Prosperr.io Raises $4M Seed Round to Scale Tax Management Platform

Dev Kumar and Manas Gond, Prosperr.io Co-Founders

Tax management startup Prosperr.io has raised $4 million (Rs 35.8 crore) in a seed funding round led by Jungle Ventures at a post-money valuation of about $15.6 million (Rs 140 crore), cofounder and chief executive Manas Gond told ET.

The round also saw participation from Yatra Angel Network and Sadev Ventures, taking the Bengaluru-based company’s total funding to $5.55 million since its incorporation in 2022.

Founded by Gond and Dev Kumar, Prosperr.io operates in the tax management and compliance space, offering technology-led solutions for both salaried individuals and enterprises. For consumers, the company provides subscription-based tax planning and compliance services aimed at optimising deductions and managing multiple income streams.

On the enterprise side, Prosperr.io works with companies to offer tax-saving employee allowances and automated reimbursement solutions. Recently, it expanded its enterprise product suite with an AI-driven reimbursement offering to address the growing complexity of corporate tax operations.

The fresh capital will be used to accelerate product development and strengthen its business-to-business (B2B) sales capabilities, as the company looks to scale its enterprise platform and expand into adjacent areas such as wealth management, Gond said.

“We are trying to ensure that whatever financial requirements a salaried individual has — whether taxation or wealth planning — Prosperr is the subscription-based platform to address their day-to-day needs,” Gond said.

He added that the company plans to use its enterprise partnerships to drive user acquisition for its consumer business.

In June 2024, Prosperr.io raised $1.5 million in a funding round led by Silicon Valley-based angel investor Gokul Rajaram, who has backed companies such as Faire, Figma, and Airtable.

The company has a headcount of around 150 and claims an 80% retention rate among individual users, while maintaining full retention across its enterprise client base.

Further, Gond said the company has obtained an asset management company (AMC) licence and is registered as a Sebi investment adviser. It currently offers mutual fund products and plans to expand into equity and bond investments. About 25% of its consumer users currently use its wealth management offerings, Gond said.

“Tax is one of the most under-innovated layers of financial infrastructure, and the complexity only compounds as individuals earn across multiple streams and businesses operate global workflows,” said Rishab Malik, partner, seed investments, Jungle Ventures.

Other players in the tax solutions space include Bengaluru-based ClearTax, US-based TurboTax, and Vertex.

Source: The Economic Times