Rillet, an AI startup specializing in accounting software, has successfully raised $70 million in a Series B funding round, boosting its valuation to around $500 million.

This latest funding round, co-led by Andreessen Horowitz and ICONIQ Capital, follows a $25 million Series A round completed just two months earlier, bringing Rillet's total funding to over $100 million.

Founded by Nicolas Kopp, the former U.S. CEO of digital bank N26, Rillet is designed to automate accounting tasks for its growing client base of over 200 companies, including notable names like Windsurf and Postscript.

Rillet aims to modernize outdated accounting systems by leveraging AI for real-time insights and automating various financial tasks, such as reconciliations and revenue recognition.

The platform allows finance teams to close their books in hours rather than weeks, integrating seamlessly with systems like Salesforce, Stripe, and Brex.

The funds raised will be directed towards enhancing Rillet's technology and expanding its engineering team to accelerate platform development.

In the past 12 weeks, Rillet has doubled its annual recurring revenue and formed partnerships with accounting firms like Armanino and Wiss.

Investors, including Seth Pierrepont from ICONIQ and Alex Rampell from Andreessen Horowitz, emphasize the need for smarter systems to address the dwindling finance talent pool.

With the global accounting software market valued at over $500 billion, Rillet positions itself to tackle the impending talent crisis in finance as many accountants are expected to retire soon.

The trend towards AI-native ERP systems indicates a significant shift from traditional software, promoting more collaborative and integrated financial systems.

Rillet plans to enhance its AI capabilities and improve integrations within the financial technology sector, aiming to create a collaborative platform that merges AI with human expertise.

The participation of Sequoia Capital, Oak HC/FT, and FOG Ventures in this funding round reflects strong investor confidence in the transformative potential of AI in accounting.