Cassa, а Romanian Accounting Startup, Has Raised 250K In an Ongoing Round Led by KPMG
The Romanian startup Cassa, which offers SaaS accounting software, has started its campaign on SeedBlink. The company has already raised €250K of its initial €300K target, which accounts for around 14 percent of its equity. The pre-money valuation of the company is €1.8M. Cassa already has 13 confirmed investors, with KPMG leading the round. The money will be used for improving the product and the OCR technology, which, company’s officials hope, will help Cassa attract 15 000 users in its first year, as well as 250 accounting firms and monthly incomes of €75K. “The processes of automation and digitization of operations have become a differentiating factor in the current business context. Initiatives such as Cassa have the potential to profoundly transform the business environment, especially the SME sector. KPMG supports Romanian entrepreneurs on their path to success,” comments René Schöb, the head of Tax & Legal at KPMG Romania.
How does the platform work and what is its business model?
Traditional accounting requires a huge amount of both the accountants’ and their clients’ time for communication and coordinating the processes. What is more, in an era when digitalization requires all the accounting data to be uploaded online, accountants spend an additional amount of time inputting manually invoice information. Cassa is software that automates the digitalization of this data and organizes the flow of documents and communication between accountants and clients. The software offers all online accounting, with the help of a single application. Practically, this means that a client can access and discuss with his accountant anything from reports and documents to balance sheets and charts entirely online. A client can also create invoices using the app, which can be seen by the accountant at any time. The software also automates part of the process with document transfer as it uses character recognition technology (OCR), which allows direct digitization and export of information in the system, as well as real-time access to data. The software is available in a desktop version, as well as mobile, for iOS and Android. The company uses a B2B2B business model, which means that accounting firms are re-sellers of the app. The app can also be purchased individually, through a subscription, which costs between €5-7 per user. The platform currently has over 500 active users.
What is special about the company?
As noted by Cassa, the unique thing about their platform is that, in contrast to the majority of other platforms, this one digitizes the entire accounting process, thus saving business owners’ time and resources and eliminating the need for human-to-human interaction, which is especially important during a pandemic. According to company data, the fact that the platform automates document transfer has gained up to 80% more time to accountants as they do not have to fill invoices manually. A user can also use the platform to create communication networks with his accountant(s) and other users. Cassa has a cloud archive in which the documentation is saved. The platform is user-friendly as it offers a range of tools, including a smart search function by keywords and phrases.
What is next for the company?
Cassa plans to raise between €100K and €140K from equity crowdfunding. The company is also planning to attract a second investment round by the end of 2021, which they will probably use to expand in Europe. In 2018, the global accounting software market was valued at roughly €9.3M and is expected to reach €17M by 2026.
