San Francisco-based Numeral, a startup streamlining sales tax compliance for ecommerce and SaaS businesses, has secured $18 million in Series A funding. The round was led by Benchmark Capital, with participation from existing investors Uncork Capital, Y Combinator, and FundersClub.
This brings Numeral’s total funding to $22 million since its launch in early 2023.
Numeral helps over 1,000 businesses, including Ridge, Graza, immi, Nomad, and Muddy Bites, navigate the complexities of sales tax collection, a growing challenge since the 2018 U.S. Supreme Court ruling that mandated out-of-state sales tax collection.
“A company doing $5 million in sales typically owes sales tax in more than 30 states, which means they need to comply with the tax rules of nearly 10,000 jurisdictions,” said Sam Ross, Numeral’s co-founder. “By streamlining and automating the process, Numeral takes a major task off the plate of accounting teams, giving them their time and resources back.”
With 25 states now requiring sales tax on SaaS products, Numeral plans to use this funding to expand its services for software companies, an area expected to grow as states seek new revenue sources. The company will also invest in international expansion and expand its engineering team.
“Sales tax for digital businesses like ecommerce and software is a huge lift with an extraordinary amount of complexity,” said Chetan Puttagunta, General Partner at Benchmark and a new Numeral board member. “Adding international markets increases this complexity exponentially. Numeral is leveraging AI to solve critical business challenges and help companies scale with fewer barriers.”
Founded by Sam Ross and Matt DuVall, Numeral was born from firsthand frustration. Ross, an ecommerce entrepreneur with over $50 million in revenue across multiple startups, saw how challenging tax compliance was for growing businesses. DuVall, a former Stripe, Notion, and Box engineer, brings deep technical expertise to the company.
With strong investor backing and a rapidly expanding customer base, Numeral is positioning itself as a leader in automating tax compliance, reducing operational headaches for digital businesses as tax regulations continue to evolve.
