Osome is a financial admin platform that helps business owners with administrative tasks like payroll, accounting and tax reporting. The company announced today it has raised a $25 million Series B from Illuminate Financial, AFG Partners and Winter Capital. This brings Osome’s total raised since it was founded in 2017 to $51 million.
The company says revenues have doubled since announcing its Series A in June 2021. It plans to become cash flow positive within the next 12 months, and recently announced a digital banking partnership with Singapore financial service corporation OCBC.
Osome currently serves more than 11,000 businesses in Singapore (where it is is headquartered), Hong Kong and the United Kingdom. It also offers business incorporation services in Singapore, Hong Kong and the United Kingdom, and integrates with e-commerce platforms like Amazon, eBay, Shopify, Lazada, Etsy and Shopee.
Part of Osome’s new funding will be used to expand its operations in Asia by targeting side hustles and micro-entrepreneurs, in addition to its current customer base of SMEs.
Over the last year, Osome has launched an accounting platform to provide tax and financial reports, expenses and invoice management. It also runs a hybrid accounting service, called the Accounting Factory, that combines machine learning with human accountants and is meant to replace accounting software like Xero and QuickBooks. Machine learning is used to collect, extract and categorize financial data and reconcile it with bank transactions. Then Osome’s accountants look at that information and advise customers. Osome currently has more than 100 accountants and bookkeepers, who are full-time employees.
Other startups that offer corporate services include Sleek, Lanturn and BlueMeg. Osome founder Victor Lysenko said it’s building a competitive moats by providing a “set-up to scale-up service for businesses.”
“What business owners tell us is that they didn’t start up to do their own bookkeeping,” he said. “We take care of the bookkeeping so they can focus on their business. And we grow with them — our pricing model is based around revenue, not transactions, unlike our competitors.”