Press release: Aibidia raises EUR 4.2 million (USD 4.5 million) to digitalise international tax

Press release: Aibidia raises EUR 4.2 million (USD 4.5 million) to digitalise international tax

Press release: Aibidia raises EUR 4.2 million (USD 4.5 million) to digitalise international tax

Aibidia raises EUR 4.2 million (USD 4.5 million) to digitalise international tax

Aibidia is excited to announce that it is embarking on the next stage of its mission to digitalise international tax as a result of a successful seed funding round led by Global Founders Capital and Icebreaker.vc, whose investments total EUR 2.9 million. The equity funding is complemented by EUR 1.25 million from the Young Innovative Company funding program by Business Finland, aimed at supporting the most promising Finnish start-ups.

The biggest challenge in international taxation relates to transfer pricing. In essence, it boils down to the question of how to ensure a fair and transparent split of the global profit within multinational companies. We help companies solve this challenge. We are offering companies and tax authorities a digital platform that helps define and justify the global profit split while simultaneously automating the burdensome statutory reporting process.”, explains Aibidia’s CEO and founder Hannu-Tapani Leppänen.

We have been fortunate to collaborate in product development with companies such as Metso, Wärtsilä, and Kemira who are in many ways pioneers in their respective fields and also have very progressive tax teams eager to enhance their daily work with digital tools. With this seed funding, we are able to start expansion into the global markets.”, continues Leppänen.

Global Founders Capital is one of the world’s leading venture capital funds, with an impressive track record of scaling category-defining start-ups into global success stories. Their portfolio includes renowned companies such as Slack, Revolut, LinkedIn and DeliveryHero. Icebreaker.vc supports early phase Nordic technology start-ups.

We have been working with Icebreaker.vc since 2018 and have benefitted from their support in many ways. We are excited to start collaborating with Global Founders Capital who thoroughly know what is required to scale up a company. Both of these VCs are truly interested in their portfolio companies and are not just putting in money but also their time, expertise and networks, which is even more important than the funding.”, says Leppänen.

“Aibidia have taken a first-principles approach to revolutionizing the work of transfer pricing compliance, the largest tax compliance category for the world’s biggest corporations. Leveraging years of experience in the field, the Aibidia team has created a way for multi-national corporations to thrive in an environment of ever-increasing demands and regulation from both local and global regulators. Automating a vast portion of compliance workflows and documentation creation, Aibidia saves thousands of hours of manual work while increasing control, transparency and compliance assurance – critically reducing the risk of costly tax adjustments. We are thrilled to work with Aibidia on the road ahead to build an industry-defining company.”, says Philippe Klintefelt Collet, Partner, Global Founders Capital.

International taxation is an important topic where the structure of our societies in terms of taxation and what companies can actually get done are at odds. Companies are spending €150bn per year on this which is wasted. Hannu-Tapani and the team know the ins-and-outs of this problem and are very passionate about solving this inefficiency with technology. It is exactly what we look for: large global markets, domain expertise, great technology. And passion!” says Riku Seppälä, General Partner, Icebreaker.vc.

The company is also announcing its collaboration with two internationally acknowledged thought leaders and digitalisation proponents in transfer pricing:

  • Ketan Patel is the Global Head of Tax Technology at Morgan Stanley and is joining Aibidia’s advisory board as of November 2019.
  • Brigitte Baumgartner has a long experience in EU and national level transfer pricing regulation and is partnering with Aibidia in the company’s expansion to Central Europe.

We could not be in a better situation: we have a dedicated team supported by the forerunners in transfer pricing digitalisation and extremely competent VCs. We have very ambitious plans and, now, also the means to disrupt the field of transfer pricing and international taxation.”, states Hannu-Tapani Leppänen.

The team currently comprises 14 people. Staff count is expected to double by the end of 2020.

For more information, contact:

Hannu-Tapani Leppänen, +358 44 359 2191, h-t.leppanen@aibidia.com

www.aibidia.com

Aibidia is a Finnish tax technology start-up specialising in international tax and transfer pricing solutions. Aibidia was established in 2014 by Hannu-Tapani Leppänen. Co-founders of the company include Simo Leppänen, Kim Jämiä and Tom Kaijasilta.

Global Founders Capital (GFC) is a global seed and growth investor investing in companies globally across all stages. GFC operates 12 offices across Europe, US, Latin America, Middle East and Asia.

Icebreaker.vc is a Finnish venture capital fund and community that helps potential future founders build their success stories. Today, Icebreaker.vc manages a 20 million EUR fund and invests in Nordic and Baltic software-driven companies in angel and early seed stages.