Taxfyle, the Miami-based startup that connects consumers and businesses with licensed tax professionals, announced today it raised a $20 million Series B financing round led by Fuel Venture Capital and IDC Ventures.
Coming off a year of 300% growth in 2021, CEO Richard Laviña said this “Uber for taxes” plans to use the funding to make platform improvements, onboard more accounting pros, and significantly expand its 75-person team. The team is already outgrowing its Coconut Grove offices and Laviña hopes to expand the office space or seek out another location, he said in an interview Monday.
Taxfyle, co-founded by Laviña, Will Sahatdjian (CTO) and Michael Mouriz (COO) in 2015, has now raised more than $35 million and has consistently grown over 200% year over year. Taxfyle has twice landed on the Inc. 5000 list for the fastest growing companies in America.
While the pandemic drew thousands of new consumers to Taxfyle’s on-demand app for tax prep services, 225 CPA firms also have come to rely on Taxfyle’s workforce to address staffing shortages, Laviña said. In response, Taxfyle has grown its platform of licensed accounting professionals to 3,700. With plans to double that number, Taxfyle will continue onboarding about 100 more professionals to the platform every month, Laviña said. Its service is available in all 50 states.
“Taxfyle is essentially a marketplace of CPAs and IRS Enrolled Agents. We’ve been acting almost like an Amazon fulfillment center for these firms and accounting departments to do all the tax returns — and that’s been taking off like a rocket ship,” said Laviña, a former accountant.
The significant growth in the B2B side of the business will be accelerated by Taxfyle’s new APIs that allow partners, such as fintech companies and payment processors, to easily add tax prep to their current suite of services without significant overhead, creating new revenue streams, reducing client churn, and increasing connectivity with their clients.
“We are the leader in terms of the [accounting] gig economy, and to maintain that pole position we are totally revamping the software platform that our pros interact with,” Laviña said. The goal is to make it as easy as possible for, say, a CPA to evaluate whether she can quit her 9 to 5 and do this full time while still earning her desired salary and many already are making that choice, he said. “This type of tax work can be done completely remote. We simply want these pros that are great at doing tax returns to just focus on doing tax returns with the best quality possible.”
Now the company is on a hiring spree for all its departments – including engineering, accounting, finance, customer success, and sales. Laviña said the startup plans to add at least 100 employees within the next three years, and now has the funding to do that.
“The team at Taxfyle has been working diligently in capitalizing on the momentum gained after the prior round of funding. The application has changed the way CPAs gain new customers and there is no going back. We are looking forward to seeing its expansion across the US and with its strategic partners,” said Jeff Ransdell, Managing Director and Founding Partner of Fuel Venture Capital, the Miami-based fund that has now deployed over $70 million to South Florida-based companies.
READ MORE ON REFRESH: Miami-based Taxfyle makes tax filing a lot less painful
Taxfyle co-founders Will Sahatdjian (CTO), Ricky Laviña (CEO) and Michael Mouriz (COO)
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