Crypto Taxation Platform TaxNodes Secures $1.6 Mn in Seed Funding Amidst Funding Winter

The funding round was backed by prominent web3 industry leaders

The start-up, which has witnessed a 5X month-on-month spike in its user base, intends to utilize these funds to bolster its offerings and simplify tax computation.

TaxNodes, a crypto tax computation and expert-assisted ITR filing platform, today announced the successful completion of its seed funding round, securing $1.6 million amidst the challenging funding winter. In this round, notable veterans in the web3 and wealth tech space, including Rahul Pagidipati, CEO of ZebPay and an experienced angel investor, Nischal Shetty, CEO, Shardeum & Founder of WazirX, Ashish Singhal, Co-Founder & CEO, CoinSwitch and Ajeet Khurana, Founder of Reflexical, have invested in the company founded by Avinash Shekhar, a chartered accountant and former CEO of one of the oldest Crypto Exchanges.

The successful funding marks a significant milestone for TaxNodes and the company intends to utilize these funds to bolster its mission of simplifying tax computation, and providing end-to-end solutions for individuals navigating the complexities of crypto taxation.

The company is developing an AI-assisted tax advisory model for individuals and corporates to provide control & compliance using GPT-like Large Language Model. Since its inception, TaxNodes has witnessed a 5X month-on-month spike in its customer base. The company is poised to play a pivotal role in ensuring a safer and more compliant crypto ecosystem, facilitating smoother operations and regulatory adherence.

Additionally, TaxNodes has recently announced partnerships with crypto exchanges like ZebPay, WazirX and Giottus and is focused on helping crypto users to comply with tax laws. TaxNodes will also help Crypto exchanges to increase their internal controls and automate reconciliation & accounting.

Commenting on the development, CA. Avinash Shekhar, Founder & CEO, TaxNodes said, ”We are thrilled to have successfully completed our seed funding round and delighted to see that seasoned leaders from the crypto ecosystem are placing their trust in TaxNodes. This funding will enable us to provide a complete solution for crypto natives making it easier for them to handle their tax obligations. With our advanced tax computation engine, a team of seasoned crypto experts, and a full-stack solution, we aim to simplify the complexities of crypto taxation and filing, ensuring accuracy, compliance, and peace of mind for our users. Furthermore, this investment will propel our research and development efforts to create innovative products that cater to crypto exchanges, investors and Finance professionals, including Crypto auditors.

Crypto has witnessed significant movement towards regulations, compliance and specific taxation rules, leading to an increased need for specialized tax management tools. TaxNodes recognizes the challenges faced by crypto natives in accurately computing profits and losses, reconciling transactions across multiple centralized and decentralized platforms, and fulfilling tax obligations.

Mr. Nischal Shetty, CEO, Shardeum & Founder, WazirX, said, “I am thrilled to join hands with TaxNodes. The team at TaxNodes has an exceptional understanding of Crypto business and taxation. I believe in their vision and I am confident that TaxNodes will help in compliance and controls in the Crypto space. I look forward to supporting their growth and success as they continue to disrupt the tax landscape.”

Mr. Rahul Pagidipati, CEO, ZebPay, said, “TaxNodes has immense potential to change the way crypto taxes are computed and filed. I am thrilled to be a part of this seed funding round and support their mission to simplify the tax computing process. With their innovative platform and expert assistance, individuals and businesses can navigate the complex world of crypto taxation with ease. I have no doubt that TaxNodes will play a vital role in shaping the future of crypto taxation. I have worked with Avinash for a long time and have complete confidence in his ability to lead TaxNodes to success.”

Founded in December 2022, TaxNodes is a tax computation and expert-assisted ITR filing platform that aims to simplify the tax computing process. The platform has a team of experts dedicated to simplifying taxes, particularly in the complex world of crypto taxes. The platform is also working towards helping crypto exchanges increase their internal controls and automate reconciliation and accounting.

ZebPay Partners With TaxNodes to Demystify Crypto Taxation for Indian Investors

Partnership to benefit Indian crypto investors seeking compliance and clarity on crypto tax matters

ZebPay, India’s oldest and most trusted crypto asset exchange today announced that it has partnered with TaxNodes, an expert-assisted ITR filing platform to simplify tax filing for virtual digital assets in India. As a result of this association, TaxNodes will provide assistance to ZebPay's extensive user community to ensure precise tax calculations and compliance, to keep them updated with the most recent tax-related developments in the virtual digital asset industry.

In 2022, the Indian government implemented a tax on investments in virtual digital assets, whereby any income gained from the transfer of such assets is now subject to a 30% tax and 1% TDS. The complexity of the new tax laws has led to considerable confusion among Indian retail investors and traders in India. Owing to this, there is a critical need to establish appropriate compliance infrastructure and enhance investor knowledge on how to file taxes correctly. Through this partnership, TaxNodes will enable ZebPay users to calculate, evaluate, and file their crypto taxes, alleviate misapprehensions and reduce the possibility of tax miscalculation. In addition to this, TaxNodes’ end-to-end solutions will help users get the much-needed clarity on the taxes levied on their investment, thereby simplifying the taxation journey of every crypto investor in the country.

With India's optimistic outlook towards the crypto market, and the emergence of new taxation infrastructure, the country is poised to become a key player in the global crypto market. The association between ZebPay and TaxNodes will help promote awareness about current and evolving regulations governing virtual digital assets. Apart from getting expert assistance on tax filing, ZebPay users will also receive personalized advisory services by TaxNodes, enabling them to better understand the tax implications of their digital asset investments. In addition, ZebPay users will be able to take advantage of discounted services through an exclusive offer.

Rahul Pagidipati, CEO, ZebPay, said, "At ZebPay, we are committed to creating a regulatory-compliant ecosystem that fosters the mainstream adoption of crypto in India. This partnership is a significant step towards achieving that goal and enabling greater collaboration between stakeholders in the crypto ecosystem. With 30% taxation and 1% TDS, calculation of taxation on crypto has become a complex process. Our partnership with TaxNodes will not only simplify the tax filing process for virtual digital assets and offer clarity to our users, but also offer personalized tax advisory services to our users at their fingertips."

Avinash Shekhar, Founder & CEO, TaxNodes said, "Our relationship with ZebPay goes a long way back and this partnership is a new chapter in that journey. We are excited to offer our end-to-end solutions to ZebPay’s customers and are confident that they will see value in our seamless tax computation process. Our aim is to help investors calculate, evaluate, and file their crypto taxes accurately while providing them with expert advice and personalized services to trade crypto without worrying about the intricacies of tax filing."

About ZebPay:

ZebPay is India’s oldest crypto asset exchange, with more than 5 million users. Founded in 2014, ZebPay aims to be the leading blockchain asset solution provider and the #1 financial advisor for all Indians invested in the crypto space. The company’s mission is to help its members achieve financial freedom in the Web3 economy. ZebPay’s secure and compliant exchange is available via the web and on Google Play Store and Apple App Store. ZebPay also operates an exchange in Australia and Singapore, serving 162 countries. ZebPay members can invest in Bitcoin, Ethereum, and many other crypto assets, trading both crypto-fiat and crypto-crypto pairs. ZebPay OTC, a bespoke trading desk for high-volume clients, serves both individuals and institutions.

For more details please visit: https://zebpay.com/otc/

About TaxNodes: Founded in December 2022, TaxNodes is a tax computation and expert-assisted ITR filing platform that aims to simplify the tax computing process in India. The platform has a team of experts who are dedicated towards simplifying taxes particularly in the complex world of crypto taxes. The platform is also working towards helping crypto exchanges to increase their internal controls and automate reconciliation as well as accounting.,