Finout raises $40 million Series C to help businesses control cloud costs
Finout raises $40 million Series C to help businesses control cloud costs
With major customers across industries, Finout plans to accelerate its U.S. and Israel workforce expansion.
Finout, a startup that develops a platform for managing and optimizing cloud infrastructure in large organizations, has completed a $40 million Series C round. The round was led by Insight Partners, with participation from existing investors Red Dot Capital, Pitango, Team8, and Maor Investments. The funding comes eight months after the previous round of $26.5 million, bringing the total investment in the company since its inception to $85 million. The company's platform, which powers cloud-agnostic cost allocation and governance, is used by major clients including SiriusXM, Lyft, The New York Times, Choice Hotels, Wiz, Tenable, and Alchemy.
Finout's cloud cost management platform provides enterprises with visibility and control over their cloud spending through advanced allocation, unit economics analysis, and planning and forecasting capabilities. The platform enables organizations to drive accountability and contextualize cloud spend across teams, features, and business units while providing the business insights needed to understand spend at the customer, transaction, and feature level.
Finout was founded in 2021 by Roi Ravhon (CEO), Asaf Liveanu (CPO), and Yizhar Gilboa (CTO). Roi and Asaf worked together at Logz.io and founded the company with Yizhar, who served with Roi in the IDF’s Unit 8200.
In April, the company announced it had acquired Cloudthread, a competitor in the cloud optimization field. Additionally, Finout added Mat Ellis, former CEO and founder of competitor Cloudability (recently acquired by IBM), to its board of directors.
"The reason for this round is that we have grown significantly, and the situation has changed. In the past eight months, the market situation has also shifted. Broadcom acquired our competitor, and we have solidified ourselves as a product for large corporations. We’ve grown 4.5 times this year and signed several major companies," Roi Ravhon, CEO and Co-Founder of Finout, told Calcalist. "The FinOps concept helps every employee in the organization understand their cloud expenses at any given moment. If I make a change to the product and the service cost doubles, savings become a major issue. We’re here to help organizations grow healthily. Companies are often spending large sums without knowing where the money is going.
"We currently employ about 70 people. Eight months ago, we were half that size," Ravhon added. "By the end of 2025, we plan to grow to 150 employees, with aggressive targets—two-thirds of which will be based in Israel, and by the end of the year, the focus will shift toward growth in the United States," added Ravhon.
"We've been closely monitoring the FinOps space for years. With cloud costs and complexity spiraling and AI investments accelerating, the need for sophisticated cloud cost management has never been more critical," said Teddie Wardi, Managing Director at Insight Partners. "Finout's impressive growth trajectory demonstrates they've become a market leader and trusted enterprise solution at exactly the right moment. The cloud cost management market represents a massive opportunity, and Finout has proven they're positioned to lead it."
