Spotlight

What if sales tax compliance, from calculation to filing, could run itself?

Quick Pitch:  Zamp is an agentic sales tax platform that automates compliance for digital sellers. It combines real time technology with tax experts, removing the need for businesses to manage any part of the process.

The Problem

• Complexity: More than 17,000 tax jurisdictions in the United States, each with different rules and product codes.

• Cost: Small businesses spend around 2,000 hours and 200K dollars each year managing sales tax.

• Market Shift: Incumbents such as Avalara and TaxJar, now owned by Vista Equity and Stripe, are focused on enterprise customers, leaving a large gap for small and medium businesses.

Snapshot

• Industry: Sales Tax Compliance / SaaS Automation

• Headquarters: San Francisco, California

• Year Founded: 2022

• Traction: Mid single digit millions in annual recurring revenue, tripled year over year. Strong customer growth and partner driven revenue.

Founder Profiles

• Rohit Bhadange, Co-Founder, CEO: Former VC who experienced tax software failures firsthand in e-commerce ventures.

• Edward Lando, Co-Founder: Repeat founder who raised over $800M across multiple e-commerce businesses.

Funding

• Current Round: Raised $10M (Series A)

• Lead Investors: Valor Equity Partners

• Other Backers: Thomson Reuters Ventures , Acrew, Soma Capital, Uphonest

• Total Raised: $14M

Revenue Engine

• Model: Subscription, scaling with transaction volume.

• Distribution: 80% of ARR from partnerships, referrals, and organic channels.

• White Label Strategy: Growth through accounting firms, doubling average contract value year over year.

What Users Love

• End to end handling of product mapping, nexus studies, registrations, and filings.

• Simple pricing that scales with transactions, no hidden fees.

• AI agents filing in 12 states today, with full U.S. coverage expected by year end.

Playing Field

• Avalara: Acquired by Vista Equity; now focused on cost-cutting and large enterprises.

• TaxJar: Acquired by Stripe, shifting to a low-touch model.

• New Entrants (Anrok, Fonoa, Ceretax): Often limited to single-channel solutions.

Why It Matters

After the 2018 South Dakota v. Wayfair ruling, 98 percent of businesses must collect tax even without physical presence. With more auditors and faster changing regulations, small and medium businesses representing 60 percent of the market were left behind as incumbents moved upmarket.

What Sets Them Apart

• AI agents that file taxes autonomously across states

• White label distribution model through accounting firms and platforms

• Team of veterans from leading tax software companies

• Strong growth and expanding partner network

Analysis

Bulls Case 📈 

• 6X ARR growth over five quarters with healthy unit economics

• AI agents improving margins while maintaining service quality

• White label model driving scalable network effects

• Incumbents exiting the SMB market, opening clear opportunity

Bears Case 📉 

• Scaling AI precision across all states requires ongoing R&D

• Reliance on accounting partners creates concentration risk

• Market consolidation could reignite competition from incumbents

• Regulatory shifts may challenge automation workflows

Verdict

Zamp’s thesis is clear: sales tax is complex, nobody wants to manage it, and AI can do it better. With 6X ARR growth, expanding margins, and zero controllable churn, the company shows strong product-market fit. Its white label model reduces acquisition costs, while AI agents enhance scalability. For investors, Zamp offers exposure to essential e-commerce infrastructure with defensible distribution and improving economics.

Jobs @ Zamp

• Senior Full Stack Software Engineer

• Senior Product Designer

• API Integrations Manager

• Account Executive

• Business Development Representative

• Partnerships Lead

• Onboarding and Customer Success

• Technical Support

• Business Operations

The Startup Pulse

• Crusoe — Texas-based data center operator raised $1.4B at a $10B+ valuation to expand hardware and hiring, led by Valor Equity and Mubadala Capital.

• Veeam — Backup software provider acquired Securiti AI for $1.7B to strengthen data control and security in AI environments.

• Darwin AI — AI governance startup raised $15M Series A from Insight Partners to advance compliance and transparency tools for U.S. government adoption.

Written by Ashher

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