Prosperr.io Secures $1.55 Million Pre-Seed Funding to Revolutionize AI-Powered Tax Solutions

Prosperr.io, a startup specializing in artificial intelligence-enabled income tax solutions, has announced the successful closure of its $1.55-million pre-seed round. The funding was led by Silicon Valley-based angel investor Gokul Rajaram, known for backing prominent companies such as Faire, Figma, and Airtable.

The funding round also saw participation from notable Indian angel investors, including Livspace founder Ramakant Sharma, CEO Saurabh Jain, and Cred founder Kunal Shah. Prosperr.io plans to utilize the proceeds to enhance its technology and product capabilities, launch its business-to-business (B2B) product, and expand its sales and marketing efforts. The funds will also support the development of the company’s AI-first tax advisor.

Addressing the Growing Need for Efficient Tax Solutions

Prosperr.io’s cofounder and CEO, Manas Gond, highlighted the growing demand for efficient tax solutions in India. “Currently, there are 8.18 crore people filing income tax returns (ITR) in India. According to the finance minister, this number is expected to reach half a billion by 2047. This growth cannot be managed by chartered accountants alone. AI-powered solutions are necessary to handle this increase accurately, efficiently, and cost-effectively,” reported to ET.

Innovative Products for Tax Optimization

Founded in March 2022 by Manas Gond and Dev Kumar, Prosperr.io offers subscription-based services designed to manage income tax for salaried individuals, ensuring maximum eligible tax savings and compliance. The company’s core products include:

Super Saver Product: A business-to-consumer (B2C) solution that helps individuals plan and save their taxes.

Prosperr-FBP (Flexi Benefits Plans): A business-to-business (B2B) product that enables employers to provide non-taxable allowances.

Prosperr.io leverages an AI engine to examine invoices and transactions, ensuring the lawful claim of tax benefits. The B2C product currently boasts around 10,000 paid customers, while the B2B product, launched in April, has already been adopted by five companies. Gond claims that the B2B product can increase the in-hand salary of employees in an organization by 8-10%.

Strong Market Potential and Growth Prospects

With a team of 50 employees, Prosperr.io expects to achieve an annual recurring revenue (ARR) of $2 million by the end of this year, up from the current ARR of $700,000. The company’s innovative approach has attracted significant attention and investment.

"I'm excited to support the Prosperr team on their mission to build the best tax optimization platform for consumers, not just for India but for the world. The world of taxes is complicated and confusing, and Prosperr's AI platform helps individuals and employees stay compliant while maximizing tax savings," Rajaram said.

Competitive Landscape

Prosperr.io operates in a competitive market alongside major players like Bengaluru-based ClearTax, US-based TurboTax, and Vertex. However, the company’s unique AI-driven approach and recent funding boost position it well for significant growth and impact in the tax solutions space.

Prosperr.io’s successful funding round marks a significant milestone in the company’s journey to revolutionize tax management through AI. With robust investor support and a clear vision for the future, Prosperr.io is poised to become a leading player in the global tax optimization market.