Vertex, Inc., a global provider of indirect tax technology solutions, recently announced it has completed a strategic investment in Kintsugi, a San Francisco-based, AI-native startup focused on automating sales tax compliance for small and mid-size businesses. Terms of the agreement include a $15 million minority investment representing a 10 percent ownership interest, as well as IP sharing and a commercial arrangement. Additionally, Vertex will join the Kintsugi Board of Directors.
The adoption of tax automation solutions is growing substantially as businesses face increasing compliance complexity associated with eCommerce and SaaS growth, cross-border trade and a patchwork of new tax regulations. Kintsugi automates the entire sales tax compliance lifecycle for small businesses, including tax calculations, filings, and compliance monitoring across multiple jurisdictions. Founded in 2023, Kintsugi has experienced rapid growth and expansion within the U.S., Canada and Europe.
“Kintsugi brings innovative AI-enabled capabilities to address the needs of the indirect tax market in new and creative ways,” stated Chirag Patel, Vertex Chief Strategy Officer. “Through the IP sharing agreement, this investment will help accelerate our AI roadmap to deliver new innovations for our mid-market and enterprise customers globally.”
Kintsugi’s AI-driven platform seamlessly integrates with digital accounting and payments processing platforms to enable powerful automation, a seamless onboarding experience, and rapid time-to-value for SMB businesses.
"We're thrilled to partner with Vertex, a company that shares our commitment to transforming tax technology," said Pujun Bhatnagar, CEO of Kintsugi. "This investment validates our approach to solving the indirect tax challenges facing small and mid-sized businesses today. With Vertex's support, we can accelerate our mission to make tax compliance painless and accessible for growing businesses."
Together, Vertex and Kintsugi will continue to push the boundaries of AI-driven tax technology and next-level user experiences.
Vertex’s investment in Kintsugi is separate from the $10-12 million the company announced it would spend in AI technologies in 2025. Vertex plans to leverage Kintsugi’s IP to advance these initiatives. Given the minority investment, Vertex will not consolidate the results of Kintsugi and the ownership will be accounted for at cost and reflected on the company’s balance sheet.
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