This is on top of a $3.1 million seed round that closed at the end of 2020. This investment will enable Railz to expand their efforts by continuing to build out their sales and engineering teams. The most recent funding round was led by Nyca Partners, with participation from Susa Ventures, Vestigo Ventures, Entrée Capital Global Founders Capital, Plug and Play Ventures, N49P and Hack VC.

Railz provides a single API that integrates with all major accounting platforms used by small businesses, which enables on-demand access to financial transactions, analytics, insights and reports. This Data-as-a-Service solution provides quick, low cost and direct access to small business customers’ accounting data and can be up and running in a matter of hours. Railz solves a universal challenge in the large SME market segment by providing an API-based platform to financial innovators, enabling them to better service their customers.

According to Sohaib Zahid, CEO of Railz, “While there are many players who focus on collecting data across various accounting packages, the challenge of understanding what the data actually means, and how to categorize it, continues to be a major hurdle for the users of this information. Railz’s data normalization solution, coupled with our insights and analytics engine, is the secret sauce that can address this challenge – and tackle it more accurately and quickly than any other service offering in market.”

“We couldn’t be more excited about being part of the team at Railz,” said Jeremy Solomon, Partner at Nyca Partners, who is joining the board. “Businesses use accounting software as a single source of truth to record the financial health of their company. Sharing this data with another party is currently a manual process that is slow, expensive, and error-prone.”

Railz’s primary customers at this time are fintechs, major U.S. banks and wealth management firms looking for more accurate financial data to use for building financial applications within lending, audit, cashflow, and trade finance verticals. By having up the minute accounting data fed directly into their decision-making systems, financial institutions can make more informed and timely decisions.