New York-based Hyphenate, a startup developing AI-powered finance automation software, has raised $45 million in Series A funding to help businesses automate financial operations and reduce repetitive work.
The funding round was led by Nexus Venture Partners, with participation from B Capital and existing investors Foundation Capital, BoldCap and Gaia Ventures. The latest investment brings the company’s total funding to $54 million.
Former Microsoft finance transformation leaders Krishnamurthy and Ajay Krishna Amudan started Hyphenate in 2024 to build AI agents to run financial tasks across companies. The goal of the founders is to help finance teams automate routine tasks and free up employees to make strategic decisions.
The company’s platform works with existing enterprise resource planning (ERP) systems, banks and other financial software, allowing businesses to automate operations without replacing their current systems.
“Every finance team carries a long list of work it does because somebody has to,” said Ramnandan Krishnamurthy, co-founder and CEO of Hyphenate. “Our customers are watching that list shrink in production. Once a team sees the system handle one workflow to an auditor’s standard, they hand it the next one. That is the pattern this company is built around, and this round lets us run it across the whole function.”
Hyphenate’s AI agents support five key areas: order-to-cash, treasury, general ledger accounting, procure-to-pay, and reporting and insights. Their tasks include invoicing, collections, cash reconciliation, accounts payable, revenue recognition, month-end closing and financial reporting.
The platform learns from a company’s spreadsheets, emails and system logs to understand existing workflows. It identifies exceptions that previously required manual intervention and uses resolved cases to improve future processes. The system also records its actions to support audit requirements.
According to the company, customers have reported a 90% reduction in repetitive finance work and a 75% reduction in audit exceptions. Its platform processes transactions across hundreds of business entities and thousands of bank accounts. Hyphenate also reports that its revenue has grown 86 times and its customer base 11 times over the past year.
Several customers have reported measurable results. Mini Melts USA uses the platform alongside its SAP systems to automate orders, invoicing and refunds, recovering an estimated 16,640 hours of finance work annually within three months of implementation.
HiBid, an online auction platform, has processed more than $2.5 billion in gross merchandise value through Hyphenate’s order-to-cash automation. The company says the platform helped reduce HiBid’s month-end closing process from three weeks to one day.
Hyphenate plans to use the new funding to expand its AI agents across more finance operations and develop capabilities for strategic financial planning. The company aims to help finance leaders use transaction data to improve forecasting and capital allocation decisions.
“What makes Hyphenate compelling is that autonomy is already showing up in customer operations,” said Abhishek Sharma, Managing Director at Nexus Venture Partners. “Finance has an unusually high bar for accuracy, controls and auditability. Hyphenate has built around that bar from the beginning, and the expansion we are seeing inside customers shows what becomes possible once the system earns the right to take on more work.”
However, adopting AI in finance requires strong oversight because accounting errors can have significant financial and regulatory consequences. Hyphenate says its approach combines automation with clear boundaries, documented actions and human involvement when decisions require professional judgment.
With its latest funding, Hyphenate aims to expand its presence in the growing market for AI-powered finance software and help businesses move from automating individual tasks to managing broader financial workflows.
