Financial decision-making gets a tax overhaul as April secures $38 million in Series B funding, aiming to integrate tax considerations into every financial choice.
In a groundbreaking move, the AI tax platform, April, has raised $38 million in a Series B funding round, bringing its total funding to $78 million since 2021. The funding, led by QED Investors, Nyca Partners, and Team8, will support the scaling of April's AI-powered tax management platform across the United States [1][2][4].
Following regulatory approvals, April became the first new tax technology company since 2008 to secure authorization for nationwide operation across all 50 U.S. states. This regulatory milestone has enabled full-scale deployment of April's services [1][3].
April's platform is revolutionising tax management by being embedded into existing financial apps, providing continuous, real-time tax visibility and management, instead of seasonal tax filing. It integrates seamlessly with partner systems to automate tax form prefilling, filing, and projections. The AI engine manages complex tax scenarios including capital gains, retirement planning, and small business ownership [1][2][3][4].
The company has tripled in size year to date, now serving millions of Americans via over 50 partners, including banks, payroll providers, wealth platforms, and fintechs. April processes hundreds of thousands of tax returns annually and offers a range of filing options from self-service to professional-assisted services [2][3].
Innovative tools for paycheck withholding optimization and quarterly payment management are being developed to enhance ongoing tax planning and compliance throughout the year, moving users from reactive filing to proactive financial management [2][4].
The integration of April's tax functionality into financial platforms is expected to have significant economic benefits for taxpayers and partners. For instance, Gusto uses April to help workers with variable income recalibrate withholdings, boosting take-home pay by over $1,200 a year. Partners have also seen refund deposit rates over 98% with the integration [1].
Carry, a wealth management technology platform, has integrated April to bring digital and human-powered tax planning services to clients. Adams Conrad from QED Investors stated that April has the potential to reshape how millions of Americans interact with the tax system [1].
Raj Doshi, April's President and COO, stated that April's technology helps financial platforms deliver truly holistic solutions. The infrastructure is designed to adapt to complex tax scenarios and deliver value to both platforms and their users [1].
April's technology has already made a significant impact, reducing the median time to file to 22 minutes, compared to the IRS average of 13 hours. The platform has been available to millions of Americans during the 2024 tax season through over 50 partners [1].
With its AI-driven tax platform embedded broadly into U.S. financial ecosystems, April is delivering year-round tax intelligence to millions of users while expanding feature offerings for more complex tax scenarios [1][2][3][4]. The success of April in helping people achieve net-neutral tax outcomes could have a profound effect on the broader economy.
- The funding raised by April, as reported by ffnews.com, will be utilized to further expand the AI-powered tax management platform across the industry, particularly in finance and fintech sectors, aiming to revolutionize tax management for millions of Americans.
- QED Investors, Nyca Partners, and Team8, key investors in April, are optimistic about the potential of the AI tax platform to reshape the industry, including investing, fintech, and technology, by providing year-round tax intelligence and delivering truly holistic financial solutions.
- Companies like Gusto and Carry, partners of April, are integrating the AI tax platform into their services, enabling them to offer digital and human-powered tax planning services, enhancing the overall user experience and creating significant economic benefits for both taxpayers and partners.
