KintsugiA Silicon Valley -based start -up, which helps companies unload and automate sales tax compliance, increased $ 18 million in new funding led by global indirect VERTEX tax solution. The start plans to allow smaller and medium -sized enterprises to use AI’s capabilities for tax calculations and deposits.
The ongoing increase in e -commerce and cross -border trade, combined with increasingly complex tax regulations, has led to global demand for tax automation solutions. Kintsugi aims to help companies with its software integrated with revenue creation points, whether it is shopify, stripe, chargebee, quickbooks or a custom API application. This helps to bring 360 revenue projections and allows startup to swallow data and calculate taxes immediately.
“Our goal is like what Uber did for taxis and stripe for credit card payments. We want to do it for compliance in 171 countries,” Pujun Bhatnagar (depicted above, left), co -founder and chief executive of Kintsugi, said in an exclusive interview.
Founded in 2023, San Francisco -based starting examined the 2018 Supreme Court rulingwhich allowed states to make sellers on the internet to collect sales tax, even if they do not have a natural state shop as a turning point for industry. He wanted e -commerce businesses, helping states to develop their tax collections. Existing Automated Tax Compliance Complying, including Avalara, capitalized the displacement to Reinforce their revenue. However, newly established businesses such as Kintsugi began to exploit AI’s advances to chart their market share.
“We are half the cost of Avalara, and we replace the CPA (Certified Public Accountant). So, just a regular operator can, in seven clicks and three minutes, install our app and tell you what your tax sales body is, and then you can go down and go for you and you can go and click you for less than three minutes. Bhatnagar.
Startup allows businesses to calculate their tax liability for sales free of charge, although they charge them for tax deposit. It also provides the option to automatically activate the automatic file tax after calculating the data they consume through different revenue channels.
Kintsugi has generated an annual revenue of $ 3 million last year and aims to cross $ 10 million by the end of 2025. The start also has a rate of 0.1%, based on 2,400 customers-ranging from pre-debt companies to $ 50 million and $ 50 million in
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Vertex based in Pennsylvania found that Kintsugi complements its existing focus large multinational business companies and complex average businesses.
“We at VERTEX have relationships with some of the largest companies in the world running markets, managing e -commerce companies and we are not today in the business service business,” said Chirag Patel, chief of Vertex strategy in Techcrunch. “While Kintsugi is extremely specialized and incredibly good in it and can escalate this business model, which is difficult to do. So are the two companies together.”
The terms of the agreement include minority investments of $ 15 million representing a 10% interest in Kintsugi, IP sharing and a commercial cooperation based on a model of revenue distribution. The start has also increased an additional $ 3 million from its existing investors. Overall, the new funding has given the start to $ 150 million after money, out of the $ 80 million estimated in November.
In addition to investing in Kintsugi, Vertex has pledged to invest $ 10 million to $ 12 million in AI developments. The company plans to exploit Kintsugi’s IP to promote these developments that focus on AI.
“We have already invested in AI, but we are a company negotiating in the audience that has quarterly pressure,” Patel said. “So, to the extent that we can speed up some of them by utilizing the innovation that happens in Kintsugi.”
Kintsugi already has a profit margin of over 93%, Bhatnagar told TechCrunch.
The start, which employs 95 people, has previously expanded from the US to Canada and Europe, now plans to live in South America, Africa and the Eastern world, including India and China.
Currently, SAAS companies make up 45% of Kintsugi’s customer base, making 5.5 million transactions worth $ 7.7 billion. However, working with its 47 -year -old investor, Vertx, is likely to help start customers in various areas.
