Hong Kong-based venture capital firm, Composite Capital has led an investment of $50 Mn as the part of ClearTax’s Series B round, marking its first bet in Indian startup.
The Bengaluru-based startup that helps individuals and businesses file tax returns online, plans to utilize newly raised funds to accelerate growth and expand its current offerings for millennials on its platform. Besides, it also plans to invest in tech infrastructure and hiring people in engineering team.
“With this new investment, we have more firepower to focus on our mission, accelerate our growth trajectory and continue to invest in technology and innovate our platforms to meet expanding customer needs,” said Archit Gupta, Founder and CEO of ClearTax.
Founded in 2011 by Archit Gupta, Srivatsan Chari, and Ankit Solanki, ClearTax, run by Defmacro Software Pvt Ltd, offers its services to both B2B and B2C customers. There is an online tax filing platform in B2C for individuals. On the B2B side, it helps CAs and enterprises to file their tax returns. The company also provides software solutions, including GST and e-way bill, along with business incorporation and compliance services for enterprises. The company has also launched a tech-led platform for tax saving and mutual fund investment in January this year.
ClearTax claims to have served more than 2.5 million customers in 2018 alone and further expecting to reach 4 million users by March 2019. The firm gets 75% of its business from offering its services to institutions and the rest comes from directly transacting with consumers. On the B2B front, the company works with over 25,000 chartered accountancy firms and 100,000 businesses across sectors.
Backed by some of the prominent investors, including Sequoia Capital, SAIF Partners as its major investors, ClearTax has previously raised $12 million from SAIF Partners along with $2 million in seed funding from Sequoia Capital India, and Paypal co-founder Peter Thiel’s Founders Fund Angel in 2016.
In this segment, there are other notable startups include, myITreturn, Taxsmile, FilingMantra, Taxspanner among others.