Osome, a three-year-old super-app that digitizes accounting and compliance services for SMEs, has raised $16M in a Series A funding from a group of investors including Target Global, AltaIR Capital, Phystech Ventures, S16VC, and Peng T. Ong, who joined as an angel investor.
The fresh amount of capital enables Osome to expand its footprint internationally, as well as to fuel product integrations.
The funding is coming at a high-watermark moment for the global accounting software market with mass migration of businesses online highlighting the opportunity to build disruptive tools to support this move and a growing number of startups servicing SMEs raising hundreds of millions of dollars to capitalize on it.
“Back-office operations are annoying, tedious yet mission critical for businesses, especially for SMEs. Remarkably, an average entrepreneur spends 68% of their time to deal with routine tasks vs 32% to strategize and deliver on their long term goals. Osome combines artificial intelligence software with operational excellence to automate administrative, accounting, payroll and tax-related work and help entrepreneurs focus on what they can do the best - growing their business”, Victor Lysenko, co-founder and CEO of Osome, says. “We strive to build a future where small business owners can fully rely on the technology in their administrative routine”.
The demand for Osome services has accelerated with Covid-19 as clients recognized the importance of automation. This has led to more than 100% YoY revenue growth and $9.5M ARR with over 6,000 happy customers in Singapore, Hong Kong and the UK. Additionally, the company has identified a product / market fit in the fast-growing e-commerce segment and will double down on it in the next 18 months.
Osome’s core offering is online accounting services for SMEs, especially those involved in ecommerce — аccountants take over your documents and convert them into actionable numbers, tax filings and reports, making accounting and bookkeeping service for online sellers as simple as ever. The team plans to dive deeper in the ecommerce industry, launching more specific products and apps in the near future.
The company also helps with business set up and provides corporate secretary services — Osome checks compliance, tracks deadlines, files documents, and answers questions in a chat at any time of the day or week. The platform categorises, tags, and stores any documents you send to them, so nothing is lost, and then creates management reports, tax returns and does all necessary filing on time.
"We have supported Osome since the early days and are excited to continue our partnership in the latest round. We are especially happy about the strong growth Osome has shown in the expanding ecommerce segment. Online Sellers require unique tools and custom approaches to be serviced effectively and Osome's mix of technology and human expertise is the perfect solution" says Mike Lobanov, GP & COO of Target Global
“Osome team has developed a widely sought after solution for entrepreneurs. Their product takes off the burden of accounting and compliance tasks and helps business owners and management to concentrate on core activities. Osome scales up fast, started in Singapore and Hong Kong and already penetrated the UK market”, said Igor Ryabenkiy, founder and GP of AltaIR Capital. “We see a huge potential for the company, both working with it’s loyal client base and attracting new satisfied customers. We express our support and are delighted with their success!”
“I’ve done business with small and medium e-commerce in 10 countries and see the same inefficiencies in manual accounting across all of them. It is a real problem that will definitely be solved, and Osome is technologically and traction-wise among the few companies in the world that are ahead of the curve in getting there”, said Aleks Shamis, co-founder of S16VC. “We’ve observed from the sidelines how Victor built two very prominent and impactful businesses over the last ten years, and we are grateful for the opportunity to be on board this one”.
“We’ve been partnering with Osome since their earliest days and I am thrilled to follow on in Series A. Our expectations are that within the next 5 years digitization accelerated by COVID-19 will transform accounting from a standalone product into a full SaaS offering integrated with banks, e-commerce platforms and payment processing systems”, said Olga Maslikhova, Partner at Phystech Ventures. “I look forward to working with Victor, his team as well as the new investors to build Osome into a leading global back office service provider to SMEs”.