24/10/2018 – OnlinePajak, a tax compliance solutions provider based in Indonesia, has secured over US$25 million in its recent Series B funding intended for business expansion.
The round, which was oversubscribed, was led by an affiliate of Warburg Pincus and joined by Global Innovation Fund, Endeavor Catalyst, as well as existing investors Alpha JWC Ventures, Sequoia India, and Primedge.
“The Series B financing by the industry’s leading private equity and venture capital players is a validation of our business model,” said Charles Guinot, the Founder and CEO of OnlinePajak.
The company counts Global Innovation Fund, Primedge, and Endeavor Catalyst as its impact-first shareholders who are aligned with the company’s core social mission and long term vision.
Founded in 2015, OnlinePajak is the largest provider of tax management solutions in Indonesia that aims to help companies reduce their administrative burden on tax obligations. Its web-based tax application enables taxpayers to perform calculations, payments, and tax reporting in a single platform.
The company also adopts a business model whereby its tax application is available for free to use by both government and taxpayers, regardless whether they are individuals or entities. Users are only charged if they opt for additional premium features such as invoicing and payroll.
OnlinePajak is also the first tax application that has implemented blockchain technology. Since its inception, OnlinePajak has been used by more than 900,000 users with its corporate users including Garuda Indonesia (Persero) Tbk, Telkomsei, PT Astra Optoparts Tbk, TNT Skypak International, Bank Permata, and Asuransi Sinarmas.
In April 2018, OnlinePajak was recognized by the WorldEconomic Forum as one of the world’s tech pioneers.
With the new investment, Guinot notes: “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 to 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,” he added.
Last year, OnlinePajak has secured its Series A funding through local and foreign investors. 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 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 vitality 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 paying a key part in realizing the Indonesian government’s vision to broaden the country’s tax base,” said Jeffrey Perlman, the head of Southeast Asia from Warburg Pincus.
Warburg Pincus is a leading global private equity firm focused on growth investing. Founded in 1966, Warburg Pincus has invested over US$68 billion in more than 825 companies globally and committed over US$1.5 billion in Southeast Asia, including in the first unicorn startup in Indonesia, Go-Jek.
Its impact first, hybrid investment fund Global Innovation Fund (GIF) invests in social enterprises that aim to improve the lives of those living on less than US$5 per day. Since 2015, GIF has invested US$65 million in 34 initiatives across Africa, Southeast Asia, and South Asia.
Meanwhile, Endeavor Catalyst is an innovative co-investment vehicle designed to support Endeavor Entrepreneurs with their equity financing rounds.