Bengaluru: Online tax filing service provider, Clear (formerly ClearTax), has acquired company compliance automation platform CimplyFive for an undisclosed sum in an all cash-deal.
This is Clear’s second acquisition this year as it continues to double down on its software platform and looks to diversify services for its 4,000 enterprise customers.
Post completion of acquisition, CimplyFive will continue to operate independently with founder Shankar Jaganathan leading the business, the company said.
The acquisition would allow US payments major Stripe-backed Clear to integrate compliance and governance management solutions to its existing finance cloud suite.
Founded in 2014, CimplyFive helps company secretaries automate compliance requirements with all the provisions of Companies Act, 2013, and Securities and Exchange Board of India’s (SEBI) Listing Obligations (LODR). It also offers companies system-based tracking, helping them to be up to date with regulation compliance.
The company has raised funds from prominent angels including former
chief financial officer Suresh Senapaty and former
director T. V. Mohandas Pai.
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“The CFO office continues to be the last member to be digitised. With the COVID-19 pandemic, a lot of compliances such as board meetings have become digital, causing us to see an opportunity to enter this space,” Gupta said in an interaction with ET. “Through the acquisition, we are now targeting the company secretarial and touching upon Sebi listing obligations, by ensuring no mistakes are being made through technology intervention.”
Through its finance cloud suite, Clear at present helps companies manage and pay their taxes, GST (goods and service tax), TDS (tax deducted at source) as well as make vendor payments.
CimplyFive has close to 100 enterprise customers including Fabindia, Premji Invest,
Group, and Wipro.
Its acquisition will also allow Clear to cross-sell its software offerings to these customers.
At present, Clear continues to be focused to grow its software-as-a-service (SaaS) footprint, which contributes almost 90% to its overall revenues. Its other lines of business include its consumer financial services play ‘Black’, and invoice discounting product to small and medium enterprises (SMEs) which it launched earlier this year.
Clear is currently disbursing roughly Rs 100-120 crore worth of loans to small and medium enterprises (SMEs) every month on its platform, Gupta said.
The company is planning to increase its geographic footprint to newer countries in the Gulf Cooperation Council (GCC) region, as well as to the US and Europe.
“Within SaaS, our two big focus areas continue to be the B2B finance suite and crypto-related tax APIs (application programming interfaces),” Gupta said. “We are actively partnering with crypto exchanges and NFT (non-fungible token) platforms to help their customers understand taxation.”
In March this year,
Clear had acquired supply chain financing technology firm Xpedize for Rs 100 crore. Last year,
it had acquired enterprise payments startup yBANQ to enter the business-to-business (B2B) payments space. Prior to that, it had also acquired Karvy’s GST business in 2020.
In October last year, the company had
raised $75 million as a part of Series C, led by Kora Capital with Stripe, Alua Capital, and Think Investments also participating in the round.
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