Yonda Tax funding signals hot race in taxtech

Yonda Tax has secured EUR 14.25m in growth funding from Kennet Partners, NYO Capital and Portfolio Ventures, in a deal that underlines how cross‑border tax compliance has become one of the most attractive niches in European mid‑market software.

The UK-based company automates sales tax, VAT and GST compliance for e‑commerce, SaaS and marketplace businesses selling across borders. Its platform manages end‑to‑end obligations for global digital merchants, allowing them to scale internationally without building internal tax teams or risking regulatory breaches.

Signal of where mid‑market SaaS money is going

This is a classic mid‑market growth cheque: sizeable enough to accelerate international expansion, but still firmly in the EUR 10‑50m band where specialist growth investors are most active. Kennet Partners leads the round, joined by NYO Capital and Portfolio Ventures, validating a thesis that tax automation for digital commerce is now infrastructure, not a nice‑to‑have.

Yonda Tax sits at the intersection of three persistent growth trends:

• Exploding cross‑border e‑commerce and SaaS – Digital sellers are reaching customers in dozens of jurisdictions from day one.
• Rapidly tightening indirect tax rules – From VAT in the EU to sales tax and marketplace rules in the US and GST regimes in APAC, compliance complexity is escalating, not easing.
• API‑first finance back‑office – Merchants expect tax, accounting and payments systems to plug into their existing stack.

The company already integrates with platforms such as Shopify, Amazon, QuickBooks and Stripe, positioning it as a connective layer between revenue channels and tax authorities.

Scale and traction justify growth capital

Yonda Tax has been growing at over 100% year‑on‑year, according to the company, with headcount doubling in the past 12 months. That trajectory, after a bootstrapped phase, is consistent with a capital‑efficient SaaS business hitting the point where external funding can accelerate go‑to‑market rather than plug structural holes.

Roughly 60% of Yonda’s customer base is in the US, with the remainder in the UK, Australia, Canada and Singapore. Clients range from Shopify‑based e‑commerce sellers to SaaS providers and AI companies, all facing similar pain around multi‑jurisdictional indirect tax.

The platform offers tailored workflows for:

• E‑commerce brands – Managing multi‑channel sales, third‑party logistics (3PLs) and marketplace rules.
• Tech and SaaS companies – Handling digital product and software taxability, which varies widely by state and country.
• Marketplaces – Navigating marketplace facilitator and platform liability regimes.

This breadth matters for investors: it diversifies revenue across segments while keeping a tight focus on a single problem domain – cross‑border indirect tax.

Why this round matters for the taxtech market

For the broader European mid‑market, the Yonda Tax deal signals three clear themes:

1. Compliance is now a growth enabler, not just a cost. Investors are backing tools that unlock international expansion by removing regulatory friction. Yonda’s pitch is not just risk reduction, but faster, safer market entry.
2. Vertical depth beats generic back‑office tools. Rather than broad accounting software, capital is flowing to specialist layers – in this case indirect tax – that can plug into existing ERPs, storefronts and payment gateways.
3. Bootstrapped to backed is the new norm. Yonda Tax’s journey from bootstrapping to a Kennet‑led round fits a pattern: founders prove product‑market fit and efficient growth, then bring in institutional capital to scale sales, partnerships and international coverage.

Risks and execution challenges

The opportunity is large but not without pressure points:

• Regulatory volatility: Constant changes in VAT, sales tax and GST rules demand continuous product investment. This is a barrier to entry but also raises the bar for sustained accuracy.
• Competitive intensity: The tax automation space includes both global incumbents and fast‑growing challengers. Differentiation through integrations, accuracy and customer support will be critical.
• US‑heavy exposure: With 60% of customers in the US, Yonda must balance deepening that market with expanding in Europe and APAC to avoid over‑concentration.

The new capital gives the company room to address all three: scaling its compliance and engineering teams, deepening platform integrations, and building out regional go‑to‑market.

A clear read‑through for European dealmakers

For European investors and acquirers scanning the EUR 10‑500m range, Yonda Tax’s funding confirms that:

• Tax and compliance automation for digital business remains a high‑conviction theme.
• Cross‑border capability is a key valuation driver – pure domestic solutions are at a disadvantage.
• Integration into the commerce stack is non‑negotiable – APIs into platforms like Shopify, Amazon and Stripe are now table stakes.

Yonda Tax’s EUR 14.25m round is therefore more than a single growth story; it is a clear marker of where mid‑market SaaS capital is concentrating as digital commerce keeps pushing across borders and regulators race to keep up.