Tax automation platform Fonoa raises $60m Series B
Dublin-based tax automation firm Fonoa has raised $60 million in a Series B funding round.
The round was led by Coatue and saw participation from Dawn Capital, Index Ventures, OMERS Ventures, FJ Labs and Moving Capital, among others.
The firm says the funding follows “impressive” revenue growth in 2021 and will go towards doubling the company’s headcount, improving the features of its product and expanding into new markets.
Fonoa says demand for its taxation services has grown as a result of the Covid-19 pandemic which prompted an e-commerce boom.
The firm supports digital-first companies in reporting and abiding by the tax obligations in every country they operate in.
Fonoa’s plug-and-play API-based platform verifies the tax status of buyer and seller, calculates the correct tax to charge and creates a locally compliant invoice after a transaction takes place, while also providing real-time reporting to a country’s government.
Fonoa CEO and co-founder Davor Tremac says: “As we’ve grown as a business, we’ve seen a number of companies wishing to reduce the cost of their operations and improve profitability when it comes to managing their indirect taxes.
“At the same time, we’ve seen countries across the globe try to close their VAT gaps through new regulations, and so there has been heightened demand for companies to increase their compliance.”