Fonoa acquires PwC’s indirect tax software, raises $110 million to build autonomous tax platform

NEW YORK: Fonoa, an AI-powered tax operating system for multinational companies, said it has acquired Indirect Tax Edge (Edge) from PricewaterhouseCoopers and raised $110 million in Series C funding, as it moves to create the first end-to-end system for global indirect tax compliance.

The funding round was led by Headline, with new investors Eurazeo and Forestay Capital joining existing backers Index Ventures, OMERS, Coatue and Dawn Capital.

Edge, a compliance system used by global enterprises to manage VAT and GST reporting, e-filing and tax analytics, will be further developed by Fonoa and integrated into its modular tax infrastructure and AI layer. PwC will continue to deliver indirect tax reporting and consulting services through Edge as part of Fonoa’s platform.

“Tax systems have remained neglected, leaving accounting teams to manage the same fragmented stack for decades,” said Davor Tremac, CEO and co-founder of Fonoa, which was founded by three Uber alumni. “By bringing Edge into the platform, we are adding compliance and filing to that foundation, creating the first-ever complete system required for autonomous tax.”

Fonoa’s platform currently handles tax determination in more than 190 jurisdictions, validates tax IDs in over 100 countries, powers e-invoicing for millions of sellers and processes more than 1 billion transactions annually. Customers include Canva, Uber, Netflix, Nebius and Booking.com.

Peter Michalowski, global indirect tax network leader at PwC, said Fonoa is “perfectly placed to provide the dedicated expertise, focus and investment needed to build and scale the Edge platform at the pace today’s market demands.”

The combined platform covers the full indirect tax lifecycle on a single data model: from tax ID validation and real-time determination to e-invoicing and tax returns.

Clarey Zhu, partner at Headline, said Fonoa is “leading the shift in tax from a series of disconnected point solutions to a unified operating system.”