RecVue, which provides an application platform for managing order-to-cash processes, today revealed it has raised an additional $13 million. The funding will be used to advance the adoption of an order lifecycle management platform that bridges the gap between customer relationship management (CRM) applications and backend enterprise resource planning (ERP) applications.
The series A funding round was led by Cota Capital, in partnership with exiting investors Epic Ventures and Long Light Capital. RecVue raised a previous $5 million in 2019.
The challenge organizations face today is that order lifecycle management (OLM) processes span finance, sales, and distribution. ERP and CRM platforms are systems of record that are widely employed within organizations, but it’s not uncommon for them to employ CRM offerings from one vendor in sales and finance applications from another. As a result, many order-to-cash processes within organizations are still wrapped around spreadsheets, custom applications, and manual processes.
“This is an area that really hasn’t changed much in the 20 years,” RecVue CEO Nishant Nair said.
RecVue is an integrated software-as-a-service (SaaS) application designed to manage the entire order to cash processes in a way that integrates with other systems of record applications, Nair added. At present, Nair said RecVue is managing $150 billion in transactions. The company has set a goal to increase the volume of transactions moving through its platform by a factor of five over the next 18 months, he said.
The funding will be used to expand software engineering initiatives over the next year. These include creating and refining AI models that have been embedded within predictive analytics capabilities that RecVue will infuse into its applications, Nair said. These capabilities will make it easier for businesses to identify transactions that represent credit risks, the rate of customer churn, and optimal price points to set, added Nair.
In addition, Nair noted that organizations will not have to invest in a separate set of predictive analytics applications to gain those insights.
Nair said RecVue will be expanding its market presence in the U.S. and the U.K. as organizations realize that existing applications fail to automate order-to-cash processes. The company also operates in India and Canada.
As organizations seek to implement multiple types of recurring revenue models, Nair said finance and sales teams will need an order-to-cash platform that spans both emerging and legacy business models. Rival offerings don’t enable organizations to flexibly implement recurring revenue models based on, for example, consumption, Nair said. Those recurring revenue models are typically at the core of any digital business transformation initiative, he noted.
Order-to-cash processes tend to gain attention during an economic downturn, as organizations are always trying to ensure they have enough liquidity to weather the storm. It’s not clear how many have decided to modernize these processes to address the pandemic-driven economic downturn. However, many business leaders now have a greater understanding of just how cumbersome their existing processes proved to be at a time when they needed cash more than anything else.
RecVue raises $13 million to modernize order-to-cash processes The British Journal Editors and Wire Services/ Venture Beat.