Exclusive: Indonesia’s OnlinePajak closes $3-5m Series A backed by Alpha JWC, Sequoia

Charles Guinot, founder of OnlinePajak. Photo by OnlinePajak

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.

Also Read:

Exclusive: Indonesia’s Alpha JWC to start raising $100m fund next year, closes $50m first fund

Self-funded Indonesia tax startup OnlinePajak open to independent VCs

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.