constitution is a business “super app” that helps business owners with administrative tasks like payroll, accounting and tax reporting. The company announced today that it has raised $25 million in Series B funding from Illuminate Financial, AFG Partners and Winter Capital. This brings the total funding raised by Osome since its founding in 2017 to $51 million.
The company says revenue has doubled since then its A series Announced June 2021. It plans to be cash flow positive within the next 12 months and recently announced a digital banking partnership with Singaporean financial services firm OCBC.
Osome currently serves over 11,000 businesses in Singapore (where it is headquartered), Hong Kong and the UK. It also offers business registration services in Singapore, Hong Kong, and the UK, and integrates with e-commerce platforms such as Amazon, eBay, Shopify, Lazada, Etsy, and Shopee.
Part of Osome’s new funding will be used to expand its presence in Asia, targeting side hustle and micro-entrepreneurs, in addition to its current SME client base.
Last year, Osome launched an accounting platform that provides tax and financial reporting, expense and invoice management. It also runs a hybrid accounting service called Accounting Factory that combines machine learning with human accountants and aims to replace accounting software like Xero and Quickbooks. Machine learning is used to collect, extract and classify financial data and reconcile it with bank transactions. Osome’s accountants then review the information and advise the client. Osome currently employs over 100 accountants and bookkeepers, all of whom are full-time employees.
Other startups offering enterprise services include smooth, Lantern Festival and BlueMeg. Osome founder Victor Lysenko said it builds a competitive moat by offering “a setup that provides services at scale for enterprises.”
“What business owners tell us is that they didn’t start out to keep their own books,” he said. “We do the bookkeeping so they can focus on their business. We grow with them – our pricing model is based on revenue, not transactions, unlike our competitors.”
