The company aims to handle the bank account reconciliation issue and ledger management. With this new contribution, the Fragment company has gathered about $10.8 million.
The investors are excited about this new technology as Adam Rothenberg, a BoxGroup partner stated in a written statement “We’re excited to see what’s possible when you arm technology companies with programmable versions of the double-entry systems the modern economy runs on”.
The solution that Fragment company built is to simplify tracking and reconciling financial transactions between suppliers.
CEO, Thomas Neckel said about their new technology “For anyone to close their books for the month, the balances have to be right and reconciled with the bank statements. Accountants typically perform this function with the help of enterprise resource planning systems.”
A reconciliation happens between the product and the bank, and while this is still processing, Fragment company can keep balances in the fintech product with the bank and balance sheets. That helps customers to close their books faster because their transactions are reconciled.
Fragment company, founded in 2021 by Thomas Neckel and Omi Chowdhury is a startup that provides a ledger API approachable to engineers who don’t know the whole accounting vocabulary.
This is the third start-up founded by Neckel and Chowdhury, after Scuid, an identity management company, and Cove.io, a private investment platform.
After these two start-ups were founded, they saw the need for a ledger because that was “a huge problem we had ourselves.” Neckel stated.
Fragment, the start-up from New York, already has some customers like TruckSmarter, Nala, and Pleo, even though it is not yet launched.
Also, Evolve Bank and Synapse had reconciliation issues which led to some allegations between these two companies. With Fragment technology, developers in fintech use API to build fund flows turning them into code and embedding the code into products.
According to Neckel, Fragment’s company must solve more basic problems of exchanging value online, and their leading technology competes with Modern Treasury, a payment company.
Also, Neckel stated that ”Stripe gave two people in a garage the same payments infrastructure as Amazon, let’s see what’s possible when we give two people in a garage the same financial infrastructure as Square, Stripe, and Uber.”
With the investment received from companies, Fragment company plans to grow the engineering team and invest in to-go market resources.
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