TaxJar, which makes tax automation software for e-commerce businesses, has closed a $60 million growth equity round of funding led by Insight Venture Partners.
Tax automation providers are enjoying a moment in 2019, since the 2018 Supreme Court decision on online sales tax in the South Dakota v. Wayfair decision, and as the current administration overhauls tax law.
TaxJar’s seed round raised $2 million and was led by Rincon Venture Partners and Daher Capital in 2014. The company reported it reached profitability in 2016.
According to TaxJar, this latest round of funding will allow the company to aggressively hire and expand its remote team of nearly 60 in addition to accelerating product development, research and marketing for its new mid-market offering, TaxJar Plus.
“This is a great event for our customers,” said Mark Faggiano, founder and CEO of TaxJar, in a statement. “We’ll have the ability to expand our resources to continue to build the world’s best automated sales tax solution. We’re focused on delivering even more value to the more than 15,000 small business merchants who already trust us with their compliance, and in addition, we’re excited to accelerate growth to meet more complex customer needs with TaxJar Plus.”
TaxJar’s software is designed to provide customers with a multi-channel sales tax experience and real-time sales tax calculations. TaxJar Plus targets high-volume e-commerce businesses. The new product has the ability to handle the complexities of state nexus as well.
TaxJar also offers TaxJar Reports, a multi-channel reporting feature that organizes sales tax data into return-ready state reports; TaxJar AutoFile, a service that automatically files sales tax returns in any state; and SmartCalcs API, a sales tax calculations application programming interface for developers.