Fonoa, the Dublin-based AI tax operating system for businesses, announced the acquisition of Indirect Tax Edge (Edge) from PricewaterhouseCoopers (PwC) and a $110 million Series C investment round led by Headline.
The investment round included participation from new investors Eurazeo and Forestay Capital, alongside existing investors Index Ventures, OMERS, Coatue, and Dawn Capital.
Fonoa will further develop Edge following the acquisition from PwC, integrating it with Fonoa’s modular tax infrastructure and AI layer.
PwC will continue to deliver global indirect tax reporting and consulting services through Edge as part of Fonoa’s AI-empowered, fully integrated tax operating system.
“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,” said Davor Tremac, CEO and Co-Founder of Fonoa.
“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.”
Peter Michalowski, Global Indirect Tax Network Leader at PwC, said: “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.”
With new capital and the acquisition of Edge, Fonoa is expanding its platform to cover the full indirect tax lifecycle, providing a growing number of businesses worldwide with an even more integrated and scalable approach to taxes and compliance.
“Fonoa is leading the shift in tax from a series of disconnected point solutions to a unified operating system,” said Clarey Zhu, Partner at Headline.
“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.”