Fonoa Secures €94.4 million in Series C Funding, Acquires PwC’s Tax Platform

Fonoa, a cutting-edge AI tax operating system based in Dublin, has successfully secured €94.4 million ($110 million) in Series C funding and completed the acquisition of Indirect Tax Edge (Edge) from PricewaterhouseCoopers (PwC).

This funding round was spearheaded by Headline and saw the participation of new investors Eurazeo and Forestay Capital, alongside existing investors Index Ventures, OMERS, Coatue, and Dawn Capital.

CEO and co-founder of Fonoa, Davor Tremac, emphasized the necessity for modernizing tax systems, especially in light of the evolving landscape faced by global companies like Uber and Netflix. Fonoa was specifically developed to address the challenges posed by region-specific tax and compliance requirements.

Established in 2019 by former Uber executives Davor Tremac, Filip Sturman, and Ivan Ivankovi, Fonoa aims to assist businesses in navigating complex, real-time tax obligations as they expand into new markets.

Fonoa’s comprehensive modules cover the entire indirect tax lifecycle, encompassing tasks such as tax ID validation, real-time tax determination, e-invoicing, and returns. The platform operates on a shared data model, ensuring seamless integration and a unified audit trail.

Fonoa boasts support for tax determination in over 190 jurisdictions, validation of tax IDs in 100+ countries, e-invoicing for numerous sellers, and processing of more than a billion transactions annually. The platform is specifically designed for real-time compliance in digital and cross-border business models, distinguishing it from traditional providers that rely on ERP integrations and batch reporting.

Notable clients of Fonoa include Canva, Uber, Netflix, Nebius, and Booking.com, highlighting the platform’s effectiveness and versatility in meeting the needs of diverse global enterprises.

Edge, acquired by Fonoa, is a renowned indirect tax compliance system utilized by multinational corporations across various industries to manage VAT/GST compliance reporting, e-filing, transactional data management, and tax analytics. This acquisition aims to bridge existing gaps in indirect tax technology.

Fonoa’s integration of Edge into its platform now offers a holistic solution that covers the entire indirect tax lifecycle within a single data model. From tax ID validation and real-time determination to e-invoicing and return submission, Fonoa and Edge together provide a comprehensive tax management system.

The collaboration between Fonoa and PwC through the Edge acquisition will enable Fonoa to enhance and scale the Edge platform rapidly, leveraging AI technology and expanding engineering capabilities to meet market demands efficiently.

With the infusion of new capital and the Edge acquisition, Fonoa is poised to expand its platform further to encompass the entirety of the indirect tax lifecycle, offering a fully integrated and AI-empowered tax operating system to its global clientele.