Fonoa, a Dublin-based startup that helps corporations like Uber and Zoom with their tax compliance, has raised a $60m Sequence B spherical from a few of the world’s most well-known traders, together with Coatue, Index and Daybreak Capital.
The funding makes Fonoa certainly one of Eire’s best-funded tech corporations.
What does Fonoa do?
Fonoa, arrange by three ex-Uber staff, calls itself a one-stop-shop for company taxes: it automates taxation processes for ecommerce companies with an API. At the moment companies that function throughout totally different nations must cope with difficult and fragmented tax laws. Fonoa’s platform determines and calculates the correct quantity of tax to pay, no matter differing fiscal jurisdictions.
The platform is utilized by corporations reminiscent of Uber, Zoom, Reserving.com and Teachable.
The corporate is predicated in Eire, however its staff are distributed throughout over 20 nations and its operations centre is in Croatia; the founders are additionally Croats.
What’s the market like?
The startup can provide its companies on an unlimited market: with nearly each on-line fee, there’s a tax to be paid. And this sector is rising — on-line funds are anticipated to succeed in $8.5tn in 2022. As tax compliance is often dutifully enforced by nationwide and worldwide authorities (and any breach of guidelines may end up in massive fines), Fonoa’s purpose is to remove the difficult regulatory burden from companies’ shoulders.
Daybreak Capital (new)
Index Ventures (current)
OMERS Ventures (current)
FJ Labs (current)
Transferring Capital (current)
The final 4 corporations additionally participated within the firm’s Sequence A — Fonoa raised $20.5m in November 2021.
The corporate desires to make use of the funding to enhance its current provide and proceed its international growth. It additionally desires to launch new merchandise within the subsequent 12 to 18 months and tailor its platform to swimsuit extra enterprise fashions and industries together with SaaS, the gig economic system and content material creation. To attain this, it eyes doubling in dimension by the tip of the yr with a deal with engineering and gross sales.
The pandemic has strengthened the place of ecommerce companies in Europe and elsewhere — and because the sector expands, there’s a rising demand for B2B corporations that make their operations smoother in area of interest areas, like taxation. Fonoa’s progress is proving it: the corporate skilled seven-fold income progress in 2021 and it elevated its headcount five-fold to 110 staff over the past 12 months.
Zosia Wanat is Sifted’s central and jap Europe reporter, quickly to be primarily based in Warsaw however at the moment in Brussels. She tweets from @zosiawanat