Workflow Automation Platform Nanonets Bags $29 Mn For R&D, Market Expansion

AI-based workflow automation platform Nanonets has raised Series B funding of $29 Mn (INR 240 Cr) led by Accel, with participation from a clutch of existing investors, including Elevation Capital and YCombinator among others.

The latest round takes Nanonets’ total funding to $40 Mn till date.

The startup plans to deploy the fresh proceeds for research and development, improving algorithms for handling unstructured data and launching new products. 

Besides, it aims to fuel growth by scaling up marketing and sales efforts to capitalise on the increasing demand for AI-based solutions.

“The internet was going to kill paper but businesses today are producing more documents than ever, just in new forms. There are millions of highly skilled professionals stuck looking for needles in haystacks and entering this data from these documents into different software. Nanonets uses AI to automate these different processes. We are taking the most repetitive and mundane office work and automating it,” said Sarthak Jain, cofounder and CEO of Nanonets.

Abhinav Chaturvedi, partner at Accel, said, “Nanonets stood out to us due to its comprehensive platform and its capability for straight through processing (STP). These qualities set it apart in the field of automation and have already demonstrated their positive impact on customers.”

Founded in 2017 by Jain and Prathamesh Juvatkar, Nanonets helps businesses leverage AI to make workflow automation easier. The startup allows enterprises to digitise documents, validate information, update databases and execute decisions based on business rules, without any human intervention. 

Nanonets makes most of its revenue by automating finance tasks like Accounts Payable and Reconciliation. While it typically takes 15 minutes to process an invoice manually, including entering it into the ERP, matching it with the purchase order, GL-code lookup, and approvals, the startup claims to do it in under a minute with automation.

Nanonets’ key innovation lies in ensuring STP, where a high percentage of data is handled without manual intervention. Unlike other generative LLMs, it addresses STP challenges related to data hallucinations, making autonomous agents adoption for end-to-end tasks more feasible. It achieves over 90% STP rate, leading to significant productivity and cost savings.

The startup claims to have grown its user base by 4X in the past 12 months. 

In 2022, the company raised $10 Mn in a Series A funding round led by Elevation Capital.