After eight years of self-funding, accounting startup Dougs raises $27 million
Since 2015, Dougs, a French accounting startup, has existed. It currently generates $16.4 million (€15 million) in recurring annual revenue. And it is a bootstrapped company, which means it has not opened its capital and raised funding from venture capital firms. Now, however, the company has decided to raise its initial seed funding.
Dougs raised $27 million (€25 million) from Expedition Growth Capital, a British VC firm seeking investment opportunities in bootstrapped companies with a certain level of maturity. And Doug’s appears to fit the bill quite well, as the company already has 14,000 customers and is profitable.
Dougs is primarily an online chartered accounting service for small and medium-sized businesses. It manages your financial statements and produces certified tax returns. Dougs collaborates behind the scenes with chartered accountants, legal experts, HR professionals, etc. However, the company has also developed its own accounting application to improve the Dougs team’s relationship with its clients.
Specifically, clients can connect Dougs to their bank accounts so that the accounting platform can retrieve transactions automatically. Customers are able to upload documents, receipts, and more via the customer portal. Dougs can also handle expense reports and invoices, so you can use it to view the past, present, and future revenue of your organization.
Doug can also facilitate the incorporation process. It can also be used for payroll purposes. Doug provides legal counsel when necessary. In other words, the startup performs all the duties typically performed by an accountant.
There are 250 people employed by Doug’s. The company expects to reach the next level by doubling its team size by 2025, thanks to the current funding round. Next, the startup intends to expand to countries like Germany and the United Kingdom.
Other online chartered accountant services, such as Keobiz, Livli, Wity, etc., compete with Dougs. Some technology companies, such as Pennylane, take a different approach, working with existing accounting firms to convince them to switch from a legacy accounting software solution to a software-as-a-service platform.
However, there is room for many companies in this market, as accounting firms in France remain highly fragmented. Existing accounting firms utilizing archaic accounting software remain the default option for many small and medium-sized businesses.