• Croatia-founded Fonoa raised $60M to expand its global tax solutions
• The Series B funding round is led by Coatue, with Dawn Capital, Index Ventures, OMERS Ventures, FJ Labs, Moving Capital joining.
• Demand for taxation services grows as COVID-19 pandemic prompts an e-commerce boom expected to reach $8.5tn in 2022
Fonoa’s latest funding comes half a year after their $25M Series A round. The fintech company aims to transform the way tech companies including Uber, Zoom, Booking.com, Spotify, Teachable and Remote.com stay tax compliant.
Fonoa’s platform is the first digital tax solution with global coverage, providing a plug-and-play modular platform that helps businesses convert costly and complex processes into automatic ones.
Using a simple API solution, Fonoa determines and calculates the right amount of tax a business should pay. In turn, this results in greater profitability for customers who can reduce their operating costs and increase their tax compliance at the same time.
According to Fonoa’s CEO and co-founder Davor Tremac, there is a number of companies that want 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. Fonoa is the only tax software solution built for the digital age and means that companies can focus on what they do best while we make sure they charge the right amount of tax, in the right place, at the right time,” Tremac said in a press release.
The company plans to use the latest funding to improve the features of its product and continue its global expansion. Fonoa also plans to launch new products in the next 12 to 18 months, and to double its headcount from the current fully remote team of 110 employees across 20 countries.
Scaling to meet increasing demand for tax compliant solutions
For global investment company Coatue, supporting Fonoa comes at the right time, especially with the company scaling its platform to meet the increasing demand for tax compliant solutions.
“As more companies start global-first, tax compliance becomes increasingly important. However, managing, processing and reporting taxes is cumbersome and complex,” said Lucas Swisher, general partner at Coatue.
According to Dawn Capital’s Mina Mutafchieva, Fonoa’s ability to enter new markets with complex tax regimes is of great value to any size of businesses.
“Scaling across borders is a challenge for any size of organization and controlling costs has never been more important. Being able to enter new markets with complex tax regimes using Fonoa’s automated tax compliance, is of great value to any size of business, saving both cost and time and providing invaluable governance support in a digital world,” Mutafchieva added.