Taxfix leaped to a $1 billion valuation in 2022 on the again of a preferred cell app utilized by shoppers assist with tax returns. However quick ahead to 2023, and the Berlin-based accounting startup is taking an audit of its personal affairs. TechCrunch has discovered and confirmed that Taxfix has laid off 20% of its employees — 120 staff — as a part of wider restructuring of the enterprise aimed toward chopping prices.
The cuts have been introduced to employees on Tuesday. Pointedly, they’re coming within the wake of Taxfix buying a rival tax startup within the nation, Stuttgart-based tax chatbot Steuerbot — a deal that was introduced two months in the past.
“With Taxfix’s latest profitable acquisition of Steuerbot, nice synergies are created, which allow us to closely improve efficiencies. Due to this fact we took the strategic resolution to restructure the group,” a Taxfix spokesperson mentioned in an emailed assertion. Taxfix initially mentioned it will function Steuerbot as an unbiased and complementary subsidiary.
Taxfix had additionally been actively recruiting simply previous to immediately’s information; now, it now not lists open positions on the firm on its personal careers web page so it seems that hiring can also be frozen.
The sudden adjustments underscore the strain that startups are below within the present market.
Essentially the most promising of them can have raised massive rounds in years previous at high valuations to remain in so-called “development mode” — deliberately remaining unprofitable and investing capital of their market and know-how enlargement.
However now, with the funding panorama dried up, lots of the identical startups are being anticipated to pursue a wide range of different programs: preserve the money they’ve, lower prices the place they’ll, be ready to take hits on their valuations in the event that they do want to boost (particularly in the event that they’re not tightening their belts), and purpose for profitability — all bins that Taxfix is now aiming to verify.
“The macroeconomic funding atmosphere has modified over the previous months, and it’s, due to this fact, extra necessary than ever to place ourselves as an unbiased firm for the long run. This entails an excellent stronger focus of the enterprise actions on sustainable development and profitability,” the spokesperson mentioned.
Taxfix didn’t touch upon its present runway, nor whether or not it’s at present making an attempt to boost more cash.
The final funding the startup raised was simply over a 12 months in the past, in April 2022, when it closed a $220 million Collection D at a valuation of over $1 billion, from a powerful group of traders that included Lecturers’ Enterprise Progress (previously Ontario Lecturers’ Pension Plan Board), Index Ventures, Valar Ventures, Creandum and Redalpine.
In additional heady instances, you may need anticipated Taxfix to comply with the route of different high-flying unicorns: by now it will have scooped up but extra traders and capital at an excellent greater valuation to interrupt into extra markets and accounting classes. However nowadays, appears like there’s quite a bit using on simply holding issues working steadily by itself steam.