Bengaluru-based tax management and compliance startup Prosperr.io has also been able to raise capital in a seed round of $4 million. Jungle Ventures led this major capital injection, which has taken the total funding of the company to around $5.55 million since its incorporation in 2022. Other prominent investors, such as Yatra Angel Network and Sadev Ventures, were also present in the most recent round. The company is estimated to be at a post-money valuation of approximately $15.6 million (approximately ₹140 crore) according to Manas Gond, the cofounder and the chief executive officer of the company.

Business model and primary objective

The primary objective of the new capital is to accelerate the growth of the technological framework of Prosperr.io and to boost its business-to-business sales by a large margin as it plans to expand its operations. Prosperr.io has designed a two-sided business strategy that not only satisfies the unique demands of personal and corporate taxpayers. To the consumer segment, the platform provides tax planning and compliance services, which are subscription-based. Such services are carefully crafted to enable individuals earning salaries to maximize tax deductions and manage income effectively from various sources.

The complexity of the current sources of income, many of them being comprised of both traditional pay with the addition of freelance income or various forms of investment income, requires an advanced method of optimization of the tax system, which Prosperr.io offers in its automated service. At the business level, the business collaborates with other companies to provide specialized tax savings to the employees. This incorporates the provision of automated reimbursement systems and arrangements of employee allowances that are within the existing regulations.

Prosperr.io added to its enterprise package with an artificial intelligence-based reimbursement service. This new feature is particularly targeted to take care of the growing complexity of corporate tax processes, as companies are able to automate the less desirable workflows and minimize the probability of mistakes in various tax-related filings. These administrative tasks will be simplified; therefore, businesses are able to concentrate on what they are doing best, and their employees will enjoy the fruits of effective tax management.

Vision and growth

Prosperr.io’s vision is not limited to just basic tax filing. As Manas Gond explains, the company is supposed to be a one-stop solution that would meet the everyday financial needs of a salaried person. One of their growth plans includes leveraging current enterprise relationships to push users into their consumer-facing business, essentially establishing a funnel between corporate tax solutions to individual financial management. This combined strategy will enable the firm to serve a larger number of people, besides giving them a smooth transition between occupation compliance and wealth creation on the personal front.

Besides its tax-oriented products, Prosperr.io is also taking huge steps in the wealth management sector. The company has already acquired an asset management company license and is registered as an investment adviser with the Securities and Exchange Board of India.

The site provides mutual fund products, and they are planning to expand into equity and bond investments in the near future. The signs of success in this area are encouraging, as Manas Gond has unveiled that around 25% of the current consumer users of the company already use its wealth management services to handle their investments.

The company has a robust user engagement and committed workforce of about 150 employees, which is the basis of Prosperr.io’s growth. The company boasts a staggering 80% retention rate amongst its individual subscribers and has been in a position to retain its enterprise client base fully. These measures indicate the worthiness of its automated and AI-based solutions to users.

In June 2024, the startup raised a new round of funding amounting to $1.5 million with the help of Gokul Rajaram, a successful Silicon Valley-based angel investor. This track record of support for advanced investors highlights the belief in the investors in the market of the founders, Manas Gond and Dev Kumar, and their capability to implement their vision.

Conclusion

The $4 million seed round that was successfully led by Jungle Ventures is a turning point for Prosperr.io since the company aims to revolutionize the process of tax management in India. With powerful technology and a profound comprehension of the issues that afflict both employees and companies working on a salary basis, the startup is likely to make the financial compliance and planning process easier. The company is still at the growth stage; therefore, it will probably be capable of combining tax optimization with the expansion of its investment approach in the future, with regard to the success in the new environment of fintech.