(RTTNews) - Vertex, Inc. (VERX), a global provider of indirect tax technology solutions, Wednesday has announced a $15 million strategic minority investment in Kintsugi, an AI-native startup based in San Francisco.
The deal secures Vertex a 10 percent ownership stake, includes intellectual property (IP) sharing, and establishes a commercial partnership. Vertex will also gain a seat on Kintsugi's Board of Directors.
Kintsugi, founded in 2023, specializes in automating the full sales tax compliance lifecycle for small and mid-sized businesses (SMBs)—from calculations to filings and monitoring across various jurisdictions. The startup has rapidly expanded its footprint across the U.S., Canada, and Europe.
According to Vertex Chief Strategy Officer Chirag Patel, the partnership will bolster Vertex's AI roadmap and accelerate innovation for its mid-market and enterprise customers by leveraging Kintsugi's advanced AI capabilities.
Kintsugi's CEO, Pujun Bhatnagar, stated that the investment validates their approach to simplifying tax compliance for SMBs and will help them scale their mission with Vertex's support.
The collaboration aims to advance AI-driven tax automation and user experience. Vertex clarified that this investment is separate from its previously announced $10-12 million AI budget for 2025. The Kintsugi stake will be recorded as a cost-based minority interest on Vertex's balance sheet.
VERX is currently trading at $40.03, or 0.41% lower on the Nasdaq Global Market.
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