Enterprise Resource Planning (ERP) systems function as the essential 'central brain' of organizations, seamlessly integrating various departments like finance, HR, and inventory into a unified database. This integration allows for enhanced collaboration and information sharing across the enterprise.
Recently, a wave of innovative AI-powered ERP startups, including Rillet and Campfire, have emerged, aiming to challenge traditional systems like NetSuite, which are often criticized for being cumbersome and costly to implement.
Wiley Jones, co-founder and CEO of Doss, highlights a significant gap in many new AI ERP solutions: a lack of comprehensive inventory management. This crucial process ensures that data regarding physical goods aligns accurately with financial records.
To address this issue, Doss has developed an AI-native inventory management layer that seamlessly integrates with both traditional and AI-based accounting systems. This approach allows businesses to enhance their operational efficiency without overhauling their existing ERP frameworks.
On Tuesday, Doss announced a successful $55 million Series B funding round, co-led by Madrona and Premji Invest, with participation from Intuit and other key investors such as Theory Ventures, General Catalyst, Contrary Capital, and Greyhound Capital.
Founded in 2023, Doss initially aimed to compete with AI-native startups in the accounting domain. However, the company pivoted its strategy to foster partnerships rather than direct competition, focusing instead on enhancing the capabilities of existing systems. "We would rather partner with them, and play a different game," Jones shared in an interview.
While AI-native ERP solutions typically manage financial functions like accounts receivable and payable, they often fall short in procurement and inventory management integration. Doss aims to fill this void by providing essential traceability for supply chains through its financial and accounting partnerships.
Among Doss's partners is Intuit, the creator of QuickBooks, which recognizes the importance of integrating physical goods management without diverting resources from its core competencies.
The startup primarily serves mid-market consumer brands, generating between $20 million and $250 million in revenue, including notable clients like Verve Coffee Roasters, a premium coffee brand.
As traditional ERPs adapt to the AI landscape, companies like NetSuite have begun introducing updated AI-driven solutions to remain competitive. Jones acknowledges the challenge of selling two separate ERP systems, one for accounting and another for inventory management like Doss, but notes that many customers are opting for dual AI-powered systems due to the complexities of legacy ERPs.
"The competition within the mid-market will be intense, and the victor will be the one who can rebuild their architecture to be the most intuitive and user-friendly for agents," Jones concluded.