Indonesia-based tax compliance solutions provider OnlinePajak raised $12 million from Tencent Holdings, Altos Ventures and existing investor Warburg Pincus last week, according to regulatory filings.
The fresh funding brings the startup’s valuation to nearly $170 million.
Tencent and Altos Ventures both invested nearly $5 million each in the latest transaction, picking up over 16,300 shares at $305.47 apiece. Petalite Gem Investments Ltd, an affiliate of Warburg Pincus, injected almost $2 million to up its stake in the Indonesian firm to 19.29%.
OnlinePajak founder and CEO Charles Guinot remains its largest shareholder with a 42.3% stake, shows data compiled by DealStreetAsia – DATA VANTAGE.
Tencent, through its affiliate Image Frame Investment, had bought over 29,000 OnlinePajak shares from Alpha JWC Ventures and Primedge in a secondary transaction in February this year.
OnlinePajak, which launched its operations in 2015, had raised $25 million in October 2018 in a Series B round led by Warburg Pincus, with participation from Global Innovation Fund, Endeavor Catalyst, Alpha JWC Ventures, Sequoia India, and Primedge.
Guinot started PajakOnline after experiencing the complexities of Indonesia’s tax system firsthand at his previous venture. In a recent list of the most complex jurisdictions to do business in that was compiled by TMF Group, Indonesia was ranked sixth.
OnlinePajak claims that corporate customers, who can manage their monthly taxes, invoices, and employee salary in one place using its solution, can cut down time spent on administration from an average of 208 hours down to only five minutes. The firm monetises its services through premium HR and accounting features for corporate clients.
In a 2019 interview with DealStreetAsia, Guinot said that the firm aims to bring all of the country’s companies into the tax system. Indonesia, which is home to 270 million people, only has 40 million registered taxpayers.