Moss: Next German unicorn - Fintech Moss reaches billion valuation

Moss, a Berlin-based fintech startup, has attracted significant investment to expand its operations and has achieved a billion-euro valuation for the first time. Co-founder and CEO Ante Spittler revealed the 30 million euro funding round to the Handelsblatt, which will provide additional flexibility for further investments, particularly in the use of artificial intelligence.

Moss offers corporate credit cards and a digital platform for medium-sized enterprises to manage expenses and financial accounting. The company has increasingly incorporated AI solutions since 2019. The new funding round was led by Portage, the fintech-focused investment arm of asset manager Sagard, with involvement from existing investors such as Peter Thiel's investment firm Valar Ventures, Tiger Global, and GFC.

Moss's rise to an Einhorn, or billion-dollar startup, is seen as a positive signal for the industry, as other German startups like mobility company Finn and robotik firm Neura Robotics have recently reached the same valuation milestone. Since its previous funding round in early 2022, Moss's company value has nearly doubled. Spittler, who took on a stronger efficiency focus in 2021 and reduced staff, is glad that the company managed to raise enough funds before the financial market for startups collapsed in the second half of 2022.

The funding is opportunistic, given the company's strong growth and 300 employees. Annual revenue has grown around 20-fold to 70 million euros since early 2022, with a 65% year-on-year increase. A potential listing on an index requires a turnover of more than 500 million euros, which Moss expects to achieve in a few years. Strategic acquisition by accounting software or ERP companies is also a possibility.

Spittler, along with co-founders Anton Rummel, Ferdinand Meyer, and Stephan Haslebacher, still holds about 20% of Moss. The company currently operates in Germany, Austria, the Netherlands, and the UK, with plans to enter two more European countries next year, focusing on businesses with fewer than 1000 employees. Moss is developing AI agents to automate manual work in finance departments and flag unusual transactions, such as exceeding internal spending guidelines.

The AI agents connect to various data sources, including accounting software, bank accounts, and supply chain systems, to ensure accuracy in financial records. Currently, the AI agents handle 80% of routine tasks in month-end closures, allowing finance teams to focus on strategic decisions. Moss is also piloting an AI accounting platform, where an AI agent connects to all relevant data sources to verify invoices and transaction movements.

With the AI agents in place, Moss's finance teams have more time to manage the company's operations and handle complex cases.