincing businesses to abandon entrenched accounting software seemed nearly impossible, and building a competitive alternative posed significant technical hurdles. That skepticism faded when Bek encountered Rillet, a three-year-old startup using AI and machine learning to automate financial reporting.
Rillet’s platform integrates directly with banking systems and business tools like Salesforce, Stripe, and Rippling, automatically generating balance sheets, income statements, and other essential reports. Founder Nicolas Kopp, formerly U.S. CEO of neobank N26, says the technology slashes monthly book-closing from weeks to mere hours for mid-sized companies.
Since its launch last year, Rillet’s revenue has surged fivefold, attracting nearly 200 clients—including high-profile names like Windsurf and Decagon, two AI startups with billion-dollar valuations. Many of these customers previously relied on NetSuite, a decades-old accounting solution still widely used despite its sluggish performance.
“A third of Rillet’s deals involve replacing NetSuite or similar legacy systems,” Bek noted, a key factor in Sequoia’s decision to lead the startup’s $25 million Series A round. Existing investors also participated, building on the $13.5 million seed funding secured less than a year earlier.
Unlike traditional migrations, which can drag on for months, Rillet’s AI streamlines the transition, cutting setup time to four to six weeks. Clients maintain their old systems until all data transfers seamlessly, minimizing disruption. While competitors like Digits target small businesses using QuickBooks, Rillet stands out by focusing on mid-market companies seeking AI-driven efficiency.
The funding will accelerate Rillet’s mission to redefine financial operations, proving that even the most entrenched software categories aren’t immune to innovation. With AI reshaping accounting workflows, the era of clunky, outdated ledgers may finally be ending.
(Source: TechCrunch)
