Zenwork raises $163M

Tax compliance and reporting software developer Zenwork announced that it has raised $163 million in funding.

The company plans to use the money to speed up product innovation and meet growing customer demand.

Zenwork’s Tax1099 automates the e-filing and delivery of IRS and state tax forms like 1099s and W-2s, while its Compliancely is a platform for business identity verification and tax compliance checks. The company claims to have over 100,000 small-business customers, including 30,000 accounting firms.

The minority growth equity deal was led by Spectrum Equity, which focuses on internet-enabled software and information services companies.

“As a bootstrapped company, Zenwork has achieved remarkable success to date by focusing relentlessly on the digital tax reporting and onboarding requirements of its diverse customer base,” said Adam Margolin, managing director at Spectrum Equity, in a statement. “With millions of businesses subject to tax informational reporting and likely to adopt e-filing over the coming years, we see a massive opportunity for Zenwork to build on its market leadership position through product investments and innovation.”

Margolin and Cameron Ghorbani of Spectrum Equity will join Zenwork’s board of directors.

“We are thrilled to partner with Spectrum Equity, whose experience scaling regtech software and data businesses will help us navigate this next growth chapter,” Zenwork co-founder and CEO Sanjeev Singh said in a statement. “Zenwork will be investing heavily in our Tax1099 and Compliancely platforms as we look to be the digital tax compliance partner of choice to all businesses.”