In what is one of the biggest series A funding rounds announced this year, Online tax returns filing platform ClearTax has raised Rs 80 crore, from SAIF Partners. As part of the deal, Ravi Adusumalli, managing partner at SAIF, has joined the board of ClearTax’s Delaware, USA-based entity ‘Software is Correct’.
ClearTax that is owned and operated by five year-old company Defmacro Software, plans to use the proceeds from the round to launch a slew of consumer-focused tax-saving products, including mutual funds and other equity-linked saving schemes. Its co-founder Archit Gupta said in a statement:
“A typical agent is very bias. To solve for this, our products will be data driven, and completely transparent, to the extent that we will publish our commissions on the site itself,”
Adusumalli said on this development:
“We are very excited to partner with Archit and team as they translate their market leadership in tax filing space to become one of the largest fin-tech platforms in India.”
According to Gupta, ClearTax has over 1 million consumers e-filing their tax returns, and the company is targeting bringing on board five million users, 75,000 CA firms and one lakh businesses by the end of the current fiscal year. This move into online investment advisory will pitch it against startups like FundsIndia, backed by Inventus Capital and Faering Capital, and Aditya Birla Group’s MyUniverse in which World Bank’s investment arm IFC owns a stake.
ClearTax was among the first domestic startups to participate in the prestigious Silicon Valley-based startup accelerator Y Combinator’s programme in 2014 and counts PayPal cofounder Max Levchin, WhatsApp early member Neeraj Arora and Dropbox VP Ruchi Sanghvi among its investors.
Gupta founded ClearTax along with his chartered accountant father Raja Ram Gupta, Srivatsan Chari and Ankit Solanki.