Kintsugi, a Silicon Valley-based startup specializing in AI-driven sales tax compliance solutions, has secured $18 million in new funding. The investment round was led by Vertex, a global provider of indirect tax technology, and includes contributions from existing investors. This latest funding values Kintsugi at $150 million post-money, doubling its valuation from just six months prior.
The company’s platform integrates with e-commerce systems like Shopify, Stripe, and QuickBooks to automate tax calculations and filings. By leveraging AI, Kintsugi simplifies compliance for businesses navigating complex tax regulations across 171 countries. Co-founder and CEO Pujun Bhatnagar likened the startup’s mission to Uber’s disruption of transportation and Stripe’s impact on payments, emphasizing its goal to democratize tax compliance for small and medium-sized businesses.
Kintsugi’s growth is fueled by the 2018 Supreme Court ruling in South Dakota v. Wayfair, which expanded states’ authority to collect sales tax from online sellers. This regulatory shift created demand for automated solutions, with Kintsugi positioning itself as a cost-effective alternative to established players like Avalara. The startup claims its services are priced at half the cost of competitors while enabling users to manage tax obligations in minutes through an intuitive interface.
Key features of the platform include free tax liability calculations, automated filings via the “auto remit” option, and integration with diverse revenue channels. Kintsugi reported $3 million in annual revenue for 2024 and aims to surpass $10 million by the end of 2025. With a customer base of 2,400 businesses—ranging from startups to enterprises generating up to $500 million in revenue—the company boasts a 0.1% churn rate and 93% profit margins.
Vertex’s strategic investment includes a $15 million minority stake, intellectual property sharing, and a revenue-based commercial partnership. The collaboration allows Vertex to extend its enterprise-focused tax solutions to smaller businesses through Kintsugi’s scalable platform. Additionally, Vertex has committed $10–$12 million to advance AI capabilities using Kintsugi’s technology, accelerating innovation in tax automation.
Kintsugi plans to expand into South America, Africa, and Asia, building on its existing presence in the U.S., Canada, and Europe. Currently, SaaS companies account for 45% of its clients, processing 5.5 million transactions worth $7.7 billion annually. The partnership with Vertex is expected to diversify its clientele across industries, further solidifying its position in the global tax compliance market.
