Numeral raises USD $100 million to tackle sales tax

Numeral has raised USD $100 million in a Series C funding round led by Insight Partners. Salesforce Ventures, Geodesic, Benchmark, Mayfield, FCVC, Y Combinator and Uncork also participated.

The San Francisco-based tax compliance software company will use the funds for product development, hiring and expansion into sectors including software, manufacturing, distribution and wholesale.

The raise comes as businesses face a more complex sales tax landscape across multiple jurisdictions. Numeral highlighted changes in California that will extend sales and use tax to prewritten software, including SaaS and software delivered electronically or accessed remotely, creating new compliance demands for companies selling across state and national borders.

Founded in 2023 by Sam Ross and Chief Technology Officer Matt DuVall, Numeral sells tools for sales tax compliance tasks including nexus monitoring, registrations, tax calculation, filings, remittance and exemption certificate management. It also supports VAT and GST compliance in more than 90 countries and integrates with more than 40 billing, finance and enterprise resource planning systems.

Numeral reported a 327% year-on-year increase in total transaction volume and expects to process more than 80 million transactions through its tax engine. Customer growth has expanded beyond software into distribution and manufacturing, where tax treatment and filing requirements can shift as business models change.

"Sales tax has become a much bigger operational challenge as companies grow across markets, systems and business models," said Sam Ross, Co-Founder and Chief Executive Officer of Numeral.

"Businesses need infrastructure that can keep pace as rules and requirements change across jurisdictions, without adding more manual work for their teams. We're building Numeral to provide that foundation, backed by tax expertise and service that customers can rely on," Ross said.

The latest financing follows a previous USD $35 million Series B, bringing total funding to USD $157 million. Existing backers include Benchmark, Uncork Capital, Y Combinator, Mantis, FCVC and Mayfield.

Market shift

Numeral is targeting a labour-intensive area of corporate finance and accounting, particularly for businesses selling across several states or internationally. Tax teams often need to monitor registration thresholds, update rate tables, manage exemption certificates and submit filings across multiple authorities, while adapting systems when rules change.

The company says its software can reduce time spent on tax filings and registrations by up to 80% and cut manual spreadsheet work and filing errors by up to 95%. Its exemption certificate management product can also save companies up to 400 hours a year. When customers migrate existing certificates to the platform, 30% to 40% often fail validation.

Insight Partners said the sector has grown more important as tax authorities extend indirect tax rules to digital products and newer forms of commerce.

"Sales tax is mission-critical to get right, and the complexity is only growing as regulations expand into new products and markets," said Rebecca Liu-Doyle, Managing Director of Insight Partners.

"We tracked this space closely and saw Numeral consistently deliver - customers repeatedly pointed to the company's reliability, accuracy and high level of service. With AI enabling the team to bring sophisticated tax and compliance infrastructure within reach of businesses that previously lacked access, Numeral has a strong foundation for continued growth, and we're excited to back them through this next stage," Liu-Doyle said.

Partner model

Alongside the funding, Numeral is building closer ties with accounting firms through a partner programme. Firms can refer clients, resell the software, use it in their own service delivery or advise clients during implementation, allowing outside advisers to remain involved in tax decisions.

That channel strategy reflects how many businesses handle indirect tax, where software adoption often sits alongside advice from accountants and specialist advisers rather than replacing them entirely. Customers and partners can also access in-house specialists for technical questions and more complex requirements.

Geodesic Capital, which also joined the round, framed the investment as a bet on combining software with specialist tax support.

"Tax compliance has traditionally forced businesses to choose between expensive manual work and software that still leaves them carrying the operational burden," said Arvind Ayyala, Partner at Geodesic Capital.

"Numeral is changing that model by combining deep tax expertise with AI-native infrastructure to deliver tax compliance as an outcome. We are excited to support Sam, Matt and the team as they build a category-defining business," Ayyala said.

Ross said the company will continue investing in both software and tax expertise as it moves into more industries and serves larger customers.

"Our customers want to know that their tax obligations are being handled accurately while still having access to a person when a complex issue comes up," Ross said.

"That expectation shapes how we build the platform and how we support each customer. As Numeral moves into additional industries and serves larger businesses, we'll continue investing in both the technology and the tax expertise behind it," he said.