Online Tax filing startup ClearTax is making a bold move to fuel growth through inorganic route as it acquires audio streaming platform Dose FM for undisclosed amount. The Y Combinator backed company did not disclose the financial details of the deal. It has only mentioned that ESOP (employee stock options), grants and cash were part of the deal.
Founded in 2018, Dose FM describes itself as a digital entertainment app and is still a small company with only 4 employees. Its app offers live audio creation tools to interact with listeners and cohost shows with friends. Few months back, the audio streaming company had received seed funding from clutch of angel investors.
Through this latest acquisition, ClearTax will seek to leverage Dose FM’s audio streaming app and inbuilt technology to transit towards smartphone base and target potential customers spread across small towns and cities.
ClearTax’s founder and CEO Archit Gupta said to Economic Times (ET) that the company is getting lot of leads from smaller towns and Dose FM’s technology team and expertise will prove to be a boon in this quest.
In the past, the Bengaluru based company was more focused on customers emanating from desktops and laptops. But with increasing smartphone penetration, the company has decided to become mobile friendly.
Ankit Solanki, Archit Gupta and Srivatsan Chari founded ClearTax in 2011. Today it is among scores of startups that helps people in online tax filing. However, compared to other startups it has been far more lucky in securing funds.
According to crunch base, the Bengaluru based Fintech startups has so far raised $65.3 Mn through multiple rounds. Apart from California based Y Combinator, company’s other high profile investors include Saif Partners, Sequoia Capital and Composite capital management.