- Company’s Tax1099 and Compliancely Solutions Solve Dynamic Tax and Compliance Challenges
- Highest funds raise by a Hyderabad based FinTech company so far, aims to expand operations in Hyderabad to support global entities
Hyderabad, November 24, 2021: Zenwork, a leading provider of digital tax compliance and regulatory reporting fintech SaaS platform for businesses everywhere, has successfully raised over INR 1200 Crores from Spectrum Equity, a leading growth equity firm focused on internet-enabled software and information services companies. The investment will enable Zenwork, operating the brands Tax1099 and Compliancely, to accelerate product innovation and meet growing business demand for modern, automated technology solutions that address regulatory compliance and power electronic filing and information management.
Zenwork helps businesses everywhere manage compliance at a time when changing state and federal mandates and a surge in the gig economy workforce have created new, complex tax reporting burdens. The company offers its customers modern, cost-effective solutions that transform resource-intensive, manual processes into highly automated, digital experiences. Zenwork currently serves over 100,000 small businesses nationwide, including 30,000 CPA firms, as well as large enterprises. The company has been growing rapidly, adding 40,000 new clients in each of the last two years and processing millions of electronic filings and over 12 million business identity and compliance checks annually on behalf of its client base.
Sanjeev Singh, co-founder and CEO – Zenwork, said, “We are excited to partner and also raise over INR 1200 crores from Spectrum Equity, whose experience scaling RegTech/FinTech software and data businesses will help us navigate this next growth chapter. This strategic alliance will not only help us potentially explore newer avenues, but also gives an opportunity for Zenwork to invest heavily in our Tax1099 and Compliancely platforms as we look to be the digital tax compliance partner of choice to all businesses”
“We are looking at expanding our operations in Hyderabad to support our global entities and aim be a 200 strong team by end of 2022” he further added.
“As a bootstrapped company, Zenwork has achieved remarkable success to date by focusing relentlessly on the digital tax reporting and onboarding requirements of its diverse customer base,” said Adam Margolin, Managing Director at Spectrum Equity. “With millions of businesses subject to tax informational reporting and likely to adopt e-filing over the coming years, we see a massive opportunity for Zenwork to build on its market leadership position through product investments and innovation. With this significant new investment, we look forward to partnering with Sanjeev and the rest of the Zenwork team on their ambitious growth plans.”
- Tax1099 – Tax1099 is an IRS-approved, cloud-based platform that automates e-filing and e-delivery of IRS and state forms, including 1099s, 1095s, W-2s, and more. The company empowers small and medium businesses, accountants, CPAs, bookkeepers and corporations by processing millions of informational returns and other compliance data through its multi-tool integrated digital platform. Tax1099 is a two-time ‘Accountex User Favorite’ Award winner for the ‘Tax Add-On’ category and also been listed in the 2018 list of ‘Inc. 5000 fastest-growing companies in the country’.
- Compliancely – Compliancely is an AICPA and SOC recognised identity-check platform powered with global databases and watch lists. This highly scalable API enables customer to conduct real-time identity checks on individuals and businesses alike, and runs hundreds of validation checks, helping customer view the results in seconds
In conjunction with the transaction, Adam Margolin and Cameron Ghorbani of Spectrum Equity will join Zenwork’s board of directors.
Latham & Watkins LLP served as legal advisor to Spectrum Equity. Kutak Rock LLP served as legal advisor and Vista Point Advisors acted as financial advisor to Zenwork.
Zenwork, through its Tax1099 and Compliancely brands, is a fast-growing digital tax compliance and regulatory reporting technology company, with 10+ years of experience powering informational tax returns and compliance checks on behalf of its customer base. The company currently serves over 100,000 customers nationwide, including 30,000 CPA firms, as well as enterprise customers. Learn more about Zenwork at www.zenwork.com, www.tax1099.com and compliancely.com.
About Spectrum Equity
Spectrum Equity is a leading growth equity firm providing capital and strategic support to innovative companies in the information economy. For over 25 years, the firm has partnered with exceptional entrepreneurs and management teams to build long-term value in market-leading Internet-enabled software and information services companies. The firm is investing its ninth fund with $1.5 billion in capital. Representative investments include Ancestry, Bats Global Markets, Definitive Healthcare, GoodRx, Grubhub, Kajabi, Lucid Software, Lynda.com, SurveyMonkey, and Verafin. For more information, including a complete list of portfolio investments, visit www.spectrumequity.com.
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