The terms and size of the deal have not been disclosed.
ClearTax said in a statement it would use TOOTL’s technology to curate personalized tax, finance and compliance related content on its website by integrating TOOTL’s back-end tech stacks.
This is ClearTax’s first acquisition since its inception in 2011. The firm had raised $12 million in its series A funding round led by SAIF Partners in June 2016.
It raised an additional $3.3 million in 2016 from Sequoia Capital India, PayPal co-founder Peter Thiel’s Founders Fund Angel, PayPal co-founder Max Levchin, and WhatsApp’s business head Neeraj Arora among others.
ClearTax was also one of the early Indian start-ups to enter Silicon Valley-based tech accelerator Y Combinator in 2014. Although the firm started off as a tax compliance and advisory service, it later branched into a wide portfolio of products and services like mutual funds, GST software, E-WayBill generator, Digital Signature Certificate (DSC) utility and business compliance services.
Currently, ClearTax claims to have over 2.5 million registered users using its tax filing and compliance services, while its GST compliance solution is being used by 360,000 businesses, 22,000 accountants tax professionals, and over 500 large enterprises.
ClearTax said TOOTL’s acquisition was aimed at improving the overall user experience on the platform and that it plans to add more tweaks to improve the user experience.
Launched by Arpit Mehta and Parijat Banerjee, TOOTL is a mobile app that understands user preferences to provide relevant content feeds across categories like movies and entertainment, sports, events, and others.
Archit Gupta, chief executive of ClearTax, said TOOTL’s algorithm has added great value to ClearTax’s existing systems, especially around content.
“We will utilize the TOOTL technology to enhance customer engagement and provide tailored content based on income, financial goals, age and other parameters. This would help our customers make informed financial decisions, taking us a step closer to our mission of simplifying finance for Indians,” Gupta added.
This article was first published on livemint.com.