FinTech News
Tax FinTech April Raises $38 Million from Returning Investors
The embedded tax platform startup April has revealed a new round of funding.
About the Round:
This week, April announced that it had raised a new $38 million round. The Series B was led by QED Investors, Nyca Partners and Team8 also participated. All three firms are returning investors. To date, the company has now raised $78 million, including a $30 million Series A in 2022 and a $10 million seed round five months prior.
About April:
April is an embedded AI tax platform meant to help user consider their taxes year-round in a bid to make smarter financial decisions overall. In addition to offering tax filing services, it also features tax forecasting, tax transcripts, and more. For example, the company has launched paycheck withholding optimization tools as well as quarterly payment features. Looking ahead, April says it is actively developing solutions for scenarios involving capital gains, retirement planning, small business ownership, and other more complex situations.
According to the company, earlier this year, they became the first new platform in more than 15 years to reach national e-file coverage. Additionally, after being available via more than 50 partners during the 2024 tax season, April says that its business has tripled in size since the start of this year.
What They’re Saying:
Discussing the power of April. The company’s co-founder and CEO Ben Borodach said, “Leveraging an AI-assisted development process, we built a compliant, national e-file platform from the ground up and made it available inside the apps Americans already use to manage their money. Now we’re extending that foundation to address a much broader range of tax needs beyond filing.”
Meanwhile, the company’s President and COO Raj Doshi remarked, “For too long, tax has been disconnected from clients’ primary financial relationships. April’s technology enables our partners to incorporate tax planning and filing as part of their broader offering to deliver truly holistic solutions.”
On the other end of the transaction, QED Investors principal Adams Conrad said of the company, “April has demonstrated strong execution in a historically complex space. It’s rare to see a company with the potential to reshape how millions of Americans interact with the tax system, while also powering the next generation of fintech and financial services innovation. As April succeeds in helping more people achieve net-neutral tax outcomes, the downstream effect is profound—not just for individuals, but for the broader economy.”
My Thoughts:
First, April is a pretty clever name for a tax-centric startup. Second, it sounds as though the company has some interesting solutions up its sleeve. Having recently lived through a rough tax season, I can definitely see the value in their platform. In other words, it’s easy to see why the company would attract this impressive new round of funding.
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