Tax automation firm Fonoa raises $25m for international expansion
Global tax automation platform provider Fonoa has raised $25 million. Investors in the funding round include Index Ventures, Omers Ventures, FJ Labs and Moving Capital.
Also involved were angel investors including Gautam Gupta (ex-COO and CFO at Opendoor and Uber), Kevin Hartz (founder at Eventbrite), Prabir Adarkar (CFO at Doordash), Carlos Gonzalez-Cadenas (former COO at GoCardless) and Allison Barr Allen (COO at Fast).
Fonoa lists Lime, Uber, Teachable, GoStudent and Zoom among the customers for its API-based global tax calculation and reporting platform. It claims to have surpassed 300 million tax transactions per year.
The company was set up in 2020 on the premise that, while technology is driving trade at an ever-increasing pace, it has become harder for digital businesses to understand and manage global tax and compliance obligations.
Automation options are limited and manual processes remain the norm, forcing companies with cross-border transactions to rely on costly and complex solutions to manage their international tax footprint.
Fonoa’s target market includes marketplaces, digital service providers, micromobility operators, gig economy platforms and subscription-based companies.
Its modular platform integrates into customer workflows to handle the full chain of tax reporting. It verifies the tax status of the buyer and seller, calculates the correct tax to charge, and creates a locally compliant invoice after a transaction takes place. It also allows for automatic, real-time reporting of transactions to a country’s government where required.
It was founded by three Uber alumni – Davor Tremac, Filip Sturman, Ivan Ivankovic – and now claims to support tax automation transactions across more than 100 countries, with the aim to support over 140 countries by the end of the year.
The funding is intended to fuel the international expansion and hiring across all areas of the business. Fonoa is based in Dublin but has a remote-first business model, reflected in a distributed team across 14 countries.