Taxdoo, a Hamburg-based startup automates the Europe-wide VAT compliance of online retailers. While many online retailers see VAT issues as an important reason for not shipping their items internationally, the company intends to make it easy for traders to sell across the EU without any issues.
Investment from London-based VC Accel
In a recent move, Taxdoo announced that they have secured $21M (nearly £15.6M) Series A funding. The round was led by London-based VC Accel. The other investors that took part in the investment round are Visionaries Club, 20VC, and existing investors at High-Tech Gründerfonds (HTGF). In addition to the fresh funds, Accel’s Harry Nelis will join the Taxdoo board. As per the company, this is a major milestone towards their mission of building a leading compliance platform for the digital economy.
“With a booming e-commerce landscape and companies of all sizes looking to sell their products and services internationally, we see an acute need for integrated financial and tax compliance,” said Harry Nelis, partner at Accel. “Taxdoo’s founders bring together unique experience at the intersection of tax, finance and software and we are excited to work with them to build Taxdoo into a category-defining company.”
Growing demand
Taxdoo announced that it will use the funds across different areas. As there is a growing demand for its products and the company foresees an extensive roadmap, they are looking forward to expanding the team. The company wants to offer best-in-class customer support and continue to expand its products on a global scale and reach sellers from across and outside the European Union.
Automated compliance for e-commerce retailers
Founded in 2016 by Matthias Allmendinger, Roger Gothmann and Christian Königsheim, Taxdoo operates with the intention of automating VAT returns for e-commerce sellers. The company has grown profitable since then and has surpassed 1,000 customers. It relieves customers from concerns regarding VAT compliance even in complex multi-channel setups.
“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,” said 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.”
Image credits: Taxdoo/ Thies Rätzke