In a cramped Madrid office in 2015, Alberto Gimeno and Carmelo Juanes watched with pained expressions as businesses around them drowned in paperwork, where employees manually extracted data from invoices, payslips, and contracts in the same monotonous, tedious manner their grandparents might have used. What started as a side project between friends has grown into a $3 million annual recurring revenue company that now processes millions of documents yearly for over 100 software platforms worldwide.
The journey from those early days to Y Combinator’s prestigious accelerator program in 2022, followed by over $11 million in funding from top-tier European and American investors, now serves as evidence of their persistence. Today, Invofox stands as the infrastructure layer that powers document automation for software companies globally, much like how Stripe became the invisible backbone of online payments or Twilio redefined business communications.
The Technical Foundation That Changed Everything
Behind Invofox’s rapid rise is a sophisticated technical architecture that most competitors struggle to replicate. While other companies offer basic optical character recognition tools and hope developers can piece together a solution, Invofox built a comprehensive system capable of handling millions of documents simultaneously without choking under pressure. Their platform includes file splitting algorithms that automatically separate sub-documents within single files, classification systems that instantly identify document types, and image quality scoring that detects when documents are too damaged to process effectively.
The company’s approach to artificial intelligence also sets it apart from everyone else in the industry. Rather than relying on a single AI model, Invofox employs multiple machine learning systems simultaneously, including proprietary models developed in-house alongside commercially available options from OpenAI, Anthropic, and Google. This parallel processing approach allows the system to merge results from different AI models, producing more accurate outcomes than any single system could achieve alone.
“We specialize in servicing other tech companies, and this means that we’ve built features in our product, processes in our company, and acquired knowledge and experience in our team that is extremely relevant to any software company that needs to deal with this problem,” Gimeno explains. This focus on serving software developers rather than end consumers has allowed Invofox to build features specifically tailored to the needs of technical teams who require reliable APIs and webhook systems for production environments.
Global Expansion and Market Penetration
The company’s international growth strategy reflects the universal nature of document processing challenges. Starting from its Spanish base, Invofox expanded across Latin America before setting its sights on the United States market. Gimeno’s relocation to San Francisco marked a significant moment in this expansion, as the company spent a full year adapting its product and sales processes to meet American market demands.
The results of this careful preparation are now visible. Recent client acquisitions in the US include Scripta Insights, aACE, Repositrak, and Cutr, representing diverse industries from healthcare to supply chain management. These partnerships validate Invofox’s ability to serve complex enterprise needs while maintaining the developer-friendly approach that built their reputation in Europe.
What makes Invofox particularly attractive to software companies is its white-label capability. Many of their largest customers integrate Invofox’s technology so deeply into their own products that end users never know they’re using a third-party service. This efficient integration model has proven especially valuable for enterprise resource planning (ERP) solutions that need to automate accounts payable processes and payroll platforms managing employee data migration from legacy systems.
The Competitive Edge in Document Intelligence
The document processing market contains numerous players, but few can match Invofox’s combination of technical depth and business focus. Their data verification and autocompletion algorithms go beyond simple text extraction, validating that extracted information makes logical sense within its context. For example, when processing an invoice, the system can verify that applied taxes match the rates that should legally apply to that type of transaction, and automatically fill in missing vendor addresses from their database. This level of intelligence extends to their handling of complex document types. While competitors might struggle with utility bills that bundle multiple services into a single document, Invofox’s algorithms can separate and categorize each service component accurately. Their system handles damaged PDF files, performs automatic file classification, and maintains global compliance certifications for both EU and US regulations.
The company’s growth metrics tell a compelling story about market demand for their solution. With annual recurring revenue growing 10% month-over-month and having doubled since September 2024, Invofox has reached a scale where some early investors have already had opportunities to cash out their positions. The team has expanded to 38 members across multiple countries, supporting a client base that spans from small startups to enterprise customers processing millions of documents annually.
“AI is rapidly evolving, and companies around the world are racing to define the business models of the future. Invofox applies cutting-edge AI to a universal and persistent problem with a clear use case, strong customer demand, and high ROI. Our goal is to become the go-to infrastructure layer for document automation in the software economy,” Gimeno states, outlining a vision that positions the company at the center of digital business operations worldwide.
Placeholder image from ThisIsEngineering/Unsplash royalty-free image source, please send if a different image is preferred
