Circula raises EUR €15 million to expand AI expense automation

Circula has secured EUR €15 million in funding from its existing investors and CIBC Innovation Banking, a strategic debt investor.

The German expense management provider serves approximately 3,000 mid-sized and large clients, including Aston Martin, DATEV and Securitas. This financial injection is intended to enhance Circula's artificial intelligence (AI) capabilities with the objective of automating processes and reducing manual work for finance teams.

The latest funding round involved additional commitments from existing backers Capnamic Ventures, Alstin Capital, Peak and Storm Ventures, alongside further support from previous investors. Their collective investment aims to further cement Circula's position in the expense management sector.

Circula's product roadmap places an emphasis on AI-driven automation, seeking to minimise the time finance professionals spend on routine expense management, and instead help them focus on strategic business activities. The new funds will go towards product development and strengthening workflow capabilities, with a focus on serving the needs of larger international organisations. The company has cited user ratings on G2.com as evidence of its service ranking globally.

Nikolai Skatchkov, Co-Founder & CEO of Circula, commented: "Over the last year, we have witnessed firsthand the potential that AI is unlocking in the finance department. We are excited to bring our vision of an AI-driven expense solution to the market in the upcoming months. The additional financing is giving us the means to continue to build the best product in our category and to continue our path toward an effortless way to manage payments and business expenses. We are excited to build this future with existing investors and CIBC Innovation Banking."

CIBC Innovation Banking's involvement marks the company's first appearance as a strategic investor for Circula. Charlotte Goggin, Director of CIBC Innovation Banking, said: "We are pleased to extend funding to Circula as it continues to build on its market-leading position in digital expense management across Germany. Up until 2019, German businesses were required to keep physical expense receipts. Now, in an age where businesses juggle digital receipts from most employees, Circula provides finance teams with AI driven tools to automate this process. We're excited to see Circula take advantage of the growth opportunities that lie ahead."

Stefan Bary, Managing Partner at Peak, explained the decision to increase their investment: "With a best-in-class user experience, Circula makes expense management extremely easy for employees as well as the whole financial department, resulting in a quadrupled customer base since we first met the company in 2021. We are very pleased to double down on Circula considering the further growth that is expected from its current offering and even steeper growth that the company's AI initiatives provide."

The round also included support from San Francisco-based Storm Ventures. Tae Hea Nahm, Co-Founding Managing Partner at the firm, said: "Circula is the leading expense solution for SMBs in Germany, with massive growth potential as only 10% of the market is automated. Their strong partnership with DATEV and its 30,000+ accountants, combined with deep expertise and proprietary tech, positions them to win the market. Roman and Nikolai have built a great product and team — we're doubling down on our investment."

Circula, established in 2018 and headquartered in Berlin, has prioritised efficiency, compliance, and usability in financial accounting through automation. Its platform supports a range of expense-related processes, from travel expenses to employee benefits, aiming to serve a wide array of European businesses.