Modus, a New York start-up that invests in audit-focused accounting firms and builds AI software for them, announced on 7 April 2026 that it had raised $85m across its seed and Series A rounds.
Lightspeed Venture Partners led the funding. Comma Capital and Garry Tan, the chief executive of Y Combinator, also took part, according to CPA Practice Advisor. The company did not disclose a valuation or say how the $85m was split between the two rounds. The funding tracker Startup Intros lists an $80m Series A alongside a $5m seed round.
Lightspeed described the combined amount as a seed and Series A round in a post about its investment, published the same day.
“Audits serve as the cornerstone for trust in our capital markets, yet the underlying tools and workflows have not meaningfully changed in decades.”Arush Jain, Co-founder and CEO, Modus
What Modus does
Modus calls itself an AI-native audit technology platform and holding company. Rather than selling software to accounting firms from the outside, it takes stakes in audit firms and deploys its own tools inside them, keeping the firms' client relationships and staff in place, Pulse 2.0 reported.
Its software is meant to automate manual audit procedures, improve risk assessment and leave auditors more time for work that needs professional judgement, according to CPA Practice Advisor. Lightspeed said that at the first firm Modus invested in, seven AI workflows now cover parts of an audit from start to finish and save tens of thousands of hours a year.
That firm has not been named. CPA Practice Advisor reported that it ranks among the top 200 US accounting firms tracked by INSIDE Public Accounting, has more than $30m in revenue, and is expected by Modus to more than double its organic growth rate in 2026.
Co-founder and chief executive Arush Jain said in a statement that audits are the basis of trust in capital markets, while the tools and workflows behind them have changed little in decades.
Who is behind it
Modus was founded by Arush Jain, its chief executive, Pranav Pillai, its chief technology officer, and Vinay Kasat, its chief operating officer, according to CPA Practice Advisor. Lightspeed said the three met at the University of Pennsylvania. The company launched in June 2025.
Its team includes former employees of Palantir, Citadel, Ramp, Thoma Bravo, Bridgewater and AWS. Advisers include Jim Burton, a former chief auditor at Grant Thornton, and Brian Blaha, a former chief growth officer at Wipfli, as well as an unnamed former chief executive of a top-10 accounting firm, CPA Practice Advisor reported. Modus did not disclose its headcount.
What the money is for
The company said the money would speed up technology development, expand its audit products and fund further investments in, and partnerships with, growing audit-first accounting firms, the International Accounting Bulletin reported. Lightspeed said the capital would pay for more firm acquisitions, product work and a larger team.
Jain said the funding would let the company invest heavily in AI-enabled audit tools while partnering with firms that want to lead the profession.
Lightspeed partners said public accounting had long been underserved by technology. Partner Justin Overdorff said the Modus team had automated key audit workflows and increased efficiency at its first firm.
Investors move into accounting
Modus is one of several companies trying to bring AI into professional services by owning the firms rather than only supplying them with software. In its post, Lightspeed argued that audit had seen little use of technology to change how the work is done for clients.
The company has not said how many firms it plans to invest in, or how much of the new money will go into acquisitions rather than software development.
Company website: modusalliance.com