AutoBooks, a Detroit-based startup, announced Wednesday a $10 million Series A1 round of financing intended to widen the company’s payroll.
The firm has already responded to business expansion with the addition of a dozen employees in 2017 and relocation to Detroit's Madison Building, but it's outgrowing capacity and plans to “ramp up aggressively” to accommodate growth.
"It's not uncommon for Autobooks to obtain 3-5 percent adoption in its first 90 days – significantly outpacing prior bank product adoption curves such as business bill pay, mobile banking or RDC," Autobooks CEO Steve Robert said in a press release.
Since closing a $5.5 million Series A in March 2017, Autobooks has secured contracts with a new bank or credit union every month and expects 25 deployments in 2018.
"The velocity of implementations is growing quickly, and with national distribution and reseller partnerships coming online - we could easily double our headcount in the next 12-18 months, pushing us to [about] 50 people in 2019," Robert told Benzinga. He confirmed expectations of expanding Detroit real estate.
The firm’s integrated receivables and cash-management products support financial institutions’ small-business services. Its internet banking suite particularly enables electronic invoicing, payments and accounting with real-time, automatic bookkeeping.
Management intends to expand services beyond invoicing to support payroll, credit and lending.
“Autobooks is a game-changer for community banks.” Adom Greenland, COO of Choice One Bank in Sparta, Mich., said in a press release. “They help level the playing field, providing business products typically only available at MEGA banks. Now, with Autobooks, we can provide a comprehensive treasury and cash-management suite to even the smallest micro-business, delivering services cost-effectively while better serving customers as their needs grow over time.”
Autobooks was recently recognized by Michigan Gov. Rick Snyder as a beacon of Detroit’s growth and model of its startup community.
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