Berlin-based startup Taxfix has completed a Series C round of financing worth $ 65 million. Index Ventures leads the round with Neil Rimer. The company started its fundraising process before the corona virus process and was able to sign all contracts a few days ago.
As the name suggests, Taxfix believes tax filing continues to be broken in many countries. The company has developed a mobile app to support you in this process. If you want, there is also a web version.
The app asks you simple questions to maximize your tax refunds. When you start answering questions, Taxfix selects the next relevant questions and hides questions that do not apply to your current situation. Taxfix accepts photos from your payslip so you don't have to submit forms. Your submission will then be submitted to the tax office.
Taxfix costs € 34.99 if the app calculates tax returns of at least € 50. It's a fairly low threshold, so most users will likely pay $ 35 at the end of the process. Taxfix is currently active in Germany, France and Italy.
Overall, the startup has contributed to collecting 270 million euros for hundreds of thousands of users. The company does not compete with people who have already filed tax returns each year. Many people are just too lazy to file tax returns – they represent the core audience of Taxfix.
Many software companies have developed tax return apps for US taxpayers. But Europe is a fragmented market when it comes to taxes. For this reason, there are fewer apps for tax returns in Europe than in the United States. Taxfix is now planning to expand into more European countries and adapt its product to local regulations in different markets.
The company plans to add 100 people to its team, in addition to its 200-strong team. Existing investors Valar Ventures, Creandum and Redalpine are also taking part in today's financing round.