Bengaluru-based online income tax return-filing and investment platform ClearTax has raised around ₹368 crores ($50 million) in a series B round led by Hong Kong-based Composite Capital.
The latest investment by Composite Capital marks its first investment in India. For ClearTax, the funding comes two years after it raised $12 million in a series A round led by SAIF Partners in June 2016.
The funds raised will be used to accelerate growth and expand its current offering of products and services for millennials on its platform. It is further looking to strengthen tech infrastructure while doubling engineering professionals.
Founded by three friends Archit Gupta, Srivatsan Chari, and Ankit Solanki in 2016, ClearTax offers income tax solutions, GST, and mutual fund investments, through its platform. In 2014, ClearTax became the first Indian startup to be funded by Y Combinator.
Talking about the investment, Kanush Chaudhary, Managing Director at Composite Capital, said, “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.”
It works with over 25,000 chartered accountancy firms and 100,000 businesses across sectors, including manufacturing, retail and pharma among others. The fintech startup claims to have helped 25 lakh Indians in filing their tax returns and is looking to target 4 million users during FY19.
Earlier this year, ClearTax launched its Mutual Fund investment platform to help its consumers build on assets, tax saving and investing.
ClearTax counts entrepreneurs and investment firms like Peter Thiel and Max Levchin, co-founders of PayPal, Sequoia Capital, Founders Fund, AngelList‘s Founder and CEO Naval Ravikant, and WhatsApp‘s Neeraj Arora, among its esteemed backers.
Other players in the mutual fund investment domain competing ClearTax include ETMONEY, Paytm Money, Cube Wealth, Groww, Scripbox, Moneyfront, Zerodha, and WealthTrust, among many others.
Yesterday, it was reported that Cube Wealth raised ₹14.6 crores in series A round from Beenext, others.
Earlier this month, Mobikwik acquired Clearfunds, foraying into the wealth management segment.