AppZen, which provides an AI solution for back office automation, has raised $13m in its Series A financing round.
The round was led by Redpoint Ventures and included participation from original seed investor Resolute Ventures, bringing the company’s total funding to over $17.5m.
It will use the new round of capital to expand its team and scale its business , with the company focusing on its growing base of enterprise customers.
Until now, auditing expense reports has remained a manual exercise, which is time-intensive, costly and impractical for enterprises that process thousands of reports daily, putting companies at risk of being fined.
To help companies reduce that risk, AppZen provides a service to automate expense report auditing and instantly detect compliance issues and fraud.
Based in Santa Clara, California, AppZen says it is able to automatically read and understand expense reports, receipts, and travel documents and cross-check them with hundreds of data sources in real-time to determine the accuracy and legitimacy of every expense. It also provides real-time compliance to regulatory requirements like anti-bribery laws, FCPA regulations and Healthcare Sunshine laws
AppZen’s solution enables its customers, which include Amazon, Comcast and Intuit, to detect fraud and compliance issues in real-time.
Anant Kale, co-founder and CEO of AppZen, said: “Finding errors in expense reports is like finding a needle in a haystack. We’re giving companies the ability to achieve 100% compliance and protect themselves from both intentional and unintentional fraud, a problem estimated at half trillion dollars in the U.S. alone. AppZen’s platform detects problems before it’s too late by analyzing all expense report data, and cross-checking it with hundreds of external and social media data sources in real-time.”
The funding represents the latest FinTech investment for Redpoint Ventures. Earlier this month, the venture firm participated in Duo Security’s $70m Series D investment round, which was led by Meritech Capital Partners and Lead Edge Capital.
Earlier this year, Redpoint Ventures co-led a $27m round for mortgage lender Clara. The venture investor also led an investment in college financing app Raise.me, which scored $12m in Series A funding to offer micro-scholarships.
AppZen was recently hand-picked by industry experts for the RegTech 100, a list of companies that every financial institution should know about in 2018.
To find out which other companies make the list: www.RegTech100.com
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