This latest round of funding will help Fonoa scale its tax automation platform globally and increase headcount. Here are the top-line bullets you need to know.
Fonoa, a provider of automated tax compliance tools, has raised $25M in a Series A round. The round drew participation from Index Ventures, FJ Labs, OMERS Ventures, and Moving Capital, among others.
HOW’S THE COMPANY PERFORMING?
- Ireland-based Fonoa has developed APIs that help internet companies automate all stages of the tax compliance process, such as verifying the tax status of buyers and sellers, computing tax dues, and generating a locally tax-compliant invoice for the transaction. It also facilitates the real-time reporting of transactions to local government authorities when necessary.
- At present, the company offers tax automation services in 100+ countries, and it plans to expand to 140+ countries by the end of 2021.
- The company currently processes 300M+ tax transactions annually, and it has watched its revenue increase by 7x since December 2020.
- The company’s clients include digital service providers, marketplaces, micro-mobility operators, gig economy platforms, and subscription-based firms. Examples include Uber, Lime, Zoom, GoStudent, and Teachable.
- Fonoa is supported by a team of 60 employees across 14 countries.
Why does the market matter?
- The global tax management software market is expected to reach a value of $11.2B by 2026, growing at a CAGR of 10.4%, according to Fortune Business Insights.
- The key growth drivers for the market include the increasing shift toward digital payments, the rising volume of financial transaction data, and the complex nature of international taxation systems.
- The Covid-19 pandemic drove the adoption of cashless transactions and increased the demand for digital payment solutions and online payment gateways. These factors are also expected to boost demand for tax management software.