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OnlinePajak Raises Series C Funding, Collects IDR 243 Billion So far


Taxation SaaS startup OnlinePajak is reportedly currently raising Series C funds. Based on the data we have obtained, Tencent, Altos Korea, and Warburg Pincus have entered since July 2021.

OnlinePajak Raises Series C Funding, Collects IDR 243 Billion So far

Most recently, as of November 2021, Visa contributed to an investment of $5 million. The total funds collected in this round reached $17 million or the equivalent of 243 billion Rupiah.

The company previously announced a $25 million Series B funding in October 2018. This funding was led by Warburg Pincus, with the support of the Global Innovation Fund (GIF) and Endeavor Catalyst.

Previous investors such as Alpha JWC Ventures, Sequoia India and Primedge participated. While their series A funding managed to raise $3.5 million in early 2018. 

It is estimated that, with the acquisition of this investment, OnlinePajak’s valuation has reached $184 million or around 2.6 trillion Rupiah.

Previously, OnlinePajak had claimed unicorn status at a media meeting. We have tried to contact the relevant parties for more information, but have not received a response.

Service and Market Competition

Present as a SaaS service for businesses, OnlinePajak currently provides several services that are packaged in three main product categories: Invoice, Payroll, and Others.

In the Invoice sub-service, there are various features such as calculating/depositing/reporting VAT and PPh, making withholding books, invoices, NPWP validation, and others.

Payroll menu related to payroll features, including PPh 21 tax, salary calculation, and payslips. Then in the Other category there are channels for payments, reporting, including for personal taxes.

They also operate the TaxPay service to facilitate the tax payment process. There are also a number of API-based services for service integration with partners.

A number of startups have developed similar services. For business tax management, so far there are several startups that have played in this segment, including HiPajak, Tax.io, Catapa, Fast-8, and Mekari.

However, if you look at some statistics, OnlinePajak’s position as a tax management service is indeed higher than others. Based on site visit statistics, the OnlinePajak site ranks first in the Finance (Accounting and Auditing) category.

OnlinePajak Raises Series C Funding, Collects IDR 243 Billion So far

Global Market Size

According to Fortune Business Insight data, the market size of tax management software has reached $5.24 billion in 2018 globally. The figure is projected to increase to $11.19 billion by 2026 at a CAGR of 10.4%.

Basically the nature of the service helps businesses or companies to do tax management. However, as in Indonesia, all processes can actually be done independently.

Even among corporations, they usually have a special consultant who focuses on tax advocacy. The MSME segment may be the main target.

The MSME segment may be the main target. According to data from the Directorate General of Taxes, the Ministry of Finance in 2019, the contribution of the final income tax for SMEs was only around IDR 7.5 trillion, or only about 1.1 percent of the total income tax revenue in the same year of IDR 711.2 trillion.

However, according to the 2021 MSME Empowerment Report released by DSInnovate, digital tax management services are not in great demand.

This is because taxation matters are considered not to be their main pain point at this time, compared to other factors such as product distribution, capital, and logistics.

The online tax application reveals that the potential tax that can be collected in Indonesia is 2 times the current amount.

“The IMF (International Monetary Fund) study says that if all people in Indonesia pay taxes, we will be able to double state revenues,” said Charles Guinot, Founder and Group CEO of OnlinePajak.

Despite having great potential, Charles admits that the attitude of paying taxes is still low in Indonesia, especially for Micro and Small Enterprises (UMK).

One of the reasons for the low obedience of the public in paying taxes, according to him, is the complicated system. Therefore, OnlinePajak, which has been established since September 2014, is committed to helping SMEs.