Singapore-based financial admin startup Osome raises $25m to expand its operations across APAC

Singapore-based financial administration startup Osome said on Tuesday that it has raised $25 million in a Series B funding round.

Illuminate Financial, AFG Partners and Winter Capital participated in the round, which follows Osome's recent digital banking partnership with Singapore bank Oversea-Chinese Banking Corporation. The fresh funds bring the total amount raised by the company to date to $51 million.

Osome's last fundraising was in June 2021, when it amassed $16 million in a Series A round led by London-based venture capital company Hedosophia. Other investors included European investment manager Target Global, Tel Aviv-based AltaIR Capital, U.S.-based Phystech Ventures and U.S. and Europe-focused early-stage fund S16VC. They were joined by angel investor Peng T Ong, co-founder and managing partner of venture capital company Monk's Hill Ventures.

The company, which digitizes accounting and compliance services for small and medium-sized businesses, is looking to use the fresh funds to expand operations across Singapore and Hong Kong.

Its platform is integrated with Amazon, eBay, Shopify, Lazada, Etsy, Shopee, Square and Wix.

Founded in 2017 by Victor Lysenko and Konstantin Lange, Osome leverages artificial intelligence software to automate administrative, accounting, payroll and tax-related work for businesses. The startup has five offices, including in Singapore, Hong Kong and Britain.

Other startups in Singapore that focus on reducing the load of administrative work for SMEs include Sleek, Lanturn and BlueMeg.

Ivan Ong, principal at AFG Partners, noted that "Osome is addressing a central issue in back office management for entrepreneurs and SMEs globally, and in a short time has positioned itself as a market leader in a space that has significant growth potential."

Meanwhile, Winter Capital's portfolio companies range from KidZania, operator of interactive play cities for children, to digital asset manager Genesis.

AFG Partners is a financial technology VC fund that typically invests in enterprise and business-to-business fintechs, addressing the needs of financial institutions and corporates in Asia.

Other startups it has backed include Hong Kong-headquartered Ignatica, which digitizes insurance processing, as well as Singapore-based online bank Aspire.

Fellow Osome investor Illuminate Financial Management also invests in fintech and enterprise software companies across the world. Its portfolio companies include BeZero Carbon, a British ratings agency for the voluntary carbon market, as well as French enterprise-grade staking platform Kiln.