Tabs, a leading Accounts Receivable platform for B2B companies, announced securing a $7 million seed funding round led by Lightspeed Venture Partners, bringing its total funding to $12 million.
The latest investment supports Tabs' mission to overhaul B2B AR processes during a time when efficient cash collection and profitability are crucial for businesses.
Currently, 55% of B2B invoices in the US are overdue, locking away essential capital for small and medium-sized enterprises.
Tabs AI, the core of Tabs’ solution, intelligently extracts contractual details to automate contract ingestion, invoicing, and payments.
Such automation significantly reduces the time businesses spend on manual invoicing processes.
Customers like Findigs, Pinata, and Inspiren have reported a 40% faster collection rate, attributed to minimizing manual calculations and enhancing pricing and sales flexibility.
Sebastian Hart from Findigs highlighted Tabs’ impact:
“Tabs uniquely automated our billing, freeing us from days of manual work each month. Now, we focus more on growth rather than billing and remittances.”
Justin Overdorff of Lightspeed recognized Tabs' added:
“B2B contracts often slow down finance teams and hinder company growth. Tabs uses AI to navigate and act on these contracts effectively.”
Ali Hussain, Co-founder and CEO of Tabs, shared his vision:
“This funding will revolutionize AR and finance’s role in customer understanding, saving time, reducing risk, and enhancing reporting. With Lightspeed and Primary Ventures, we’re accelerating our growth and refining our solutions.”
Conclusion
In summary, Tabs' seed funding round reinventing the B2B accounts receivable landscape while leveraging AI to streamline contract-to-cash processes.
Given the recent funding move, Tabs not only aims to improve cash flows and operational efficiencies for growing businesses but also seeks to provide valuable insights that can influence a company’s strategic direction and long-term value.
