Stuut has raised USD $52.5 million in a Series B funding round, bringing the fintech company's total funding to USD $93 million.
The round was led by Insight Partners, with participation from Andreessen Horowitz, M12, Microsoft's venture fund, and Activant. The company plans to use the funding to meet customer demand and expand its platform further into financial processes including credit, lending, and the movement of funds.
The New York-based company sells software for order-to-cash operations, covering order management, credit, collections, cash application, payments, disputes, and deductions. More than USD $3 billion has moved through its platform, and its customer base has grown fivefold over the past year to more than 150 businesses.
Customers include Vodafone, Honeywell, and ZoomInfo, along with other Fortune 50 and Fortune 500 companies. According to Stuut, customers using its system are reducing days sales outstanding, or DSO, by 47% and freeing up up to 40% more cash flow.
Receivables focus
Stuut is targeting a large but often overlooked issue in corporate finance: unpaid receivables and the administrative work needed to collect them. Invoice errors, missing purchase orders, and misdirected bills can trigger weeks of follow-up across finance, sales, and operations teams, tying up working capital and adding manual work.
The company argues that much of this process still depends on staff chasing information across multiple systems. Its software is designed to automate collections activity, match incoming payments to invoices, and manage disputes without requiring companies to change existing workflows.
On its platform, 81.7% of outbound collections activity now runs without human involvement, while 95% of incoming payments are matched automatically, according to the company. The software can also connect with enterprise resource planning systems, bank accounts, customer relationship management tools, and payment systems, and can be configured around existing controls and audit trails.
Tarek Alaruri, Chief Executive Officer of Stuut, said the product is designed to address a capacity problem within finance teams.
"Most businesses don't have the bandwidth to segment their base or give customers the level of service they deserve," Alaruri said. "By leveraging AI, we're able to deliver one of the leading solutions with continuous learning loops to improve the customer experience, reduce churn, improve NPS, and deliver better financial performance."
Customer growth
Demand has risen as finance departments manage larger transaction volumes with leaner teams, Stuut said. The company also pointed to a broader squeeze on the accounting profession and growing pressure on Chief Financial Officers to improve working capital metrics such as DSO.
Several customers cited in the announcement described gains in collections and receivables operations. Bishop Lifting, for example, has deployed the software across 45 branches for collections, disputes, and cash application. According to Stuut, overdue receivables have fallen 35%, USD $3 million in working capital has been released, and accounts managed per employee have risen 50%.
At ZoomInfo, Stuut said its platform has collected USD $21.2 million and reduced time to first contact by more than 90%. Honeywell is using the software alongside legacy SAP systems and is expanding its use into quote-to-cash, according to the company.
"Stuut changed how we think about AR technology. We did not need another system to help our team manage the work. We needed one that could take on more of it. A year in, Stuut automates much of our routine collections work, giving our team more time for accounts that need judgment," said Blaine Browning, Controller & Vice President, Accounting, ZoomInfo. "Alongside other AR initiatives, Stuut contributed to DSO improving from 51 to 40 days, making the decision to renew for multiple years and expand into disputes an easy one. What's made this even more powerful is the data partnership we kicked off with Stuut, bringing ZoomInfo's data and insights directly into the Stuut platform for their entire customer base. Pairing their automation with ZoomInfo data has been a force multiplier to our collection efforts."
Investor backing
For investors, the pitch rests on the amount of corporate cash tied up in unpaid invoices and the claim that software can perform much of the work finance teams have traditionally handled manually. Stuut said businesses worldwide hold USD $16 trillion in unpaid receivables, while US businesses alone carry USD $7.2 trillion in trade receivables.
Insight Partners said Stuut has built software that fits within existing finance controls rather than forcing changes to operating processes. That may help explain its appeal to large enterprises, where replacing core systems can be costly and slow.
"Many enterprises have more cash tied up in receivables than they realize. A single invoice error can trigger weeks of follow-up across teams and systems, and at scale that adds up to real revenue left on the table," said Julian Marcu, Vice President, Insight Partners. "Stuut has figured out how to use agents to execute that recovery process and match cash to invoices while fitting naturally within the controls, workflows, and systems finance teams already rely on. We're proud to back Tarek and the team in this next phase of growth."