Vertex Expands AI Tax Compliance Solutions Through Strategic Investment in Kintsugi

A new partnership set to revolutionize tax automation for SMBs and e-commerce businesses

In exciting news for the tax technology sector, Vertex Inc. (Nasdaq: VERX) has just completed a strategic investment in Kintsugi, an AI-native startup that's quickly making waves in the tax compliance space. This move marks a significant step in Vertex's strategy to expand its reach while supporting innovation in the tax automation market.

The Perfect Match: Enterprise Experience Meets SMB Innovation

Vertex, long established as a leader in enterprise tax solutions, is joining forces with one of the most promising newcomers in the space. Kintsugi, founded in 2022, has developed an AI-driven platform specifically designed for SMBs and mid-market e-commerce and SaaS businesses—a segment that sophisticated tax automation tools have historically underserved.

The partnership includes a minority investment, IP sharing, and a commercial partnership, with Vertex also taking a seat on Kintsugi's Board of Directors. This arrangement allows both companies to maintain their unique market focus while benefiting from each other's strengths.

"This investment is a strong complement to Vertex's focus on the enterprise and mid-market," explained Chirag Patel, Vertex's Chief Strategy Officer. "Kintsugi brings innovative and differentiated AI-enabled capabilities to address the needs of SMBs and e-commerce businesses in ways that other startups and legacy SMB providers simply can't match."

AI-Powered Tax Solutions for the Digital Economy

What makes Kintsugi particularly noteworthy is its approach to solving tax compliance challenges. The platform seamlessly integrates with popular revenue sources like Stripe and QuickBooks, creating an automated end-to-end solution that handles tax calculations, filings, and compliance monitoring across multiple jurisdictions.

For small and mid-sized businesses, especially those operating in the e-commerce and SaaS spaces, this level of automation can be transformative. As cross-border trade continues to expand, businesses face increasingly complex tax regulations. Kintsugi's platform reduces preparation time by 75% and compliance costs by 50%—numbers that make a significant difference for growing companies with limited resources.

This resonance with its target market has propelled Kintsugi to become the #1 tax software provider on the Shopify marketplace, with established operations in the US, Canada, and Europe.

A Shared Vision for the Future of Tax Technology

Both companies view this partnership as more than just a financial investment—it's about accelerating innovation in tax technology. Pujun Bhatnagar, CEO of Kintsugi, said, "We're thrilled to partner with Vertex, a company that shares our commitment to transforming tax technology. This investment validates our approach to solving the complex tax challenges facing e-commerce and SaaS companies today."

What This Means for the Industry

The tax automation market is growing substantially as businesses face increasing compliance complexity and seek more efficient solutions. This partnership positions both companies to better serve their respective market segments:

• For enterprise and mid-market businesses: Vertex continues to enhance its comprehensive tax solutions, potentially integrating insights from Kintsugi's AI innovations.
• For SMBs and e-commerce businesses: Kintsugi gains resources and expertise to accelerate its growth and product development.

As digital commerce evolves and tax regulations become increasingly complex, partnerships like this one between established leaders and innovative startups will likely become more common. Combining deep industry expertise and cutting-edge technology promises more effective solutions for businesses of all sizes.

Kintsugi extends heartfelt appreciation to its customers for their trust and partnership. With a shared vision for smarter tax automation, Kintsugi is poised to lead the next era of innovation and growth. Learn more at www.trykintsugi.com.