DataRails raises $50 million to improve financial analytics, as well as various other applications for Excel spreadsheets. Excel spreadsheet acolytes
It’s believed that there are over 1 billion users of Microsoft’s Excel across the globe, and a large portion of those are small-business users, and of them, the majority of them rely on spreadsheet software to manage their financials. The company is now named DataRails It has created an array of tools for financial planning and analytics for users of these tools to help them make more of their data in Excel (or any spreadsheet application that is used to be precise). It is now announcing funds on the heels of the growing popularity of its software.
The firm from Israel and New York has secured a Series B investment of $50 million. The funds it intends to use to add more features to its product, which include predictive modelling capabilities, and also to develop new capabilities for spreadsheet-based teams besides the finance department, such as sales, marketing, and HR, DataRails will remain focused exclusively on SMBs.
“Predictive analytics, modeling, [is] the holy grail,” Didi Gurfinkel, who is the co-founder and CEO of the company, said about the needs of small and mid-sized businesses since it allows them access to the same capabilities that have been accessible to larger companies but hasn’t been redesigned to be a solution for businesses with 50 or fewer employees. “When we meet a prospect and they ask about this, we understand what they want, and we know they’ll become a customer.”
Qumra Capital is leading the round, along with new investors La Maison Partners and Claltech and former supporters Zeev Ventures, Vertex Ventures Israel, Innovation Endeavors, Vintage Investment Partners, ORYZN, and Icon Venture, all of whom are participating. Gurfinkel, who was co-founder of DataRails with Eyal Cohen (the CPO), said DataRails did not reveal the amount of its valuation but said the company’s value increased by three times from its previous round, which was $43.5 million, that was completed on June 20, 2021, and that its more important goal was to grow into an enterprise worth billions of dollars.
to give more context The company’s revenue during the past year increased 5x, and it now has “hundreds” of customers, Gurfinkel claimed, refusing to provide a precise amount for either one of these metrics.
Prior to focusing on financial analysis and planning, DataRails, as we’ve previously reported, was able to see an opportunity to create tools that would enhance Excel in the knowledge that Excel was widely used for tracking budgets, budgets, balance sheets, and month-end reports; however, it was not a great fit in its utility, particularly when it was time to run calculations to address specific questions to specific groups (like the finance department).
It is interesting to note that its initial focus was not on SMBs or financial plans; rather, it was geared towards organisations of all sizes and offered tools to help control the financial auditing and reporting to help with tax and compliance. This functionality remains present on the platform, however, DataRails in general grew beyond that since “analytics was more interesting,” according to Gurfinkel.
“When the CFO or finance director wakes up early in the morning the goal is to find something new and comprehend the concept they might not have thought of before. “Tools to ensure compliance are an integral part of their work, but they’re not the sole reason for their goal to be the best-informed person in the room.”
It’s also an extremely lucrative field to focus on, with estimates that it will be a $7.8 billion market every year across the U.S. alone, Gurfinkel added. In addition, it is still based on the same set of data that was the basis for the initial software, giving the company a greater variety of products that utilise the same information and connections.
According to Gurfinkel, the company has no intention of reinventing the wheel or developing its own spreadsheet software, but rather to build on top of the most well-known software available today, which includes not only Excel but also Google Sheets, numbers from Apple, and many more.This may protect DataRails from having to be dependent on Microsoft; however, it also positions it as a promising startup that can be purchased from one or more of the platform companies while they continue looking for better value-added services and engagement with their users.
“DataRails is driving change in financial teams’ work by providing powerful analytics (BI) capability to teams in every company.” “This is the first time ever that all financial data is stored in the cloud, allowing for ongoing agility and sharing of information,” said Sivan Shamri Dahan, managing director at Qumra Capital, in a statement. “DataRails is one of the fastest-growing SaaS companies we’ve seen, and we’re looking forward to partnering with the company as it continues its outstanding market expansion.”