Taktile GmbH, a startup that helps companies such as banks and insurers automate business decisions, has closed a $20 million funding round.
Index Ventures and Tiger Global jointly led the Series A round, which was announced on Tuesday. The investment follows a year in which Taktile claims to have more than tripled its revenue. The startup didn’t share absolute revenue numbers.
In the insurance sector, the task of determining how to price an insurance policy usually involves multiple steps. Moreover, those steps often vary based on the situation. Issuing an insurance policy for a small business involves a different set of tasks than negotiating an agreement with a large enterprise.
For banks, the process of issuing a loan similarly involves multiple steps that can vary based on factors such as the value of a transaction. Banks and insurers usually manage such multi-step business tasks with the help of automated software workflows.
Taktile offers a platform that promises to help companies develop automation workflows faster. According to the startup, its platform provides a set of pre-packaged building blocks that can be assembled into a financial automation workflow without writing any code. Optionally, companies with advanced requirements can extend the startup’s platform by adding custom code written in Python, a relatively simple programming language.
When deciding how to perform a task such as pricing an insurance policy, companies often consult market data and other external business information. In many cases, the data necessary for a financial decision is sourced from third-party providers. As a result, companies need to link their software to those providers’ systems.
Taktile’s platform offers pre-packaged integrations with popular financial data sources that reduce the need for companies to create custom connectors. Additionally, the platform can connect to popular cloud-based artificial intelligence platforms. The latter feature enables companies to incorporate neural networks into the software workflows they create for tasks such as processing loans.
After creating a software workflow, companies can use a set of built-in tools provided by Taktile to deploy it. Taktile provides a simulation tool that enables developers to evaluate the reliability of their software before releasing it to production. Additionally, developers can create multiple versions of an automation workflow and test them side-by-side to determine which is most effective.
Taktile says that its customer base includes several major financial technology companies including Branch Messenger Inc., a payments startup backed by more than $630 million in funding. According to Taktile, its platform can also be used outside the banking and insurance sectors. The startup argues the platform’s features for automating business decisions can be applied to tasks such as configuring discounts in e-commerce stores.
“Today, too many businesses rely on automated decisions that they rarely revisit, which causes them to overlook critical risks, respond to market changes too late, and thus leave money on the table,” said Taktile co-founder and Chief Executive Officer Maik Taro Wehmeyer. “By allowing businesses to adjust their decision flows in a quick, easy and data-driven way, we help them optimise decision accuracy, reduce risk, and significantly improve their margins.”
Taktile will use the proceeds from its latest funding round to expand its business operations in the U.S. and develop new features.