Dive Brief:

• Finance software startup Panax, which provides an automated cash flow management platform, said Wednesday that it has secured $15 million in funding that will help the company to scale and meet growing global demand.
• The startup’s platform gives users real-time access to cash flow details leveraging open banking and generative artificial intelligence technologies as well as data consolidated directly from banks and enterprise resource planning systems, according to a press release.
• “We see this funding as a very important milestone and vote of confidence, and it shows us that we’re on the right path in terms of solving a painful problem for our customers,” Panax CEO Noam Mills said in an interview.

Dive Insight:

Panax, which is based in Israel and has a U.S. headquarters in New York, is among companies that say they’re seeing high demand for finance automation tools as businesses try to navigate an uncertain economic environment.

Last week, the Federal Reserve held the main interest rate between 5.25% and 5.5%, a 23-year high, noting little recent progress in its two-year fight to beat back inflation, as previously reported by CFO Dive.

“Amid high-interest rates and cash uncertainty, finance teams are struggling to proactively manage complex cash flow, liquidity and financial risks,” Panax said in a Wednesday press release.

The company, which currently has a few dozen customers according to Mills, said its fresh funding, provided by Team8 Capital and TLV Partners, will help with meeting “rapidly growing” demand for its platform. The company doubled its number of customers in the first quarter of 2024, according to the release. 

The funds will be used to “further accelerate this growth by scaling sales and support teams to meet the high market demand for its cutting-edge, next-gen treasury management solutions, expand its U.S. presence with a New York City office and increase its product development resources,” the release said.

In a related development, business planning software provider Pigment said last month that it secured $145 million in a Series D funding round on the heels of tripling its revenue and doubling its customer base globally in 2023.

In the wake of the Covid-19 pandemic, the world has changed in a way that has put pressure on finance teams to stay proactive and agile, according to Jay Peir, head of strategy at Pigment.

“The ability to adjust plans is more critical than ever,” he said in an interview.