Modus Raises $85 Million to Build the First AI-Native Audit Technology and Accounting Platform

New York based startup Modus announced an $85 million capital injection today to redefine the traditional accounting industry. Lightspeed Venture Partners led the combined Seed and Series A round, with support from Comma Capital and Garry Tan. The firm plans to use the funds to scale its AI audit technology and acquire stakes in established accounting practices. This strategy aims to combine the reliability of traditional firms with the efficiency of modern software.

Founded in 2025 by Arush Jain, Pranav Pillai, and Vinay Kasat, the company targets the $50 billion U.S. audit market. Modus operates as both a technology provider and a holding company, a strategy known as the Alternative Practice Structure. This model allows the team to embed advanced machine learning directly into the operations of existing firms while preserving their client relationships. It bridges the gap between legacy professional services and cutting edge automation.

The core platform utilizes AI to ingest massive volumes of structured and unstructured financial data from client systems. Machine learning models then classify and reconcile ledgers or invoices to identify anomalies that humans might miss. By automating routine testing and transaction analysis, the software frees auditors to focus on high-level judgment and regulatory compliance. You can learn more about their approach at modusalliance.com.

Market traction is already evident as the company recently invested in a top 200 accounting platform with over $30 million in revenue. This partner firm expects to double its organic growth rate by 2026 thanks to the efficiency gains provided by the Modus platform. The leadership team includes veterans from Palantir, Citadel, and AWS, ensuring a blend of technical and financial expertise. Their backgrounds help the firm navigate the complex intersection of finance and software engineering.

Audits serve as the cornerstone for trust in our capital markets, according to CEO Arush Jain. He noted that while the industry is vital, the tools have remained stagnant for decades. This investment from lsvp.com signals a shift toward a future where audit quality is enhanced by real-time data monitoring rather than manual sampling. Modus intends to continue expanding its portfolio of partner firms throughout the coming year.