.webp)
Hyphenate has raised USD $45 million in a Series A funding round led by Nexus Venture Partners.
The New York-based finance AI startup, formerly known as Maximor, said B Capital joined the round alongside existing investors Foundation Capital, BoldCap and Gaia Ventures. The latest funding brings Hyphenate's total capital raised to USD $54 million.
Over the past 12 months, Hyphenate recorded 86-fold revenue growth and an 11-fold increase in customers. Its software is now used by six public companies and handles 90% of routine finance work across its platform.
The company sells AI software for finance departments that sits on top of existing enterprise resource planning systems, banking links and other internal tools. It is designed to manage tasks across order-to-cash, treasury, general ledger accounting, procure-to-pay and reporting.
According to Hyphenate, the system covers revenue recognition, invoicing, collections, cash reconciliation, accruals, subledgers, accounts payable, close processes and board reporting. Its model learns from a customer's historical spreadsheets, emails and system logs, then applies that information to recurring finance processes and exceptions.
Customers have reported 90% less repetitive finance work and 75% fewer audit exceptions, according to the company. It added that 40% of customers expand their use of the software within the first year, with the average customer using six modules.
Hyphenate said its software already runs across hundreds of legal entities, thousands of bank accounts and millions of transactions each day. Finance teams step in only when a judgment call could change the outcome, it added.
Chief Executive Officer and Co-Founder Ramnandan Krishnamurthy said customers often widened their use of the software after testing it in one part of the finance function.
"Every finance team carries a long list of work it does because somebody has to," said Ramnandan Krishnamurthy, Chief Executive Officer, Hyphenate. "Our customers are watching that list shrink in production. Once a team sees the system handle one workflow to an auditor's standard, they hand it the next one. That is the pattern this company is built around, and this round lets us run it across the whole function."
Customer rollout
Several named customers outlined how they are using the software in live finance operations.
Mini Melts USA said it runs Hyphenate on top of its SAP environment for orders, invoicing and refunds. Within three months of going live, the consumer goods group had recovered 16,640 hours of finance work a year, according to Hyphenate.
At HiBid, an online auction platform in North America, more than USD $2.5 billion in gross merchandise value has moved through full order-to-cash automation on Hyphenate, the company said. It added that invoicing, collections and cash application now run as one continuous process, while month-end close has been reduced from three weeks to one day.
Groupon is using the software across treasury, order-to-cash and more than a dozen subledger processes as it replaces older internal and third-party systems.
"As a public company, we run finance at a scale where every number has to stand up to scrutiny: millions of transactions, multiple currencies and markets, and auditors who need the evidence behind all of it. We're replacing legacy and home-grown tools with Hyphenate because it's built for that bar, and we see it becoming the AI foundation for our entire finance organization," said Rana Kashyap, Chief Financial Officer, Groupon.
Synthesia is also rolling out the platform across its finance department.
"As an AI company, we expect our own operations to run on AI. The breadth of the Hyphenate platform has improved every functional area of our accounting and finance operations. We replaced point solutions with an autonomous finance platform that understands our business. Now the team focuses on exceptions and analysis, which helps make decisions faster," said Daniel Kim, Chief Financial Officer, Synthesia.
Trust question
Hyphenate pointed to broader hesitation among finance leaders about handing sensitive accounting work to AI systems. It cited research it commissioned showing that 96% of Chief Financial Officers saw freeing teams for strategic work as AI's biggest benefit, while only 14% said they completely trusted AI to produce accurate accounting data independently. Another 97% viewed human oversight as critical.
Nexus Venture Partners said Hyphenate's traction in finance operations helped drive its decision to lead the round.
"What makes Hyphenate compelling is that autonomy is already showing up in customer operations," said Abhishek Sharma, Managing Director, Nexus Venture Partners. "Finance has an unusually high bar for accuracy, controls and auditability. Hyphenate has built around that bar from the beginning, and the expansion we are seeing inside customers shows what becomes possible once the system earns the right to take on more work."