Anrok, a sales tax software development startup, has reportedly raised funding of over USD 4.3 million. The company works on an API-based service and it charges customers based on overall sales value it helps a customer to manage. With an increase in revenue volume, its percentage fee reduces, and customers don’t have to pay more than 0.19% of managed revenue.
SaaS companies need to manage their tax matters to avoid issues while selling their products in a state or across the US. This is particularly crucial in cases where product development and sales can have severe political repercussions. However, tax issues for SaaS companies can still be complicated, claims Anrok.
Michelle Valentine, CEO of Anrok, stated that the raised funds is initiated to support software companies with specialized assistance. Index and Sequoia are the two capitalists who led the event. She further added that three things increase the complications of tax issues of SaaS companies. One of it is related to addresses.
Software companies are devoid of customer information at times and they have to pay sales taxes as per the customer’s location. In that case, Anrok will come to the rescue.
Valentine believes it an interesting issue to charge the right amount of tax in variable SaaS billing scenarios. There is also a need to navigate the state tax laws that are directed towards the software market. Therefore, a common solution won’t be enough for SaaS companies, who look to avert the work of handling tax issues and any sort of trouble with states.
Anrok is at the nascent stage of business with the first set of customers onboard. Although, it is not registering growth numbers that can assure the investors, the immense potential of the market led to the company raising capital at such an early stage.