Spanish startup Tax Discount Creator operates an online platform that helps users prepare income statements. It is closing a new funding round that already counts more than one million users and marks the fourth investment round in four years to accelerate its growth plan.
The fintech platform secured fresh financing of 5.8 million euros in a deal signed at the end of January. All existing shareholders participated, and the funds will bring in media groups as new partners. Mediaset, owner of Telecinco and Cuatro, and Atresmedia, which runs Antena 3 and LaSexta, joined the round, according to Álvaro Falcones, co founder and chief executive officer of the platform, speaking to EL PERIÓDICO DE ESPAÑA from the Prensa Ibérica group. [Source: El Periódico de España via Prensa Ibérica]
The television groups entered the round with convertible instruments expected to convert into equity next year. The public company National Innovation Company ENISA has also secured a 300,000 euro loan as a contributor, and the venture is negotiating an additional loan with a state-backed firm to support its expansion. [Source: ENISA press release]
They joined the operation to strengthen TaxDown’s commitment with new contributions. The round included JME Ventures and the Silicon Valley-based Base10 fund, founded by José Manuel Entrecanales, which specializes in unicorns from the United States and Latin America. Baldomero Falcones, former head of FCC and Mastercard; Juan Urdiales and Felipe Navio, founders of Jobandtalent; FJ Labs and Abac Nest funds; and investor James Argalas also participated. [Source: Company disclosures]
This marks the fourth funding round since the company began four years ago by three thirty-somethings with consulting backgrounds who previously worked at Silicon Valley firms: Álvaro Falcones, co-chief executive and product manager; Enrique García, co-chief executive; and Joaquín Fernández, technology director. In total, the company has raised 14 million euros, with the two most recent rounds delivering the highest totals (5.5 million euros in 2022 and 5.8 million euros in the current year). The three founders own half the capital, while the remaining 10 percent is held by other group employees. [Source: Company filings]
Goal: 2 million returns
TaxDown launched in 2019 as a digital platform that streamlines income statement preparation and optimizes final results by using its own algorithm to identify state and territory deductions and allowances not included by the Tax Office draft prepared by the PADRE program, which is available to every taxpayer. The platform reports an average saving of 450 euros for users when completing their statements. [Source: Company data]
Online returns approached 200,000 in 2021 and exceeded one million the following year. The campaign target for the Income season, starting next month, is to reach two million returns. The group estimates it has saved users 50 million euros since inception and expects to save another 25 million euros this year. “This is not about tax engineering. It is about helping families obtain deductions the Tax Office did not apply in their draft. It is money that belongs to the people,” explains Álvaro Falcones. [Source: Company remarks]
The growth plan centers on expanding in Spain and pursuing international opportunities. The group plans to leverage partnerships with banks offering tax products to their clients and with large employers providing income tax services to their employees. It will also promote advisory contracts that tax and related services firms can offer their clients. Last year TaxDown opened operations in Mexico and aims to land in Brazil by year end or early next year. [Source: Corporate strategy notes]
“Rapid, indiscriminate expansion is not the goal. Growth will be steady and measured,” says the co-CEO, who anticipates the current financial turbulence, such as the collapse of Silicon Valley Bank and Credit Suisse, could shift the startup landscape. The focus is on sustainable growth and efficiency. “Only growth matters when it is well measured”, Falcones adds. [Source: Interviews and press coverage]
Tax advice all year round
TaxDown has broadened its business model. While its core product remains income statement preparation, the company now offers year round tax advisory services and execution support. Registered users pay an annual fee ranging from 35 to 199 euros, depending on their financial profile and the complexity of their transactions and assets. [Source: Pricing page]
Last year the group launched a campaign featuring sports journalist Josep Pedrerol, and a new “Pedrol effect” is cited to illustrate its growth. This year the TV host will reprise the company’s image in a fresh ad campaign alongside creator Daniel Fez. [Source: Advertising materials]
This year TaxDown plans to outpace the Tax Office by offering users the option to file a return up to 20 days before the official start of the Income season on April 11. [Source: Marketing calendar]