Indonesia-based tax app provider OnlinePajak has raised a Series A round of about $3-5 million led by local venture capital firm Alpha JWC Ventures and joined by Sequoia Capital. The round was closed a few months ago but the company had not disclosed it earlier.
In an exclusive interaction with DEALSTREETASIA, OnlinePajak founder Charles Guinot said, “We decided to raise Series A from local investors like Alpha JWC, the lead investor in this round. We are planning to use these funds to improve and strengthen our technology.”
Guinot declined to reveal the exact amount raised in the Series A round.
OnlinePajak offers an integrated solution that it says can help remove corporate administration hassles for taxpayers and increase tax collection. It claims its solution can save corporate taxpayers a lot of time by helping them manage their monthly taxes, invoices and employee salary in one place without having to stand in a queue at the tax office or the bank.
According to its LinkedIn page, OnlinePajak has over 300,000 users. The company is an approved application service provider and therefore, its users can file their tax returns online using its e-filing feature.
OnlinePajak caters to individual as well as corporate taxes such as employee withholding tax (PPh21) and sales tax (PPh Final, PPN). Its large corporate clients include Telkomsel, Go-Jek and Tokopedia.
Under the company’s current business model, its tax application is available for free to use by both the government and the taxpayers. Users are charged if they opt for some of its premium features such as tax filing integrated with accounting and HR systems.
Another premium feature is for very large companies where employee taxes are handled by the HR department whereas sales taxes are handled by the accounting department. Here the company offers a role and permissions-based solution, ensuring data confidentiality between departments of the same organization.
So far, OnlinePajak has about 60,000 corporate customers, with around 7,000 new companies added every month. Guinot says the plan is to increase new customer acquisition to 10,000 companies per month by the end of next year. The company aims to process 30 trillion rupiah in taxes this year, accounting for more than 3 per cent of total tax collection in the country.
“We are not at the stage where we are really opening up the tax base, bringing new taxpayers in the system. We are constantly working with the Directorate General of Taxation so that they allow us to do more,” Guinot says.
As it looks to establish a stronger foothold in Indonesia, an expansion to the rest of Southeast Asia may only be on the cards after two years, coinciding with the company’s aim to turn profitable by profit-mid 2019.