Kintsugi, a startup founded in Silicon Valley, builds tools to automate sales tax compliance for businesses. As proof of their momentum, they have just successfully raised $18 million in a new funding round. Vertex, the foremost provider of tax technology solutions for business globally, leads this investment. In the wake of this new round, Kintsugi’s post-money valuation more than doubles to $150 million – a staggering increase from its $80 million valuation just six months earlier.
Founded in 2023, Kintsugi offers the only platform that puts operators in control of their sales tax liability. In fact, with only seven clicks and three minutes, users can extract outstanding efficiency from the process. That simplicity has attracted over 2,400 clients. They run the gamut from pre-revenue startups to more mature companies with revenues between $50 million and $500 million.
In addition to the $18 million raised, Kintsugi has secured another $3 million from its existing investors, showcasing strong ongoing support from its financial backers. With annual revenue reaching $3 million last year, the startup aims to surpass $10 million by the end of 2025.
The customer portfolio of Kintsugi is impressive for its size and wide breadth. Software as a service (SaaS) companies—about 45% of our clients are SaaS companies. As partners, they collectively oversee a mind−boggling 5.5 billion transactions valued at $7.7 trillion. In addition, the churn rate for the startup is only 0.1%, which reflects positive customer experience and great customer retention.
The company’s robust financials are highlighted by profit margins of over 93%, showing the company’s operational efficiency. Having a workforce of 95 employees, Kintsugi is thus well-poised to scale its operations and expand its market reach.
Kintsugi’s ambitions extend beyond the United States. And the company is preparing to expand its services to South America and Africa. It will additionally venture Eastward, as far as India and China. Our commitment to this global focus is reflected in Kintsugi’s mission to make compliance easier in all 171 countries around the world.
Kintsugi’s co-founder Pujun Bhatnagar articulated this vision for his company by comparing it to other titans of industry.
“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.” – Pujun Bhatnagar
The addition of artificial intelligence into its platform is one part of Kintsugi’s stated focus on improving service efficiency and effectiveness. For Patel, a spokesman for Vertex, this investment in AI is essential to the company’s growth path.
“We’re already investing in AI, but we are a publicly traded company that has quarterly pressures.” – Patel
Kintsugi’s dedication to offering the best sales tax compliance solution amid today’s multi-faceted regulatory landscape truly makes them unique. The relatively new startup is booming, landing both big deals and big investment. It is primed to lead a business revolution on how they account for their tax liabilities across the globe.
“So to the extent we can accelerate some of that by leveraging the innovation that’s happening at Kintsugi.” – Patel
Kintsugi’s commitment to providing an efficient sales tax compliance solution stands out in an increasingly complex regulatory environment. As it continues to grow and attract investment, the startup is poised to redefine how businesses manage their tax liabilities on a global scale.