ClearTax - Enhancing Tax-Filing and Making Returns Easy for India

Rishabh Rathi Rishabh Rathi
Oct 5, 2021 11 min read
ClearTax - Enhancing Tax-Filing and Making Returns Easy for India

Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by ClearTax.

Tax filing is a tedious task! Be it a layman or a CA, it's time-consuming and cumbersome to a great extent. Then came a startup in 2011 that made this process simpler for the people. Founded by Archit Gupta, Srivatsan Chari, and Ankit Solanki in 2011. ClearTax services range from tax preparation, e-filing, accounting, to investment planning solutions for individuals and businesses.

Read this article to know more about ClearTax company,  ClearTax founders, team, ClearTax journey, startup challenges, ClearTax competitors, ClearTax company details, ClearTax funding, and its investors.

ClearTax - Company Highlights

Startup Name ClearTax
Headquarter Bengaluru, India
Sector FinTech
Founders Ankit Solanki, Archit Gupta, Srivatsan Chari
Founded 2011
Revenue INR 60 Crore (FY20)
Parent Organization Defmacro Software Pvt. Ltd.
Website cleartax.in

ClearTax - About & How It Works?
ClearTax - Founders & Team
ClearTax - How It All Started?
ClearTax - Startup Launch
ClearTax - Logo & Tagline
ClearTax - Revenue Model
ClearTax - Funding & Investors
ClearTax - Growth & Revenue
ClearTax - Startup Challenges
ClearTax - Acquisitions
ClearTax - Competitors
ClearTax - Advisors & Mentors
ClearTax - Latest News | Black App
ClearTax - FAQs


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ClearTax - About & How It Works?

ClearTax company is Built on top of India’s Massive Digitization of its Tax Systems. They are a Bangalore based Financial-Technology platform providing solutions for Income Tax filing, GST and Mutual Fund Investments. The Cleartax parent company is Defmacro Software Pvt Ltd. It interface is designed in way that customers can easily find the services they want, while the ClearTax login is also an easy process.

The ClearTax journey started out by helping individual consumers, CAs, and businesses to prepare and file their tax returns by easy and effective means. For individual users, the process at ClearTax India is super simple and easy to understand. The user simply has to upload the Form 16 pdf to begin tax filing. This software reads all of it and fills out the tax return automatically and instantly. Thus, ClearTax company eliminates any human factor intervention in computing and filing tax returns.

The customer gets a fully prepared tax return in just a matter of seconds. And that’s not it about ClearTax. There’s more than the company brings to the table. The portal also helps users through complex scenarios like job transition, in this case, the user will receive multiple form 16s so that this software can help you accommodate the changes too. Say, for example, one has forgotten to claim HRA, it takes care of that as well.

On the same grounds, the customer can apply for tax refunds, calculate capital gain/loss if the user has sold stocks or MFs, then Cleartax services helps you carry forward losses to multiple years, incorporate companies, and also undertake service tax registrations easily and efficiently.

ClearTax - Founders & Team

ClearTax founders are Archit Gupta, Srivatsan Chari, and Ankit Solanki who were friends before starting the company.

Owner of ClearTax
Ankit, Archit, and Srivatsan | Founder, Cleartax

Archit Gupta

He is the founder and The current ClearTax CEO. Before setting up ClearTax, he worked at Data Domain Inc which was acquired by EMC2. The ClearTax owner holds a bachelor's degree in computer science from IIT Guwahati and a master’s in computer sciences from the University of Wisconsin Madison. This ClearTax founder worked in Silicon Valley for three years and this is when he was exposed to the startup culture in the valley. Ever after being the founder of ClearTax, he is also known to be pursuing a PhD.

Srivatsan Chari

He is the Co-founder & Head of Product at ClearTax. This ClearTax founder did his bachelor's in Computer Science (Hons) from Birla Institute of Technology and Science, Pilani.

Ankit Solanki

He is the Co-Founder & CTO at ClearTax. ClearTax founder holds a bachelor's degree in Information Technology from the S.I.E.S. Graduate School of Technology.

Ravi Sandepudi

Ravi Sandepudi is ClearTax's 'Entrepreneur-in-Residence'. He is an alumnus of BITS-Pilani and The Wharton School (University of Pennsylvania). Prior to being an owner of ClearTax, he was associated with PayPal, Google and Simility.

ClearTax Team
ClearTax Team

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ClearTax - How It All Started?

During his masters and later years, Archit was living in San Francisco and used to visit home for the summers. The Cleartax journey started during one of his visits, in 2010, he happened to have an informal talk with his father, a Chartered Accountant in Delhi. The conversation was about how doing taxes was a tedious and difficult task for both individual consumers and CAs. And how the available computing software makes tax filing so problematic and complex that led to the genesis of the idea that the whole process is time-consuming and hectic.

Within no time, Archit started fixating on the problem and started thinking to himself that it'd be great if he could figure out a way to create software for India to help ease the tax filing process. And in the following months, he moved to India to solve this problem.

There were multiple layers of complexity to this problem and it wasn't easy as it seemed from the top. Since he was from the computer field, this tax and finances came out to be a new experience for him and hence it took him a while to get used to the aesthetics. It required Archit to spend a lot of time with CAs, combined with a lot of learning, understanding, and getting deeper insights into the industry. It was like starting from scratch for Archit. And thus Clear tax company was born.

“When I started thinking about ClearTax, I was not thinking what the market would be or how big it would be. All I thought was it was a need that should be solved.” said Archit Gupta, owner of cleartax.

ClearTax - Startup Launch

“I had no marketing budget at that time. So all I did was send emails to friends or people I knew to try the product. But within two hours of the website going live, somebody had filed a tax return. That was a crazy moment for us.” said Archit Gupta, ClearTax CEO.

And that’s how he launched ClearTax company. From that moment onwards, there was no looking back for Cleartax India. In the coming 11 days after the launch of Clear tax services, more than 1,000 people came to the site to file their tax returns on the portal. The founder and the core team were on the edge all the time and kept working day and night to keep adding feature after feature at breakneck speeds as and when the consumers would call up and ask for more support features. Some of the examples of added features on consumer demand are rental income or provision for two salaries.

In just the following year of inception, Cleartax had more than 30K-40K users filing their returns on the platform. The figures kept jumping from 100K to 300K, to 1 million, five years down the lane. From San Francisco to Delhi and from a cushy academic career to an entrepreneur, it’s been a heck of a journey for Archit Gupta.


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ClearTax - Logo & Tagline

The ClearTax tagline is not there, but it aims is to simplify finances, save money and time for millions of Indian businesses and people. The ClearTax logo has a smiling robot in it along with ClearTax written in Black colour.

Cleartax Logo

ClearTax - Revenue Model

The company is known to charge their customers for filing. The ClearTax Revenue model is self e-filing based, while it operats on a freemium model. ClearTax has a Chartered Accountant-assisted services for filing individual tax returns. The company has a concierge like service for NRI tax returns throughwhich ClearTax revenue comes from.

Its services and the Cleartax Business model is designed especially for freelancers and small businesses. Clear tax Business model help these freelancers  and small businesses plan their expenses and claim them systematically and this way the company helps them save much more on their taxes than we charge.


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ClearTax - Funding and Investors

The ClearTax funding round in October 2018, was $50 Million, with Composite capital Management being the lead investor. In March 2021, the media reported that it was in talks with New York-based Tiger Global to lead a $100 million funding round. The Cleartax funding is said to be used for accelerating growth and expanding its product basket. The ClearTax investors are Founders Fund, Sequoia Capital, SAIF Partners, Composite Capital Management, Tiger Global, etc.

Here is a list of all the funding rounds of ClearTax:

Date Stage Amount Investors
August 2014 Pre Seed Round - Sumon Sadhu
April 2016 Angel Round $1.3 million Max Levchin, Scott Banister
May 2016 Seed Round $2 million Founders Fund, Sequoia Capital
June 2016 Series A $12 million SAIF Partners
October 2018 Series B $50 million Composite Capital Management
March 2021 Series C $100 million Tiger Global

ClearTax - Growth and Revenue

ClearTax revenue 2020 was estimated to be INR 60 crore in FY20, a 163% surge over the previous year's (FY19) INR 22.8 crore.

  • As of 2020,  ClearTax has a 10% market share in income tax (IT) filing, as claimed by Archit Gupta.
  • ClearTax featured in the World's 250 Most Promising Fintech Startups by CB Insights. There are 2,174 fintech startups in India according to a recent MEDICI Global Report.

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ClearTax - Startup Challenges

As mentioned above, Archit had to start from scratch about anything and everything about tax filing and returns which were initial challenges that the founder had to face. Secondly, Archit had to go on to bootstrapping the company because back then, the capital was very difficult to raise. Given that, he also had a very big challenge on hand, which was to build a product software company based out of India with almost no precedents to look up to in the field.

ClearTax - Acquisitions

ClearTax has acquired 3 organizations.

Acquired Date
Tootl April 2018
Dose FM October 2019
Karvy - GST filing Services March 2020

Karvy - GST filing Services provides tax filing services, Dose FM is India's first audio entertainment app, and Tootl is one place to follow and update yourself with all your general and niche interests.


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ClearTax - Competitors

Cleartax has competitors in individual services that it caters to. H&R Block and Webtel are the significant competitors in the tax filing space that ClearTax directly competes with. When ClearTax competitors in India in the GST space, the startup directly or indirectly competes with Cygnet, Tally, and Computex. Its mutual fund platform competes with entities like Paytm Money, ETMONEY, Groww, Zerodha amongst others.

By stepping its foot into stockbroking and wealth management services via 'Black App', then ClearTax competitors in India can also be Zerodha, Upstox and Paytm Money, Motilal Oswal and ICICI Securities.

ClearTax - Advisors and Mentors

As ClearTax took this journey, they have added mentors and Investors like Max Levchin, founder of Paypal, Vijay Shekhar Sharma of Paytm, Neeraj Arora of Whatsapp, Peter Thiel’s Founders Fund, Sequoia, and Ryan Peterson of Flexport.

ClearTax - Latest News | Black App

Cleartax will step its foot into stockbroking and wealth management services, thereby eyeing a share of India’s fast-growing retail investment market. It is planning to pump around INR 100 crore for the development and promotion of its new app called 'Black'.

This move will make ClearTax a direct competitor to firms like Zerodha, Upstox and Paytm Money, Motilal Oswal, ICICI Securities etc. It also launched a platform for tax savings and mutual fund investment in January 2020.

Conclusion

ClearTax mission is to simplify finances, save money and time for millions of Indian businesses and people. ClearTax is a technology company that builds trusted, useful and insightful platforms for our clients to run their finances and improve their relationship with money. People have put their trust in these companies. ClearTax is the trusted partner for tax experts and businesses across industries such as manufacturing, retail, FMCG, financial services, e-commerce and healthcare. The company is on a mission to simplify financial lives for all Indians.


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ClearTax - FAQs

Who is ClearTax Owner?

Cleartax is founded by 3 friends, Archit Gupta, Srivatsan Chari, and Ankit Solanki.

How much is ClearTax Funding?

ClearTax has raised a total of $65.3M in funding over 5 rounds. It’s last funding, Series B, was raised in October 2018 for $50 Million, Composite capital Management being the lead investor.

Who are the competitors of ClearTax?

H&R Block, Webtel, Cygnet, Tally, Computex, Paytm Money, ETMONEY, Groww, Zerodha amongst others.

How much is ClearTax Revenue?

ClearTax revenue is INR 60 crore in FY20, a 163%surge over the previous year's (FY19) INR 22.8 crore.

Is ClearTax a unicorn?

ClearTax, which is among 32 of India's 3,500 fintech start-ups that are potential unicorns.

Is ClearTax reliable?

With bank grade network security (128- bit SSL), security audits and industry- wide best practices in security, we keep your data safe.

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