Vertex Announces Strategic Investment in AI Tax Compliance Startup Kintsugi
Rhea-AI Summary
Vertex has made a strategic $15 million minority investment in Kintsugi, acquiring a 10% stake in the AI-native tax compliance startup. The deal includes IP sharing and a commercial arrangement, with Vertex joining Kintsugi's Board of Directors.
Founded in 2023, Kintsugi specializes in automating sales tax compliance for small and mid-size businesses across the US, Canada, and Europe. Their AI-driven platform integrates with digital accounting and payment systems, offering automated tax calculations, filings, and compliance monitoring.
This investment is separate from Vertex's previously announced $10-12 million AI technology spending for 2025. The partnership aims to accelerate Vertex's AI roadmap for mid-market and enterprise customers while supporting Kintsugi's mission to simplify tax compliance for growing businesses. Vertex will not consolidate Kintsugi's results, with the ownership being accounted for at cost on the balance sheet.
Positive
- $15M strategic investment in Kintsugi for 10% ownership stake
- IP sharing agreement to accelerate AI roadmap for mid-market and enterprise customers
- Commercial arrangement and board representation secured
- Investment is separate from previously announced $10-12M AI technology spending for 2025
- Expansion into strategic markets (US, Canada, Europe) through Kintsugi's platform
Negative
- None.
News Market Reaction – VERX
On the day this news was published, VERX declined 0.40%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
KING OF PRUSSIA, Pa., April 30, 2025 (GLOBE NEWSWIRE) -- Vertex, Inc. (NASDAQ: VERX) (“Vertex” or the “Company”), a global provider of indirect tax technology solutions, today announced it has completed a strategic investment in Kintsugi, a San Francisco-based, AI-native startup focused on automating sales tax compliance for small and mid-size businesses (SMBs). Terms of the agreement include a
The adoption of tax automation solutions is growing substantially as businesses face increasing compliance complexity associated with eCommerce and SaaS growth, cross-border trade and a patchwork of new tax regulations. Kintsugi automates the entire sales tax compliance lifecycle for small businesses, including tax calculations, filings, and compliance monitoring across multiple jurisdictions. Founded in 2023, Kintsugi has experienced rapid growth and expansion within the U.S., Canada and Europe.
“Kintsugi brings innovative AI-enabled capabilities to address the needs of the indirect tax market in new and creative ways,” stated Chirag Patel, Vertex Chief Strategy Officer. “Through the IP sharing agreement, this investment will help accelerate our AI roadmap to deliver new innovations for our mid-market and enterprise customers globally.”
Kintsugi’s AI-driven platform seamlessly integrates with digital accounting and payments processing platforms to enable powerful automation, a seamless onboarding experience, and rapid time-to-value for SMB businesses.
"We're thrilled to partner with Vertex, a company that shares our commitment to transforming tax technology," said Pujun Bhatnagar, CEO of Kintsugi. "This investment validates our approach to solving the indirect tax challenges facing small and mid-sized businesses today. With Vertex's support, we can accelerate our mission to make tax compliance painless and accessible for growing businesses."
Together, Vertex and Kintsugi will continue to push the boundaries of AI-driven tax technology and next-level user experiences.
Vertex’s investment in Kintsugi is separate from the
About Vertex
Vertex, Inc. is a leading global provider of indirect tax solutions. The Company’s mission is to deliver the most trusted tax technology enabling global businesses to transact, comply and grow with confidence. Vertex provides solutions that can be tailored to specific industries for major lines of indirect tax, including sales and consumer use, value added and payroll. Headquartered in North America, and with offices in South America and Europe, Vertex empowers the world’s leading brands to simplify the complexity of continuous compliance.
For more information, visit www.vertexinc.com or follow us on X and LinkedIn.
COPYRIGHT © 2025 VERTEX, INC. ALL RIGHTS RESERVED. THE INFORMATION CONTAINED HEREIN IS INTENDED FOR INFORMATION PURPOSES ONLY, MAY CHANGE AT ANY TIME IN THE FUTURE, AND IS NOT LEGAL OR TAX ADVICE.
About Kintsugi
Kintsugi provides an AI-powered tax automation platform that transforms complex tax management into a streamlined, automated process. By leveraging artificial intelligence and seamless integrations, Kintsugi reduces preparation time by
Vertex Company Contact:
Joe Crivelli
VP, Investor Relations
investors@vertexinc.com
Rachel Litcofsky
Manager, Public Relations
mediainquiries@vertexinc.com
Kintsugi Company Contact:
Steve Moskovitz
Head of Marketing
Steve@trykintsugi.com
FAQ
How much did Vertex (VERX) invest in Kintsugi AI tax startup in 2025?
What are the key benefits of Vertex's investment in Kintsugi for VERX shareholders?
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Is Vertex's $15M Kintsugi investment part of their 2025 AI spending budget?
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