Yonda Tax raises £11.2m to automate cross-border VAT and sales tax filings
This article covers Yonda Tax, a London-based fintech startup, which has raised £11.2m ($15m) in its first institutional funding round to accelerate development of its tax automation platform and widen coverage across tax jurisdictions. The funding is intended to enhance automated indirect tax compliance for scaling startups, including eCommerce merchants and high-growth SaaS and AI firms expanding into multiple markets.
Yonda Tax, a London-based fintech startup, has raised £11.2m ($15m) in its first institutional funding round to speed up development of its tax automation platform and widen coverage across tax jurisdictions. The raise is notable as more businesses trade across borders and face growing indirect tax complexity, increasing demand for automated compliance tools.
Why it matters
Cross-border indirect taxes such as VAT, GST and sales tax are becoming harder to manage as rules change and authorities increase scrutiny of international activity. That creates operational risk for businesses expanding into multiple markets and raises demand for automation that reduces error-prone manual work.
The funding signals investor interest in software that addresses compliance friction for internationally active firms. The deal also arrives when companies from eCommerce merchants to SaaS and AI firms are expanding rapidly and need predictable, auditable tax processes.
Inside the product
Yonda Tax automates end-to-end indirect tax compliance for scaling startups, handling filing obligations across jurisdictions and aiming to reduce manual effort and filing risk. The company says its customer base includes eCommerce merchants, high-growth SaaS and AI firms expanding into multiple markets — groups for which indirect tax rules are operationally significant.
Key operational details and traction:
- Reported more than 100% year-on-year growth.
- Team headcount has doubled over the past year.
- Around 60% of customers are based in the United States, with rising adoption in the UK, Australia, Canada and Singapore.
- Pricing is a fixed monthly subscription tied to the number of regions a client files in, designed to decouple fees from transaction volume and give cost predictability for cross-border businesses.
The new capital will be used to enhance the platform and add coverage for additional tax jurisdictions.
Who are the investors?
The £11.2m ($15m) round is the company’s first institutional raise. It was led by Kennet Partners, with participation from NYO Capital and Portfolio Ventures.
In the announcement, Hillel Zidel, Managing Director at Kennet Partners, said:
The firm invested because Yonda solves a complex global challenge and distinguishes itself through a ‘tax-first, tech-second’ approach that prioritises accuracy and trust.
If you're researching potential backers in this space:
- Explore our list of fintech venture capital firms in the UK
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Founder perspective
In the announcement, Gareth Kobrin, Co-Founder of Yonda Tax, said:
We started Yonda after seeing founders do everything right, yet still get tripped up by the nightmare of international tax. We built Yonda as the partner we wish they’d always had so they can focus on building.
In the announcement, Gareth Kobrin, Co-Founder of Yonda Tax, said:
validates all the hard work
Kobrin framed the raise as validation after years of bootstrapping and a step to accelerate product development and international coverage.
The bigger picture
This deal fits a broader pattern of investment into tooling that automates compliance and reporting as startups scale internationally. For UK-headquartered companies, solving indirect tax across multiple jurisdictions remains a practical barrier to rapid expansion, and software-first approaches are increasingly preferred over bespoke manual processes.
As regulatory regimes evolve — with authorities updating filing rules and increasing cross-border scrutiny — demand for predictable, auditable tax automation is likely to continue across Europe and beyond.
This raise underscores both the opportunity for UK fintechs to build global compliance infrastructure and the continued appetite among investors for software that reduces operational friction for internationally active companies.
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