Fintech startup Clear (formerly ClearTax) has raised $ 75 million in its Series C round led by Kora Capital. Fintech giant Stripe, Alua Capital, Think Investments and existing investors also took part in the round.
This is Stripe’s second investment in India. Stripe recently acquired the Bengaluru-based startup Recko for automated payment reconciliation. With this round, Clear has raised a total of $ 140 million in equity from companies including Y Combinator, Composite Capital, Elevation Capital, Sequoia Capital, and Founders Fund since its inception.
The newly raised funds will be used to accelerate Clear’s expansion into the B2B credit and payments space as well as its expansion into international markets, Clear said in a press release.
It is worth noting that Clear was allegedly in talks with Tiger Global to raise a $ 100 million round. While the talks did not materialize for reasons not mentioned, the new investors have led the round with a valuation of around $ 700 million.
Clear provides tax filing assistance software and other business services such as invoices, asset management, and credit. For small and large businesses, the invoicing, GST, suite of products includes a range of managed services and credit, while for tax professionals it offers GST, income tax and TDS solutions.
In July the company had acquired Y Combinator-backed corporate payments startup yBANQ in a cash and equity deal to get into B2B payments.
According to Clear, its SaaS platform has grown 5x over the past 18 months adding more than 3,000 large enterprise customers and has seen a surge in usage with over 1 million small businesses on the platform. The company claims to process over 10% of India’s business invoices with a GMV of $ 400 billion.
Founded in 2011 by Archit Gupta, Srivatsan Chari and Ankit Solanki, the company aims to serve over 10,000 large corporations and 10 million small businesses over the next few years.
For the fiscal year ended March 31, 2020, Clear had operating revenues of Rs 34.03 billion, 1.7 times more than the previous year. During the reporting period, the company’s total spending doubled to Rs.130.35 billion, and it suffered a loss of Rs 94.98 billion in FY20 compared to Rs 44.29 billion in FY19. Clear has yet to file its annual accounts for FY21.