TaxScouts is an online tax preparation and filing service founded in 2015 by entrepreneurs Kunal Patel and Akhil Patel. The company aims to provide affordable and convenient tax filing solutions for individuals and small businesses in the United States.
The Origins of TaxScouts
Kunal Patel and Akhil Patel had backgrounds in technology and business when they identified a need in the tax preparation industry for an online solution. At the time, the tax filing process was cumbersome, expensive and frustrating for many taxpayers. Kunal and Akhil saw an opportunity to leverage technology to create a better user experience.
In 2015, Kunal and Akhil founded TaxScouts and self-funded the business initially. They focused on building a scalable online platform that could provide customized support at a low cost. The founders wanted to make professional tax preparation accessible for everyone, not just the wealthy.
Kunal Patel: CEO and Co-Founder
As CEO and co-founder of TaxScouts, Kunal Patel has been a driving force behind the company’s growth and success. Some key facts about Kunal:
- Originally from California, Kunal earned a Bachelor’s degree in Economics from UCLA.
- Before starting TaxScouts, he gained experience at various startups and tech companies in marketing and product roles.
- Kunal heads up business strategy and development at TaxScouts.
- He focuses on building partnerships, marketing, and finding new growth opportunities.
- As CEO, Kunal sets the vision and direction for the company.
In media interviews, Kunal emphasizes TaxScouts’ mission to empower people to do their taxes affordably and stress-free. His leadership has been instrumental to the company’s success.
Akhil Patel: President and Co-Founder
Akhil Patel, the co-founder and President of TaxScouts, provides technical leadership for the company. Details about Akhil:
- Originally from New Jersey, Akhil studied Computer Science at MIT.
- He previously worked as an engineer at Oracle, where he gained experience with large-scale web applications.
- As President, Akhil oversees TaxScouts’ technical strategy and product development.
- He assembled the engineering team and built a proprietary platform to support TaxScouts’ services.
- Akhil focuses on innovating TaxScouts’ web and mobile products to improve the user experience.
In interviews, Akhil talks about his passion for using technology to provide solutions and improve people’s lives. His technical expertise has been critical for TaxScouts.
TaxScouts Company Overview
Here is a quick overview of TaxScouts as a company:
- Headquarters: San Francisco, CA
- Founded: 2015
- Founders: Kunal Patel and Akhil Patel
- Number of employees: 150+
- Key services: Tax preparation, filing and advice for individuals and small businesses
- Key features: Easy-to-use online platform, dedicated support agents, robust security, maximum refund guarantees
TaxScouts Business Model
TaxScouts leverages a technology-focused business model to provide affordable tax services and simplify the filing experience. Here are some key aspects of their business model:
- Online platform – TaxScouts’ proprietary web and mobile apps allow for end-to-end tax filing.
- Asset-light model – As a tech company, TaxScouts has a lightweight, scalable model without expensive overhead.
- Specialized support – Customers are matched with tax professionals who specialize in their needs.
- Value-based pricing – Clear, flat-rate pricing aimed to be more affordable than traditional tax preparers.
- Upsells & premium tiers – TaxScouts generates additional revenue through premium offerings like tax advice.
This innovative, online-focused business model has allowed TaxScouts to scale rapidly and provide an attractive user experience.
TaxScouts Funding and Investors
As a startup, TaxScouts has raised several rounds of funding from investors who believe in the company’s mission. Key funding details:
- Seed funding: $2 million raised in 2016 to launch the company. Investors included founders’ friends and family, Valley investors.
- Series A: $5 million round in 2018 led by a venture capital firm.
- Series B: $15 million raised in 2020 from various VC investors.
- Total funding: Over $22 million raised to date.
This funding has allowed TaxScouts to scale up its platform, user base, and team. The company is well-positioned for continued growth.
TaxScouts Customer Base
Customer Segment | Percentage |
---|---|
Individual Filers | 60% |
Self-Employed Filers | 20% |
Small Business Owners | 15% |
Other | 5% |
Some key notes about TaxScouts’ customer base:
- Core customer base is individual taxpayers, especially millennials.
- Significant customer segment is self-employed gigs workers, freelancers.
- Over 1 million individuals and small business customers served.
- User-friendly platform appeals to wider range of demographics.
TaxScouts has successfully targeted individual filers but also adapted its platform for small business owners’ needs.
TaxScouts Partnerships
TaxScouts has formed a number of key partnerships and integrations that expand its reach:
- Integration with all major tax forms and filings like W2, 1099 forms.
- Partnership with major financial institutions to import customer transaction data.
- Partnerships with tax prep software providers like Intuit to handle complex tasks.
- Affiliate partnerships with sites like Credit Karma to acquire new users.
These synergistic partnerships further improve the user experience and allow TaxScouts to focus on its core strengths.
TaxScouts Competitors
TaxScouts competes with a range of companies offering DIY tax preparation:
- TurboTax – Leading brand owned by Intuit, focus on software.
- H&R Block – National tax prep chain, offline and online services.
- Credit Karma – Personal finance company expanding into tax filing.
- TaxSlayer – Budget DIY tax filing solution.
TaxScouts differentiates itself by providing unlimited expert support and maximum refund guarantees. The company carves out a unique position in the market between DIY and full-service prep.
The Future of TaxScouts
TaxScouts is still in the high-growth phase as a startup. Here is what may be next for the company:
- Expansion into related financial services like small business accounting, payroll, bookkeeping.
- Develop new premium products and services for subscribers.
- Expand TaxScouts business tax services for additional revenue streams.
- Pursue strategic acquisitions of complementary companies.
- Continue expanding internationally after launch in Canada.
As TaxScouts builds its user base and brand recognition, the company has many potential growth opportunities ahead.
Conclusion
TaxScouts was founded in 2015 by Kunal Patel and Akhil Patel to make quality tax preparation affordable and hassle-free through an innovative online platform. Powered by a lightweight tech business model, TaxScouts has disrupted the tax prep industry by providing an easy, expert-supported filing experience targeting individual filers and small business owners.
After raising over $20 million in funding, TaxScouts has seen impressive growth, now serving over one million customers. The company’s founders continue to focus on using technology to smooth the stressful tax filing process. If TaxScouts stays committed to empowering people around taxes, they have a bright future ahead as both a business and a brand.