Stripe acquires TaxJar to help online businesses comply with taxation
Stripe acquired TaxJar as part of a purchase to strengthen the power of its growing payment platform.
TaxJar is a cloud-based tax service provider that includes tools for calculating, reporting and reporting sales taxes with Stripe keen to leverage the company’s ability to manage different tax arrangements across geographic boundaries. .
Although no pricing has been made public, TaxJar was valued at $ 179 million in a 2019 fundraiser. Stripe has also grown rapidly and the private payment platform is now valued at 95. billions of dollars.
Following the acquisition, TaxJar’s 200 employees will join Stripe’s payroll, with the company’s technology likely to be integrated into the Stripe revenue platform alongside Stripe Billing and Radar. The former offers a suite of subscription payment tools, while the latter provides fraud prevention technology.
However, businesses will still be able to use TaxJar as is, although it is likely that Stripe will combine its suite of tools into other AI-based products in the future.
Stripe has previously sought to strengthen its tax-focused product portfolio with the purchase of Payable in 2017, using its specialization in helping 1,099 reports for clients who pay subcontractors.
The company also worked with Intuit to help on-demand workers better manage their finances.
However, acquiring TaxJar is expected to give Stripe an edge in the sales tax and remittances areas of its business, both of which are seen as the most requested features by existing users.
“There’s a reason TaxJar has been a top choice for businesses – their software tools make it incredibly easy to manage sales tax,” said Dhivya Suryadevara, CFO of Stripe. “With TaxJar, we will help millions of internet businesses operating on Stripe with their sales tax and make it easier for them to sell internationally. And as CFO, I’m delighted to welcome so many new colleagues who care deeply about taxes! “