Taxfyle, an on-demand tax filing app, has announced the closing of its oversubscribed $20-million Series B financing round led by Fuel Venture Capital and IDC Ventures.
What Happened: The company says the funding will support Taxfyle’s exponential growth by adding key personnel to further develop the Taxfyle Platform.
“Since our last funding round in 2018, we’ve seen rapid growth in customer acquisition and interest from CPA firms and fintech companies, especially during the pandemic," said co-founder and CEO of Taxfyle Ricky Laviña.
"We are thrilled to have the support of Fuel Venture Capital and IDC Ventures as we move into the next phase of development — making our workforce of independently contracted professionals more accessible.”
Why It's Important: Taxfyle has now raised more than $35 million since it first launched in Miami in 2015 and has consistently grown more than 200% year-over-year, twice landing on the Inc. 5000 list for the fastest growing companies in America.
“The team at Taxfyle has been working diligently in capitalizing on the momentum gained after the prior round of funding," said Jeff Ransdell, managing director and founding partner of Fuel Venture Capital.
"The application has changed the way CPAs gain new customers, and there is no going back. We are looking forward to seeing its expansion across the U.S. and with its strategic partners.”
Taxfyle says the pandemic drew thousands of new customers to its platform for its virtual, affordable and convenient tax prep services, while hundreds of CPA firms came to rely on Taxfyle’s workforce to address staffing shortages.
The Last Word: The company notes that the new application programming interface (API) will allow partners to easily add tax prep to their current suite of services without significant overhead. Current and potential partners include banks, online payment processors, HR providers and wealth management companies.
Photo: Courtesy of taxfyle.com.
