Artificial intelligence-native audit technology startup Modus Audit Inc. announced today that it has raised $85 million in new funding to accelerate product development and to support its strategy of investing in and partnering with growing audit-first accounting firms.

Founded in 2025, Modus is aiming to empower the AI-native accounting firm by combining AI, deep regulatory expertise and a disciplined investment strategy. The company partners with established accounting firms to preserve their heritage, people and client relationships while equipping them with modern technology designed to improve audit quality, efficiency, and scalability.

Accounting and audit workflows remain heavily manual and rely on fragmented tools, spreadsheet-based processes and human review across large volumes of financial data. Modus addresses this with an AI-based platform that integrates with accounting firm operations and combines software infrastructure with ownership stakes and partnerships in firms.

The platform works by ingesting structured and unstructured financial data from client systems such as ledgers, invoices and transaction records and then applies machine learning models to classify, reconcile and analyze that data. The company’s models are designed to identify anomalies, flag inconsistencies and support audit testing procedures.

Modus’ platform integrates with existing accounting software and firm processes to allow data to flow between client environments and Modus-operated tools without requiring full system replacement.

The platform supports automated audit testing, transaction analysis, document processing and workflow orchestration across engagement teams, as well as continuous monitoring of financial data, generation of audit evidence and standardized reporting outputs aligned with regulatory requirements. It also enables collaboration between auditors through shared workspaces, where AI-generated findings can be reviewed, validated and incorporated into audit documentation.

Modus launched in June last year and has seen strong traction, including an investment in a top 200 accounting platform with over $30 million in revenue. The company says that with the deployment of its platform, it expects to more than double its organic growth rate in 2026 with a meaningful pipeline of additional partner firms.

The seed and Series A funding rounds were led by Lightspeed Venture Partners LP, with Comma Capital and Garry Tan also participating.

“Audits serve as the cornerstone for trust in our capital markets, yet the underlying tools and workflows have not meaningfully changed in decades,” said co-founder and Chief Executive Arush Jain. “This funding allows us to invest aggressively in AI-enabled audit tooling while partnering with exceptional firms that want to lead the profession forward, without sacrificing quality or culture.”

Image: Modus