Rillet raises $70M Series B co-led by a16z and Iconic to replace legacy ERP for SaaS companies

into the studio. I think we got to get the ready. We got to get the gong ready. Jordy, you want to take this one? You want to hit this? I'll take this one. I think I hit the last one, but let's bring him in. Let's play some music. Let's play some soundboard. Let's bring in Willlet. How you doing? Welcome to the stream.

Thanks so much for joining. Sorry we're a little bit late. How you doing? Good. Check. Check. Do you hear me? Okay. Oh, hear you. Great. Live. Uh, is it Nick Nicholas? Is it Roulette or Relay? Roulette. Roulette. So, the American spelling. Yeah, there we go. Okay. I wasn't sure if it was French.

Uh, anyway, give me the update. Give me the news. Give me the overview of what you're building. Awesome. Yeah. Excited to be here, guys. Thanks for having you on. So, thanks so much. Uh today we're announcing our $70 million series B uh co-led by Andre Harowitz and Iconic. Congrat Oh, that was good timing. Good timing.

Congratulations. Boom. Thank you. Uh give us a little prehistory on the company. Uh when did it start? How's the growth been? And uh key customers, how you're building and how you're thinking about uh solving AI native ERP. Yeah. Um so we've um so quick backstory also myself.

deeply um accounting and finance uh verse uh sort of full background there. Started this company uh roughly three and a half or so years ago. Mhm. Very much in stealth for a very long time. As you can imagine, a full-on accounting system or ERP is not a small feat to build. It's a lot of surface area.

Um these are very entrenched systems traditionally dominated by Netswuite, Oracle, SAP, these type of names. Um so we uh yeah we're very fortunate to to have had a stellar team of accountants and engineers building and building.

Um and then we came out of stealth uh last summer roughly a year ago and things have gone vertical uh since then. So uh it's been an awesome journey. Uh raced our series A here um just a couple of months ago, 3 months ago, 12 weeks back and um yeah back to back here with a B.

What is it what does it take to get a company to rip out their existing ERP and and bet on a new company? Right. Like that's the real challenge that I was about to ask are people ripping out Oracle and SAP and Netswuite or is it uh I'm upgrading from a spreadsheet. Yeah, great question.

So we are getting 70% of our customers today coming from software called Quickbooks and Zero. Sure. Um and then 30% of our customers coming from Netswuite and Sage Intact. Okay. So it's very much a mid-market focused ERP software.

Um key reasons why people uh use Relet or want to buy Relet despite us being newer to the market over a legacy player is um number one uh we have super strong native integrations that really suck in all that key upstream information that you need for AI automation um really seamlessly into our platform and then our automations on top produce reporting that's just unmatched in the market um and that would yeah leads us eventually to getting customers like Windsurf one of the fastest growing AI companies in recent history's mind.

Wow. Um and and others uh to trust reallet over their current systems. Real now used by Google and Cognition potentially. That's the best part about a zombie acquisition. You get potentially two new customers maybe.

Anyway, uh I want to know about um do you want to put a chat box in your product or do you want to use AI behind the scenes and not surface that to the customer? Whenever I I see tools like this, I think I love the idea that you're using AI, but I don't want to open it up every day and prompt, hey, clean up my ERP.

I want you just to do that, and then when I show up, I want it to look like a nice groomed garden. Yeah, love it. Um hopefully a bit of both, actually.

So, um for very important for our controllers, accountants, and CFOs, um having a human in the loop on some of their AI processes is actually really important and a positive. So yes, these are background processes uh but uh always with a human in the loop for the most critical ones um there.

And then for you as a business owner specifically or uh strategic CFO or an investor, you want none of that detail, right? You want to go in in a clean box, ask a question, get the information you need, move on. So we're building both to both ends of these spectrums. Um, and you really need both to be successful here.

And I guess my question is a lot of people want to go, a lot of CFOs, a lot of investors want to go into the ERP, the accounting suite, and get information, but I feel like 99% of the time they're asking for the same thing.

They want a really clean balance sheet, a really clean income statement, a really clean cash flow statement, and they don't want to think of a prompt like, "Oh, I want let me describe to you what a balance sheet. " It's like, I want a balance sheet.

I just want it to be accurate and I want everything to be tagged correctly. I my prompt is don't make mistakes. So talk to me about the trade-off there. Yeah. Yeah. Great question. Um so definitely there are these pre-anned reports.

Um you don't want to be teaching an AI to rebuild your income statement every single [ __ ] sorry every single time. Every single time the same way. Um and so 100% agree there.

Um there are a lot of more custom analyses though that you want if you're a professional like specific for your business maybe track also some non-GAAP metrics and and and non-accounting metrics on the financial side that is really handy to just describe it in natural language and get what you need. Yeah.

And then the other question is like I feel like oneshot prompting in this context is even less relevant because if I if I'm design if I'm designing a new uh non-GAAP metric I probably want to say like set up a workflow so we produce this every month and that it's just on like vibe adjusted EVA. Exactly.

Vi I want you I want you Vibe code and adjusted DV but then I want it to be the same every month because when I've reported non-GAAP metrics in the past like churn I mean even Dow Mau that's a non-GAAP metric but like you want it to be accurate and you want it to be classified the same way because there's often these times where you change one underlying thing in your uh in your product and then that flows to a complete change in the non-GAAP metric and then you're going it was non-GAAP the whole time don't worry don't get mad at me investors I know you thought that that was never going to change, but the metric changed and and it's actually not that different for the we're just looking at the business in a different way now, but talk to me about like how AI can improve the development and ongoing maintenance of non-GAAP metrics.

Yeah, great question. So, um there is definitely an element of like repetitive adjustments uh certain things that can even be codified outside of AI in terms of certain customizations of your uh non-gap metrics. ARR is a very prominent one for software AI businesses, recurring revenue businesses for example.

Y um and so there uh yes it is definitely uh something you can do basically in the UI customize your metrics the way you want it in a repeatable fashion but there is definitely also an element of certain workflows and I almost call it openness to human interpretation where you need the need these more like LLM driven uh workflows that help interpret maybe look at your chart of accounts look at historical transactions what happened there and try and make sense of things and that's where AI today is very powerful But again, you do need usually a human in the loop to do these repeatably and reliably.

Uh just given the mission criticality of the workflows, what's next? What's more important for you? Uh you're in the midm market. Do you want to go downward, upward? Do you want to expand and offer go multi-roduct? What what's most interesting to you? Yeah. Yeah. Um so for us, uh more of the same.

The opportunity that we have in the mid market is insane. the amount of customer love we're getting um and product quality that we have with the reviews that we have combined with like really entrenched and frankly universally disliked ERP systems.

You'll be hardressed to find someone that truly enjoys using their accounting system or ERP that creates a huge influx of just demand uh on on the product and and the company.

So what we're going to do with the money that we're raising is double down on product, build more of the same additional features, um go up market from here, uh with the money that we've raised, we have a stronger balance sheet to like cap capture even bigger uh names and logos that can work with us.

And then the other piece is just in uh investing heavily into our customer success and on on boarding motions.

We're just like we work with very talented accountants in these teams uh to help onboard help onboard their plat their platform into their systems and we're massively expanding these teams to just absorb to the demand that we have. It's awesome. What a what an opportunity. It's great. Yeah.

Uh congratulations and good luck. Many people have have tried and and failed to rebuild the to build a new ERP, but there was a there was a gap in the pre AI era where there were a lot of people that took a run at it and it was it was