Febi.ai, an AI-driven platform designed to automate accounting and tax compliance, has raised $2 million in Pre-Series A funding. The round was led by Lumis Partners and included prominent investors such as Virender Rana (former Managing Director at JP Morgan Payments), Amit Chaudhary (Co-founder of Lenskart), Padmaja Ruparel (Co-founder of Indian Angel Network), Rohan Bhargava (Co-founder of Cashkaro), and Rajat Jain (Chairman of Fino Payments Bank), among others.
Founded in 2022 by a team of chartered accountants and technology experts, Gurgaon headquartered startup leverages artificial intelligence to eliminate manual data entry and errors, automate invoice verification, streamline documentation management, and handle tax compliance. The platform also provides entrepreneurs and business owners with real-time insights into their operations, allowing for more informed decision-making.
According to the company, the name “Febi” stands for Founders Entrepreneur Books Innovation, which reflects its focus on innovation in the finance sector and its entrepreneurial approach. Febi.ai aims to use the newly raised capital to enhance its AI capabilities, expand its customer base, and increase its workforce, said a senior executive.
The founding team includes Amit Jindal, Saurabh Jain, Ashu Goel, and Rahul Bansal, all of whom bring significant experience from the financial and technology sectors. Amit Jindal and Saurabh Jain, both chartered accountants and ex-Ernst & Young professionals, have previously led Felix Advisory, a financial consulting firm with over 350 employees.
Jindal, who serves as CEO, brings more than two decades of experience in accounting and tax compliance. He is both a chartered accountant in India and a certified public accountant in the U.S. In his previous roles, Jindal observed the numerous challenges faced by finance professionals dealing with manual accounting and tax compliance processes, which inspired him to create a platform that could address these pain points.
During a press conference announcing the funding, Jindal emphasised the role Febi.ai plays in helping entrepreneurs and the accounting community. “It’s been built by the Chartered Accountant community and will empower entrepreneurs and the CA community with real-time insights and effective ways to manage accounting and tax compliance functions,” he said.
The platform is positioned to address a critical issue in India’s startup ecosystem, which has seen tremendous growth since the launch of the Startup India initiative in 2016. However, many startups face challenges in managing their finances, leading to failure for many within their first five years.
Jindal said that Febi.ai aims to solve this by providing automation that reduces the time entrepreneurs spend on non-revenue-generating tasks like manual accounting and compliance, allowing them to focus on growing their businesses.
Sandeep Sinha, Partner, Lumis Partners, said: “Startups and MSMEs are the heart of the Indian economy. While handling business operations in competitive industries, taking care of finance and staying tax compliant can be a lot to manage for them. I believe Febi.ai can transform this as it takes the burden from their shoulders so they can focus on high-priority work.”
Febi.ai’s solution also caught the attention of other key investors. Padmaja Ruparel, Co-founder of the Indian Angel Network, said, “Febi.ai is an innovative software and has the full potential to be the industry leader in its space. As someone who has connected so closely with the Indian entrepreneurial ecosystem, it’s a great platform for businesses trying to stay on top of their tax compliance and financial management.”
Highlighting the time-saving aspect of Febi.ai’s offering, Amit Chaudhary, Co-founder of Lenskart said, “When entrepreneurs are building their business, investing time in doing accounting and finance is the last thing they want. Febi.ai helps them reduce manual work and use their time better.”
To bolster the technological side of the company, Febi.ai appointed Ashu Goel as Chief Technology Officer (CTO). Goel brings over 17 years of experience from JP Morgan in Singapore, where he worked in technology and financial services.
Febi.ai’s platform automates key accounting tasks such as revenue creation, banking integration, and expense management, using artificial intelligence to process data and generate reports within minutes.
The platform also integrates Intelligent Document Processing (IDP) to manage documents digitally, eliminating the need for physical paperwork and reducing compliance errors. With real-time dashboards, Febi.ai provides entrepreneurs with a comprehensive view of their financial health, enabling them to make informed strategic decisions.
According to the company, the system is designed to help businesses, particularly SMEs, avoid common pitfalls related to accounting errors, compliance delays, and financial mismanagement, which often hamper growth. By automating these processes, Febi.ai said it aims to empower entrepreneurs to focus on scaling their operations without the administrative burden.
Febi.ai currently has over 100 businesses using its platform, and it has recently entered into a partnership with the Government of India’s STPI Next, which will allow an additional 1,200 startups to use the platform. The partnership marks a significant step in the company’s efforts to scale its reach within the Indian startup ecosystem, said Jindal.
The company stressed that it plans to use the fresh capital to expand its customer acquisition efforts and enhance its AI-driven features. The company also intends to grow its workforce to meet the increasing demand for automated financial solutions in India’s burgeoning SME sector.
The founders also emphasised that they see Febi.ai as a key player in the future of India’s digital economy, with a vision to help businesses transition to paperless accounting and achieve compliance with ease. “As India moves towards becoming a carbon-neutral economy, Febi.ai’s paperless solution will also be contribution to reducing environmental impact while improving efficiency,” said Jindal.
