Countingup closes £9.1M for its business current account with built-in accounting features

Countingup, the U.K. fintech offering a business current account with built-in accounting features, has closed £9.1 million in Series A investment. Leading the round is Framework Venture Partners, with participation from Gresham House Ventures, Sage and existing investors.

It’s noteworthy that Countingup has previously taken investment from ING, and the addition of Sage as a backer is interesting since both could help the startup reach more business customers. It also potentially sets up one future road to exit. However, let’s not get ahead of ourselves.

Founded in 2017 by Tim Fouracre, who previously founded cloud accounting software Clear Books, Countingup now boasts over 34,000 business customers. The company’s long-term vision is to be the one “financial hub” for micro businesses in the U.K. and beyond. Its initial “attack vector” was to combine a business bank account with bookkeeping features to help automate the filing of accounts — a major time sink and pain-point for sole traders and small businesses.

Today that includes a business bank account with its own sort code and account number, a Mastercard for making payments and support for faster payments and direct debits. On the accounting software side, Countingup currently supports automated bookkeeping, invoicing, receipts, payment of bills, tax estimates and profit and loss reporting.

In addition, accountants can be given limited access via the web to better support clients banking with Countingup. This includes the option for business owners to share real-time bookkeeping data with their accountant, “eliminating the pains of re-authorisation requests, data lags, duplicates, and inaccuracies,” says the fintech.

To that end, Fouracre tells me the new funding will be used to quickly scale up the team from 30 to 80 people. “This will accelerate our roadmap enabling more swim lanes of product work to be on the go concurrently,” he says.

That roadmap includes tax filing, new financial services (e.g. loans, card payment services) and multi-currency invoicing and payments to support the 33% of SMEs in the U.K. that trade internationally. A web version of the app for small business customers is planned too.

“We will also be building out our sales and marketing teams for more aggressive growth,” adds Fouracre.

Countingup’s business model combines both SaaS and fintech. On the SaaS side, the company earns monthly subscription fees. On the fintech side, it generates revenue from banking activity (e.g. interchange fees) on Mastercard spend. In the future, that will likely include other sources of income via offering credit, payments and FX.

Comments Neal Watkins, EVP, Small Business Segment at Sage: “Investing in high-growth SaaS businesses is core to our strategy to enable small businesses and accountants to survive and thrive. This is an exciting opportunity to be part of the startup journey in a new way as businesses explore the benefits of bringing accounting and financial services together”.