San Francisco-based tax tech startup Kintsugi is making headlines after securing $18 million in fresh funding, doubling its valuation in just six months. The funding round was led by Vertex, a global player in tax software, marking a strategic partnership poised to shake up how small and mid-sized companies handle sales tax compliance.
Founded in 2023, Kintsugi is transforming how businesses calculate and file sales taxes by leveraging artificial intelligence. Its platform integrates directly with platforms like Shopify, Stripe, QuickBooks, and Chargebee, helping companies gain a unified view of revenue streams while automating tax calculations and submissions.
“Our mission is to simplify global tax compliance—what Uber did for transport and Stripe for payments, we aim to do for taxes,” said CEO and co-founder Pujun Bhatnagar.
Compliance Made Seamless
What sets Kintsugi apart is its ease of use and affordability. Designed for operators without an accounting background, the solution enables users to calculate liabilities and file returns with just a few clicks each month. The company offers free tax liability analysis, while revenue is generated through filing services and an optional auto-remit feature.
Kintsugi’s model is proving successful. With 2,400 customers and 93% profit margins, the startup generated $3 million in 2024 and is aiming to surpass $10 million by the end of 2025. Its current clientele includes everything from bootstrapped ventures to enterprises handling over $500 million in annual revenue.
Strategic Investment and Global Ambitions
Vertex’s financial support goes beyond a typical investment. The publicly traded tax software provider plans to invest an additional $10–12 million into AI development, fueled by Kintsugi’s technology stack. This gives Vertex a strategic advantage in enhancing its AI roadmap without the typical constraints of corporate R&D cycles.
“Partnering with a nimble startup like Kintsugi gives us the innovation velocity we need,” said Vertex executive David Patel.
Already present in North America and Europe, Kintsugi plans to extend its footprint into South America, India, China, and other regions, pushing its mission to simplify compliance across 171 countries.
Market Momentum
Kintsugi’s rise comes at a critical time. Since the 2018 U.S. Supreme Court decision enabling states to tax online sellers, e-commerce firms have faced mounting compliance challenges. While established companies like Avalara seized the initial opportunity, Kintsugi is carving out a niche by offering a more agile, AI-driven alternative—at half the cost.
Nearly half of Kintsugi’s customer base is composed of SaaS businesses, but its strategic alignment with Vertex is expected to help expand its reach into new verticals.
Conclusion: Redefining Tax Compliance for the Digital Economy
Kintsugi is rapidly becoming a key player in tax tech, combining strong product-market fit with a scalable AI platform. As global digital commerce accelerates, the demand for automated, affordable, and frictionless compliance solutions is only going up. With this latest funding round and a strategic partner in Vertex, Kintsugi is well-positioned to lead that evolution.