Fintech startup ClearTax has raised $50 million in series B funding round from Hong Kong-based investment firm Composite Capital. The Y Combinator-backed startup will use the funds to accelerate its growth and expand the suite of products and services on the platform.
Founded by Archit Gupta, Raja Ram Gupta, Ankit Solanki and Srivatsan Chari, the firm provides a range of services including e-filing, tax preparation, accounting, GST fillings and investment planning solutions to both individuals and businesses.
Archit Gupta, Founder and CEO of ClearTax said, “With this new investment, we have more firepower to focus on our mission, accelerate our growth trajectory and continue to invest in technology and innovate our platforms to meet expanding customer needs.”
Composite Capital invests in consumer, technology and transportation startups all over the world. It was founded by David Ma in 2015, a former partner of Hillhouse Capital. Since its inception in 2011, ClearTax has witnessed tremendous growth and crossed 1 million users benchmark within the first five years of operations.
“We are excited to partner with the ClearTax team and support their continued growth. ClearTax continues to build exceptional solutions that simplify tax filings for both individuals and businesses in India,” said Composite Capital’s Managing Director, Kanush Chaudhary.
ClearTax has filed more than 2.5 million tax returns which it expects to grow to 4 million by FY19. With this success in the overcrowded FinTech space, ClearTax has forayed into mutual funds segment by launching ClearTax Invest. The firm has also launched ClerTax EWayBill to facilitated eway bill compliance for businesses.
LegalRaasta, SahiGST etc are some of the major players in the GST returns segment. While in the mutual fund’s segments, startups like Wealthy, Scripbox, WealthTryst, MoneyLover, MoneyView etc are some of the major players among many others.
In October this year, Mobikwik and Times Internet-backed ETMONEY has entered into the wealth management space. Paytm has also launched Paytm Money earlier. Indian e-commerce giant Flipkart is another e-commerce player who is planning to enter the wealth management market.
The fintech software market in India is estimated to cross $2.4 billion by 2020, according to a report by KPMG India and NASSCOM.