Startups are driven by a relentless pursuit of growth, and in this journey, managing financials like accounts payable (AP) can often feel like juggling multiple tasks. At the peak of your growth stage, securing funding and allocating those funds to scale your product, team, and business model naturally take priority over routine financial tasks such as Accounts Payable management.
However, neglecting AP management can have long-term implications for your startup’s cash flow and project financing. Ironically, this can stunt the very growth for which you ignored Accounts Payable management.
Now, imagine a scenario where you never have to worry about AP management because all the tedious financial tasks are automated. This is where Accounts Payable Automation software, a key player among AP automation solutions, comes in.
By automating your Accounts Payable processes with accounts payable automation solutions, you can streamline financial management, reduce manual errors, and ensure timely payments. This allows you to focus on scaling your startup and achieving your growth objectives without the constant distraction of managing payables manually.
What are Accounts Payable Automation Tools? Accounts Payable Automation Tools are not just software to automate common vendor invoice tasks; they are a gateway to more secure, efficient, and budget-friendly AP processes, thanks to advanced features like AP invoice automation.
By automating tasks like invoice capture, data entry, approvals, and payments, AP software streamlines your entire workflow. This translates to significant benefits for startups, allowing founders to focus on strategic initiatives, all thanks to the efficiency of accounts payable automation solutions.
Top 10 AP Automation Tools for Indian Startups in 2025 - A Quick Overview
Tool
Best For
Key Features
Integrations
Payments
Mysa Startups & SMBs in India
3-way matching, TDS compliance, fraud checks, PO automation
Zoho Books, YES Bank, Payroll, Email, WhatsApp, Slack
Automated payments, bank reconciliation, multi-currency
RazorpayX S2P Early & Growth-stage Startups
3-way matching, budgeting, vendor KYC, audit trails
Tally, Zoho Books
Bulk payouts (30k+), scheduled payments, UPI/NEFT/RTGS/cards
Open Money SMBs with ₹10L+ monthly transactions
OCR, customizable invoices, multi-level approvals
Tally, Zoho Books, MS Dynamics, Oracle NetSuite
Bulk vendor payments via IMPS/NEFT/RTGS/UPI
EnKash Olympus Indian SMEs
Tax reminders, maker-checker approvals, analytics
Tally, APIs
Bulk NEFT/RTGS, virtual cards, OTP-secured payments
Volopay Global startups & SMBs
Cross-border payments, fraud detection, burner cards
Xero, QuickBooks, NetSuite, MYOB
Global payouts, virtual cards, bulk payments
Expenzing Corporates & large orgs
Procure-to-pay, GST/TDS automation, vendor portal
SAP, Oracle, Tally, QuickBooks
Batch processing, partial payments, early discounts
Pazy Startups to large Indian companies
AI invoice parsing, multi-channel invoice capture, PO matching, approval workflows, GST compliance
Tally, Zoho Books, WhatsApp, Slack, Gmail
Automated vendor payments, UPI, real-time reconciliation, credit line facility
Recko High-growth internet businesses
Automated reconciliation, commission calculation, payout tracking, real-time dashboards
Razorpay, ERP & accounting systems via API
Automated payouts, bulk payment support, real-time payment tracking
Kodo Indian startups & mid-market businesses
End-to-end spend management, OCR invoice processing, 2-way & 3-way matching, approval workflows, GST/TDS compliance
Tally, Zoho Books, QuickBooks, NetSuite, ERPs
NEFT/RTGS/IMPS/UPI, bulk & scheduled payments, virtual & corporate cards, credit line access
Happay Large enterprises & mid-market businesses
OCR invoice extraction, digital mailroom, multi-level approvals, GST/TDS automation, expense tracking
ERP/accounting systems, HRMS, project management tools, travel vendors
Direct vendor payments, bulk payments, automated scheduling, prepaid & corporate cards, real-time balance visibility
Top 10 AP Automation Tools for Indian Startups in 2025 Before we start evaluating our picks for the Top 10 AP automation tools we want to make it clear that we have picked these 10 in particular considering that these are the most opted-for tools whenever a founder or a finance head of a Startup brings up the topic of Accounts Payable Software.
1. Mysa Accounts Payable Mysa is an accounts payable automation platform designed specifically for the Indian market. Launched in 2025, Mysa aims to address the unique challenges faced by Indian businesses in managing their financial operations. The platform integrates accounting, banking, and tax systems to provide a comprehensive solution for accounts payable processes.
Mysa is primarily targeted at Indian startups and small to medium-sized businesses (SMBs) with annual revenues between 10 crore and 500 crore. The platform is designed to automate the entire journey from accounts payable to payment processing, with the goal of improving tracking, enhancing control, and ensuring compliance with Indian financial regulations.
1. Stage/Scale Mysa is an accounts payable tool that caters to companies of all sizes, from startups to traditional businesses. Its scalable architecture ensures that as your business grows, Mysa grows with you. This makes it an ideal choice for:
Early-stage startups looking to establish robust financial processes Growing SMBs aiming to streamline their accounts payable workflows Established companies seeking to optimize their financial operations Mysa's feature set is designed to adapt to your company's evolving needs, making it a long-term solution for businesses at any stage of growth.
2. Governance and Compliance In the realm of financial management, governance and compliance are paramount. Mysa excels in this area, offering multiple automation features that help businesses establish strong governance and control mechanisms:
Enhanced Governance through Checks Automated Matching : Mysa employs a sophisticated 3-way matching system (PO-GRN-Invoice) to ensure invoices align with purchase orders and receiving reports. This automated process enforces pre-defined business rules, significantly reducing errors and strengthening internal controls.Automated TDS Compliance : For businesses operating in India, Tax Deducted at Source (TDS) compliance is crucial. Mysa automatically calculates and deducts TDS based on vendor categories, ensuring adherence to Indian tax regulations (Section 194C of the Income Tax Act). This feature simplifies compliance and minimizes the risk of penalties.Enhanced Control through Automated Budgeting Budgeting & Cost Center Controls : Mysa allows for the allocation of budgets to specific cost centers with real-time monitoring. The software can automatically decline purchase orders exceeding budget limits, preventing overspending. This feature provides granular insights with department-wise spend analytics and transaction history, leading to better-informed financial decision-making.Enhanced Governance through Vendor Management Approval Workflows & Secure Audit Trails : Mysa establishes a transparent and secure approval process with customizable workflows. It allows for invoice routing based on predefined criteria (e.g., amount thresholds, department approvals) for proper checks and balances. The system maintains a comprehensive digital audit trail that tracks every action, ensuring complete user accountability through Role-Based Access Control (RBAC).Streamlined Vendor Management : Mysa streamlines vendor onboarding, KYC processes, and enforces GST compliance, adding to the ease of governance in the vendor management process.3. Fraud and Error Checks Mysa's accounts payable tool incorporates advanced fraud and error checks through its AI-enabled Smart Scan and Validation engine:
Intelligent Invoice Processing : Mysa is the first platform in India to accurately interpret invoice data in the context of local tax regulations, including GST, TDS, and RCM. This feature sets it apart as the top accounts payable automation software for businesses dealing with India's unique tax structure.Advanced Validation Engine : Mysa's proprietary validation engine performs over 22 checks during the invoice processing journey. These checks include identifying duplicates, TDS interest penalties, amount mismatches, and bill number changes, among others. This feature significantly enhances governance and control in the finance function.Fraud Detection : The software's advanced algorithms help companies spot potential fraud and duplication, adding an extra layer of security to financial operations.4. Integrations Mysa understands the importance of seamless integration with existing financial systems and communication platforms. The software offers robust integration capabilities:
Accounting Software Integration : Mysa integrates with popular accounting software like Zoho Books, ensuring accuracy and streamlining operations.Banking Integration : The platform offers a smart business bank account in partnership with YES Bank, which integrates seamlessly with the software. This integration bridges the gap between invoice management and banking services.Payroll Software Integration : Mysa works with various salary and paycheck software solutions, allowing for a more comprehensive financial management approach that includes both accounts payable and payroll processes.Communication Platform Integration : To enhance the invoice processing journey, Mysa integrates with multiple communication channels:some textEmail: Automatically process invoices received via email WhatsApp: Handle invoice-related communications through WhatsApp Slack: Streamline invoice approvals and notifications within your Slack workspace These integrations allow for a more holistic approach to financial management, making Mysa a comprehensive solution for businesses looking to automate accounts payable software processes. By connecting with various software systems and communication platforms, Mysa ensures that your accounts payable processes are seamlessly integrated into your existing workflow, enhancing efficiency and reducing the need for manual data entry or platform switching.
5. Banking/Payments Mysa's accounts payable tool offers advanced banking and payment features:
Automated Payments : Mysa automates payments to streamline AP activities, reducing manual intervention and potential errors.Real-time Bank Reconciliation : The platform offers real-time bank reconciliation, ensuring that your financial records are always up-to-date.Multi-currency Support : For businesses dealing with international vendors, Mysa supports multi-currency transactions, simplifying global payments.6. Purchase Order Support Mysa's purchase order (PO) support is designed to streamline the entire procure-to-pay process:
Flip to Invoice : This feature automatically converts approved POs into invoices, eliminating manual data entry and reducing errors. This expedites the invoice creation process, leading to faster payments for vendors.Automated PO Creation : Mysa creates POs based on predefined rules and requisitions, eliminating the need for manual PO generation. This reduces delays and ensures orders are placed accurately and in a timely manner.PO Matching : The system automatically matches POs with invoices and goods receipt notes, ensuring accuracy and preventing discrepancies.In conclusion, Mysa stands out as a comprehensive, intelligent, and scalable accounts payable automation solution tailored for the Indian market. Its robust features for governance, compliance, fraud prevention, and seamless integrations make it an invaluable tool for businesses of all sizes. By automating and streamlining accounts payable processes, Mysa empowers finance teams to focus on strategic tasks, driving business growth and financial health.
As businesses continue to seek ways to optimize their financial operations, Mysa emerges as a clear leader in the accounts payable automation software comparison landscape. Whether you're a startup looking to establish solid financial foundations or an established company aiming to enhance your AP processes, Mysa offers the tools and capabilities to transform your accounts payable management.
2. RazorpayX Source To Pay Image of RazorpayX S2P Dashboard, courtesy of Razorpay Overview RazorpayX Source-to-Pay (S2P) is built for early and growth-stage startups looking to automate vendor management and accounts payable processes. It combines governance, compliance, integrations, and banking features into a single streamlined platform.
1. Stage / Scale Designed for early-stage and growth-stage startups. Comprehensive S2P solution covering vendor management and AP automation. 2. Governance & Compliance Enhanced Governance through Checks Automated 3-Way Matching: Aligns invoices with POs and GRNs to enforce business rules and reduce errors.Automated TDS Compliance: Calculates and deducts TDS as per Section 194C, ensuring adherence to tax laws.Enhanced Control through Budgeting Budget & Cost Centre Controls: Allocates budgets with real-time monitoring, auto-rejects POs exceeding limits, and provides department-wise spend analytics.Enhanced Governance through Vendor Management Approval Workflows & Audit Trails: Customizable approval routing with secure, role-based access control (RBAC) and a complete audit trail.Vendor Management & KYC: Streamlined vendor onboarding, GST compliance, and automated KYC checks.Enhanced Governance through Payout Automation OCR Invoice Capture: Converts physical invoices to digital to reduce manual entry errors.3. Fraud & Error Checks Automated 3-Way Matching: Eliminates duplicate payments and invoice mismatches.Real-Time Visibility & Audit Trails: Complete transparency with invoice tracking and activity logs.Vendor Onboarding & KYC Verification: Prevents fraudulent vendors from entering the system.Approval Workflows & RBAC: Multiple authorization levels and restricted access to sensitive data.Automated TDS Calculation: Reduces fraud and human error in tax compliance.4. Integrations Tally: Two-way sync for bookkeeping and reconciliation.QuickBooks: Integration available, but less relevant for India as QuickBooks has exited the market.Zoho Books: Automates vendor payments and bank statement syncing for smooth reconciliation.5. Banking / Payments Bulk Payments: Automates payouts for up to 30,000 invoices at once.Scheduled Payouts: Allows scheduling up to 90 days in advance for better planning.Advance Payment Tracking: Tracks vendor advances against invoices for accuracy.Payout Links: Generates secure links for vendor, employee, or customer payouts.Flexible Payment Modes: IMPS, NEFT, RTGS, UPI, Wallets (Amazon Pay), and card payouts (Visa Direct, Mastercard Send).6. Purchase Order (PO) Support Enhanced Visibility & Control Department-wise PO tracking and budget control with auto-decline. Project budget tracking and detailed PO/transaction history. Streamlined Processes Verify invoices before payment to avoid duplicates. Effortless PO creation and bulk upload. Vendor portal for transparency and automated vendor communication. Direct PO sharing with stakeholders. Automated Approvals & Matching Automated PO approvals routed to department heads. 3-way matching of PO, GRN, and invoices before payments. Goods receipt inspection and seamless reconciliation. Timely vendor payments ensuring strong vendor relationships. Conclusion RazorpayX Source-to-Pay is a powerful AP automation tool tailored for startups in India. With features like automated 3-way matching, TDS compliance, role-based approvals, and bulk/scheduled payouts, it ensures governance and financial discipline. Its integrations with Tally and Zoho Books strengthen bookkeeping automation, while PO tracking and vendor management tools improve transparency and vendor relationships. For startups seeking a governance-first, compliance-ready AP solution, RazorpayX S2P delivers both control and scalability.
3. Open Money Image of Open's AP dashboard, courtesy of: Open Money Overview Open Money is a flexible Source-to-Pay (S2P) solution designed for businesses of all sizes, with tailored pricing plans for different growth stages. While versatile, the platform is best suited for startups processing at least ₹10 lakh in monthly transactions , which allows them to maximize its automation capabilities.
1. Stage / Scale Positioned as an S2P solution for all company sizes . Flexible deployment and pricing tailored to business maturity. Recommended for startups with minimum ₹10 lakh monthly transactions for full benefit. 2. Governance & Controls OCR Technology : Converts paper invoices into digital records to eliminate manual entry errors.Customizable Invoice Templates : Standardizes invoice formats, reducing risk of missing/incorrect data.Automated 3-Way Matching : Matches invoices with POs and GRNs to detect discrepancies before approval.Multi-Level Approval Workflows : Automated routing ensures invoices are reviewed by the right approvers.Recurring Bill Payments : Automates scheduled payments (e.g., rent, salaries) to reduce errors.3. Fraud & Risk Checks Deduplication via 3-Way Matching : Prevents duplicate or erroneous payments by validating invoice, PO, and GRN details.4. Integrations Open Money integrates with several widely used accounting platforms, offering both two-way sync and reconciliation features:
Tally : Import vendor/COA data, export approved invoices, and auto-update ledgers.Zoho Books : Sync vendor payments & bank statements, auto-reconcile AP, centralize invoice/payment management.Microsoft Dynamics : Streamlined data exchange, workflow automation, consolidated financial reporting.Oracle NetSuite :Imports invoices and bills directly. Facilitates payments within Open Money. Auto-updates payment transaction details. Auto-reconciliation of payments with invoices. Continuous two-way synchronization for accurate financial records. 5. Banking / Payments Bulk Vendor Payments : Initiate multiple invoice payments simultaneously.Multiple Payment Modes : IMPS, NEFT, RTGS, UPI supported for direct payouts.6. PO Support Bill Pay : Initiate payments to vendors after POs are raised outside Open Money.Categorized Transactions : Tracks expenses linked to POs with proper categorization for reporting.Conclusion Open Money is a versatile AP automation and S2P platform that balances flexibility and governance. Its OCR, customizable invoice templates, and strong integration ecosystem make it especially useful for scaling startups. With robust controls like 3-way matching, automated approvals, and recurring payment scheduling, it delivers strong compliance and efficiency. While it requires a certain transaction volume (₹10 lakh/month) to unlock full value, its integrations with Tally, Zoho Books, Dynamics, and NetSuite make it highly adaptable for SMEs and growing enterprises.
4. Enkash- Olympus Payables Courtesy of: Enkash Overview EnKash’s Olympus is an affordable and user-friendly accounts payable automation solution, mainly designed for SMEs in India. While it scales to support growing transaction volumes, it lacks some advanced features for large enterprise-level AP operations.
1. Stage / Scale Positioned as a cost-effective AP automation solution for SMEs and startups . Capable of handling increased transaction volumes as businesses grow. May not fully support very complex, large-enterprise AP requirements. 2. Governance & Control Rental Receipt Management : Digitized rent collection and receipts with audit trails for tax compliance.Automated Tax Reminders : Alerts for upcoming tax payments to avoid penalties.Centralized Tax Management View : One dashboard for upcoming liabilities and historical tax payments.Payables Analytics Dashboard : Real-time insights into AP data for optimizing payment schedules and vendor terms.Maker-Checker Workflow : Role-based approvals enforcing segregation of duties; supports multi-level approvals.Recurring Payment Automation : Automates fixed-amount vendor payments with defined schedules to reduce errors.3. Fraud & Risk Checks Bank Account Verification (BAV) : Matches invoice bank details with stored vendor data to prevent fraud.Enhanced Vendor KYC : Enforces vendor due diligence to ensure legitimacy of partners.Transaction Oversight : Prevents unauthorized or fraudulent payments through checks and approvals.4. Integrations Direct integration with Tally (primary accounting tool for Indian SMEs).Robotic APIs available for integration with other ERPs.Automated Entries & Reconciliation : Syncs processed payments directly with Tally for accurate, up-to-date books.Limited integrations compared to other AP tools in this list. 5. Payments & Banking Express Bulk Payments with OTP : Single-click vendor payments via NEFT/RTGS with OTP-based security.Multi-Branch Payments : Pay vendors across different locations without maintaining multiple bank accounts.Consolidated vendor management. Inter-branch routing of payment instructions. NACH integration for inter-branch settlements. Virtual Cards : Secure vendor payments with tokenized cards having pre-defined limits; integrated with Visa/Mastercard networks.Conclusion EnKash Olympus is a practical and affordable AP automation tool for Indian SMEs. It emphasizes governance, tax compliance, and secure vendor payments, with strong features like bank account verification, rental receipt management, and bulk payouts. While it offers limited integrations beyond Tally, its local banking network integrations, OTP-based bulk payment security, and virtual cards make it highly relevant for SMEs operating in India.
5. Volo Pay- Billpay Volopay's AP dashboard, courtesy of Volopay Overview Volopay offers an accounts payable automation platform designed for businesses of all sizes. It emphasizes global vendor payments, spend transparency, and advanced fraud detection while offering one of the widest ranges of accounting software integrations.
1. Scale Designed for startups, SMBs, and large enterprises alike. Scales with global operations by supporting multi-currency and cross-border payments. Aims to simplify and centralize financial operations while enhancing expense control. 2. Governance & Transparency Recurring Bill Payments for vendors worldwide with customizable approvals.Centralized Bill Pay Dashboard to track POs, invoices, and spending history with ease.Vendor Payouts View for managing vendor details, assigning owners, and linking to departments/projects.Cross-border B2B Payments to 130+ countries with competitive FX rates.Burner Cards for vendor-specific payments and project-linked expense tracking.Automated Accounting Sync with real-time expense categorization and reconciliation.Multi-level Approval Workflows tailored by department or project, ensuring transparency.3. Fraud & Error Checks Duplicate Payment Detection via AI & machine learning.Three-way Invoice Matching (invoices, POs, receipts) for accuracy and prevention of overpayments.Approval Workflows & Dual Authorization for sensitive transactions.Vendor Master Database Management to prevent duplicates, fraudulent vendors, and errors.Fraud Detection Algorithms to flag anomalies (e.g., payments during leave, non-approved vendors).Robust Payment Controls ensuring adherence to internal authorization policies.4. Integrations Integrates with major accounting systems: Xero, QuickBooks, MYOB, Deskera, NetSuite . Automated Accounting Entries synced directly after each transaction.Bank Reconciliation automated by matching payments with bank records.Offers one of the widest integration portfolios among AP automation tools. 5. Payments & Banking International Payouts to 130+ countries with lowest FX charges and SWIFT/non-SWIFT options.Virtual Cards for secure international vendor payments.Bulk Payments (Bulk Remittance) to multiple vendors via a single unified file upload.Eliminates the need for managing multiple accounts for global transactions. 6. Purchase Order Support Integrated PO Management to create, track, and manage purchase orders.Ensures accurate recording of order details (pricing, delivery dates, special terms). Streamlined invoice matching with approved POs for error-free processing. Conclusion Volopay delivers a modern AP automation solution focused on global vendor payments, spend transparency, and fraud prevention. With extensive accounting integrations, AI-driven fraud checks, and advanced approval workflows, it provides both flexibility and control. Its strong international payments capability and centralized dashboard make it especially attractive for globally scaling businesses.
6. Expenzing Courtesy of: Expenzing Overview Expenzing, a Procure-to-Pay and Accounts Payable automation platform, is primarily adopted by corporates but can be utilized by organizations of all sizes. With strong governance, compliance, fraud detection, integrations, and vendor collaboration features, it aims to bring transparency and efficiency across AP workflows.
1. Stage/Scale Primarily used by corporates but adaptable for organizations of varying sizes. Scales effectively with large transaction volumes and complex enterprise needs. Offers flexibility for diverse industries and regulatory requirements. 2. Governance & Compliance Query Resolution Engine streamlines AP-vendor communication for faster dispute resolution.GRN Visibility allows vendors to track delivery and payment readiness in real time.Automated GST & TDS handling ensures accurate tax calculations and compliance with Indian regulations.Credit note management with TDS adjustments and MSME checks for timely statutory payments.Automated invoice scrutiny validates invoices against vendor status, advances, MSME compliance, etc.Approver Dashboard consolidates pending invoices for efficient review.3. Fraud & Error Checks Automated three-way matching, duplicate invoice checks, and anomaly detection. Vendor empanelment & KYC checks (10+ validations) strengthen vendor compliance. Enforcement of Delegation of Authority (DoA) matrix ensures segregation of duties. Multi-level approvals for high-value invoices prevent unauthorized payments.Integration with India’s e-invoicing system validates invoices via IRN checks . MIS & analytics dashboards highlight deviations, exceptions, and suspicious activity. 4. Integrations Connects with leading ERPs: Oracle, SAP, JD Edwards, BAAN, SunSystems, Tally, QuickBooks, etc. Accounting Configurator Tool enables smooth ERP integration. Unified platform for procurement, AP, finance, compliance, audit, and vendors. 5. Banking & Payments Part payments allow timely settlement while holding back disputed amounts.Bulk payments & batch processing streamline payouts to multiple vendors.Faster processing enhances vendor relationships and supports early payment discounts. 6. Purchase Order Support Flip-to-Invoice converts approved POs directly into invoices, minimizing errors.Vendor portal provides visibility into invoice status, approval stages, and payment issues. Improved transparency enables vendors to resolve disputes quickly and get paid faster. Conclusion Expenzing delivers a comprehensive AP automation solution with a strong focus on governance, compliance, and fraud prevention. Its vendor-centric features, such as GRN visibility, MSME compliance tracking, and real-time invoice status updates, promote transparency and efficiency. By leveraging deep ERP integrations, automated tax handling, and advanced fraud detection, Expenzing enables corporates to streamline AP operations, strengthen vendor relationships, and ensure regulatory compliance.
7. Pazy Pazy Overview Pazy is a cloud-based accounting management platform for automating accounts payable and expense management for Indian companies. With an emphasis on automation and real-time financial insight, Pazy was designed to empower finance teams to work faster by automating invoice processing, approvals, accounting, and reporting workflows. The solution is ideal for companies seeking to automate manual data entry and obtain immediate visibility into their financial processes.
1. Stage/Scale Built for startups to large businesses with scalable solutions that scale with increasing transaction volumes. Can process high-volume invoices (5000+ invoices per month) with AI-driven automation. Successful track record with multi-location companies such as 75+ retail stores.
2. Governance & Compliance Better Governance via Invoice Management - Multi-Channel Invoice Capture: Captures invoices from WhatsApp, Slack, email automatically
Increased Control through Workflow Automation - Personalizable Approval Workflows: Adjustable chains in sync with finance operations
GST and Tax Management - Automated GST Compliance: Multiple GSTIN support with automated capture, filing, and verification
3. Fraud & Error Checks - Duplicate Invoice Detection: Draft stage deduplication avoids revenue leakages
4. Integrations Accounting Software : Tally (deep two-way integration), Zoho Books (seamless sync for payments and reconciliation)
Communication Platforms : WhatsApp (forward invoices), Slack (upload invoices with automated routing), Gmail (forward to digital mailroom), Zoho Mail
Touch-less accounting automations reconcile all bills, payments, expenses, and UPI transactions automatically.
5. Banking/Payments - Automated Vendor Payments: Intelligent categorization with real-time updates
6. Purchase Order Support Intelligent procurement streamlines PO and invoice processing from intake through payment. ERP integration synchronizes purchase orders and vendor data in real-time. Automated PO-invoice matching ensures accuracy. Supports cross-team collaboration between IDT, Procurement, and AP teams. Centralized platform handles all invoices with real-time status views.
Conclusion Pazy is an extensive accounts payable automation solution that stands out in making invoice handling easy for Indian companies. With its multi-channel invoice collection, AI-based parsing with 95% accuracy, and extensive integrations with Tally and Zoho Books, Pazy is best suited for companies that process high volumes of invoices. The ease of invoice collection through WhatsApp, Slack, and email makes the platform very easy to use, and the touch-less accounting automations coupled with real-time dashboard provide the visibility and efficiency required by today's finance teams. For startups and scaling businesses that want a solution that balances automation with ease of use, Pazy provides a great level of functionality coupled with simplicity.
8. Recko Recko Overview Recko is a financial operations platform built for high-growth internet businesses, with its initial and primary focus on reconciliation, commissions, and payouts. Recko was established in 2018 in Bangalore, and it was acquired by Stripe in October 2021 as Stripe's first acquisition in India. Although Recko's foundation lies in transaction reconciliation and payments tracking, the platform has since supported more comprehensive financial operations workflows such as accounts payable processes for digital-first businesses dealing with enormous volumes of transactions.
1. Stage/Scale Designed for high-growth internet businesses and online businesses with huge transaction volumes. Suitable for startups with fast transaction growth and businesses requiring sophisticated reconciliation. Product teams can go live with low engineering effort while scaling to new markets effortlessly.
2. Governance & Control Better Governance with Reconciliation - Automated Settlement Reconciliation: Automatically tracks receivables from payment gateways
Increased Control due to Workflow Management - Commission Calculation Automation: Automates fee computation and payment SLA tracking
Data Management - Import from Any System: Smooth import of data from external/internal sources
3. Fraud & Risk Checks - Payment Gateway Monitoring: Ongoing monitoring of all transactions to spot irregularities
4. Integrations Payment Gateway Integrations: In-depth Razorpay integration with automatic reconciliation, daily sync data, and settlement tracking. Integrates with multiple payment partners effortlessly.
System Integration: API-driven architecture for ERP, accounting, and custom systems. Synchronized real-time data in integrated platforms with adaptable custom integration support.
5. Banking/Payments - Automated Payout Creation: Simplifies payouts to vendors and suppliers
6. Purchase Order Support Though Recko specializes in reconciliation, it gives core procurement support. Invoice processing is coupled with payment reconciliation. Vendor payment tracking keeps tabs on commitments. Large data handling manages intricate transactions with ease through real-time reporting and entire transaction history.
Conclusion Recko, a Stripe company, provides a robust finance operations platform purpose-built for rapidly growing internet businesses that handle high volumes of transactions. Its strength is in automated reconciliation, which enables companies to track money flows between organizations without coding a single line. Although not a typical accounts payable solution, Recko is great at making money move between the correct beneficiaries, with proper deductions, and at the correct time. The fact that it cuts reconciliation time by 25-30% and gives real-time dashboard visibility makes it especially useful for digital companies, payment platforms, and marketplaces. For internet businesses that care about precise financial reconciliation and payment tracking at scale, Recko provides a battle-tested solution powered by Stripe's worldwide infrastructure.
9. Kodo Kodo Overview Kodo is a one-stop spend management platform tailored to Indian startups and mid-market businesses. Established in 2019 and funded by Y Combinator, Kodo has an end-to-end intake-to-pay solution that integrates corporate cards, accounts payable automation, procurement management, and expense management in one seamless platform. Adopted by top companies such as Cars24, Mensa Brands, and Zetwerk, Kodo turns financial mess into clarity through streamlined purchase decisions, automated routine tasks, and easy payments.
1. Stage/Scale Designed for startups to mid-market businesses with scalable architecture. Y Combinator-funded platform used by Cars24, Mensa Brands, and Zetwerk. Empowers early-stage startups building financial processes with multi-location businesses requiring end-to-end spend visibility. Scalable deployment adapts to rising transaction volumes.
2. Governance & Compliance Improved Governance with Invoice Processing - Advanced OCR Technology: Extracts invoice information automatically, reducing manual input
Increased Control through Approval Workflows - Configurable Approval Chains: Policy-based workflows customizable to rules
Tax & Regulatory Compliance - GST Compliance: Auto-capture, filing, and verification
Budget & Cost Control - Real-Time Budget Monitoring and automated notifications avert overspending
3. Fraud & Error Checks - Detection of Duplicate Invoices: AI detects and marks duplicates prior to processing
4. Integrations Accounting Software: Tally, Zoho Books, QuickBooks, NetSuite, MYOB with two-way sync and auto-entries
ERP & Financial Management: Oracle, SAP, Microsoft Dynamics
Automated accounting entries are synchronized after every transaction. Real-time data flow eliminates manual entry. Automated bank reconciliation tracks payments against records. Builds cohesive financial ecosystem.
5. Banking/Payments - Dynamic Payment Modes: NEFT, RTGS, IMPS, and UPI are supported
6. Purchase Order Support PO Management: Dynamic PO creation based on requisitions. Real-time tracking from creation to fulfillment. Budget-linked POs keep requests within limits.
Procurement Workflow: Requisition management streamlined with automated routing. Vendor selection tools and configurable approval flows. GRN integration for three-way matching.
Vendor Management: Self-service vendor portal, efficient KYC and onboarding, vendor performance analytics, in-built communication tools.
Procurement Analytics: In-depth spend analysis, contract management, compliance monitoring, cost savings tracking.
Conclusion Kodo is an end-to-end, one-stop-shop spend management platform that transcends the usual accounts payable automation. With the integration of procurement, corporate cards, AP automation, and expense management into a single solution, Kodo presents Indian startups and mid-market businesses with a whole financial control system. Its advanced two-way and three-way matching, advanced OCR capabilities, and deep integration ecosystem (including Tally, Zoho Books, QuickBooks, NetSuite, and leading ERPs) make it especially effective for companies wanting end-to-end procurement and payment automation. The Invoice Scrutinizer functionality, enterprise-level security, and multi-rail payment flexibility (including corporate cards and multiple rails) make Kodo the perfect option for scaling companies that wish to scale their financial operations without growing their finance team. For companies seeking a single platform to handle everything from purchase requests to final pay, Kodo offers a mature, battle-hardened solution relied on by top Indian brands.
10. Happay Happay Overview Happay is MakeMyTrip's enterprise-grade travel, expense, and payments solution, which it bought in November 2024. Happay was established in 2012 as an expense management solution and has now grown into a full-fledged financial operations platform with over 6,500+ customers across the world, including leaders in their industry such as PwC, Tata Group, and Maruti Suzuki. Although best recognized for expense and travel management, Happay's accounts payable automation features provide strong invoice processing, payment management for vendors, and financial control features tailored for businesses that require integrated financial operations.
1. Stage/Scale Enterprise-grade solution for large enterprises and mid-market businesses. Acquired by MakeMyTrip in Nov 2024. Tried and tested with 6,500+ customers worldwide including PwC, Tata Group, and Maruti Suzuki. Processes 5000+ non-PO invoices every month. Designed for multi-national businesses with high volumes of transactions.
2. Governance & Compliance Improved Governance with Invoice Automation - OCR SuperVision: Automatically extracts vendor information, invoice number, amounts, and dates
Financial Control via Workflows - Real-Time Visibility: Total control of cash flows
GST & Tax Management - GST Automation: Fully automated capture, filing, and verification
3. Fraud & Error Checks - Duplicate Detection: Automated duplicate invoice detection
4. Integrations Accounting & ERP: One-click export of data to accounting/ERP systems. Real-time synchronization avoids manual entry. Pre-built ERP connectors along with custom API support.
Business Systems: Employee data integration with HRMS. Project management tool integrations. TMC integration for online booking of travel. Direct connections with travel vendors.
Banking & Payment: Corporate bank account linkages. Support for payment gateways. Automated bank reconciliation.
Communication: Automatic email integration for invoice processing. Mobile and web-based availability for approvals on-the-go.
5. Banking/Payments - Direct Vendor Payments: Automatically transfer funds to vendor bank accounts
6. Purchase Order Support Invoice-PO Alignment: Matches invoices to POs when available. Strong non-PO invoice processing (5000+ per month). Integrates with requisition workflows.
Vendor Management: Centralized vendor database. Dispute resolution communication tools. Tracking of vendor performance.
Financial Reporting: Invoice processing and payment analytics custom reports. Insights with data for cost savings. Visibility of spending patterns in entirety. Real-time tracking of payments and liabilities.
Expense Allocation: Department-wise analytics. Trend analysis for optimization. Tracking on a project basis.
Conclusion Happay provides an end-to-end enterprise solution that amalgamates travel management, expense management, and accounts payable automation uniquely into one integrated platform. Now supported with the resources of MakeMyTrip, Happay is strongest for businesses looking to unify their travel, expense, and payable processes into a single system. OCR SuperVision technology, digital mailroom features, and capacity for processing 5000+ non-PO invoices per month speak to its enterprise-level scalability. With automated GST handling, prepaid and credit card offerings, and transparent integration with ERP and accounting platforms, Happay provides a mature, battle-hardened solution that is relied upon by marquee organizations such as PwC and the Tata Group. For large organizations looking for a single platform that deals with everything from business travel to vendor payments, Happay provides the integrated financial operations platform that maximizes efficiency while ensuring tight governance and control. Its emphasis on simplicity—taking little training—makes it most appealing to organizations wanting to deploy rapidly with broad user bases.
Benefits of AP Automation Tools for Indian Startups AP Workflow Automation: Automating manual AP processing with accounts payable automation solutions frees up your finance team to focus on strategic initiatives like AOP planning, capital budgeting etc., thus enhancing productivity and strategic focus.Reduced Errors: Eliminating manual data entry minimises human errors and improves financial accuracy helping in audits.Improved Cash Flow Management through Increased Visibility: The right AP tool, powered by accounts payable automation solutions, allows you to gain real-time visibility into your payables data to optimise cash flow for liquidity, enabling you to always manage your working capital funding gap effectively.Simplified Compliance: Ap tools ensure adherence to GST/TAX/IRN/TDS/MSME /Cybersecurity and moreAutomated Fraud Detection: AP automation tools, integral to accounts payable automation solutions, help in the detection of fraud through invoice processing checks like Deduplication, BAV (Bank Account Verification) etc., ensuring the financial integrity of your startup.How to Choose the Right Accounts Payable Automation Tool? Choosing the right accounts payable (AP) software for your startup is critical, especially when you consider the consequences of choosing the wrong one vis-a-vis limited scalability, inflexible tech stack, high costs, invoice fraud etc. Opting for the best AP automation software can significantly mitigate these risks.
With a vast array of options available, it becomes difficult to determine what factors to consider. Don’t worry though, as always Mysa is here for you.
In this article, we have not only discussed what factors to look into while evaluating AP automation tools, but we have also evaluated 6 of the most opted for AP automation tools by Indian Startups in the context of those factors.
Factors to Consider while Choosing an Accounts Payable Automation software. 1. Stage/Scale best for Consider the stage/scale for which the tool is most useful. For instance, an Early-stage startup with limited invoice volume might prioritise user-friendly interfaces and affordable pricing, while a Growth-stage startup Handling an increasing invoice volume will need robust features like multi-level approval workflows, scalability with their tech stack, etc., essential in accounts payable automation solutions.
2. Governance and Compliance features The AP tool you are looking for must have robust automation, flags, and checks that can lead to an increase in governance and compliance such as Multi-level Approval checks Approval Workflow Automation, etc. Verify the AP automation tool has checks regarding GST/TAX/IRN/TDS/MSME and more, showcasing its capability as a comprehensive automated accounts payable solution.
3. Fraud and Error Checks The software should have checks to identify suspicious invoices based on predefined rules, such as de-duplication or exceeding purchase order (PO) limits. This minimizes the risk of fraudulent activities and errors, a key feature in reliable AP automation solutions.
4. Availability of Integrations Seamless integration with popular accounting software like Tally, Zoho Books etc., which are both widely used by Indian founders, can automate Accounting Entry and ledger reconciliation. The presence of a AP software eliminates duplicate data entry and ensures a smooth flow of financial information, marking it as an essential accounting software for accounts payable.
5. Banking/Payment options You must look for payment functionalities that are useful to your startup. For example, a Startup which has high invoice volume must look out for bulk payouts feature. The software should also support various payment methods preferred by Indian vendors, including Real-Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT), UPI etc., making it a versatile payment automation software.
6. Purchase Order (PO) Support The Accounts Payable software must be able to generate Purchase Orders (POs) automatically based on requisitions or predefined procurement rules. This streamlines the procurement process and ensures consistency in order placement. PO support allows for real-time tracking of orders, from creation through approval to fulfillment. Finance teams can monitor the status of POs, ensuring timely follow-up on pending approvals or delayed deliveries. By integrating POs with budget control systems, finance professionals can ensure that all purchase requests are within budget limits before approval. This helps in maintaining financial discipline and avoiding overspending.
Why Mysa is the Right AP Automation Partner for Your Startup When it comes to choosing the best accounts payable automation tool, Mysa stands out as the only solution built with Indian startups in mind. From automated TDS compliance and GST checks to seamless banking integrations with YES Bank and advanced fraud detection through AI-powered invoice validation — Mysa is designed to solve the exact challenges faced by fast-growing businesses in India.
With Mysa, you’re not just automating invoices and payments — you’re building a strong financial backbone that scales with your startup. Whether you’re at an early stage setting up robust financial processes or a fast-scaling company managing complex workflows, Mysa grows with you.
Startups that switch to Mysa save countless hours on manual AP work, reduce errors, and strengthen governance — all while maintaining full visibility and control over their cash flow.
Ready to future-proof your accounts payable? Contact us today!
FAQs 1. What is accounts payable automation software? Accounts payable (AP) automation software is a tool that helps businesses streamline and digitize the process of managing vendor invoices and payments. Instead of manually entering data, verifying invoices, and tracking approvals, the software automates these steps — from invoice capture and matching to approval workflows and payment processing.
For startups and growing businesses, AP automation reduces errors, saves time, ensures compliance (like GST/TDS in India), and improves cash flow visibility, making financial operations more efficient and scalable.
2. Why do Indian startups need AP automation? Indian startups often deal with rapid growth, multiple vendors, and strict compliance requirements like GST and TDS. Managing accounts payable manually can lead to errors, payment delays, and compliance risks.
AP automation helps startups:
Save time by automating invoice capture, approvals, and payments.Ensure compliance with Indian tax rules (GST/TDS).Improve cash flow visibility with real-time tracking of payables.Strengthen governance through approval workflows and fraud detection.In short, AP automation allows startups to focus on scaling their business while ensuring financial processes remain accurate, efficient, and compliant.
3. What features should I look for in AP automation software? When choosing an AP automation software, focus on features that simplify invoice processing, ensure compliance, and improve financial control. Key features to look for include:
Invoice capture & OCR – automatically extract data from paper or digital invoices.Automated 2-way/3-way matching – match invoices with POs and receipts to prevent errors.Approval workflows – customizable approval chains for faster, transparent processing.Tax compliance tools – GST/TDS compliance support for Indian businesses.Payment automation – schedule and process vendor payments securely.Integration – seamless sync with ERP/accounting systems (like Tally, Zoho, QuickBooks, SAP).Real-time dashboards & reporting – visibility into cash flow, pending invoices, and spend patterns.Fraud detection & audit trails – governance controls to prevent duplicate or fraudulent payments.Choosing software with these features ensures your accounts payable process is accurate, efficient, and scalable.
4. How can AP automation improve compliance and reduce fraud? AP automation strengthens financial governance by adding accuracy, transparency, and control to the payables process.
Improves Compliance: Ensures invoices are GST/TDS compliant. Maintains accurate records for audits and tax filings. Provides approval workflows that meet internal policies and regulatory standards. Reduces Fraud: Automated matching (PO, invoice, receipt) prevents duplicate or fake invoices. Role-based access and approval hierarchies reduce chances of unauthorized payments. Digital audit trails make every action traceable, minimizing manipulation. By automating checks and keeping real-time visibility, startups can protect themselves from costly errors, regulatory penalties, and fraudulent activity.
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