“Our goal is like what Uber did for taxi cabs and Stripe did for credit card payments. We want to do it for the compliance piece in 171 countries.”
In the fast-paced world of e-commerce, where transactions are made across borders at lightning speed, navigating the complex web of sales tax regulations can be a daunting task for businesses. Enter Kintsugi, a dynamic Silicon Valley startup founded in 2023 that is changing the game by offering cutting-edge solutions to automate and streamline sales tax compliance processes.
With a recent infusion of $18 million in funding led by Vertex, a global leader in indirect tax technology solutions, Kintsugi has set its sights on expanding its reach and empowering small and medium-sized enterprises (SMEs) worldwide with its innovative AI-driven platform. The timing couldn’t be more perfect as the demand for efficient tax automation tools continues to soar amidst evolving global trade landscapes and intricate tax laws.
“We are half the cost of Avalara, and we replace the CPA (Certified Public Accountant) as well.”
At the helm of this groundbreaking venture is Pujun Bhatnagar, the co-founder and CEO of Kintsugi, whose vision is to revolutionize how businesses handle their sales tax obligations just as industry disruptors like Uber and Stripe transformed transportation and payment systems. Through seamless integration with popular revenue-generating platforms such as Shopify, Stripe, Chargebee, Quickbooks, or custom APIs, Kintsugi simplifies tax calculations and filings for its growing base of 2,400 diverse clients.
The genesis of Kintsugi can be traced back to a crucial juncture in 2018 when a Supreme Court ruling reshaped the landscape by allowing states to mandate online sellers to collect sales tax even without physical presence within those states. This pivotal moment spurred innovation in automated tax compliance services. While established players like Avalara seized opportunities presented by regulatory changes, agile newcomers like Kintsugi harnessed the power of AI advancements to offer cost-effective solutions tailored to modern business needs.
“Whereas Kintsugi is highly specialized…and can scale that business model.”
One distinctive feature setting Kintsugi apart from competitors is its user-friendly interface that enables businesses to determine their sales tax liability swiftly without extensive manual intervention. By reducing time-consuming tasks associated with traditional methods involving Certified Public Accountants (CPAs), Kintsugi empowers entrepreneurs to focus on core operations while ensuring compliance effortlessly.
Moreover, with an impressive annual revenue growth trajectory projected to surpass $10 million by 2025 from last year’s $3 million mark, Kintsugi demonstrates not only financial viability but also customer loyalty boasting a mere 0.1% churn rate among its diverse clientele spanning startups embarking on revenue generation journeys to established entities grossing millions annually.
The strategic partnership forged with Vertex through a $15 million minority investment underscores mutual synergies aimed at leveraging respective strengths—Vertex’s stronghold in servicing large enterprises matched with Kintsugi’s agility in catering specifically to smaller firms seeking comprehensive yet accessible taxation solutions.
In addition to bolstering its financial standing through fresh investments propelling its valuation post-money from $80 million previously to an impressive $150 million currently—a testament to investor confidence—Kintsugi remains committed towards continuous innovation evidenced by plans for geographical expansion into untapped markets across South America, Africa, India , China ,and other parts of Asia .
“We’re already investing in AI…by leveraging the innovation that’s happening at Kintsug”
As technology continues shaping modern business landscapes,Kitsungi stands poised at forefrontoftax compliance evolution.
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