OnlinePajak, the largest provider of tax compliance solutions in Indonesia, has raised over $25 million in Series B funding in a round led by an affiliate of Warburg Pincus, a leading global private equity firm, with participation from Global Innovation Fund and Endeavor Catalyst. Existing investors Alpha JWC Ventures, Sequoia India, and Primedge also took part in the round.
In Indonesia, the vast majority of government revenues come from taxation, but current collection rates remain low due to a complex and weak tax system. Companies are burdened with having to report 15 different types of taxes multiple times per month, resulting in only 10% of more than 5 million companies fulfilling their tax obligation.
Founded in 2015 by Endeavor Entrepreneur Charles Guinot, OnlinePajak is a fully-integrated web-based tax application that allows taxpayers to perform calculations, payments, and tax reporting in a single platform so that each taxpayer, whether individuals or entities, can meet their tax obligations. As part of Indonesia’s business community, OnlinePajak remains committed to having a long-term positive impact through driving the digital ecosystem in the country, and more.
“The Series B financing by the industry’s leading Private Equity / Venture Capital players is a validation of our business model,” commented Charles Guinot, Founder and CEO of OnlinePajak in the company’s press release announcing the round. “With the new investment, we are going to unleash a true revolution in tax compliance through technologies such as artificial intelligence and blockchain technology. We plan to significantly accelerate the expansion of our capabilities to continue benefit the taxpayers as well as the Indonesian government.”
The first tax application to implement blockchain technology, OnlinePajak has built a deeply-integrated solid freemium business model on which users can manage their taxes for free with additional premium features such as invoicing and payroll. Since its launch in September 2015, OnlinePajak has been embraced by more than 900,000 users. In September 2016, OnlinePajak was selected into the Endeavor network at the 66th Endeavor International Selection Panel in Boston, Massachusetts. In April 2018, OnlinePajak was recognized by the World Economic Forum as one of the world’s tech pioneers.
“The company is very proud to count impact-first investors such as Global Innovation Fund, Primedge and Endeavor Catalyst as shareholders who are aligned with the company’s core social mission and long term vision,” the team shared in their announcement.
Read more about the round in the company’s press release here.