Fonoa, a Dublin-based tax technology company, has raised $110m and acquired PwC’s indirect tax compliance platform, Indirect Tax Edge.
Dublin-based tax technology company Fonoa has closed a $110m Series C funding round and announced the acquisition of PwC’s Indirect Tax Edge platform, marking a significant move by one of Ireland’s most ambitious fintech companies.
The funding round was led by Headline, with new investors Eurazeo and Forestay Capital joining existing backers Index Ventures, OMERS, Coatue, and Dawn Capital.
Fonoa was founded by three former Uber students, and the experience of navigating, real-time tax needs in all global markets was a major inspiration in building the company. Today, the platform supports tax determinations across more than 190 jurisdictions, validates tax IDs in more than 100 countries, and processes more than a billion transactions annually. Clients include Canva, Netflix, Uber, and Booking.com, with some reporting up to 90pc faster billing since switching to the platform, according to Fonoa.
The CEO and founder Davor Tremac said that this increase affects the gap that has existed for a long time in the way tax groups work. “Technology has changed a lot in finance, but tax systems have remained neglected, leaving accounting teams to manage the same fragmented stack for decades: one dedicated vendor, another for e-invoicing, a third for returns, and spreadsheets that hold it all together,” he said.
On the acquisition side, Fonoa is acquiring Indirect Tax Edge (Edge) from PwC, a compliance system used by global businesses to manage VAT and GST reporting, e-filing, transaction data management, and tax analysis. PwC will continue to be involved, continuing to deliver indirect tax consulting and mobile services through the platform.
The agreement is designed to close a gap that has long frustrated corporate tax teams, which have had to manage upstream processes such as tax determinations and invoicing in completely separate systems from downstream compliance and filing. Together, Fonoa and Edge aim to cover the indirect tax lifecycle in a single data model, with a single audit trail.
Peter Michalowski, Global Indirect Tax Network leader at PwC, said Fonoa is well placed to invest in and grow the Edge platform, pointing to the company’s professional focus and AI capabilities as key factors in the decision.
Clarey Zhu, Partner at the leading investor capital, described Fonoa as leading a broader shift in the sector. “This industry has historically reached tens of billions worldwide, including services that are now being restructured through automation, and Fonoa allows businesses to manage compliance with a level of speed and intelligence not previously possible,” he said.
With the new capital and the acquisition of Edge, Fonoa says it is building on what it calls autonomous taxation, a system where AI agents monitor obligations, fill out returns, catch anomalies, and assemble audit packages, leaving people to make calls rather than do the work.
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