FloQast raises $40M, looks forward to IPO
FloQast, which makes financial close software, has raised $40 million in Series C funding, earmarked for customer expansion and tech development.
This round of funding brings the total FloQast has raised to approximately $72.9 million. According to CEO Michael Whitmire, the long term goal for FloQast is an IPO: “We’re not building a company to be acquired,” he said in a recent interview. “Remember, we’ve only been selling Floqast for five years and the mid-market is a huge market space to address.”
At first, FloQast focused on smaller businesses, but today its software serves companies ranging in size from 200 to 10,000 employees. The month-end close program integrates with enterprise resource planning systems, with its top tech partners including NetSuite, Sage Intacct and Workiva. Its main competitors are companies such as BlackLine.
Last year, FloQast experienced significant growth, allowing it to, among other things, serve larger customers. The company added a second product line, FloQast AutoRec, an artificial intelligence-powered solution for account reconciliation automation. It also initiated a strategic partnership with Workiva for integrated reporting and compliance.
“FloQast offers a modern alternative to the complex, legacy accounting software relied on by large enterprises," said Mike Whitmire, co-founder and CEO of FloQast, in a statement. "In its place is quick to implement, cloud-based and AI-powered software that delivers immediate business value for midmarket teams too. This round of investment validates that the market for close management software has hit an inflexion point, and the need for fresh, innovative technology approaches that help controllers and their teams increase productivity and operate more strategically.”