AI-Powered Tax Automation Startup Kintsugi Secures $18M Funding, Doubles Valuation

AI sales tax startup Kintsugi had doubled its valuation in 6 months | TechCrunch

Kintsugi, a Silicon Valley-based startup that helps companies offload and automate their sales tax compliance, has raised $18 million in new funding led by global indirect tax technology solution provider Vertex. The startup plans to enable more small and medium businesses to use its AI-enabled capabilities for tax calculations and filings. The ongoing growth of e-commerce and cross-border trade, combined with increasingly complex tax regulations, has driven global demand for tax automation solutions. Kintsugi aims to aid companies with its software that integrates with revenue-generating points, whether that's Shopify, Stripe, Chargebee, Quickbooks, or a custom API implementation. This helps bring a 360-view of revenue and lets the startup ingest the data and calculate taxes instantly. "Our goal is like what Uber did for taxi cabs and Stripe did for credit card payments. We want to do it for the compliance piece in 171 countries," said Pujun Bhatnagar (pictured above, left), co-founder and CEO of Kintsugi, in an exclusive interview. Founded in 2023, the San Francisco-based startup considered the 2018 Supreme Court ruling, which allowed states to make online sellers collect sales tax even if they don't have a physical store in the state, as a turning point for the industry. It affected e-commerce businesses while helping states to grow their tax collections. Existing automated tax compliance companies including Avalara capitalized on the shift to boost their revenues. However, new-age startups like Kintsugi began leveraging AI advancements to carve out their market share. "We are half the cost of Avalara, and we replace the CPA (Certified Public Accountant) as well. So, just a regular operator can, what we say is, in seven clicks and three minutes, install our app, and we will tell you what your sales tax liability is, and then you can go in and click and spend less than three minutes every month to file your sales tax," Bhatnagar told TechCrunch. The startup allows businesses to calculate their sales tax liability for free, though it charges them for tax filing. It also provides an option to turn on auto remit to file sales tax automatically after calculating the data it ingests through different revenue-generating channels. Kintsugi generated $3 million in annual revenue last year and aims to cross $10 million by the end of 2025. The startup also touts having a 0.1% churn rate, with a base of 2,400 customers -- ranging from pre-revenue businesses to companies generating roughly $50-$80 million in revenue and even those with $500 million in revenue. Pennsylvania-based Vertex has found Kintsugi complements its existing focus on large enterprise multinational companies and complex mid-market businesses. "We at Vertex have relationships with some of the largest companies in the world who run marketplaces, who run e-commerce businesses, and we're not today in the business of servicing small companies," Chirag Patel, chief strategy officer at Vertex, told TechCrunch. "Whereas Kintsugi is highly specialized and incredibly good at it and can scale that business model, which is hard to do. So, it's the two companies together." Terms of the agreement include a $15 million minority investment representing a 10% ownership interest in Kintsugi, IP sharing, and a commercial partnership based on a revenue-sharing model. The startup has also raised an additional $3 million from its existing investors. Overall, the fresh funding has valued the startup at $150 million post-money, up from the $80 million it was valued at in November. In addition to its equity investment, Vertex has committed to invest $10-$12 million in Kintsugi this year to utilize its IP for AI integrations. "We're already investing in AI, but we are a publicly traded company that has quarterly pressures," said Patel. "So to the extent we can accelerate some of that by leveraging the innovation that's happening at Kintsugi." Kintsugi already has profit margins of over 93%, Bhatnagar told TechCrunch. The startup, which employs 95 people, previously expanded from the U.S. to Canada and Europe, now plans to go live in South America, Africa, and the Eastern world, including India and China. Currently, SaaS companies comprise 45% of Kintsugi's customer base, making 5.5 million transactions valued at $7.7 billion. However, the partnership with its 47-year-old investor, Vertex, is likely to help the startup get customers across different sectors.

AI sales tax startup Kintsugi has doubled its valuation in 6 months | TechCrunch

Kintsugi, a Silicon Valley-based startup that helps companies offload and automate their sales tax compliance, has raised $18 million in new funding led by global indirect tax technology solution provider Vertex. The startup plans to enable more small and medium businesses to use its AI-enabled capabilities for tax calculations and filings. The ongoing growth of e-commerce and cross-border trade, combined with increasingly complex tax regulations, has driven global demand for tax automation solutions. Kintsugi aims to aid companies with its software that integrates with revenue-generating points, whether that's Shopify, Stripe, Chargebee, Quickbooks, or a custom API implementation. This helps bring a 360-view of revenue and lets the startup ingest the data and calculate taxes instantly. "Our goal is like what Uber did for taxi cabs and Stripe did for credit card payments. We want to do it for the compliance piece in 171 countries," said Pujun Bhatnagar (pictured above, left), co-founder and CEO of Kintsugi, in an exclusive interview. Founded in 2023, the San Francisco-based startup considered the 2018 Supreme Court ruling, which allowed states to make online sellers collect sales tax even if they don't have a physical store in the state, as a turning point for the industry. It affected e-commerce businesses while helping states to grow their tax collections. Existing automated tax compliance companies including Avalara capitalized on the shift to boost their revenues. However, new-age startups like Kintsugi began leveraging AI advancements to carve out their market share. "We are half the cost of Avalara, and we replace the CPA (Certified Public Accountant) as well. So, just a regular operator can, what we say is, in seven clicks and three minutes, install our app, and we will tell you what your sales tax liability is, and then you can go in and click and spend less than three minutes every month to file your sales tax," Bhatnagar told TechCrunch. The startup allows businesses to calculate their sales tax liability for free, though it charges them for tax filing. It also provides an option to turn on auto remit to file sales tax automatically after calculating the data it ingests through different revenue-generating channels. Kintsugi generated $3 million in annual revenue last year and aims to cross $10 million by the end of 2025. The startup also touts having a 0.1% churn rate, with a base of 2,400 customers -- ranging from pre-revenue businesses to companies generating roughly $50-$80 million in revenue and even those with $500 million in revenue. Pennsylvania-based Vertex has found Kintsugi complements its existing focus on large enterprise multinational companies and complex mid-market businesses. "We at Vertex have relationships with some of the largest companies in the world who run marketplaces, who run e-commerce businesses, and we're not today in the business of servicing small companies," Chirag Patel, chief strategy officer at Vertex, told TechCrunch. "Whereas Kintsugi is highly specialized and incredibly good at it and can scale that business model, which is hard to do. So, it's the two companies together." Terms of the agreement include a $15 million minority investment representing a 10% ownership interest in Kintsugi, IP sharing, and a commercial partnership based on a revenue-sharing model. The startup has also raised an additional $3 million from its existing investors. Overall, the fresh funding has valued the startup at $150 million post-money, up from the $80 million it was valued at in November. In addition to its investment in Kintsugi, Vertex has committed to invest $10-$12 million for AI advancements. The company plans to leverage Kintsugi's IP to advance those AI-focused developments. "We're already investing in AI, but we are a publicly traded company that has quarterly pressures," said Patel. "So to the extent we can accelerate some of that by leveraging the innovation that's happening at Kintsugi." Kintsugi already has profit margins of over 93%, Bhatnagar told TechCrunch. The startup, which employs 95 people, previously expanded from the U.S. to Canada and Europe, now plans to go live in South America, Africa, and the Eastern world, including India and China. Currently, SaaS companies comprise 45% of Kintsugi's customer base, making 5.5 million transactions valued at $7.7 billion. However, the partnership with its 47-year-old investor, Vertex, is likely to help the startup get customers across different sectors.

Kintsugi, the AI-Powered Tax Automation Platform for E-commerce and SaaS Companies, Secures Strategic Investment from Vertex Inc.

Enter your email to get Benzinga's ultimate morning update: The PreMarket Activity Newsletter Leading tax technology provider backs innovative startup transforming tax compliance SAN FRANCISCO, April 30, 2025 /PRNewswire/ -- Kintsugi AI, a cutting-edge tax automation platform, announced today a strategic backing from Vertex Inc. This investment will accelerate Kintsugi's product development and market expansion, bringing innovative compliance solutions to more businesses across the United States and international markets. Kintsugi has become the fastest-growing startup in the tax automation space by offering a solution that reduces tax preparation time by 75% and compliance costs by 50% compared to traditional methods. The company's AI-driven platform seamlessly integrates with revenue sources like Stripe and QuickBooks to automate tax calculations, filings, and compliance monitoring across multiple jurisdictions. "We're excited to partner with Vertex, the trusted global leader in tax technology," said Pujun Bhatnagar, CEO of Kintsugi. "Vertex's strong brand, proven expertise, and deep partnerships will enable us to accelerate our roadmap and expand our market presence both in the US and internationally. We're enthusiastic about the opportunities ahead." Vertex's investment comes as businesses are increasingly seeking more efficient, cost-effective solutions for managing their tax obligations. Kintsugi's platform has resonated particularly well with finance leaders and tax professionals who struggle with the complexity of multi-state tax compliance, changing regulations, and resource constraints. "Our strategic backing of Kintsugi reflects our confidence in the future of AI-enhanced tax solutions," said Chirag Patel, Chief Strategy Officer, Vertex. "Kintsugi's advanced AI platform empowers small and mid-size e-commerce companies to manage tax complexity more efficiently, ease compliance challenges and better control tax risk. Together, we are shaping the future of tax technology." The investment will enable Kintsugi to enhance its revolutionary mail monitoring system, expand its integration capabilities, and strengthen its support for international markets including Canada and Europe. The company plans to grow its team while maintaining its commitment to exceptional customer service and transparent pricing -- key differentiators that have driven customer acquisition from competitors. The tax automation market is expected to grow substantially as businesses face increasing compliance complexity and seek more efficient solutions. With this investment, Kintsugi is well-positioned to capture market share and continue its innovation in the space. About Kintsugi Kintsugi provides an AI-powered tax automation platform that transforms complex tax management into a streamlined, automated process. By leveraging artificial intelligence and seamless integrations, Kintsugi reduces preparation time compliance costs for e-commerce and SaaS businesses. The company offers transparent pricing, exceptional customer service, and advanced capabilities for multi-state and international tax compliance. Learn more at www.trykintsugi.com. About Vertex Inc. Vertex, Inc. is a leading global provider of indirect tax solutions. The Company's mission is to deliver the most trusted tax technology enabling global businesses to transact, comply and grow with confidence. Vertex provides solutions that can be tailored to specific industries for major lines of indirect tax, including sales and consumer use, value added and payroll. Headquartered in North America, and with offices in South America and Europe, Vertex empowers the world's leading brands to simplify the complexity of continuous compliance. For more information, visit www.vertexinc.com. SOURCE Kintsugi AI Market News and Data brought to you by Benzinga APIs