Zenwork raises over Rs 1,200 crore from US-based Spectrum Equity

Currently, around 95% of its revenue comes from the US as its customers are largely in the north American markets. (Representational image)

Technology company Zenwork, a provider of digital tax compliance and regulatory reporting software for businesses, has raised over Rs 1,200 crore from US-based growth equity firm Spectrum Equity, as it plans to expand workforce and product capability and enter new markets, especially in the Europe and the Asia-Pacific (APAC) region.

“This is the very first funding we have got in. Before that for over ten years we were bootstrapping the company, so no funding was raised earlier. This is the first funding we took from an outside investor,” Zenwork co-founder and CEO Sanjeev Singh told FE.

The company, registered in Hyderabad and globally headquartered in the US, had started its operations in May, 2011, and is operating the brands ‘Tax1099’ and ‘Compliancely’. Currently, around 95% of its revenue comes from the US as its customers are largely in the north American markets. During the last couple of months, the company has entered European markets, and also acquired a few customers in India.

“As a bootstrapped company, we needed more than money a good growth partner. So, in the growth partner we have got a good partner plus money. The money will essentially go into expanding our product capability, hiring more people in Hyderabad, also selling our products to new regions– in European region, India and the Asia Pacific region,” Singh informed.

The company has already launched its products in 18 European countries, and it plans to cover 40 European countries by end of December, 2021. It is working to launch products in APAC region. It is aiming at having a “good presence” in most European countries, Asia and half of the APAC region by 2022-end. The company does not anticipate to raise additional funding for the next couple of years.