Numeral Raises $35M Series B to Automate Sales Tax with AI
Key Points
- Numeral raised $35 million in a Series B round led by Mayfield.
- The round values the two‑year‑old startup at $350 million.
- AI powers a platform that automates tax collection, filing and payment across thousands of jurisdictions.
- Revenue grew 3.5 times in the last year, with over 2,000 clients served.
- Clients include EightSleep, Graza Olive Oil and Manus.
- The platform handles complex rules, such as New York’s bagel tax distinction.
- International filing capabilities reach markets like Tanzania and Kenya.
- Competitors include Anrok, Zamp, and incumbent Avalara.
Numeral, a sales‑tax compliance startup founded by Sam Ross, announced a $35 million Series B financing round led by Mayfield, with participation from Benchmark, Uncork Capital, Y Combinator and Mantis. The funding values the two‑year‑old company at $350 million and will accelerate its AI‑driven platform that automates tax collection, filing and payment for e‑commerce and SaaS businesses across thousands of jurisdictions. Numeral’s growth includes a 3.5‑times revenue increase over the past year and a client base exceeding 2,000 firms, positioning it against incumbents such as Avalara.
Founding Vision and Market Need
Sam Ross, the co‑founder and CEO of Numeral, conceived the company while operating his own direct‑to‑consumer brands after a stint as a product manager at Airbnb. He experienced the sudden complexity of sales‑tax compliance when a Supreme Court ruling required online sellers to collect taxes in every state where customers reside. The shift forced Ross to manage tax obligations in more than 40 states, highlighting the fragmented and bureaucratic nature of the process.
AI‑Powered Solution
Numeral’s platform leverages artificial intelligence to automate every facet of sales‑tax management. The system tracks changing tax laws across over 11,000 jurisdictions, handles tax‑related correspondence, and files and pays taxes on behalf of clients. Ross argues that the deterministic nature of tax rules minimizes the risk of AI hallucinations, enabling the technology to function much like a human tax accountant. The platform even captures nuanced rules, such as New York’s distinction between a whole bagel (tax‑exempt) and a cut bagel (taxable).
Funding Round and Valuation
The company announced a $35 million Series B round, led by Mayfield, with participation from Benchmark, Uncork Capital, Y Combinator and Mantis, the venture firm co‑founded by members of The Chainsmokers. This round follows an $18 million Series A raised six months earlier and places Numeral’s valuation at $350 million.
Growth Trajectory and Client Base
Over the past year, Numeral’s revenue has grown 3.5 times, and the firm now serves more than 2,000 software and e‑commerce clients, including EightSleep, Graza Olive Oil and Manus. The company’s international reach extends to filing taxes in markets such as Tanzania and Kenya, where customers traditionally relied on local CPA firms.
Competitive Landscape
Numeral operates in a crowded space with competitors like Anrok and Zamp, while the longstanding incumbent Avalara, owned by Vista Equity Partners, is expected to go public later this year. Numeral differentiates itself through its AI‑driven automation and its ability to handle tax compliance in emerging markets, offering a more streamlined alternative to traditional CPA services.