Accel backs Nanonets to enhance AI-driven workflow automation.

Nanonets, a startup utilising AI for automating back-office tasks, has secured $29 million in a recent funding round led by Accel, aiming to enhance the accuracy of automation processes dealing with substantial volumes of unstructured data.

The startup targets the financial services sector primarily, aiming to streamline processes involving unstructured data from documents like invoices, receipts, and purchase orders. Nanonets claims its AI platform, offering no-code solutions, can extract information from various sources such as documents, emails, tickets, and databases, transforming them into actionable insights. By utilising machine learning architectures, the platform analyses unstructured data from uploaded documents and extracts valuable information. Nanonets' AI agents, requiring no coding, can integrate into ERP platforms like QuickBooks, Xero, Sage, and NetSuite to automate accounts payable processes, enhance supply chain optimization using historical data from Square and Tableau, and summarise health reports from patient management systems.

The startup plans to utilise the fresh funding for research and development to enhance system accuracy and invest in sales and marketing. With around 100 employees, the majority of its engineering team is based in India. Nanonets intends to use the new funding to expand its workforce.

Participating in the all-equity Series B round were Nanonets' existing investors Elevation Capital and Y Combinator, bringing the startup's total funding to $42 million, including its $10 million Series A round in 2022.

Nanonets' co-founder and CTO, Prathamesh Juvatkar, revealed that the startup initially employed convolutional neural networks to examine images and identify objects. However, they later transitioned to transformers and multimodal architectures for improved accuracy.

Although Nanonets competes in a crowded market for AI-based workflow automation, it distinguishes itself by offering a record 90% straight-through processing rate. Juvatkar attributes their success to accuracy, user experience, and the quality of integrations. The startup offers solutions in three pricing tiers, with Pro and Enterprise contributing the most to its annual recurring revenue.

Despite the global market's slowdown, investors continue to invest in AI startups due to consistent revenue growth. Nanonets aims to expand its revenue by 2x to 3x this year, building on its previous success and market traction.