TaxDown, a startup disrupting the tax sector in Spain and Latin America, has sealed a new €5 million round of investment. Funds such as Base10, with investments in several unicorns in the USA and Latin America, have strengthened their presence in the shareholding structure, as has JME Ventures. The firm has once again garnered the trust of all its previous investors such as Abac Nest, one of the benchmark funds in Spain with a management portfolio of more than €600 million. This year also sees the arrival of 4Founders Capital, a fund manager founded by Javier Pérez Tenessa, the former CEO of eDreams, Jesús Monleón, Marek Fodor and Marc Badosa.
Five years after its launch in 2019, TaxDown has positioned itself as the best solution assisting taxpayers with their tax procedures. It is the yardstick company that files the most tax returns in Spain and is the most recognised brand in tax affairs. With the development of a platform that simplifies tax procedures, TaxDown has managed more than €750 million in taxes for its 2 million users and has helped them save more than €100 million in total.
The strategic objective of the capital injection is to continue the exponential growth of the leading platform in its sector with the finest talent and with already positive results in 2024 in both Spain and Mexico.
Enrique García, CEO and co-founder of TaxDown, said: “Our goal this year is to reach 3 million users and continue to strengthen our presence in Latin America. Consequently, we will use this new round of financing to continue improving the product and carry on our growth in both Spain and Mexico, helping all taxpayers to file a correctly presented tax return, thanks to the best mix of technology and a human team.”
In terms of the product’s new features, TaxDown not only improves the tax experience but also reinvents it this year with the introduction of the ‘Instant Refund’, a service providing an instant repayment of the amount due to be paid back to us in our income tax return. This makes it the first company in Spain to offer its users such a service.
TaxDown’s expansion also includes a new line of business for companies, with a GaaS (Government as a Service) solution that acts as a bridge between corporations and public authorities, facilitating processes such as opening bank accounts and taking out insurance more quickly and securely. Some large banks and insurance companies are already using it to offer their customers a more efficient solution for opening accounts.
This year, TaxDown has also made a firm commitment to artificial intelligence, making its already sophisticated product even more so. With this new investment in technology, tax advisors will be assisted by a virtual advisor who will make their work easier, multiply their productivity and improve the advice service for each tax return.
Javier Pérez Tenessa, the founder of eDreams and a partner in 4Founders Capital, emphasised: “At 4Founders Capital we were impressed by TaxDown’s growth and added value. By leveraging new technologies, and particularly Artificial Intelligence, TaxDown’s management team has developed an innovative and efficient product, which clearly sets it apart from the rest in terms of customer service. In Spain they are the leading brand in digital tax returns and we are starting to see very pronounced trends of it being taken up in Mexico, where the startup landed just a few months ago.”
In Mexico, TaxDown is booming, growing 5 to 6 times faster than last year and consolidating its position as a category leader in a fast-growing market with millions of new tax filers each year. TaxDown’s aim is to continue improving its product to help the more than 12 million Mexicans who have to file tax returns every year, a number that is growing year on year due to the enormous efforts made by the Mexican tax agency to get Mexicans to file their tax returns.
“For us it has been tremendously satisfying to be able to help Mexicans manage their taxes and thus position ourselves as the only 100% digital solution in the country. Our goal now is to continue expanding into other Latin American countries”, added Enrique García, CEO of TaxDown.
