AI Tax Platform FlyFin Raises $8 Million
With the number of self-employed individuals, freelancers, and side hustlers continuing to grow, many Americans are discovering the complexities that can come with business income taxes. In turn, major FinTechs like Intuit have expanded their products to meet the needs of these taxpayers, while other startups have launched what they say are superior options. Among the latter group is FlyFin, which has just completed a new round of funding.
Recently, FlyFin announced that it had raised $8 million. The Series A was led by Accel Partners with participation from Falcon Edge. According to the company, it plans to use the funds to help accelerate growth while continuing to enhance its product
FlyFin is an AI-powered tax engine aimed at helping freelancers and self-employed individuals manage their taxes. With the platform, users can scan their expense accounts in order to find potential deductions. However, beyond the AI employed by the service, customers also have access to FlyFin CPAs that can help review returns for accuracy and prepare them for filing with the IRS.
As FlyFin notes, their funding comes as self-employment is on the rise — due in part to the pandemic. While there are currently approximately 70 million freelancers in the United States, that number is expected to grow to 86.5 million over the next five years. If these figures hold true, that would mean that 51% of the total U.S. workforce would be self-employed by 2027.
Commenting on what this Series A will mean for the company, FlyFin’s founder and CEO Jaideep Singh said in a statement, “This funding helps us scale the company to reach millions of freelancers. FlyFin’s app is a perfect match for mobile-first Gen Z and millennials, who are freelancers, self-employed, or have successful side-hustles.” Singh continued, “Our solution takes the confusion and anxiety out of tax preparation, replacing it with an easy-to-use, hassle-free, super affordable solution that works 24/7.”
Speaking to why Accel decided to lead the funding round for FlyFin, the VC’s partner Subrata Mitra explained, “We invested in FlyFin because of the strength of their product and high caliber of the team. Moreover, we believe that A.I. will revolutionize the individual tax preparation industry through automation, and FlyFin is best positioned to lead this disruption.”
Although FlyFin is one of several tax prep startups, the growing market likely has plenty of room for disruption and new competitors. Meanwhile, the $8 million FlyFin now has at its disposal is sure to help the platform gain new customers as it looks to take on the Intuits of the world. Therefore, it’s worth keeping an eye on this sector of the FinTech landscape and FlyFin in particular.