Zeni Raises $34M to Provide Real-Time Financial Insights for SMBs

Zeni Secures $34 Million in Series B Funding

Zeni, a fintech firm based in Palo Alto specializing in real-time financial data for venture-backed companies, has successfully closed a $34 million Series B funding round. This investment was spearheaded by Elevation Capital.

Recent Funding and Company History

This latest funding arrives only five months following Zeni’s announcement of a combined $13.5 million seed and Series A round. Since its inception in 2019, co-founded by twin brothers Swapnil Shinde and Snehal Shinde, the company has now amassed a total of $47.5 million in funding.

Investors Participating in the Round

Elevation Capital was joined in this funding round by new investors including Think Investments and Neeraj Arora. Existing investors – Saama Capital, Amit Singhal, Sierra Ventures, Twin Ventures, Dragon Capital, and Liquid 2 Ventures – also participated. Ravi Adusumalli, founder and managing partner at Elevation Capital, will be joining Zeni’s board as part of this investment.

From Travel Concierge to Financial Platform

The Shinde brothers launched Zeni after successfully selling their previous venture, Mezi, a travel concierge service, to American Express in 2018. Zeni provides an AI-driven finance concierge platform, offering bookkeeping, accounting, tax preparation, and CFO services for a consistent monthly fee, beginning at $299.

Founders gain immediate access to crucial financial insights through the Zeni Dashboard, encompassing cash flow, operating costs, annual tax liabilities, and financial forecasts. Furthermore, they have the ability to extract financial data in customized formats.

Significant Growth in Funds Managed

At the time of its initial seed/Series A funding, Zeni was overseeing over $200 million in monthly funds. This figure has since expanded to exceed $500 million, as reported by CEO Swapnil Shinde to TechCrunch. The company’s clientele includes businesses ranging from pre-revenue startups to those generating over $100 million in yearly revenue.

Enhanced Transaction Analysis Capabilities

Beyond cash flow analysis, the company has implemented a search function for transactions, alongside trend analysis for both spending and income, for each customer and vendor, according to Snehal Shinde, the chief product officer.

Impressive Revenue and Customer Growth

Zeni has experienced a remarkable 550% year-over-year revenue increase, accompanied by a 375% expansion in its customer base. This growth is attributed to both referrals and organic acquisition, stated Swapnil Shinde.

Unexpected Series B Funding

Despite this substantial growth, the Series B funding round came as a surprise to the founders. The company was already adequately funded, with a significant portion of the previous round remaining available, Swapnil Shinde explained.

Strategic Investment by Elevation Capital

However, the influx of inbound inquiries proved too compelling to ignore. The addition of Elevation Capital as an investor was particularly attractive, as the firm previously invested in Paytm and possesses a proven track record of supporting and nurturing unicorn companies, according to Shinde.

Future Plans and Expansion

The newly acquired funds will be allocated to further scaling the bookkeeping and accounting functionalities and to accelerate recruitment efforts, particularly within the engineering, sales, and finance departments. The finance team is projected to double or even triple in size over the next year.

“As our customers progress through their Series B funding, the ability to leverage our solution in real-time for financial oversight becomes increasingly valuable, especially given the growing trend of remote workforces,” Swapnil Shinde added. “Zeni is ideally positioned to meet this need.”

Industry Perspective on Zeni’s Potential

Ash Lilani, managing partner at Saama Capital, an early and significant investor in Zeni, recognized the substantial total addressable market – estimated at $200 billion – and the significant challenges startups face with financial services.

“Gaining a real-time understanding of your financial position is often difficult; typically, this information is only available at month-end,” Lilani stated. “I am confident in our ability to build a substantial company. While Zeni currently focuses on startups, the small and medium-sized business markets present significant opportunities. As they expand, Zeni can function as their back-end controller, allowing companies to focus on hiring a CFO for strategic financial decisions.”