Tabs - AI-Powered Revenue Automation

Unlocking Efficiency in Revenue Management

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This week’s Startup feature is Tabs.inc., an AI-enabled fintech startup revolutionizing the accounts receivable department.

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Company & Team Introduction

Tabs Inc. is a New York-based company specializing in AI-driven revenue automation solutions for B2B businesses. Founded in 2023, the company focuses on streamlining accounts receivable processes, including data capture, contract administration, invoicing, revenue recognition, and cash flow management. The leadership team comprises seasoned professionals with extensive backgrounds in consulting and technology, contributing to Tabs Inc.'s AI-powered approach and rapid market penetration. The company is led by its co-founder/CEO, Ali Hussain; before founding Tabs, he held roles at Google Boston Consulting Group and was COO of Latch. Tabs’ platform is designed to enhance efficiency and accuracy for modern businesses, setting a new, less cumbersome standard in financial operations management. Tabs has scaled its team to ~50 employees.

Product Overview

Tabs offers an AI-driven platform that automates the entire contract-to-cash process by utilizing advanced AI algorithms and machine learning to process and analyze financial data, enabling automation and optimization of complex workflows. It integrates with various software tools (Salesforce, Hubspot, Netsuite, Quickbooks, Stripe, DocuSign, etc.) to provide a seamless user experience designed to optimize the accounts receivable process end-to-end. Key features include:

  • Data Capture: Employs AI to extract and organize unstructured contract data, transforming it into usable formats for invoicing and other financial processes.

  • Invoicing: Generates precise, timely invoices through automated workflows, eliminating manual input and reducing errors.

  • Receivables Management: Streamlines receivables management to accelerate collections and improve cash flow visibility.

  • Payments Processing: Automates payment processing to reduce delays and provide a seamless customer payment experience.

  • Revenue Recognition: Ensures compliance with accounting standards by automating revenue recognition, minimizing errors, and maintaining accuracy.

  • Reporting and Analytics: Generate comprehensive reports offering insights into financial performance and cash flow, enabling data-driven decision-making.

Total Addressable Market

The market that Tabs targets is vast and rapidly expanding. Research from marketsandmarkets.com indicates that the accounts receivable automation market was valued at $3.3 billion in 2022 and is expected to experience a remarkable growth rate of 14.2% CAGR until 2027, increasing Tabs’ potential addressable market to approximately $6.5 billion. Tabs Inc. primarily targets large enterprises across various verticals, including technology, manufacturing, and services, that require efficient and scalable accounts receivable solutions.

Business Model & The Numbers

Tabs Inc. operates on a subscription-based SaaS model, offering pricing tailored to the size of the organization and the complexity of services required. Additional revenue streams include professional services for implementation and customization. Within approximately six months of emerging from stealth, Tabs Inc. reached seven figures in annual recurring revenue, which is strong evidence of their rapid growth and market demand for AI-powered automations for the AR space.

Traction

Early traction for Tabs has been promising. The company has attracted a host of fast-growing startups to their platform, including Red Atler, Cortex, Statstig, and Cyberhaven, eager to implement Tabs into their software stack to save time, improve cash flow, and eliminate manual errors within a scalable platform. The company has also built a strong network of partner accounting firms, including Rooled, Haven, CFGI, and Attivo, who recommend Tabs to clients who are a good fit to benefit from revenue automation.

Competitors

The accounts receivable automation market is highly competitive, with industry giants like BillTrust and HighRadius, both of which have been around for decades, competing for the same large enterprise deals and scrambling to bolt AI capabilities onto their platforms. Tabs is carving out its own niche by targeting high-growth startups that recognize the distinct advantages of a well-designed interface and a product built from the ground up with AI at its core. Coupled with its rapid product development, Tabs is better positioned to meet the evolving needs of these dynamic startups than traditional incumbents in the space.

Funding

Since its founding just 24 months ago, Tabs has experienced rapid growth, fueled by three successful funding rounds. The company’s first raise was a $5M Pre-seed round in January 2023, led by Primary Ventures, with participation from Alumni Ventures. In April 2024, Tabs secured $7M in Seed funding, with Justin Overdorff of Lightspeed Venture Partners leading the round and new investors, including Liquid 2 Ventures, One Way Ventures, Company Ventures, and Commerce Ventures, joining the cap table. The round also saw a follow-on investment from Primary Ventures. Then, in October 2024, Tabs announced a substantial $25M Series A round, led by Alex Tran and Nathaniel Levy-Weshead of General Catalyst, with Primary Ventures tripling down on their earlier investment. The round also attracted notable new investors, including FOG Ventures, Gokul Rajaram (ex-Square, Meta, Google), Zunaira Arshad (Partner, Drive Capital), Greg Raiten and Kiran Lingam (Co-Founders, The Suite), and Imraan Ahmed (ex-GP, Amory Square Ventures).

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