San Francisco-based start-up Kintsugi has secured a $6 million Series A funding round, bringing the company’s valuation up to around $40 million. The company, founded in 2021 by CEO Pujun Bhatnagar, has attracted investment from Link Ventures, Venture Highway, KyberKnight, Plug and Play, DeVC, and several angel investors. Kintsugi specializes in assisting businesses with sales tax compliance, offering software that automates the often complex and time-consuming process.
The company’s software aims to help businesses navigate the increasingly complex landscape of sales tax regulations in the US. Failure to comply with these regulations can result in significant penalties, costs, and reputational damage. By automating the compliance process, Kintsugi’s technology allows businesses to save time and resources that would otherwise be spent on manual processes. CEO Pujun Bhatnagar emphasizes that compliance is essential for businesses, even though it does not directly generate revenue.
The challenges facing US businesses dealing with sales tax compliance were further complicated by a Supreme Court ruling in 2018, requiring online sellers to collect and remit sales tax to the relevant jurisdictions. Businesses are now tasked with identifying where each customer is located – whether in a different state or country – in order to calculate and charge the correct sales tax. Kintsugi’s software aids in this process by automatically collecting information at the point of sale and calculating the appropriate tax for each transaction, saving businesses time and reducing the risk of errors.
Kintsugi’s software is driven by machine learning technology, which constantly monitors changes in sales tax regulations across various jurisdictions. This ensures that the calculations made by the software remain compliant with the current rules, providing businesses with peace of mind when it comes to sales tax compliance. The company’s founders, including a machine learning engineer from Facebook, saw an opportunity to create a solution in response to the challenges posed by the evolving sales tax landscape.
With around 300 customers already using its software to process millions of transactions, Kintsugi plans to expand its reach beyond the US. The company aims to launch in Canada, the UK, and other parts of Europe, leveraging the funding raised to support its growth. Investors believe in the potential for Kintsugi’s technology to streamline sales tax compliance for businesses, freeing up resources and allowing companies to focus on their core operations. Kintsugi’s AI-driven approach is designed to make compliance fast and efficient, helping businesses stay on top of ever-changing tax laws.
