In the rapidly evolving landscape of e-commerce and digital services, businesses face the daunting challenge of navigating complex and ever-changing sales tax regulations. Kintsugi AI, a San Francisco-based startup founded in 2023, has emerged as a transformative force in this domain, offering an AI-driven platform that automates sales tax compliance, thereby enabling businesses to focus on growth without the burden of manual tax processes.
Genesis and Mission
Kintsugi AI was established by a trio of seasoned professionals: CEO Pujun Bhatnagar, a Stanford graduate and former Facebook machine learning engineer; Barkin Doganay, with a background in financial analysis at Credit Suisse and Goldman Sachs; and Jeff Gibson, previously an executive at Atlassian and CTO at MonetizeNow. The company’s inception was catalyzed by the 2018 Supreme Court ruling in South Dakota v. Wayfair, which mandated that online sellers collect sales tax even without a physical presence in the state. This landmark decision significantly increased the complexity of sales tax compliance for e-commerce businesses, highlighting the need for an automated solution.
Kintsugi AI’s mission is to simplify sales tax compliance for over 27 million e-commerce and SaaS businesses worldwide by automating the entire process. Their platform encompasses real-time nexus monitoring, AI-enabled product categorization, precise tax calculation and validation, sales tax registration, filing, exemption certificate management, and back-tax compliance. By integrating with various billing, e-commerce, accounting, and HR systems, Kintsugi AI provides a comprehensive solution that addresses the multifaceted challenges of sales tax compliance.
Funding and Growth Trajectory
In May 2024, Kintsugi AI secured a $6 million Series A funding round at a $40 million valuation. The round was led by Link Ventures, with participation from Venture Highway, KyberKnight, Plug and Play, DeVC, and notable angel investors. This infusion of capital was earmarked for the development of automated Value-Added Tax (VAT) solutions for Canada and Europe, aiming to support customers with international sales.
By November 2024, the company extended its Series A funding, adding an investment from Airwallex, which brought the total funding to $10 million. This additional capital was allocated towards expanding the engineering team to enhance the platform’s capabilities. During this period, Kintsugi AI experienced remarkable growth, quadrupling its revenue and doubling its customer base within four months. Co-founder Pujun Bhatnagar remarked, For the last four months, we have been moving at the speed of light. We have quadrupled our revenue and doubled the number of customers.
The company’s growth trajectory continued into 2025. By January, Kintsugi AI had achieved an average monthly growth rate of 87%, reaching $1 million in Annual Recurring Revenue (ARR) in less than six months. The team expanded from 10 to 80 employees, reflecting the company’s commitment to scaling its operations to meet increasing demand. Additionally, Kintsugi AI launched sales tax compliance solutions for Canada and completed work on European Union sales tax requirements, positioning itself for a European launch in the first quarter of 2025.
Strategic Partnerships and Market Positioning
In April 2025, Kintsugi AI announced an $18 million funding round led by Vertex, a global indirect tax technology solution provider. This strategic partnership aims to extend Kintsugi AI’s AI-enabled tax compliance capabilities to more small and medium-sized businesses. Vertex’s Chief Strategy Officer, Chirag Patel, highlighted the synergy between the two companies, stating, We at Vertex have relationships with some of the largest companies in the world who run marketplaces, who run e-commerce businesses, and we’re not today in the business of servicing small companies. Whereas Kintsugi is highly specialized and incredibly good at it and can scale that business model, which is hard to do.
Kintsugi AI’s platform distinguishes itself through its user-friendly approach. Businesses can calculate their sales tax liability for free, with charges applied for tax filing services. The platform also offers an auto-remit feature, enabling automatic filing of sales tax after data ingestion from various revenue channels. This streamlined process allows businesses to manage sales tax compliance efficiently, often in less than three minutes per month.
The company’s innovative approach and rapid growth have positioned it as a leader in the tax management solution space. Kintsugi AI is now the highest-rated Shopify app for sales tax, underscoring its commitment to delivering value and simplifying a historically complex process for businesses.
Future Outlook
Looking ahead, Kintsugi AI plans to further enhance its platform and expand its global reach. The company is focused on launching its European sales tax compliance solutions and continuing to develop automated VAT solutions for international markets. By leveraging AI and automation, Kintsugi AI aims to revolutionize sales tax compliance, enabling businesses worldwide to navigate the complexities of tax regulations with ease and efficiency.
In summary, Kintsugi AI’s rapid ascent in the tax automation industry is a testament to its innovative approach, strategic partnerships, and commitment to simplifying sales tax compliance for businesses of all sizes. As the company continues to expand its offerings and global footprint, it stands poised to become a pivotal player in the realm of tax compliance solutions.
