Outpost raises £13m to assume tax liability and operate local payment rails
This article covers Outpost, an ecommerce startup, which has raised £13m in a series A funding round to expand the infrastructure that helps merchants process payments and manage tax and regulatory obligations when selling across borders. The funding is intended to accelerate product development and jurisdictional expansion to support merchants selling internationally by simplifying payments, tax and compliance.
Outpost, an ecommerce startup, has raised £13 million in a series A funding round to expand the infrastructure that lets merchants process payments and manage tax and regulatory obligations when selling across borders. The deal matters because merchants are facing more complex rules and enforcement worldwide, and companies that simplify payments and tax compliance are becoming critical for international expansion.
Why it matters
Global trade hit record levels in 2025, with UNCTAD projecting it would surpass $35 trillion, even as geopolitical tensions and higher costs make expansion more complicated. Governments are tightening enforcement and changing tax regimes across more than 20,000 indirect tax jurisdictions, creating a heavier compliance burden for merchants selling internationally.
For many online sellers the choices are costly: set up local legal entities and teams, pay consultants, or accept payment friction and tax risk. Infrastructure that combines local payment processing with tax liability and customs classification aims to reduce those costs and failure points. The deal highlights growing interest from ecommerce investors in payments and compliance infrastructure.
Inside the product
Outpost provides a stack that handles payments, tax and compliance for merchants operating in multiple markets. Its platform monitors global tax rates and applies the appropriate tax treatment and customs classifications at transaction time. By operating local entities and routing transactions through domestic payment rails, Outpost says it increases approval rates and lowers processing costs compared with traditional cross-border processing.
Two of the core elements are a Tax of Record product, where Outpost assumes VAT, GST and sales tax liability so merchants do not need to register or file in every jurisdiction, and a Merchant of Record model that creates dedicated local entities to allow businesses to process payments as if they had a local legal presence. The company already supports merchants across Europe, North America, LATAM and Asia and lists customers such as subscription platforms, consumer software companies and cross-border e-commerce brands.
In the announcement, Jess Thorpe, Founder of Swans UK, said:
After Brexit, selling into Europe went from straightforward to a nightmare. Customers were getting hit with unexpected VAT charges at their door, and we were losing repeat buyers because of it. We plugged Outpost into our Shopify store and it handled everything. VAT registration, calculation, and collection, all automatic at checkout - with Outpost liable for any errors. Our EU customers now see the full price upfront, and our European return rate has dropped significantly. With all the talk of de minimis changes coming in the EU, it's a relief knowing Outpost will take care of that for us too. It made selling into Europe feel like selling domestically again.
Who are the investors?
Outpost has raised £13 million in a series A funding round led by Ribbit, with participation from Better Tomorrow Ventures. The company says the funds will be used to accelerate product development, expand jurisdictional coverage and increase headcount to meet rising global demand.
In the announcement, Nick Shalek, Partner at Ribbit, said:
Cross-border commerce represents a massive, multi-trillion dollar opportunity that has been historically held back by fragmented infrastructure. Outpost isn’t just offering a better payment gateway; they’ve introduced a novel model that fundamentally changes how merchants access global markets. By absorbing the operational and compliance burdens that stifle expansion, Outpost is building a category-defining platform for the next era of global trade.
Also supporting the round was Better Tomorrow Ventures. Ribbit and Better Tomorrow have portfolios and experience in fintech and payments, which aligns with Outpost’s focus on combining payment rails and regulatory coverage.
If you're researching potential backers in this space:
- Explore our list of ecommerce venture capital firms in the UK
- Browse our directory of ecommerce angel investors in the UK
Founder perspective
In the announcement, Will Mahon-Heap, Founder & CEO at Outpost, said:
Outpost exists to eliminate that trade-off. We've built the only infrastructure that handles everything from local payment processing to full tax liability, allowing companies to treat international expansion with the same ease as selling locally.
The bigger picture
Outpost’s raise comes as merchants and platforms reassess how to sell internationally amid Brexit-related changes, shifting tariffs and tighter enforcement of cross-border taxes. Solutions that reduce legal and operational barriers could speed market entry for small and mid-sized merchants and reduce friction for consumers.
The funding also underlines the role of UK-founded startups in building infrastructure for global commerce, and the continued appetite among investors for businesses that remove regulatory and payments complexity. As policies such as de minimis thresholds and VAT rules evolve in Europe and beyond, demand for integrated compliance and payments platforms is likely to grow across the UK and European markets.
They've invested in Outpost
Get to know these ecommerce investors
Click here for a full list of 7,526+ startup investors in the UK