TaxBuddy.com has raised $1 million (about Rs 7.4 crore) in an early-stage fundraise from Zenith Global, a United Arab Emirates-based fund.
Mumbai-based SSBA Innovations Pvt Ltd operates TaxBuddy.com as well as Finbingo.com, a personal finance and investment advisory platform.
SSBA Innovations was set up by Sujit Bangar, an alumnus of Harvard Business School who previously worked with the Indian Revenue Service.
TaxBuddy.com, launched last year, says it offers filing services for income tax and Goods and Services Tax (GST), among other things.
TaxBuddy.com operates a subscription-based model, with differentiated plans for individuals, businesses, non-resident Indians (NRIs), and combinations of these. It will use the capital it has raised for market outreach as well as deepening user engagement.
“Tax compliance and advisory services are distinct from other fintech services. The user needs to feel confident and trust that his compliance is in safe hands. Our people build that trust, and the technology helps us reach out to customers and expand the user base with zero concession on efficiency,” Bangar said.
Among companies that provide tax filing services in India, ClearTax is perhaps the best known.
The Bengaluru-based company has in recent months made moves to grow itself inorganically. In March, for example, it acquired the GST software business of Karvy Data Management Services, part of the financial services group Karvy.
In October 2018, the company raised $54.2 million (around Rs 400 crore), with the Hong Kong-based investment firm Composite Capital Management leading the investment round.