Affiniti Raises $17M to Elevate SMB Finance with AI

Small businesses in America are a significant economic force, employing nearly half of the workforce and contributing 43.5% to the nation’s GDP, that’s according to the U.S. Chamber of Commerce.

But small and mid-sized businesses (SMBs) face significant financial challenges. In the U.S., 22% struggle to pay bills, and 72% have less than four months of cash reserves. This precarious situation is exacerbated by dwindling margins, fluctuating inflation, and increasing uncertainty surrounding tariffs. Consequently, sectors such as HVAC, pharmacies, and medical clinics are burdened by rising costs and decreasing reimbursements. Many of these businesses still rely on outdated methods like spreadsheets and paper invoices, further compounding their difficulties.

Affiniti identified a gap in robust financial support and tools for businesses. To address this, they launched their initial offerings in 2024, an expense management platform and a small-business credit card. These products aim to empower business owners with control and oversight of their finances, even without a dedicated finance department.

As Aaron Bai said, “With the rise of the digital economy, private equity consolidation, and inflationary pressures, it’s extraordinarily difficult to operate a business. A decade into modern fintech, Main Street businesses are still guessing when it comes to finances.”

Fintech Adoption Built on Trust

Affiniti’s co-founders, Aaron Bai (20) and Sahil Phadnis (22), initiated their venture by engaging with various operators, including pharmacists, HVAC contractors, and podiatrists. Their aim was to identify critical pain points. Surprisingly, the feedback converged on issues related to vendor payments, receipt management, and comprehending cash flow, all of which were described as cumbersome, disconnected, and carrying significant risk.

Affiniti’s approach to financial services is centered on trust and accessibility, ensuring that small and medium-sized businesses (SMBs) can integrate fintech solutions seamlessly. By co-branding its business credit card with trade associations, Affiniti builds credibility among SMBs that may be hesitant to adopt new financial technologies. This strategy eliminates friction in onboarding, making fintech more approachable for businesses that prefer to work within established networks.

AI CFO Agents for SMBs

Affinity is using artificial intelligence to create “AI CFO” agents. These digital tools are designed to manage all financial operations for small and medium-sized businesses, encompassing banking, bill payments, and sales analytics. The AI CFO agents are industry-specific, offering tailored financial guidance for sectors like healthcare and automotive.

In an interview to the Business Insider Phadnis said, “Understanding what’s going on in AI across verticals has allowed us to stay innovative, from planning out how our agent can co-pilot a pharmacy’s financial decisions to using LLMs to analyze financials internally to assess a business’s financial health.”

$17M Series A to Fuel Growth

Affiniti has reportedly secured $17 million in a Series A funding round, led by SignalFire, according to media reports and a backer. 

The round also saw participation from Contrarian Thinking Capital, Sequel, Indicator Ventures, Lightshed Ventures, RiverPark Ventures, Rocket Money founder Yahya Mokhtarzada, Morning Brew founder Austin Rief, Chelsea Football Club player Trevoh Chalobah, and various angel investors. Business Insider exclusively learned of this development.

Affiniti’s Series A funding will enable the launch of new features including banking, bill payment, and cash flow analytics. The startup also plans to integrate with additional business software such as ERP and POS systems.

Just six months prior to this, the startup announced $62 million in funding, including $11 million in seed funding from Indicator Ventures, Emigrant Bank, Day One Ventures, and RiverPark Ventures.

As one of its prime backers SignalFire, said, “Affiniti is building what most fintechs missed – real financial infrastructure for the real economy. In industries long ignored by tech, they’ve earned trust by listening, building with care, and meeting customers where they are.”