Taxfix, a digital tax app aimed at simplifying the process of filing a tax return, has raised USD65 million in a Series C round from investors including Index Ventures and Creandum.
The company will use the funds to grow its 200-strong team by another 100 people, as it broadens its range of products and expands into new countries later this year, including its operations in Europe.
The round was led by Index Ventures, with partner Neil Rimer joining the Taxfix board. Existing investors Valar Ventures, Creandum and Redalpine also participated in the round.
Taxfix was founded in 2016 in Berlin by Mathis Büchi and Lino Teuteberg. Mathis Büchi said: ‘What drove us to start Taxfix was seeing how much money people are losing because they can’t face doing their tax returns. We wanted to have the biggest impact we could, and that meant going after a boring problem like taxes.
He continued: “We are not particularly passionate about taxes per se, but we care about helping people with things they really struggle with. Right now, with the financial pressure people are facing with Covid-19, it’s particularly important that people can easily claim back their tax refunds.”
Living in Germany, Büchi and Teuteberg learned that the average taxpayer is entitled to receive around EUR 1,000 at the end of the financial year. According to government data, more than seven million eligible employees don’t bother to file a return, forfeiting billions of euros of unclaimed tax refunds every year.
“Every year, individual taxpayers overpay tens of billions of euros in taxes. This is in large part because the process of getting a refund from the authorities is too daunting and tedious,” said Neil Rimer, Index Ventures partner who led the investment.
“Taxfix have made filing tax returns simple and affordable for everyone, and so are putting millions of euros back in people’s hands every day,” he added.