1. Startups

OnlinePajak Claims “Unicorn” Status, How Big is the Market Size?

The global tax management software market size was $5,24 billion in 2018, projected to increase to $11,19 billion by 2026

SaaS startup for business focused on tax management "OnlinePajak" claims status "unicorns" they. This was conveyed by their executive at a media meeting, one of which was quoted as saying Dataword.

Initially news about status unicorn it appears from the list CBInsights. But it is known that it is currently (14/10) on the list CBInsights has removed the name OnlinePajak.

We have tried to ask related parties about this to the company, including the new funding round that the company has received [if any]. Until this news is published, there is no answer. Even when we asked one of the investors, they chose not to comment on the status unicorn The.

Based on data submitted to the regulator, OnlinePajak's last funding round was the Series C round in July 2021. Tencent and a number of investors came in with around $12 million, catapulting the company's valuation is at $179 million -- 1/10 of the claimed valuation of a unicorn startup.

They join supported by popular investors such as Alpha JWC Ventures, Sequoia Capital India, Endeavor Catalyst, and several others.

Since the end of last year, we have included OnlinePajak to the list of Centaurs, which marks the milestone the company has reached a valuation of over $100 million.

Online ServicesTax

Currently, OnlinePajak services are divided into three main product categories: Invoice, Payroll, and Others. In the Invoice sub-service, there are various features such as calculating/depositing/reporting VAT and PPh, making withholding books, invoices, NPWP validation, and others.

While in Payroll, it includes payroll features, including PPh 21 tax, salary calculations, and salary slips. While in the Other category, there are channels for payment, reporting, including for personal taxes. Currently they also operate the TaxPay service to facilitate the tax payment process.

To make it easier for users, in addition to portals on the web, OnlinePajak also presents an application on Android called the application which has been downloaded by around 10 thousand+ users with a rating of 3,7. Another application that also helps accommodate tax needs is HiTax, on Google Play the platform has been downloaded by 50 thousand+ users and gets the same rating.

Another innovation launched by local startups to make it easier for businesses and individuals to manage taxes is Tax.io. Their main service is based on chatbot named "Bee-Jak", ready to answer and assist various complaints regarding tax reporting and payment. Meanwhile, other SaaS services that focus on HR and Payroll also generally have the capability to perform tax calculations, for example those provided by Catapa, Fast-8, and Mekari.

Comparison of statistics on OnlinePajak and KlikPajak sites managed by Mekari / SimilarWeb

Market size

According to data compiled by Fortune Business Insight, the market size of tax management software has reached $5,24 billion in 2018 globally. The figure is projected to increase to $11,19 billion by 2026 at a CAGR of 10,4%.

Basically the nature of the service helps businesses or companies to do tax management. However, as in Indonesia, all processes can actually be done independently. Even among corporations, they usually have a special consultant who focuses on tax advocacy.

The MSME segment may be the main target, although according to the government, the tax collection process in this circle has received "privileges", both in terms of a simple process and a relatively lower value. According to data from the Directorate General of Taxes, the Ministry of Finance in 2019, the contribution of the final income tax for SMEs was only around Rp.

More Coverage:

To work around this, several applications that focus on recording MSME finances also feature a tax calculation feature. Even the KemenkopUKM also presents the LAMIKRO application which can be used and downloaded for free.

Status unicorn OnlineTax

With the size of the market [specifically on tax calculation software], it would be interesting if OnlinePajak's current valuation has reached $1 billion. Because their business model accommodates a sufficient market niche. However, there is potential for OnlinePajak to target a wider product segment starting from point bread about taxes – becoming a SaaS end-to-end for business.

As is known, for the OnlinePajak (tax payment) business line, the company has appointed Mulia Dewi as CEO. While Founder Charles Guinot currently serves as Group CEO. It is possible that there is a wider service segment that the company is currently preparing to gain potential for a larger market share.

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