New York-based financial technology company Stuut said on October 7 that it had raised $52.5 million in a Series B round led by Insight Partners. Andreessen Horowitz, M12, Microsoft’s Venture Fund, and Activant also participated, bringing Stuut’s total funding to $93 million. The round comes ten months after its Series A and will support the expansion of its AI platform for managing the process from customer orders to payment collection.
Stuut’s platform handles tasks including credit checks, collections, payment matching, disputes and deductions. A missing purchase order or incorrect invoice can delay payment and require finance teams to investigate records across several systems. Stuut says its software follows those issues through the payment process, contacts customers through email, text messages and calls, and records the actions it takes. The company says it can connect to existing enterprise software, bank accounts and payment systems while working within a customer’s approval and audit controls.
According to Stuut, 81.7% of outbound collections activity on its platform runs without human involvement, while 95% of incoming payments are matched automatically. It said some customers had freed up as much as 40% more cash and reduced days sales outstanding, or the average time taken to collect payment after a sale, by 47%. The company did not provide a common measurement period or methodology for those figures.
Stuut said it now serves more than 150 customers and that over $3 billion has moved through its platform. Its customer base has grown fivefold from a year earlier, according to the company. Tarek Alaruri, Stuut’s chief executive, said the platform is intended to give finance teams more capacity to handle customer accounts while improving the payment experience.
The company provided several customer examples. Bishop Lifting has deployed Stuut across 45 branches and, according to Stuut, reduced overdue receivables by 35% while releasing $3 million in working capital. At ZoomInfo, Stuut said its platform had collected $21.2 million and cut the time before an initial collections contact by more than 90%. ZoomInfo controller Blaine Browning said its days sales outstanding fell from 51 to 40 days through Stuut’s work alongside other receivables initiatives.
Verifone Chief Financial Officer Chris Dichiara said the platform fits into the company’s existing enterprise software and gives its finance team a record of how automated actions were carried out. Stuut also said Honeywell uses the platform with a legacy SAP system and is extending its use into earlier stages of the sales process. These deployments show how the company is seeking to move beyond collections into more of the transaction cycle.
Stuut plans to use the new capital to meet customer demand and develop services covering credit, lending and the movement of funds. Its longer-term goal is to manage more steps between an enterprise sale and receipt of payment.
