Stripe acquires TaxJar to help comply with sales tax
Payment technology company Stripe Inc. today revealed that it has acquired Tax, a startup that allows e-commerce sellers to manage sales tax, for an undisclosed price.
Founded in 2013, TaxJar promotes itself as the cutting edge technology solution for busy ecommerce sellers to manage sales tax. Founded by e-commerce merchants, the company’s cloud platform enables e-commerce merchants to spend less time on sales tax with solutions that solve complex sales tax problems. US sales taxes are billed state by state, making the system complicated to keep up with.
The idea for TaxJar started with its founders discussing the sales tax on fish tacos in 2012. Unlike many startups that have a solution trying to find a problem, the founders actually identified a problem that needed a solution and so a year later they launched TaxJar.
TaxJar allows e-commerce users to connect to sales channels, market or enterprise resource planning software with pre-built integrations, or the TaxJar application programming interface. The service offers both a sales tax liability calculator and supports the ability to file and submit sales tax returns with AutoFile, which, as the name suggests, is a filing system. automatic sales tax.
Notable TaxJar clients include CBS Corp., Coca-Cola Co., Dell Inc., Microsoft Corp., Eventbrite Inc., Robert Bosch GmbH, Honda Motor Co. Ltd. and Burt’s Bees Inc.
Prior to its acquisition by Stripe, TaxJar had worked closely with the company for the past five years to provide sales tax information to Stripe customers, first offering Stripe integration in February 2016.
“With TaxJar, we will help millions of internet businesses running on Stripe with their sales tax and make it easier for them to sell internationally,” said Dhivya Suryadevara, CFO of Stripe.
Stripe recently made headlines in March, when it announced that it had raised $ 600 million on a valuation of $ 95 billion. Advanced-stage funding and massive evaluation have stimulated speculation that Stripe will eventually go public in one form or another. A traditional initial public offering or direct listing are the obvious choices, but in 2021 a merger of special purpose acquisition companies cannot be ruled out either.
Prior to its acquisition by Stripe, TaxJar had raised $ 62.6 million, data shows from Pitchbook. Investors included Insight Partners, Bonfire Ventures and Daher Capital.
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