ClearTax raises $50 million in fresh funding led by Composite Capital

Online tax filing and compliance startup ClearTax has raised $50 million (around Rs 3.67 billion) in fresh funding led by Hong Kong-based Composite Capital as it looks to expand its product and services offerings to customers on its platform.

The company which started off with helping individuals file their personal taxes today has expanded into offering solutions for GST and E-waybills and also services such as incorporating businesses and for compliance.

It claims 2.5 million individual taxpayers utilised its service this year with millenials forming a majority of its user base. On the B2B front, over 100,000 businesses and 25,000 chartered accountant firms utilise its GST platform since the introduction of the scheme.

“With this new investment, we have more firepower to focus on our mission, accelerate our growth trajectory and continue to invest in technology and innovate our platforms to meet expanding customer needs,” said Archit Gupta, Founder and CEO of ClearTax, in a statement.

ClearTax did not disclose the terms of its latest investment. The company had raised $12 million in its Series A round, in mid 2016 and has raised a little over $15 million so far. It’s other investors include Y Combinator, SAIF Partners, Founder’s Fund and Sequoia Capital.

The new investment comes at a time when competition in spaces such as mutual fund investments, which ClearTax wants to play in, is heating up with the entry of giants such as Paytm. Direct mutual fund buying platforms have cut their fees and are offering their services to customers free of cost in order to acquire as many of them as possible.