Houston fintech unicorn raises $300M in series C
Houston's first "unicorn," fintech company HighRadius, is growing up fast.
On March 30, HighRadius, a software-as-a-service (SaaS) business, reported it raised a $300 million Series C round of funding that values the company at $3.1 billion. D1 Capital Partners and Tiger Global Management led the round, with participation from existing investors ICONIQ Growth and Susquehanna Growth Equity. Also contributing to the round were four high-profile entrepreneurs:
- Frank Slootman, chairman and CEO of Snowflake, a cloud-computing company based in San Mateo, California. Both D1 Capital and Tiger Global invested in Snowflake, which went public in September.
- Michael Scarpelli, chief financial officer of Snowflake.
- Tooey Courtemanche, CEO of Carpinteria, California-based Procore Technologies, which produces software for management of construction projects. D1 Capital and Tiger Global are investors in Procore.
- Howie Liu, co-founder and CEO of Airtable, a cloud-based collaboration platform based in San Francisco. D1 Capital is among Airtable's investors.
In a news release, HighRadius says it will spend the money to fuel product development and expand its global reach.
The $300 million funding round comes nearly 15 months after HighRadius announced it raised $125 million in a Series B round that catapulted it to unicorn status. In the fundraising world, a unicorn refers to a startup valued at $1 billion or more.
HighRadius, based in West Houston, was founded in 2006. It employs more than 1,000 people around the world. The HighRadius website listed 16 job openings as of March 30, with 10 of them in Houston.
HighRadius' AI-powered SaaS offering streamlines accounts-receivable and cash-management processes. For instance, HighRadius' Cash Application software relies on AI to comb through documents like emails and invoices to automatically match incoming payments with customer accounts. The company has over 600 customers, including more than 200 of the Forbes Global 2000.
"Our goal has always been to build a long-lasting business that outlasts all of us," Sashi Narahari, founder and CEO of HighRadius, says in the news release. "I look forward to working with [our] high-quality, long-term investors, who share a common vision of transforming the office of the CFO using a combination of artificial intelligence built on top of connected-finance workspaces and embedded analytics."
In the news release, Daniel Sundheim, founder of New York City-based D1 Capital, says CFOs and their teams have historically relied on antiquated methods to handle accounts receivable and cash management.
"HighRadius is in the opening innings of defining the next big software market for the office of the CFO," John Curtius, a partner at New York City-based Tiger Global, says in the news release. "HighRadius bears all of the signs of being a category-defining business for order-to-cash automation."