Botkeeper, a Boston-based tech startup that provides automated bookkeeping services, announced Wednesday that it has raised $42 million in fresh Series C funding. The round was led by Grand Oaks Capital, an investment firm founded by Tom Golisano, the billionaire entrepreneur behind payroll giant Paychex. Golisano will also be joining Botkeeper’s board of directors.
“I couldn’t be more thrilled to partner with and learn from someone as legendary as Tom. This partnership, the capital, and adding Tom to our board will help accelerate our growth and product strategy,” Botkeeper CEO and founder Enrico Palmerino said in a statement. “We remain hyper-focused on delivering solutions to accountants and the industry as a whole to maximize capacity, increase accuracy, assist with retention, accelerate growth, and improve client experience.”
Like most automation software, Botkeeper is designed to make a certain task more productive and streamlined — in this case it’s accounting. The platform takes on repetitive or predictable tasks, like transaction categorization and reconciliations, so that the humans in the accounting department can better handle the more complex tasks of the job.
Since its launch more than six years ago, Botkeeper has seen “rapid growth,” a company spokesperson told Built In via email, providing its services to more than 200 accounting firms and 5,000 small businesses throughout the United States. It has also made the Inc. 5000 list two years running, signifying that it is one of the fastest growing companies in Boston.
“Enrico has built an incredibly disruptive company that has a tremendous amount of market potential,” Golisano said in a statement. “I’m excited to be part of the next phase of Botkeeper’s growth.”
In addition to expanding its platform, Botkeeper will use this fresh funding to grow its customer success teams, according to the company spokesperson. The startup currently has dozens of open tech positions at its Boston HQ and offices around the world.
