Madrid-based TaxDown, the startup behind an easy-to-use platform that allows taxpayers to manage tax returns accurately, has just raised €5.5 million of fresh capital. New shareholders from this investment include Base10 Partners (marking its first foray into Spain). The firm is led by Adeyemi Ajao, the co-founder of Tuenti which has invested in Spanish giants such as Cabify.
JME Ventures, Kartik Raghavan, and Jeff Reynar join the lsit of investors as well, alongside Juan Urdiales and Felipe Navío, FJ Labs, James Argalas, Abac Nest and Baldomero Falcones.
Launched in 2019, TaxDown has become Spain’s leading income tax solution. The platform eases the income tax filing process and helps taxpayers save money, in addition to providing advice and expert support where needed. In the course of its operations in Spain, TaxDown has already handled more than €193 million in tax returns for its clients, helping them save more than €400 on average per tax return.
Tax returns are notoriously a bit of a headache so TaxDown’s solution is certainly welcomed with open arms and the proof of its success is in the numbers.
Enrique García, CEO and co-founder of TaxDown commented: “Our goal this year is to reach 1 million users and begin our international expansion, starting with Mexico. We want to help all taxpayers file their tax returns in a simple, easy and fast way. That will also include freelancers, crypto investors, and online traders.”
With a growth in interest in the crypto market across Spain, TaxDown is also focusing attention on this demographic of investors. The platform will make it simple for those who have sold or traded crypto assets during the past year to file their tax returns. More than 7 million Spaniards invest in crypto assets and 41.4% of them are under the misconception that they do not have to pay any kind of tax on their gains or compensate for their losses. TaxDown will make the process of reporting taxable gains & losses easier than ever, thanks to a specific module for crypto and new personal investors.
Adeyemi Ajao explained: “[TaxDown] are solving a global problem and improving taxpayer decision-making by leveraging technology and talent. Cryptocurrencies, NFTs, the metaverse… Tax agencies’ need to track this new breed of taxpayers, there is a demand for greater transparency and efficiency in the complex world of personal taxation. TaxDown makes this task easier.”
The fintech startup’s online solution uses a proprietary algorithm to optimize the number of questions, allowing users to file their taxes in just 12 minutes. On top of that, TaxDown guarantees maximum refund and zero error.
For TaxDown, this funding also supports international ambitions, with plans to launch into Latin America. The startup launched its operations in Mexico, becoming the first tax software tool of its kind in the country. This launch will contribute to TaxDown’s efforts to become the largest tax app in Spanish-speaking countries. TaxDown’s immediate goal with this launch is to establish itself as the leading tax return solution in Mexico and help the more than 11 million Mexicans who must file their taxes each year.
Enrique explained: “It is both a challenge and a tremendous opportunity for us to help Mexicans handle their taxes and to position ourselves as the country’s only 100% digital solution. All Mexican taxpayers who need to file their taxes for the first time will find that in TaxDown is the best way to do so. And we hope that they will continue to use us every year.”
Samuel Gil, partner at JME Ventures added: “TaxDown has the potential to become a global leader in taxes. The company’s efforts to integrate technology, automation and exceptional know-how and service in order to solve a universal problem is a game changer.”
