The over 10-year old company founded by husband and wife duo Sanjeev Singh and Rekha Singh, had remained bootstrapped until now, but said it required capital to take advantage of the massive growth in the automated tax compliance and regulatory reporting space due to the Covid-19 pandemic.
“Ten years ago we started in the US because the India market for SaaS wasn’t that mature and we were a bootstrapped company. With this funding we are aggressively going to expand into Europe, India and APAC,” said Sanjeev Singh, co-founder and CEO at Zenwork. “We wanted not just the money but a good growth partner, where Spectrum Equity has come in.”
Zenwork says it currently serves over 100,000 small businesses, including 30,000 Certified Public Accountant (CPA) firms. It claims it has added over 40,000 new clients in each of the last two years and counts over 10 unicorns as its customers today.
The company added that it will invest heavily in growing the capabilities of its Tax1099 and Compliancely platforms, while hiring between 100-150 people across roles of engineering, sales, product management to help make this happen. Until now, Zenwork had just 18 employees.
“Zenwork has achieved remarkable success to date by focusing relentlessly on the digital tax reporting and onboarding requirements of its diverse customer base,” said Adam Margolin, Managing Director at Spectrum Equity. “With millions of businesses subject to tax informational reporting and likely to adopt e-filing over the coming years, we see a massive opportunity for Zenwork.”
Singh added that Zenwork was looking to add as many as 50,000 new customers in 2022, with more companies opting to use gig workers to grow, expanding their requirement for regulatory and tax compliance services. He added that the API driven model of Zenwork is winning it customers, along with its focus on gathering high quality data from federal and other sources.
