Hamburg-based Taxdoo, an automated platform for financial compliance in the e-commerce industry has closed $21M (nearly €17M) Series A funding. This investment round was led by Accel, a global VC firm along with participation from 20VC, Visionaries Club, and existing investor HTGF. The company intends to use the investment for its rapid growth via international expansion, increased sales and customer support, hiring and R&D.
“The funds will be put to use in different areas. Since the demand for our products is growing and our roadmap is extensive, we are always on the lookout for new additions to our excellent team. We will continue building our exceptional engineering and product organisation in order to accelerate our platform roadmap,” Christian Königsheim, co-founder of Taxdoo, mentions in a blog post.
“Adding to that, we’ll make sure to always live up to our standards with best-in-class customer support – something that has always set us apart from others and that we are especially proud of. This will become even more important as we continue internationalising our product to assist more sellers from across and outside the European Union,” he further adds.
Relief to online businesses
The e-commerce industry in Europe is estimated to exceed €700B in 2020 with cross-border transactions accounting for a quarter of that total and rising. Because of this, several businesses are turning to Amazon, eBay, Shopify and a wide array of other platforms to sell internationally. This causes these businesses to face complexities surrounding VAT, accounting and other compliance requirements.
Also, fraud and inadequate tax collection are driving governments to tighten the legislation around e-commerce, which has become a burden for online businesses to collect, prepare and review compliance-related transaction data.
Taxdoo’s founders, Matthias Allmendinger, Roger Gothmann and Christian Königsheim saw the potential to solve this burden with automation during their PhDs in finance and economics at the University of Hamburg. “Gothmann is a renowned international VAT expert following his 10-year tenure at the German ministry of finance and brought this expertise into Taxdoo. Together, the founders developed the idea to connect compliance with an API-driven platform in the e-commerce ecosystem,” says the company in its press release.
Taxdoo is the automated platform for financial compliance in e-commerce. Taxdoo claims to make it easy for e-commerce businesses and accountants to handle VAT, manage financial accounting and ensure the fulfilment of compliance requirements.
“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,” says Christian Königsheim, co-founder of Taxdoo. “With Taxdoo, e-commerce sellers and other digital businesses significantly reduce their time and costs to handle all tax-compliant processes and achieve greater visibility of their data.”
As per the company, it has grown profitably and quickly and empowers over 1,000 merchants across the DACH region to sell across the EU with all compliance. Also, it is scaling up aggressively in order to meet the demand. Taxdoo also intends to expand in the coming months to support the global sellers currently active in the EU market. It is also introducing new accounting and compliance solutions within its SaaS platform. Additionally, Taxdoo intends to triple headcount to more than 150 by the end of 2021, with hiring predominantly for Hamburg-based engineering, sales and marketing positions.