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.