Aibidia, a Finnish fintech innovator, has successfully raised $28 million in Series B funding, positioning itself to scale its AI-driven tax technology platform for multinational corporations across the US. The round, led by Activant with participation from existing investors DN Capital, FPV, and Icebreaker.vc, marks a pivotal moment in the corporate’s journey to bring advanced tax compliance and transfer pricing solutions to global enterprises facing increasing regulatory challenges.
Since its founding in 2018, Aibidia has turn into a critical a part of the tax tech ecosystem for big corporations. Its platform, which automates and optimizes global transfer pricing and tax compliance processes, is already helping multinational giants like Unilever, Nokia, Dyson, and Delivery Hero navigate the complexities of international tax laws. By streamlining tax-related workflows and ensuring compliance with intricate and evolving global tax regulations, Aibidia allows businesses to mitigate risk and save precious time.
Solving Complex Transfer Pricing Challenges with AI
Transfer pricing, the practice of setting prices for transactions between subsidiaries of a multinational company, is a critical yet often complex process. As global trade evolves, tax regulations equivalent to the OECD’s BEPS 2.0 framework and the EU’s BEFIT initiative are tightening, increasing scrutiny from regulators worldwide. Aibidia’s AI-powered platform addresses these complexities by automating calculations, risk assessments, and scenario modeling to assist firms stay compliant and avoid costly mistakes.
The platform centralizes tax data and integrates it with third-party data, making a “single source of truth” for firms. This permits teams across departments and geographies to collaborate more efficiently, eliminating silos and ensuring all stakeholders have access to accurate, up-to-date information. Aibidia’s AI-driven insights not only help firms comply with existing regulations but in addition prepare for future shifts within the tax landscape.
Aibidia’s Expanding US Presence
The most recent round of funding comes at a time when Aibidia is strategically expanding its footprint within the US, a key growth market. With over 15% of its revenue already coming from American clients, the corporate’s commitment to serving the US market is reflected in its recent opening of a Manhattan office. This expansion is backed by a growing demand for Aibidia’s tax solutions from US-based multinational corporations, including S&P 500 firms equivalent to EPAM Systems, Aptiv, and Omnicom.
said Hannu-Tapani Leppänen, CEO of Aibidia.
The investment will enable Aibidia to reinforce its product offerings and speed up its market penetration within the US, where its modern use of AI to tackle transfer pricing and compliance challenges is garnering increasing attention.
AI and Machine Learning on the Core
At the guts of Aibidia’s success is its modern use of artificial intelligence and machine learning. By leveraging advanced algorithms, Aibidia’s platform automates complex manual tasks which can be typically time-consuming and susceptible to error. For instance, its AI-powered solution calculates transfer pricing adjustments and performs risk assessments based on real-time data, ensuring accuracy and reducing reliance on external advisors.
The corporate’s machine learning capabilities also extend to predictive analytics, where the platform forecasts potential tax risks based on historical data and upcoming regulatory changes. This proactive approach to risk management is critical for multinational enterprises navigating the turbulent waters of worldwide tax compliance.
Moreover, Aibidia’s platform incorporates AI-driven scenario modeling, allowing businesses to check different pricing structures and tax strategies before implementing them. This permits more informed decision-making and helps firms align their global tax strategies with business objectives.
Global Expansion on the Horizon
With a proven track record of success in Europe, Aibidia is now well-positioned to scale its solutions on a world level. The corporate serves over 100 multinational clients, with a concentrate on large enterprises with revenues of roughly €7 billion. As Aibidia’s US market share continues to grow, the corporate goals to expand into recent international markets, providing an AI-powered solution for transfer pricing that’s each scalable and adaptable to the precise needs of various regions.
The most recent investment round validates Aibidia’s modern approach to solving complex tax challenges and further cements its status as a number one player within the AI-powered fintech space. With a deep understanding of each technology and transfer pricing intricacies, the Aibidia team is poised to proceed revolutionizing how multinational corporations approach global tax compliance.
What’s Next for Aibidia?
As Aibidia continues to innovate and expand, the corporate plans to launch additional features and products to support its clients’ evolving needs. These include enhanced integrations with leading ERP systems, further automation of tax reporting, and increased data transparency and accessibility.
For businesses coping with complex transfer pricing issues, Aibidia’s AI-driven platform is proving to be a useful tool that not only helps with compliance but in addition unlocks recent efficiencies and value savings. As global tax regulations proceed to evolve, Aibidia’s platform is ready to stay on the forefront of the industry, helping businesses stay ahead of the curve.
The worldwide tax technology market is predicted to grow from $18.53 billion in 2024 to $36.72 billion by 2030, driven by the increasing complexity of tax regulations and the demand for automated solutions. This latest funding round, coupled with Aibidia’s growing presence within the US and beyond, signals a vivid future for the corporate because it continues to redefine how enterprises manage their global tax operations on this rapidly expanding market.
