ClearTax, a start-up that helps individuals and businesses to file tax returns online, has raised $12 million in its Series A round, led by SAIF Partners.
This funding news comes just after a couple of weeks of raising $2 million in pre-Series A round. The pre-Series A round was raised from Sequoia Capital India and Founders Fund Angel. Investment in ClearTax marked Founders Fund’s first investment in India.
Prior to that, in April, it had raised $1.3 million in angel funding. That round was participation from Silicon Valley-based angel investors. The investors includes Max Levchin, Neeraj Arora, Scott Bannister, Cyan Bannister and Naval Ravikant, among others.
ClearTax plans to use the money towards building new products and strengthening its engineering team. It further plans to hire about 150 engineers to build a strong tech presence.
Founded in 2011, ClearTax was generating profits until late 2015 when it raised its first angel funding and decided to step up expansion plans.
“We could have scaled at a slow pace but we decided to move fast, invest heavily on research and development; and make some long-term bets,” said Archit Gupta, who is the founder and CEO of ClearTax.
The firm, which in 2015 saw a million users use its online portal, is eyeing close to three million users in 2016. ClearTax has partnered with 1,000 chartered accountants, helping them file tax returns, across the country.
It gets 60% of its business by offering its services to institutions. The rest comes from directly transacting with consumers. It works with over 300 small and medium businesses and 11 banks. The company wants to head to the global market, but firstly, it intends to focus on expanding its presence in India.
ClearTax will also be looking to tap into consumer and business taxes, tax savings and investments. It is already working towards making a product that can help in complying with GST.
The company charges from Rs. 600 to Rs. 13,000 for filing taxes through its portal or mobile app. It claims that over 1 million users e-filed their tax returns through ClearTax during the 2015-16 fiscal.
Ravi Adusumalli, Managing Partner, SAIF partners, said,
ClearTax team has demonstrated distinctive growth over last five years. It has built the largest tax-filing platform in India. We are very excited to partner with Archit and team. They are translating their market leadership in the tax filing space to become one of the largest fin-tech platforms in India.