Taxfix leaped to a $1 billion valuation in 2022 on the again of a well-liked 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 workers — as a part of wider restructuring of the enterprise geared toward slicing 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 current profitable acquisition of Steuerbot, nice synergies are created, which allow us to closely enhance 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 might function Steuerbot as an impartial and complementary subsidiary.
Taxfix had additionally been actively recruiting simply previous to at this time’s information; now, it now not lists open positions on the firm by itself careers web page so it seems that hiring can be frozen.
The sudden adjustments underscore the stress that startups are underneath within the present market.
Essentially the most promising of them could have raised large rounds in years previous at high valuations to remain in so-called “progress mode” — deliberately remaining unprofitable and investing capital of their market and expertise growth.
However now, with the funding panorama dried up, most of the similar startups are being anticipated to pursue quite a lot 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 lift (particularly in the event that they’re not tightening their belts), and goal for profitability — all bins that Taxfix is now aiming to test.
“The macroeconomic funding atmosphere has modified over the previous months, and it’s, due to this fact, extra essential than ever to place ourselves as an impartial firm for the long run. This entails an excellent stronger focus of the enterprise actions on sustainable progress and profitability,” the spokesperson mentioned.
Taxfix didn’t touch upon its present runway, nor whether or not it’s at the moment attempting to lift 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 Academics’ Enterprise Progress (previously Ontario Academics’ Pension Plan Board), Index Ventures, Valar Ventures, Creandum and Redalpine.
In additional heady occasions, you might need anticipated Taxfix to observe the route of different high-flying unicorns: by now it might have scooped up but extra traders and capital at an excellent larger valuation to interrupt into extra markets and accounting classes. However lately, appears like there’s so much driving on simply protecting issues working steadily by itself steam.