April, a tax program that leverages artificial intelligence, closed a $38 million Series B raise.
The funding round for the New York-based company was led by QED Investors, with participation from Nyca Partners and Team8, bringing April's total funding to $78 million. The company, whose full name is April Tax Solutions, was founded in 2021 and raised $40 million in venture capital in 2022.
Earlier this year, April achieved national electronic filing file coverage. During the 2024 tax season, April was available to millions of taxpayers through over 50 partners, processing hundreds of thousands of tax returns. Year to date, its business has tripled in size.
This season also saw an expansion of April's filing capabilities. Along with its self-service offering, April introduced pro-assisted and pro-led tax filing services, allowing partners to support a broader set of tax needs directly within their own systems.
"Leveraging an AI assisted development process, we built a compliant, national e-file platform from the ground up and made it available inside the apps Americans already use to manage their money," said April cofounder and CEO Ben Borodach in a statement Wednesday. "Now we're extending that foundation to address a much broader range of tax needs beyond filing."
April already debuted tools for paycheck withholding optimization and quarterly payments, and is developing solutions for more complex scenarios including capital gains, retirement planning and small business ownership.
"For too long, tax has been disconnected from clients' primary financial relationships," said April president and COO Raj Doshi in a statement. "April's technology enables our partners to incorporate tax planning and filing as part of their broader offering to deliver truly holistic solutions. It puts them front and center in one of the most important, complex dynamics of Americans' financial lives, and allows them to proactively surface opportunities and insights to help clients make the best possible decisions for their futures."
April's partners include Carry, a wealth management technology platform that has integrated April with its system, and payroll provider Gusto, which is using April to help workers with variable income recalibrate their withholdings.
"April has demonstrated strong execution in a historically complex space," said Adams Conrad, who led the round from QED Investors. "It's rare to see a company with the potential to reshape how millions of Americans interact with the tax system, while also powering the next generation of fintech and financial services innovation. As April succeeds in helping more people achieve net-neutral tax outcomes, the downstream effect is profound — not just for individuals, but for the broader economy."
