Silicon Valley-based Kintsugi has secured eighteen million dollars in new financing, with Vertex leading the round as part of its broader move into tax technology. The funding will allow Kintsugi to expand access to its artificial intelligence solutions for small and medium businesses seeking help with sales tax calculations and filings. The boom in online commerce and increasingly sophisticated tax laws worldwide are fueling growing demand for automated compliance software. Kintsugi’s platform links directly to leading revenue channels like Shopify, Stripe, Chargebee, QuickBooks, and custom APIs, offering instant tax calculations and a complete revenue overview.
Growth and Expansion Plans
The company’s co-founder and chief executive says their vision is to make tax compliance as easy as ride-hailing or credit card processing, aiming to cover requirements for more than one hundred seventy countries. The 2018 Supreme Court ruling that changed sales tax obligations for online sellers marked a major industry shift, allowing states to collect more tax from ecommerce and posing both challenges and opportunities for online businesses.
Competitors such as Avalara benefited from the policy shift, but startups like Kintsugi are bringing new approaches thanks to artificial intelligence innovation. Kintsugi claims it operates at half the cost of leading rivals and automates filings, allowing businesses to determine and settle sales tax liabilities in just minutes each month.
The software offers free liability calculations and a paid tax filing service, with optional automatic remittance to further streamline the process for users. Kintsugi reported three million dollars in annual revenue last year and projects growth to more than ten million dollars by the end of next year.
Customer retention remains high, with a 0.1 percent churn rate and twenty-four hundred active clients ranging from start-ups to enterprises making up to five hundred million dollars in sales. The platform is particularly popular among SaaS businesses, processing more than five point five million transactions valued at seven point seven billion dollars.
Vertex, with its strong presence among large multinational clients, views Kintsugi’s technology as the ideal fit for serving the small business segment. The partnership between the two companies involves a minority investment, intellectual property sharing, and a commercial arrangement tied to revenue sharing.
Kintsugi’s post-investment valuation now stands at one hundred fifty million dollars, a significant increase from last year. Vertex also intends to direct up to twelve million additional dollars toward advancing artificial intelligence and will integrate Kintsugi’s capabilities to scale future developments.
Boasting profit margins above ninety-three percent, the Kintsugi team of ninety-five employees is working to broaden their reach beyond North America and Europe into markets across South America, Africa, and Asia. The partnership with Vertex is set to open new opportunities across industries as the company continues to grow and innovate in automated tax compliance.
