Taxfix is executing a three-pronged M&A strategy targeting product capabilities, customer segments, and geographic expansion, CFO Mohamed Omaizat told Mergermarket.

The German tax tech unicorn has the ambition of establishing itself as a pan-European leader in its segment, he added.

In addition to strengthening its existing markets of Germany, the UK and Spain, Taxfix is exploring opportunities to expand into other European regions, he said, adding that Taxfix sees promising trends across Western and Eastern Europe.

Taxfix aims to reach a high double-digit million-euro revenue level in 2025, Omaizat said.

The group reported revenue growth of 45% in 2023, to EUR 55.9m from EUR 38.5m the previous year, according to its last public financial filing. In its 2023 report, the company had forecast high single-digit to double-digit million-euro growth.

“We are progressing on our path to profitability, while strategically investing,” Omaizat said, noting that the company has not yet reached break-even but is progressing steadily. He declined to disclose a timeline.

Omaizat said the company is fully funded for its current plan but would consider additional financing for M&A or doubling down on organic expansion across markets and products. An IPO remains an option, he added.

Taxfix typically finances acquisitions through a mix of cash and equity to align incentives with founders and existing target investors. “Cash-only deals often require full buyouts, but we prefer to partner,” Omaizat said.

While the company handles most M&A processes in-house, particularly around product and technology due diligence, it does not rule out working with external advisors.

Takeover track record

In February 2023, Taxfix acquired Steuerbot in Germany to broaden its product offering and consolidate the market. “We continue to see attractive opportunities across Europe,” Omaizat said, adding that new product acquisitions are also on the table.

Taxfix entered the UK market through its 2024 acquisition of TaxScouts, which gave it immediate access to the self-employed segment and an entry point to SME.

It uses acquisitions to accelerate market entry and expand into new areas where internal development would not be the right choice, Omaizat said. Historically, Taxfix has pursued bolt-on acquisitions of targets with high single to double-digit annual revenue and is open to larger deals as the market matures, he said.

The company is focused on acquiring product builders that complement its core offerings, such as tax filing, and adjacent areas such as bookkeeping and invoicing, Omaizat said.

“We’re currently developing new products aimed at SMEs, and have already launched a solution for freelancers in the UK,” he said. Beyond tax filing, Taxfix is exploring ways to support users year-round, Omaizat said.

In Germany, Taxfix initially targeted its tax filing solutions towards individual private sector employees, but has since expanded to serve civil servants, trainees, students, families, landlords and pensioners through its “Do it yourself” self-service app and an “Expert Service” handled by certified tax advisors. In the UK, Taxfix also offers accountant-assisted digital tax filing for freelancers, landlords and has started servicing small businesses.

Structural change 

“The global SaaS and tax management market is undergoing major transformation,” Omaizat said.

This is driven by rising regulatory complexity and government digitalization mandates accelerating e-filing adoption, he said. He added that artificial intelligence is reshaping tax workflows by automating routine tasks. Furthermore, the shrinking pool of qualified tax advisors is creating acute talent shortages, he added.

The global software market continues to show resilient, high-single to low-double-digit growth, Omaizat said.

He pointed to a Grand View Research report forecasting the global software sector to expand at roughly 11% CAGR between 2025 and 2030. This reflects sustained demand for digitalization, automation, and AI-driven efficiency across industries, he said.

Within this broader landscape, the tax management software segment shows a similar pattern of steady double-digit growth, with Taxfix growing faster than the overall market, he said.

The tax management software space is to grow broadly in line with, and in some regions ahead of, the wider software industry over the rest of the decade, Omaizat said.

Taxfix was founded in 2016 by Mathis Büchi und Lino Teuteberg. Taxfix last raised funding in April 2022, closing a USD 220m Series D round led by Teachers Venture Growth (TVG), with participation from Index Ventures, Valar Ventures, Redalpine and Creandum.

The round brought Taxfix to unicorn status, with a valuation exceeding USD 1bn.