AI sales tax startup Kintsugi had doubled its valuation in 6 months

Tech Crunch - Apr 30th, 2025
Open on Tech Crunch

Kintsugi, a Silicon Valley-based startup specializing in automating sales tax compliance, has secured $18 million in funding led by Vertex, an indirect tax technology provider. The startup aims to expand its AI-enabled tax calculation and filing services to small and medium businesses globally, integrating its software with platforms like Shopify, Stripe, and Quickbooks. This funding round values Kintsugi at $150 million, reflecting growing demand for automated tax solutions amid complex regulations and e-commerce growth.

Founded in 2023, Kintsugi capitalizes on the 2018 Supreme Court ruling requiring online sellers to collect sales tax, which boosted the need for automated solutions. By offering a cost-effective alternative to existing providers, Kintsugi is poised to capture a significant market share. The partnership with Vertex, involving a $15 million investment and IP sharing, enhances Kintsugi's reach across different sectors. With a 0.1% churn rate and plans for global expansion, Kintsugi targets a revenue of over $10 million by 2025.

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RATING

6.4
Moderately Fair
Read with skepticism

The article effectively presents Kintsugi's recent funding and strategic partnership with Vertex, highlighting the startup's innovative approach to tax compliance automation. While the narrative is clear and engaging, several claims require further verification, particularly regarding funding details and customer metrics. The article provides a balanced view of the partnership's potential benefits but lacks diverse perspectives and critical analysis. Source quality is somewhat limited, relying heavily on statements from company representatives without independent verification. Despite these limitations, the article remains timely and relevant, addressing a topic of public interest in the context of evolving tax regulations and digital transformation. Overall, while the article offers valuable insights into Kintsugi's business model and market positioning, it would benefit from greater transparency and corroboration of key claims.

RATING DETAILS

6
Accuracy

The article presents several claims that are partially supported by available sources, though some discrepancies exist. For instance, the claim regarding Kintsugi's $18 million funding, with $15 million from Vertex, is not fully verified, as Vertex's official announcements do not specify this amount. The article also states that Kintsugi was founded in 2023, while multiple sources confirm a 2022 founding. Furthermore, customer metrics and financial performance figures are presented without external validation, such as the claim of a 0.1% churn rate and $3 million in annual revenue, which require further verification. While the article accurately describes the core technology and regulatory catalysts for the startup's growth, some financial details and partnership specifics remain unverified or partially verified.

7
Balance

The article primarily focuses on Kintsugi's growth and strategic developments, offering insights from both the startup and its investor, Vertex. This provides a balanced view of the partnership's potential benefits. However, the article lacks perspectives from independent analysts or competitors, which could provide a more rounded view of the market landscape. The emphasis on Kintsugi's capabilities and future plans may suggest a slight bias towards promoting the startup's achievements without critically examining potential challenges or risks.

8
Clarity

The article is well-structured, with a clear narrative that outlines Kintsugi's recent developments, strategic goals, and partnership with Vertex. The language is straightforward and accessible, making it easy for readers to understand the startup's business model and market positioning. While the article effectively communicates the main points, some technical details, such as the specifics of the AI integration and tax compliance processes, could be further clarified for readers less familiar with the industry.

6
Source quality

The article relies on statements from Kintsugi's CEO and Vertex's chief strategy officer, which are credible sources for insights into the companies' strategies and partnerships. However, the lack of independent verification or commentary from external experts or analysts limits the depth of source quality. The article would benefit from including more diverse sources, such as industry reports or third-party financial analysts, to corroborate the claims made by the company representatives.

5
Transparency

The article provides some transparency regarding the basis of its claims, citing interviews with key figures from Kintsugi and Vertex. However, it does not sufficiently disclose the methodology behind certain claims, such as the valuation process or customer metrics. Additionally, potential conflicts of interest, such as the promotional nature of the article, are not addressed, which could impact the perceived impartiality of the reporting.

Sources

  1. https://techcrunch.com/2024/11/14/sales-tax-automation-startup-kintsugi-doubled-its-valuation-this-year/
  2. https://www.prnewswire.com/news-releases/kintsugi-extends-its-series-a-and-doubles-valuation-in-four-months-302309420.html
  3. https://www.gurufocus.com/news/2815279/vertex-announces-strategic-investment-in-ai-tax-compliance-startup-kintsugi
  4. https://fintech.global/2024/11/20/tax-automation-platform-kintsugi-secures-10m-series-a-extension-led-by-airwallex/
  5. https://bestofai.com/article/sales-tax-automation-startup-kintsugi-doubled-its-valuation-this-year-techcrunch