Automated financial compliance platform Taxdoo plans to triple its headcount in the next 12 months as it expands across Europe.
German start-up Taxdoo has today (15 December) announced that it closed €17m in Series A funding.
The funding round was led by global venture capital firm Accel, with participation from Visionaries Club, 20VC and existing investor HTGF.
Founded in 2016, Taxdoo has developed an automated platform for financial compliance in e-commerce, helping businesses manage VAT, financial accounting and compliance requirements.
The company’s founders, Matthias Allmendinger, Roger Gothmann and Christian Königsheim, identified automation as a way to ease the burden of these financial tasks while completing their PhDs in finance and economics at the University of Hamburg.
Additionally, Gothmann brought experience from working for tax authorities and at the German ministry of finance.
With Covid-19 restrictions all over the world pushing more businesses online, e-commerce in Europe is forecast to exceed €700bn in value in 2020 and demand for automation is growing.
Taxdoo said the latest funding will support the company’s rapid growth through international expansion, increased hiring, R&D, sales and customer support.
‘Seamless cross-border commerce’
Taxdoo currently has more than 1,000 customers across Germany, Austria and Switzerland. The company plans to expand in the coming months to support all global sellers active in the EU market and it intends to triple its headcount to more than 150 by the end of 2021. The roles will be predominantly engineering, sales and marketing positions based in Hamburg.
Co-founder Königsheim said the goal is to “contribute to seamless cross-border commerce in Europe and beyond” to enable companies to focus on their core business instead of bureaucracy.
“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.”
Accel partner Harry Nelis, who has joined the Taxdoo board, added that the company’s founders bring together unique experience at the intersection of tax, finance and software.
“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,” he said.