Latest news with #ViDA
Mint
2 days ago
- Business
- Mint
Clear delays profits as it expands into Europe and Middle East
Rwit Ghosh Accounting tech firm Clear is accelerating its global expansion into Europe and West Asia, driven by regulatory shifts like the EU's VAT in the Digital Age directive. The company's expansion is expected to open new markets, though it may delay its path to profitability, says Archit Gupta, founder and CEO of Clear. Gift this article Technology-led accounting solutions firm Clear (formerly ClearTax) is pushing into Europe and West Asia, a move that its leadership says will temporarily delay profitability. But the potential rewards, both in market size and regulatory tailwinds, are worth the wait. Technology-led accounting solutions firm Clear (formerly ClearTax) is pushing into Europe and West Asia, a move that its leadership says will temporarily delay profitability. But the potential rewards, both in market size and regulatory tailwinds, are worth the wait. 'What we're seeing is that the global expansion opportunity for us has gone up dramatically. We're having a lot of fun going global, so we're investing again," said founder and CEO Archit Gupta. The push into Europe is being led primarily by the European Union's decision to pass a piece of legislation called VAT in the Digital Age (ViDA) in March this year, as part of its efforts to modernise Value Added Tax (VAT) rules in the region. According to EY, the ViDA package aims to 'reduce the €93 billion VAT gap in the EU" and 'make the VAT system more efficient for businesses." The company declined to comment on how much funding they would be investing in the expansion into the new geographies. Also Read: Chargebee plugs into India as global demand heats up A large part of the ViDA package focuses on mandatory implementation of electronic invoicing, across business-to-government, business-to-business and business-to-consumer transactions. The legislation will be rolled out progressively until 2035, giving members time to implement it in their nations. 'Our first focus is basically going after e-invoicing, which the EU is mandating and something we're already very good at. That and taxes, we're good at both," said Gupta. In the EU, Clear will be offering its e-invoicing services primarily, which has been the company's focus in its global enterprise vertical. Furthermore, the EU is a large market where several multinational brands either have a significant presence or are expanding into the region. It's also a large market with a gross domestic product of $17 trillion, according to the World Bank Group. Currently, Clear is running proof-of-concept projects with several clients in Europe in Germany, France, Belgium and Spain. While the company was unable to share by when they'll be setting up teams in those countries, it did say that they'd be launching in the EU before the first wave of the ViDA mandate sets in. 'Our focus is that any new regulation should be solved with our software in a matter of a few days, in the worst case. It's so we can provide credibility to our customers," said Gupta. Middle East push Clear already has operations in Saudi Arabia. But now it's making a deeper push in the Middle East, targeting the United Arab Emirates, led especially by its software and invoicing products. In fact, Saudi Arabia introduced mandatory e-invoicing in December 2021 with the launch of its FATOORA platform. The United Arab Emirates announced the UAE e-invoicing Programme last year. According to EY, the timeline for the anticipated go-live first phase is set to start in July 2026. Oman's Tax Authority signed an agreement with public-sector telecom company Omantel in May this year to build e-invoicing infrastructure as well. 'In Saudi Arabia, our invoicing software has been growing fast and is solving a key problem there," said Gupta. Also Read: UPI AutoPay set to fuel subscription-based startups in India Some of the company's clients in the two nations include Swedish furniture company IKEA, Southeast Asian ride-hailing and delivery service Grab Taxi, and Dubai-based conglomerate Landmark Group. In India, the company caters to Tata Group's retail company Trent, insurance provider Tata AIG, and Standard Chartered Bank. Profitability outlook ClearTax rebranded to Clear in 2021, ten years after it began as a tax filing portal for individuals in 2011. The rebranding was part of the realisation that their services were not just for individual consumers but also for enterprises. 'Our original hypothesis was to target small and medium businesses, and our software will be used by them," said Gupta. However, what they found instead was that enterprise users and chartered firms were making up a larger part of their user base. By 2022, Clear pivoted sharply towards enterprise solutions, which now generate 75% of its revenue, compared to 25% from its B2C business, monetized only three years ago. While expansion costs are high, Gupta says most regions turn profitable 12 to 18 months after entry. 'The regions we're operating in currently start to generate profits after a 12 to 18-month window. These businesses are margin accretive," he said, emphasising that customer acquisition is the biggest upfront cost. 'After that, it's a SaaS business, it just recurs." The company last raised funds in 2021, netting $75 million in a Series C round led by Kora Capital, Stripe, Alua Capital, and Think Investments, with existing backers like Sequoia Capital and SAIF Partners still on board. Topics You May Be Interested In
Business Wire
09-07-2025
- Business
- Business Wire
Sovos Partners with Tungsten Automation to Deliver Breakthrough Compliant Accounts Payable (AP) Solution
ATLANTA & IRVINE, Calif.--(BUSINESS WIRE)-- Sovos, the always-on compliance company, and Tungsten Automation, the global leader in intelligent workflow automation solutions, today announced a strategic partnership to deliver a truly integrated compliant AP solution. This collaboration addresses the critical business need for seamless integration between accounts payable automation and indirect tax compliance in an era of increasing global regulatory complexity. The partnership combines the Tungsten Automation Platform with Sovos' Tax Compliance Cloud to create a comprehensive solution for intelligent invoice automation and global tax compliance. The combined solution supports both paper and PDF invoice capture using OCR and AI-powered technology for advanced document processing and connects seamlessly with supplier portals while integrating with ERP and procurement systems. It provides global tax determination and ensures real-time compliance with e-invoicing regulations. This seamless approach reduces manual effort, accelerates processing times, and ensures multi-national organizations remain compliant with evolving global mandates - unlocking operational efficiency, audit readiness, and peace of mind at scale. Addressing a Critical Market Need Traditional AP workflows remain manual, error-prone, and disconnected from tax compliance requirements, resulting in operational inefficiencies, higher costs, and significant compliance risks. With new global tax mandates such as VAT in the Digital Age (ViDA) and Continuous Transaction Controls (CTC) taking hold, companies can no longer treat AP automation and tax compliance as separate initiatives. Businesses need invoice agility across all platforms and systems. "The convergence of AP automation and tax compliance isn't just an operational advantage, it's become a business imperative," said Peter Hantman, CEO, Tungsten Automation. "Our partnership with Sovos addresses a critical C-Suite need in how enterprises approach their financial workflows. By integrating our proven automation capabilities with Sovos' comprehensive compliance expertise, we're delivering a solution that transforms AP from a cost center into a strategic advantage." Seamless Integration Delivers Unprecedented Value The Compliant AP solution works through five integrated stages: Invoice capture & data extraction: Tungsten's AI-powered OCR technology extracts data from any invoice format with intelligent validation Automated invoice matching & workflow routing: Automated matching against purchase orders and goods receipts within SAP systems Integrated tax determination & compliance validation: Sovos provides real-time tax determination at both the network and SAP stages Seamless ERP posting: Validated invoices are automatically posted to SAP with complete audit-ready documentation Real-time reporting & analytics: Comprehensive visibility into invoice status, AP cycle times, and tax liabilities "This partnership represents the evolution of tax compliance from a reactive business requirement to a proactive growth enabler," said Kevin Akeroyd, CEO, Sovos. "By combining our deep tax expertise with Tungsten's automation leadership, we're not just solving today's compliance challenges, we're futureproofing our customers' operations against an evolving global regulatory landscape. This is exactly the kind of integrated innovation that transforms how businesses operate." Proven Partnership Built on Operational Success This strategic alliance builds upon a long-standing relationship between the companies, with Sovos previously serving as the embedded tax compliance engine within Tungsten's platform. This new agreement formalizes a partnership that has been tested and refined through direct customer feedback and operational success. The solution offers unprecedented flexibility as a source system-agnostic platform that connects as a 'last mile compliance partner' to existing infrastructure without requiring system replacement. Companies can implement the joint solution without operational disruption while achieving up to 90% touchless processing, reducing 70% costs in audit or compliance-related penalties, and cutting per-invoice costs from approximately $10 to less than $2. Market Impact and Customer Benefits Key benefits of the integrated compliant AP solution include: Elimination of manual AP workflows with 90%+ touchless processing Guaranteed tax accuracy through integrated validation Dramatic reduction in AP processing costs Improved cash flow through faster, more accurate processing ViDA compliance readiness for evolving EU mandates Reduced implementation risk with proven solutions from established market leaders Deployment flexibility that adapts to existing systems without disruption About Tungsten Automation Tungsten Automation, formerly Kofax, is the global leader in intelligent workflow automation solutions with a trusted legacy of 40 years, with a team of 2,200 employees in 32 countries, serving 25,000+ global customers. Our commitment to innovation and customer success has earned us industry recognition, including being named a Leader in Intelligent Automation, IDP and Process Orchestration by key analysts. We are trusted to help businesses gain unprecedented efficiencies and reduce costs through workflow automations that will propel their businesses into the future. About Sovos Sovos is transforming tax compliance from a business requirement to a force for growth. Our flagship product, the Sovos Tax Compliance Cloud platform, enables businesses to identify, determine, and report on every tax obligation across the globe. Sovos processes 16 billion+ transactions per year, helping companies scale their compliance strategy in almost 200 countries. More than 100,000 customers -- including half the Fortune 500 -- trust Sovos' tax and regulatory expertise and unparalleled integration with their business applications. Learn more at
Yahoo
31-03-2025
- Business
- Yahoo
Esker Named a Leader in the First-Ever IDC MarketScape: European Compliant e-Invoicing 2024 Vendor Assessment
Esker's e-invoicing solution helps businesses navigate expanding e-invoicing mandates and ensure compliance LYON, France & MIDDLETON, Wis., March 31, 2025--(BUSINESS WIRE)--Esker, the global authority in AI-powered business solutions for the Office of the CFO, today announced that it has been named a Leader in the IDC MarketScape: European Compliant e-Invoicing 2024 Vendor Assessment (doc #EUR151806424, September 2024). Esker believes this recognition highlights its strong position in the European market and beyond, as compliant e-invoicing is essential in today's evolving regulatory landscape. The IDC MarketScape report provides an in-depth analysis of e-invoicing providers, focusing on the essential role these solutions play in ensuring businesses adhere to constantly changing regulations. "In our view this recognition highlights our commitment to providing innovative and compliant e-invoicing solutions that help businesses navigate Europe's complex and evolving regulatory landscape," said Anna Mevellec, Product Manager at Esker. "Our focus on customer success, combined with our expertise in managing regulatory challenges, has solidified our position as a trusted partner for businesses seeking seamless e-invoicing solutions." E-invoicing regulations are rapidly expanding, with over 50 mandates already in place for both the B2B and B2G markets. More than 10 new mandates are set to take effect within the next three years and many countries are actively proposing new legislation. The EU's VAT in the Digital Age (ViDA) directive is set to make e-invoicing the standard for B2B transactions. By streamlining digital reporting and requiring e-invoicing, ViDA intends to help combat tax fraud and improve VAT collection. Implementation begins in 2030, marking a major step toward a more efficient and transparent VAT system across the EU. Esker helps companies navigate this continually evolving regulatory landscape to ensure compliance. By being officially registered with France's General Directorate of Public Finance (DGFiP) as a Partner Dematerialization Platform (PDP) for e-invoicing, Esker can deliver secure and compliant solutions and support businesses in navigating France's e-invoicing regulations. Esker already has successes to show in this sphere. Saint-Gobain, a worldwide leader in light and sustainable construction, successfully transitioned to e-invoicing in its subsidiaries in multiple countries, minimizing manual processes and ensuring full compliance with local regulations. "With Esker's support, we successfully implemented a compliant solution that also optimized our invoicing processes," said Dominique Petitjean, Director of Information Systems at Saint-Gobain. "Esker's expertise and adaptability in navigating the complexities of diverse European regulations proved invaluable. As we look ahead at future regulatory changes in Europe, we can do so with confidence, knowing that Esker will continue to deliver on expertise and reliability." About IDC MarketScape IDC MarketScape vendor assessment model is designed to provide an overview of the competitive fitness of technology and service suppliers in a given market. The research utilizes a rigorous scoring methodology based on both qualitative and quantitative criteria that results in a single graphical illustration of each supplier's position within a given market. IDC MarketScape provides a clear framework in which the product and service offerings, capabilities and strategies, and current and future market success factors of technology suppliers can be meaningfully compared. The framework also provides technology buyers with a 360-degree assessment of the strengths and weaknesses of current and prospective suppliers. About Esker Esker is the global authority in AI-powered business solutions for the Office of the CFO. Leveraging the latest in automation technologies, Esker's Source-to-Pay and Order-to-Cash solutions optimize working capital and cashflow, enhance decision-making, and drive better collaboration and human-to-human relationships with customers, suppliers and employees. Esker operates in North America, Latin America, Europe and Asia Pacific with global headquarters in Lyon, France, and U.S. headquarters in Madison, Wisconsin. For more information on Esker and its solutions, visit Follow Esker on LinkedIn and join the conversation on the Esker blog at View source version on Contacts Press Contact: Brian JaegerTel: (352) 682-7636 | eskerpr@ Sign in to access your portfolio
