Numeral, a company handling the intricacies of sales tax compliance for e-commerce and SaaS companies, has secured $18 million in Series A funding led by Benchmark Capital with participation from existing seed investors Uncork Capital, Y Combinator, and FundersClub.
Numeral has raised $22 million to date and has seen over 3 times revenue and customer growth in the past year based on its ability to help over 1,000 businesses, including Ridge, Graza, immi, Nomad, and Muddy Bites, collect tax for out-of-state sales, as mandated by the U.S. Supreme Court in 2018.
Numeral will use the funding to extend its focus to include SaaS companies, as 25 states today require sales tax on software sales, a number that is sure to grow in the coming year as states seek new revenue sources. And Numeral will also use the new funds for international expansion and to secure additional engineering talent.
Numeral was launched in early 2023. Co-founders Sam Ross, an entrepreneur with multiple ecommerce startups generating over $50 million in revenue, and Matt DuVall, a software engineer who led teams at Stripe, Notion, and Box, bring deep industry experience to the company. And Ross’ direct experience with the headache of filing sales taxes across many states was the basis for starting Numeral.
KEY QUOTES:
“A company doing $5 million in sales typically owes sales tax in more than 30 states, which means they need to comply with the tax rules of nearly 10,000 jurisdictions. By streamlining and automating the sales tax process and handling everything from registration to remittance, Numeral takes a major task off the plate of accounting teams, giving them their time and resources back and increasing productivity throughout the business.”
– Sam Ross, co-founder, Numeral
“Sales tax for digital businesses like ecommerce and software is a huge lift with an extraordinary amount of complexity. Further, adding international markets increases this complexity exponentially. Numeral is leveraging AI to solve critical business challenges and help businesses expand into new markets with fewer barriers.”
– Chetan Puttagunta, General Partner, Benchmark, and new Numeral board member
