Tax Startup Fonoa to raise approximately $50 million from Coatue

  • Fonoa, the Dublin-based tax automation start-up, is set to raise new funding from investment firm Coatue.
  • This is Fonoa’s second round of funding in six months.
  • The company makes it easier for companies operating globally to manage their taxes.

Irish tax automation startup Fonoa is set to raise new money from hedge fund Coatue, according to Insider.

Founded in 2019, Fonoa helps global businesses understand and manage their tax obligations in different jurisdictions through its API. The Dublin-based company was founded by three former Croatian Uber employees and works with companies including Lime, Uber, Teachable, GoStudent and


Zoom

.

Coatue, the crossover investor who has backed European startups including German neo-bank N26 and fast delivery startup Gorillas, is expected to lead Fonoa’s next Series B funding round, two sources familiar with the matter said.

The round is expected to be $50 million and will give the three-year-old business a pre-money valuation of $350 million, a London-based source familiar with the deal said. The deal is not finalized and the round size and valuation may change.

Fonoa declined to comment.

The startup last raised $20.5 million in Series A funding in November 2021 in a deal led by Index Ventures, alongside Omers Ventures, FJ Labs, Moving Capital and a multitude of angels, including Carlos Gonzalez-Cadenas, partner at Index Ventures and former COO of London fintech start-up GoCardless.

Fonoa’s platform aims to remove the need to manually enter sales tax, VAT, and GST. It also integrates with client systems to generate invoices and provide financial reports.

The company hit 300 million fiscal transactions in 2021, according to Techcrunch.

Fonoa is based in the Irish capital but has employees in 15 countries with its board sitting in Croatia and was expected to recruit around 60 new staff in its last funding round.

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