Fast-rising AI sales tax startup Kintsugi has secured $18 million in new funding, doubling its valuation in just six months to $150 million post-money. The round was led by global tax technology firm Vertex, marking a strategic partnership that pairs legacy tax compliance expertise with new-age AI disruption.
Founded in 2023, Kintsugi has rapidly gained traction by offering AI-powered tools that help businesses automate sales tax calculation and filing across 171 countries. The startup integrates seamlessly with platforms like Shopify, Stripe, QuickBooks, and Chargebee to provide a real-time, 360-degree view of a company’s tax liability.
“Our vision is to do for tax compliance what Uber did for taxis and Stripe did for payments,” said Pujun Bhatnagar, co-founder and CEO of Kintsugi, in an exclusive with TechCrunch.
AI-Powered, CPA-Free Sales Tax Filing
Kintsugi differentiates itself from legacy players like Avalara by offering AI-backed automation at half the cost, eliminating the need for CPAs. Users can get started in under three minutes and file monthly taxes in just a few clicks.
The tool is free to use for sales tax liability calculations, with charges only applied to filings. An optional auto-remit feature enables full automation once integrated.
“In seven clicks and three minutes, any operator can install our app and start managing taxes without hiring a CPA,” Bhatnagar said.
With $3 million in annual revenue last year and a target to surpass $10 million by the end of 2025, Kintsugi already boasts 2,400 customers, ranging from pre-revenue startups to businesses pulling in up to $500 million annually. Impressively, it has maintained a churn rate of just 0.1% and profit margins over 93%.
Vertex Partnership Brings Synergy and Scale
The funding round includes a $15 million minority investment from Vertex in exchange for a 10% stake, alongside a $3 million top-up from existing investors. Terms also involve IP sharing, a commercial revenue-sharing model, and collaborative efforts to push AI development.
“Kintsugi is incredibly specialized at servicing small businesses—a segment we don’t currently reach,” said Chirag Patel, Chief Strategy Officer at Vertex. “Together, we can scale something really powerful.”
Vertex, a 47-year-old publicly traded firm, also committed $10–$12 million toward AI advancements, aiming to leverage Kintsugi’s IP to accelerate innovation while staying lean under quarterly pressures.
Global Expansion and SaaS Dominance
Kintsugi currently processes 5.5 million SaaS transactions valued at $7.7 billion, with SaaS companies making up 45% of its client base. The team of 95 employees has already expanded into Canada and Europe and is now eyeing South America, Africa, India, China, and beyond.
As e-commerce and global trade continue to soar, the AI sales tax startup is well-positioned to ride the wave of automation, and with fresh capital and a heavyweight partner on board, it’s only just getting started.
Get the Latest AI News on AI Content Minds Blog