Bluecopa, an Indian startup building a platform to automate financial operations for large corporations, has raised $2.3 million to expand its offering to the global market.
The seed funding round was led by Mumbai-based Blume Ventures, with participation from Titan Capital, T-Fund, Speciale Invest, Bharat Founders Fund, T2D3, Amplify and Force Ventures.
The company was also joined by Chargebee founders Krish Subramanian and Rajaraman Santhanam, Rohit Chennamaneni of HR management platform Darwinbox, and Asad Khan and Jay Singh of cross-browser testing tool LambdaTest.
“Just to use an analogy, say Salesforce for sales, Marketo for marketing, GitHub for developers, there’s a lot of white space in finance,” said Nilotpal Chanda, Bluecopa’s co-founder and chief business officer, in an interview with TechCrunch.
Bluecopa was founded in 2021 by Chanda and his entrepreneurial teammates Raghavendra Reddy and Satya Prakash Buddhavarapu. The trio previously worked together on tax administration platform Optotax, which was acquired by neobanking platform Open in February last year. Tuplejump, another startup founded by Buddhavarapu, was acquired by Apple in 2016.
Unlike a traditional platform that requires specific expertise to operate, Bluecopa’s offering is designed to work with no specific knowledge requirements. It also claims to work with all existing SaaS tools, as well as Excel, Google Sheets, and any other platform that finance teams use.
“It’s a layer that connects to all these tools in the organization, pulls data, cleans, consolidates, normalizes, and then provides all of that information in a very user-friendly format,” explained Chanda.
The tool offers an Excel-like interface that finance professionals can easily use to understand their companies’ accounts, he said. “Basically, the tools available today are not very user-friendly. It also takes a lot of time to implement them,” he said.
Anaplan and Google Ventures-backed Vareto are among some of Bluecopa’s competitors. However, Chanda told TechCrunch that the time to maturity with its platform is much shorter, as it only takes four to six weeks to deploy in an organization. The solution also claims to have a cost advantage over other similar platforms on the market.
“If you look at the build versus buy ratio, the TCO [total cost of ownership] is much, much lower – almost 85 to 90% cost savings,” said Chanda.
Bluecopa targets high-transaction and high-volume businesses, including e-commerce businesses, with its platform. “We’re already talking to very big, important logos in the region,” Chanda said, adding, “We’re also onboarding a lot of early adopters in the US and North American markets.”
The Hyderabad-based startup refrained from disclosing any of its clients.
“We are in the implementation phase,” the executive said. “It’s used for a smaller sub-department in a large e-commerce company. Unless we go live with a bang, we – both parties – don’t feel very comfortable disclosing this,” he said.
Anirvan Chowdhury, vice president at Blume Ventures, told TechCrunch that Apple’s acquisition of the startup Buddhavarapu played a significant role in the venture fund’s investment decision in Bluecopa.
“The GTM and the business model were the biggest factor,” said Chowdhury. “But the fact that someone built a product, Tuplejump, that Satya built was essentially a product that could have competed with Snowflake. And the world’s leading software company has seen enough value that this is the product I want to purchase…that’s a tremendous endorsement.”
Details on the valuation weren’t disclosed, although Chowdhury told TechCrunch it’s “more than $10 million.”
“This is a hair-raising problem, especially in high-transaction-volume industries such as e-commerce, logistics, financial services, etc. Solving these issues can increase sales by 20% and profitability by 30%,” Buddhavarapu said in a prepared statement.
The startup has a team of 17 people. With the new investment, the company plans to hire additional talent and expand its customer base – alongside improving the platform.
https://techcrunch.com/2022/08/02/apple-executive-bluecopa-seed-round-2-3-million-finance-operations-automation-blume-ventures/ Apple alum’s finance operations startup raises funds to expand globally – TechCrunch