Fonoa, an AI-powered tax operating system for global businesses, announced two major moves aimed at strengthening its position in indirect tax compliance: the acquisition of Indirect Tax Edge (Edge) from PwC and the closing of a $110 million Series C financing round.
The funding round was led by Headline and included participation from new investors Eurazeo and Forestay Capital, along with existing investors Index Ventures, OMERS, Coatue, and Dawn Capital.
As part of the acquisition, Fonoa will continue developing the Edge platform and integrate it with its modular tax infrastructure and AI capabilities. PwC will continue providing global indirect tax reporting and consulting services through Edge while leveraging Fonoa’s integrated tax operating system.
According to Fonoa CEO and Co-Founder Davor Tremac, tax technology has lagged behind other areas of finance, forcing accounting teams to rely on fragmented solutions for tax determination, e-invoicing, reporting, and compliance. He noted that global companies operating across multiple jurisdictions increasingly require a unified platform capable of managing complex and evolving compliance requirements. The addition of Edge expands Fonoa’s platform to include compliance reporting and filing capabilities, advancing the company’s vision of autonomous tax operations.
Founded by three former Uber employees, Fonoa was created to help multinational businesses manage real-time tax requirements across global markets. The company now supports tax determination in more than 190 jurisdictions, validates tax IDs in over 100 countries, powers e-invoicing for millions of sellers, and processes more than a billion transactions annually. Customers include Canva, Uber, Netflix, Nebius, and Booking.com.
Edge is an indirect tax compliance platform used by global enterprises for VAT and GST compliance reporting, e-filing, transactional data management, and tax analytics. The acquisition brings upstream tax processes, such as tax determination and e-invoicing, together with downstream compliance reporting and filing on a single data model. The combined platform covers the full indirect tax lifecycle, including tax ID validation, real-time tax determination, e-invoicing, compliance reporting, and returns.
PwC executives said the transaction aligns with the firm’s strategy of partnering with technology leaders to help clients address increasing complexity and digital transformation in tax. They noted that Fonoa’s specialization in tax technology and AI will help accelerate innovation and enhance the Edge platform while PwC continues delivering indirect tax expertise and managed services globally.
The new funding and acquisition will enable Fonoa to further expand its integrated tax platform and provide businesses with a more scalable approach to managing global tax compliance.
KEY QUOTES:
“While technology has transformed much of finance, tax systems have remained neglected, leaving accounting teams to manage the same fragmented stack for decades: one vendor for determination, another for e-invoicing, a third for returns, with spreadsheets holding it all together. This model has become unsustainable, especially when you think about it through the lens of companies like Uber or Netflix that have constantly-expanding global footprints and must navigate region-specific tax and compliance requirements. We built Fonoa to keep multinational finance operations able to keep pace with global companies’ ambition. By bringing Edge into the platform, we are adding compliance and filing to that foundation, creating the first-ever complete system required for autonomous tax.”
Davor Tremac, CEO and Co-Founder, Fonoa
“Fonoa is perfectly placed to provide the dedicated expertise, focus and investment needed to build and scale the Edge platform at the pace today’s market demands. As a specialist tax technology leader, Fonoa will accelerate innovation with AI, expand engineering capability and respond swiftly to regulatory change while at the same time PwC will continue to deliver deep indirect tax expertise, global reach and tech-enabled managed services to help clients.”
Peter Michalowski, Global Indirect Tax Network Leader, PwC
“This transaction is a clear demonstration of our global tax strategy in action. We are working with technology leaders like Fonoa to deliver innovative, market-leading solutions that enable us to better support clients as they respond to growing complexity and digital transformation in tax.”
Brad Silver, Global Tax & Legal Services Leader, PwC
“Fonoa is leading the shift in tax from a series of disconnected point solutions to a unified operating system. The category has historically spanned tens of billions globally, including services now being reshaped by automation, and Fonoa is enabling businesses to manage compliance with a level of speed and intelligence that wasn’t previously possible.”
Clarey Zhu, Partner, Headline
