Tax management and compliance startup Prosperr.io has raised $4 million (Rs 35.8 crore) in a seed funding round led by Jungle Ventures, at a post-money valuation of about $15.6 million (Rs 140 crore), according to the company’s cofounder and CEO Manas Gond.
The round also saw participation from Yatra Angel Network and Sadev Ventures, taking Prosperr.io’s total funding to $5.55 million since its incorporation in 2022.
What Prosperr.io sells: “tax as a subscription,” for employees and employers
Founded by Manas Gond and Dev Kumar, Prosperr.io operates in the tax management and compliance space with technology-led products for salaried individuals as well as enterprises.
On the consumer side, the company offers subscription-based tax planning and compliance services aimed at optimising deductions and managing multiple income streams.
For enterprises, Prosperr.io works with companies on tax-saving employee allowances and automated reimbursement solutions, an area that has become increasingly process-heavy for HR and finance teams. The company said it has recently expanded its enterprise product suite with an AI-driven reimbursement offering to address growing complexity in corporate tax operations.
Where the money goes next?
Prosperr.io said the fresh capital will be used to accelerate product development and strengthen business-to-business (B2B) sales, as it looks to scale its enterprise platform and expand into adjacent areas such as wealth management.
Gond framed the ambition as a single subscription layer for the salaried class’ daily financial needs. “We are trying to ensure that whatever financial requirements a salaried individual has, whether taxation or wealth planning, Prosperr is the subscription-based platform to address their day-to-day needs,” he said.
A key part of the distribution strategy, according to Gond, is using the enterprise channel to feed the consumer business: the startup plans to use its enterprise partnerships to drive user acquisition for its individual-user offerings.
The company’s operating snapshot
Prosperr.io has a headcount of around 150 and claims an 80% retention rate among individual users, while maintaining full retention across its enterprise client base, as per Gond.
On the wealth side, Gond said the company has obtained an asset management company (AMC) licence and is registered as a Sebi investment adviser. It currently offers mutual fund products and plans to expand into equity and bond investments, he added. Gond also said about 25% of its consumer users currently use Prosperr.io’s wealth management offerings.
Jungle Ventures, which led the seed round, signalled a thesis that tax is still a neglected layer in fintech infrastructure. “Tax is one of the most under-innovated layers of financial infrastructure, and the complexity only compounds as individuals earn across multiple streams and businesses operate global workflows,” said Rishab Malik, partner, seed investments at Jungle Ventures.
The funding comes after an earlier raise: in June 2024, Prosperr.io raised $1.5 million in a round led by Silicon Valley-based angel investor Gokul Rajaram.
Prosperr.io is entering a space that already has established tax software brands. Other players referenced in the segment include Bengaluru-based ClearTax, US-based TurboTax, and Vertex.
The business plan of Prosperr.io, based on Information shared by the company, is not only focused on assisting individuals process and optimize their tax submissions. It also involves structuring a business-to-business wedge through employers, who generate allowance and reimbursement transactions that can be optimized.
The startup’s apparent plan to leverage enterprise partnerships to drive consumer acquisition suggests that they are looking to create a flywheel: employers provide distribution, subscriptions enable frequent use, and wealth products drive share of wallet.
Whether that flywheel scales will depend on execution, particularly on product depth, compliance reliability, and enterprise sales, areas Prosperr.io has explicitly earmarked for the new capital.
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