Nanonets Raised $29 Million To Advance AI-Powered Workflow Automation

Nanonets Raises $29M to Advance AI-Powered Workflow Automation

Artificial intelligence workflow automation platform Nanonets has secured $29 million in Series B funding led by Axel, bringing its total funding to $40 million. The company, founded in 2017, has seen remarkable growth with a 4x increase in its user base over the past 12 months and counts over 34% of global Fortune 500 companies among its clients.

Business Model and Value Proposition

According to CEO and co-founder Sak Jen, Nanonets aims to eliminate the drudgery from knowledge workers' daily tasks. The company operates on a pay-per-task model, charging clients based on the number of automated processes. For instance, when automating invoice processing for a finance department, clients are billed per invoice processed from start to payment.

Investment Focus: AI Development and Compute Power

The fresh funding will primarily be directed toward:

- Building best-in-class AI models

- Enhancing compute capabilities

- Developing autonomous workflow automation solutions

Market Presence and Growth

Nanonets has established a strong presence in the market with:

- Tens of thousands of businesses using their platform

- Primary focus on finance function automation

- Expanding capabilities in HR and operations

- Significant accuracy improvements due to advanced AI technology

Competitive Edge

While optical character recognition (OCR) has been around since the 1980s, Nanonets differentiates itself by focusing on data interpretation rather than just reading documents. The platform's true value lies in making sense of information and providing actionable insights, such as determining whether a vendor should be paid based on invoice analysis.

Geographic Focus and Future Plans

While North America represents about 30% of Nanonets' customer base, the company maintains a market-agnostic approach, focusing instead on regions where time value is high. Although markets like India present challenges due to lower labor costs, the company has successfully partnered with prominent firms like Asian Paints, who value technological automation.

Financial Position

While specific revenue figures remain confidential, the company reports strong growth paralleling its user base expansion. Though not yet profitable overall due to significant R&D investments, Nanonets maintains positive operational metrics, with losses primarily attributed to research and development spending.

As artificial intelligence continues to evolve and transform business operations, Nanonets appears well-positioned to capitalize on the growing demand for intelligent workflow automation solutions across global markets.