Zenwork raises Rs 1,200 crore from Spectrum Equity
Aims to expand operations in Hyderabad to support global entities
Hyderabad: Zenwork, provider of digital tax compliance and regulatory reporting for global businesses, has raised over Rs 1,200 crore from Spectrum Equity, a growth equity firm focused on internet-enabled software and information service companies. This is the highest fund-raise by a city-based fintech company so far, claims its co-founder and CEO Sanjeev Singh.
With the funds, the company is planning to expand the operations in Hyderabad to support our global entities. It looks to move to a bigger office space in the city and increase the employee headcount to 200 by the end of next year. At present, it has 60 people working at Hyderabad office and a small team of 20 persons at the US office.
The investment will also enable the software as a Service (SaaS) platform, operating the brands – Tax1099 and Compliancely, to accelerate product innovation and meet growing business demand for modern, automated technology solutions that address regulatory compliance and power electronic filing and information management, he adds.
Zenwork helps businesses everywhere manage compliance at a time when changing state and federal mandates and a surge in the gig economy workforce have created new, complex tax reporting burdens. The company offers its customers modern, cost-effective solutions that transform resource-intensive, manual processes into highly automated, digital experiences. Currently, it serves over one lakh businesses globally, including 30,000 CPA firms, as well as large enterprises. The company has been growing rapidly, adding 40,000 new clients in each of the last two years and processing millions of electronic filings and over 12 million business identity and compliance checks annually on behalf of its client base.
Sanjeev Singh further said, "Spectrum Equity's experience in scaling fintech software and data businesses will help us navigate our next growth chapter. This strategic alliance will not only help us potentially explore newer avenues, but also gives an opportunity to invest heavily in our platforms as we look to be the digital tax compliance partner of choice to all businesses."