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.
âWith TaxJar, we will help millions of internet businesses running on Stripe with their sales tax and make it easier for them to sell internationally,â 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.
Since you are here …
Show your support for our mission with our one-click subscription to our YouTube channel (below). The more subscribers we have, the more YouTube will bring you content relevant to emerging businesses and technologies. Thank you!
Support our mission: >>>>>> SIGN UP NOW >>>>>> on our YouTube channel.
â¦ We would also like to tell you about our mission and how you can help us fulfill it. SiliconANGLE Media Inc.’s business model is based on the intrinsic value of content, not advertising. Unlike many online publications, we don’t have a payment wall or banner ads because we want to keep our journalism open, without influence or the need to drive traffic.The journalism, reporting and commentary on SiliconANGLE – plus unscripted live video from our Silicon Valley studio and globe-trotting video teams at The cube – requires a lot of work, time and money. Maintaining high quality requires the support of sponsors who are aligned with our vision of ad-free journalistic content.
If you enjoy reporting, video interviews, and other ad-free content here, please take a moment to view a sample of the video content supported by our sponsors, tweet your support, and keep coming back to Silicon ANGLE.