The round also saw participation from notable Indian angel investors, including Livspace founder Ramakant Sharma, chief executive officer Saurabh Jain, and Cred founder Kunal Shah, among others.
The proceeds from the funding round have been utilised to enhance the company’s technology and product capabilities, launch its business-to-business (B2B) product and increase sales and marketing capabilities. The funds are also used to develop the company’s AI-first tax advisor, the Bengaluru-based startup said.
“Currently, there are 8.18 crore people filing income tax returns (ITR) in India, and as per the finance minister, there will be almost half a billion people filing ITR in India by 2047. This growth cannot be accommodated by the chartered accountants alone. So, there have to be some AI-powered solutions to solve this in an accurate, efficient and cost-effective way,” cofounder and chief executive officer Manas Gond told ET.
Founded in March 2022 by Gond and Dev Kumar, Prosperr.io offers a subscription-based service designed to manage income tax for salaried individuals, ensuring maximum eligible tax savings and compliance.
The company offers two core products: the Super Saver Product, a business-to-consumer (B2C) solution that helps individuals plan and save their taxes, and the B2B product Prosperr-FBP (Flexi Benefits Plans), which enables employers to provide non-taxable allowances. The company leverages an AI engine to examine invoices and transactions, ensuring the lawful claim of tax benefits.
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Gond said that the B2C product currently has around 10,000 paid customers and the B2B product, launched in April, has already been adopted by five companies. He claims that the B2B product can increase the in-hand salary of employees in an organisation by 8-10%.Prosperr currently employs 50 people and expects to reach an annual recurring revenue (ARR) of $2 million by the end of this year, up from the current ARR of $700,000.
“I’m excited to support the Prosperr team on their mission to build the best tax optimisation platform for consumers, not just for India but for the world. The world of taxes is complicated and confusing, and Prosperr’s AI platform helps individuals and employees stay compliant while maximising tax savings,” Rajaram said.
Other major players in the tax solutions space include Bengaluru-based ClearTax, US-based TurboTax, and Vertex, among others.
