Key facts
- Ahad Ali, a former accountant, founded Tabby to automate bookkeeping for small businesses.
- Tabby uses AI and Plaid to provide real-time financial data and a bookkeeping interface.
- The platform has 5,500 small business users and approximately $100,000 in annual recurring revenue.
- Tabby is seeking $1 million in pre-seed funding.
- The company is preparing to launch Tabby Talk, a natural language interface.
Ahad Ali, who previously managed an accounting business with 20 employees and handled over 2,000 tax returns annually, has launched Tabby, an AI-powered platform aimed at automating bookkeeping for small businesses. Ali became frustrated with existing accounting software, finding it cumbersome and not designed with accountants in mind. He believes small businesses need less software and a solution that handles accounting tasks automatically.
Tabby functions as a real-time bookkeeping interface, utilizing Plaid to import live account data and employing AI to generate a dashboard of a business's financial health. The company also offers a version for accounting firms seeking an alternative to software like QuickBooks, but Ali's primary focus is direct-to-consumer engagement. He envisions Tabby as a service that could make bookkeeping a monthly utility cost, similar to internet access or payroll.
Fourteen months since its inception, Tabby has acquired 5,500 small business users and achieved approximately $100,000 in annual recurring revenue. The seven-person team, including Ali, his technical co-founder, four engineers, and a go-to-market specialist, is currently raising $1 million in pre-seed funding. The company is also preparing to launch Tabby Talk, a natural language interface for the product.
Tabby faces competition from established players like QuickBooks and well-funded startups such as Sequoia-backed Rillet, as well as finance tools from major tech companies. Ali believes there is ample room for new entrants in the large accounting market, citing the existence of 30 million additional businesses.