OnlinePajak raises over US$25mil in Series B funding
By Digital News Asia October 23, 2018
- Existing investors Alpha JWC Ventures, Sequoia India and Primedge also participated
- Funds will be used to expand through innovation and provide better solutions to users
ONLINEPAJAK, the largest provider of tax compliance solutions in Indonesia which aims to help companies to reduce their administrative burden through seamless tax management, has raised over US$25 million in Series B funding.
The round, which was oversubscribed, was led by an affiliate of Warburg Pincus, a leading global private equity firm, and participated in by Global Innovation Fund and Endeavor Catalyst. Existing investors Alpha JWC Ventures, Sequoia India as well as Primedge also took part in the round.
Founded in 2015, 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.
"The Series B financing by the industry's leading Private Equity/Venture Capital players is a validation of our business model. 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. We will transform the ease of doing business in the country by allowing companies to improve their overall productivity, while supporting the Directorate General of Taxes (DGT) in collecting much needed revenue for the state," commented Charles Guinot, Founder and CEO of OnlinePajak.
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.
The company counts 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.
"OnlinePajak has built a market-leading technology platform to provide Indonesian taxpayers with a fast and user-friendly end-to-end solution to prepare, pay, and file their taxes.
“We have been strongly impressed by the virality of the business and we believe that the company has tremendous growth potential – not only in helping businesses across Indonesia to operate much more efficiently but also in playing a key part in realizing the Indonesian government's vision to broaden the country's tax base," said Jeffrey Perlman, head of Southeast Asia from Warburg Pincus.
OnlinePajak had secured its Series A funding through local and foreign investors in late 2017. The investment was led by Alpha JWC Ventures, which was the first institutional investor of OnlinePajak. Sequoia India also participated in the round, together with Primedge.
OnlinePajak is the first tax application that has implemented blockchain technology. Since its launch in September 2015, OnlinePajak has been embraced by more than 900,000 users.
Its corporate users include Garuda Indonesia (Persero) Tbk, Telkomsel, PT Astra Otoparts Tbk, TNT Skypak International, Bank Permata, dan Asuransi Sinarmas. In April 2018 OnlinePajak was recognised by the World Economic Forum as one of the world's tech pioneers.