Summary:
Kintsugi raised $18 million to enhance sales tax compliance solutions for businesses.
The startup integrates with platforms like Shopify and Quickbooks for seamless tax calculations.
They aim to simplify compliance in 171 countries, similar to Uber and Stripe.
Kintsugi operates at half the cost of Avalara, allowing easy tax liability assessments.
With a valuation of $150 million, Kintsugi plans to expand into new global markets.
Kintsugi's Journey in Sales Tax Compliance
Kintsugi, a Silicon Valley-based startup, is transforming how businesses handle sales tax compliance. Recently, they raised $18 million in funding led by Vertex, a global indirect tax technology provider. This funding is poised to help small and medium businesses leverage Kintsugi's AI capabilities for tax calculations and filings.
The Need for Tax Automation
With the rise of e-commerce and cross-border trade, tax regulations have become increasingly complex. Kintsugi's software integrates with popular platforms like Shopify, Stripe, and Quickbooks, providing a comprehensive overview of revenue and enabling instant tax calculations.
Vision and Goals
Pujun Bhatnagar, co-founder and CEO, likens their mission to what Uber did for taxis and Stripe for payments, aiming to simplify compliance across 171 countries. Founded in 2023, Kintsugi sees the 2018 Supreme Court ruling as a pivotal moment for the industry, allowing states to mandate online sellers to collect sales tax.
Competitive Advantage
Kintsugi claims to operate at half the cost of Avalara, allowing users to determine their sales tax liability in just seven clicks and three minutes. The startup offers free sales tax calculations, charging only for tax filing, and provides an option for auto-remit to automate the filing process.
Growth and Future Plans
After generating $3 million in annual revenue last year, Kintsugi aims to exceed $10 million by 2025. They boast a 0.1% churn rate with a customer base of 2,400 businesses, ranging from startups to those generating up to $500 million in revenue.
Partnership and Valuation
Vertex's investment includes a $15 million minority stake in Kintsugi and a commitment to invest an additional $10-$12 million this year for AI integrations. This funding has boosted Kintsugi's valuation to $150 million, nearly doubling from its previous $80 million valuation.
Global Expansion
With profit margins exceeding 93% and a workforce of 95, Kintsugi is expanding beyond North America into South America, Africa, and Asia. Currently, 45% of their customers are SaaS companies, processing 5.5 million transactions worth $7.7 billion.
Image Credits: Jagmeet Singh / TechCrunch
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