Hamberg based start-up, Taxdoo which is an “automated platform for financial compliance” announced that it has raised around €17 million ( $20.6 M) Series A capital investment round. The money was procured in collaboration with investors led by Accel along with the participation of Visionaries Club, 20VC, and existing investor HTGF. Along with the funding, Accel’s Harry Nelis had also joined the board.
It is ascertained that the amount raised will be used to support the company’s rapid growth purposes, including cross-border expansions, increased hiring, R&D, sales, and customer support.
E-commerce in Europe is booming with thousands of customers moving online and is expected to surpass the €17 billion mark in 2020. In response to such an opportunity, many retailers and businessmen are also shifting to online platforms like Amazon, eBay, Shopify, and more to sell their products internationally. Nevertheless, they are forced to face increasing complexity around VAT, accounting, and other requirements due to data across multiple online systems. This also provides scope for fraud of tax collection resulting in around 164 billion of VAT revenue leakage across Europe in 2020, forcing the government to increase legislations for e-commerce businesses.
All the founders of taxdoo (Matthias Allmendinger, Roger Gothmann, and Christian Königsheim) taking advantage of this tax drawback system came up with a solution to the problem. They developed an idea to connect compliance with an API-driven platform in the e-commerce system. Basically, they assemble the data at a single place and then use their programs to automate transaction-level data ingestion, tax calculation, and fillings all across Europe. Customers also have the option to join forces with their tax advisors on the platform and reduce other compliance issues.
The company subsequently has grown profitably since it empowers more than a thousand merchants from the DACH region to see across Europe and is also leveling up aggressively in order to meet demand.
“Our goal is to contribute to seamless cross-border commerce in Europe and beyond, where companies are able to focus on their core business, not on bureaucracy,” states Christian Königsheim, co-founder of Taxdoo. “With a booming e-commerce landscape and companies of all sizes looking to sell their products and services internationally, we see an acute need for integrated financial and tax compliance,” says Harry Nelis, partner at Accel. He further adds “Taxdoo’s founders bring together unique experience at the intersection of tax, finance, and software and we are excited to work with them to build Taxdoo into a category-defining company.”