Irish ‘soonicorn’ Fonoa raises $60m for tax automation platform

21 Jul 2022

Fonoa founders Davor Tremac, Filip Sturman, Ivan Ivankovic. Image: Fonoa

With 110 employees across 20 countries, Dublin’s Fonoa expects to double in size by the end of the year.

Dublin-based start-up Fonoa has just raised $60m in funding to expand its digital tax automation service.

Recently tipped as one of Ireland’s two ‘soonicorns’, or start-ups that have the potential to reach a unicorn valuation soon, Fonoa is looking to revolutionise the way companies pay their taxes.

Founded in Dublin in 2019 by three Uber alumni, Davor Tremac, Filip Sturman and Ivan Ivankovic, Fonoa has developed a plug-and-play platform that allows customers to automate all relevant aspects to ensure tax compliance globally.

The Series B funding comes just a few months after Fonoa raised $25m to grow its team and expand internationally.

Its latest round was led by Coatue, a technology-focused investment manager based in New York. Dawn Capital, Index Ventures, OMERS Ventures, FJ Labs and Moving Capital were also backers in the latest round.

Tremac, who serves as Fonoa’s CEO, said the platform is helping a growing number of companies that are trying to reduce the cost of their operations and improve profitability. This coincides with a “heightened demand” for tax compliance across the world.

“Fonoa is the only tax software solution built for the digital age and means that companies can focus on what they do best while we make sure they charge the right amount of tax, in the right place, at the right time.”

Some of the companies that use the Fonoa platform to stay tax compliant include Uber, Zoom, and Teachable.

Demand for the company’s services has increased since the onset of the pandemic and the resultant e-commerce boom. According to Statista, online payments are expected to reach nearly $8.5tn in 2022.

“As more companies start global-first, tax compliance becomes increasingly important. However, managing, processing and reporting taxes is cumbersome and complex,” said Lucas Swisher, general partner at Coatue.

“From the moment we met Davor, Filip, Ivan and the rest of the Fonoa team, we were struck by the simplicity and effectiveness of the Fonoa platform to turn a complex process into a seamless one.”

Fonoa said it will use the funding to improve product features and continue its global expansion, with new products in the pipeline for the next 12 to 18 months.

The company, which has 110 employees across 20 countries, also expects to double in size by the end of the year.

10 things you need to know direct to your inbox every weekday. Sign up for the Daily Brief, Silicon Republic’s digest of essential sci-tech news.

Vish Gain is a journalist with Silicon Republic