News Summary

  • Financial software provider Datarails announced on Wednesday the completion of a $70 million Series C funding round to support its geographic expansion and product line growth.
  • Along with the funding, the company launched new AI agents, with more tools planned for release later this year.
  • "AI is a great equalizer for finance teams, so we have been committed to making it the foundation of the CFO office, not just a feature," said Didi Gurfinkel, CEO and co-founder of Datarails, in a press release.

In-Depth Analysis

New York-based Datarails is one of many competitors in the increasingly crowded "CFO office software market." According to global investment bank Carlsquare, this market is expected to grow from $71 billion in 2023 to $131 billion by 2028.

OneStream, a major player in the market, announced earlier this month that it agreed to be acquired by software and data investment firm Hg for $6.4 billion.

Datarails said the new capital will be used in part to accelerate its geographic expansion in North America and beyond, increase R&D investment, and "open up" the possibility of acquiring other industry players in the coming months.

The round was led by One Peak, a specialist growth equity investor, bringing Datarails' total funding to $175 million. According to Wednesday's press release, the company achieved 70% annual revenue growth last year and nearly doubled its team to over 400 employees.

Datarails noted that its software suite is rapidly evolving from a strong focus on financial planning and analysis to a "complete financial platform." In 2025, over 50% of the company's growth came from products launched in the past 12 months, including month-end close tools and cash management products.

As part of Wednesday's announcement, the company said it will add three new products—AI financial agents for strategy, planning, and reporting. According to the press release, these new tools allow finance professionals to ask questions and "instantly generate board-level PowerPoint slides, PDFs, and Excel files," aiding in areas such as profitability analysis and predictive forecasting.

Products planned for release later this year include "AI in Excel" and "Spend Control"—a tool designed to streamline expense management, according to a company spokesperson.

Datarails seeks to differentiate itself from competitors by building the CFO office with AI at its core, while still allowing continued use of Excel—which the startup considers the "preferred core software" for finance teams.

In early 2025, the Association for Financial Professionals released a report stating that spreadsheets remain thedominant toolfor FP&A professionals, with 96% of respondents using them for planning, 93% using them daily or weekly for reporting, and all respondents using them at least quarterly.

A study released by Datarails in December found that 84% of finance professionals expect Excel to remain a key part of their workflows over the next 10 years, despite advances in AI.

Datarails stated in Wednesday's press release that its goal is to help finance teams "maintain the familiarity and flexibility of Excel while eliminating the pain of piecing together scattered financial data, enabling them to free up time to drive strategic decision-making."

OneStream highlighted the challenges of relying on Excel in an October blog post, while also acknowledging its current importance in the CFO office, calling spreadsheets the "Swiss Army knife of finance."

OneStream announced a strategic alliance with Microsoft in November, enabling it to integrate AI agents into "the most widely used" Microsoft products, including Excel.