Febi signs MoU with STPI, secures $2 million to enhance compliance and governance for startups and SMBs
AI-powered accounting automating firm Febi signed a Memorandum of Understanding (MoU) with Software Technology Parks of India (STPI) and raised $2 million in pre-Series A funding to enhance compliance and governance solutions for startups and small and medium businesses (SMBs).
The Gurgaon-based company offers businesses a consolidated view of their financial health, from cash flow and vendor payments to compliance alerts, allowing entrepreneurs to avoid dependency on third parties, manage all aspects of their accounts in one place, minimising errors and enhancing efficiency.
Despite India’s rapid growth as the third-largest startup ecosystem globally, many SMEs still rely on traditional bookkeeping and outdated compliance systems. According to senior industry executives, these manual processes not only consume significant time but also increase the risk of errors, leading to compliance delays and financial mismanagement.
“One of the biggest hurdles for startups is the lack of streamlined and digitised processes. Many founders are still reliant on physical bookkeeping, which complicates the management and tracking of their finances. This often impacts their ability to secure funding,” said Amit Jindal, CEO, Febi.ai.
According to Jindal, studies indicate that around 40 percent of an entrepreneur’s time is spent on non-revenue-generating tasks like accounting, which diverts focus from core business activities. That is why he stated that platforms such as Febi.ai, which recently raised $2 million in pre-Series A funding, aim to address this challenge by providing businesses with a comprehensive suite of AI-powered tools that automate accounting, tax compliance, and document management.
“We integrate with banks and different financial systems, and our platform processes expense invoices automatically—whether they are uploaded, sent via WhatsApp, or emailed—delivering the necessary documentation within minutes,” Jindal said.
The move towards AI in accounting is expected to grow as startups and SMEs seek more effective ways to manage their finances. “When entrepreneurs are building their businesses, investing time in accounting and finance is the last thing they want,” said Lenskart co-founder Amit Chaudhary.
According to a Nasscom report, India’s AI market is projected to reach $17 billion by 2027, growing at an annualised rate of 25-35 percent between 2024 and 2027. This presents India with an opportunity that requires consistent and concerted efforts from different stakeholders to recognise AI’s transformative potential. Integrating AI will help Micro, Small, and Medium Enterprises (MSMEs) to stay relevant and offer them a unique opportunity to unlock unprecedented growth, enhance productivity, and fuel sustainable innovation.
Jindal also noted that beyond mundane tasks, there are substantial long-term environmental benefits of AI-based solutions, as they support a paperless and digitised accounting system. This can help businesses reduce their environmental impact while becoming more efficient and aligned with India’s carbon-neutral ambitions.
Currently, over 100 businesses are using the Febi platform, and the company has signed a Memorandum of Understanding (MoU) with Software Technology Parks of India (STPI) during the India Mobile Congress 2024 to collaborate with 1,200 startups.
