Taxdoo, a start-up which has built what it calls an “automated financial compliance platform” for cross-border e-commerce companies, has raised $21 million in new financing. Funding Series A was led by venture capital firm Accel including participation form Visionaries Club, 20VC and existing investor HTGF. The raised funding will be invested in the development of Taxdoo, as well as in global expansion, in high recruitment, R&D, gross sales and buyer assistance.
Founded in May 2016, Taxdoo wants to use automation to address the tax and compliance burden of cross-border e-commerce businesses selling on various markets and platforms like Amazon, eBay and Shopify. As a result, companies are facing increasing complexity in VAT, accounting and other compliance requirements, with data from multiple online systems.
Taxdoo puts this information in a single place after, which makes use of its personal technology to automate the ingestion of information at the transaction level, tax calculation and deposits across Europe. Clients can also work with their tax advisors through the platform and reduce other compliance burdens, including intrastat deposits.
“From a marketing and logistics perspective, it’s becoming easier to sell products across European borders, but the resulting compliance obligations (such as accounting and VAT) are a nightmare for sellers,” says Christian Koenigsheim of Taxdoo. Koenigsheim says a typical client of Taxdoo sells products in different markets and their own shop, with annual revenues of around 5-10 million euros.