Innovation Awards 2022 is the market-leading awards program for celebrating ecosystem innovation and excellence across the technology sector in ASEAN.
- 29 October 2021 14:16
Way2VAT increases transaction volume by 65% as client list grows
Shares in global fintech leader in automated VAT claim and return solutions, Way2VAT Ltd (ASX:W2V), have rallied 5 per cent after the company released a quarterly update to the ASX today.
The company, which owns and operates a patented artificial intelligence technology that powers the world’s first fully automated end-to-end VAT reclaim platform, doubled the number of small and medium business (SMB) clients via accounting firms from 200 to 400 during the quarter. This is driving rapid scaling in untapped small-medium business (SMB) market in indirect sales channels through large technology partners such as Xero and Sage. It also signed ten new enterprise customers across a broad range of industries, having grown from 150 to 180 enterprise clients globally in 2021.
Transaction volume between January and September 2021 increased 65% to A$8.8 million compared to A$5.3 million for January to September 2020.
The company recently signed agreements with Yokoy and Allocate. Allocate is a provider of people management and HR software. Way2VAT will integrate with Allocate’s e-Expenses management solution Selenity Expenses to simplify their VAT recovery solution. Way2VAT entered a new partnership with Yokoy. Yokoy automates spend management for medium and large businesses and will offer its customers use of Way2VAT’s platform to recover foreign and local accounts payable.
Way2VAT signed a partnership with leading international technology and software company, Zoho to integrate with Zoho Expense, an online travel and expense management solution. This partnership offers an end-to-end VAT/GST reclaim solution on travel and business expenses for both the domestic and global SMB market. Businesses using this integration will be offered this solution on a subscription basis, which is the first of its kind in the industry. The integration will be available through Zoho Expense and Zoho Marketplace, and will be initially rolled out to SMBs predominantly in the UK and Europe, followed by other regions.
Founder & CEO, Amos Simantov, said: “This was one of the most successful quarters for Way2VAT in terms of transaction volumes and signing up new enterprise and SMB clients. Transaction volumes grew 65% over the first 9 months of this calendar year relative to the prior corresponding period, reaching A$8.8 million. The strong growth experienced reflects positive market conditions with business, international and domestic travel and foreign Accounts Payable returning to more normal levels of activity.
“We continued to grow our enterprise customer base signing on ten more major companies, building on our solid base of 180 enterprise customers including EY, Siemens, Mastercard and Footlocker, using our fully automated, end-to-end, claims and returns solution. We also doubled the number of our SMB clients via accounting firm with software integrations from 200 to 400 during the quarter. This provides indirect sales channels through large technology partners such as Xero and Sage in the UK, giving direct, fast access to the W2V platform worldwide.
“I am delighted with the strong support for our oversubscribed IPO and welcome our new investors. The $7 million raised in the IPO will underpin further strengthening of our product, team and strategy as we execute on the focused growth strategy in place and attractive opportunities we see for Way2VAT globally.
On the innovation front Way2VAT received a Notice of Allowance from the US Patent and Trademark Office for its application for “Systems and Methods for Document Image Analysis with Cardinal Graph Convolutional Networks”. The patent will support improvements to the technology for improved efficiency, speed and fraud detection and further advances Way2VAT as a leader in the VAT reclaim market.
“There is a clear trend for enterprises to automate and digitise their tax and compliance related processes, playing to Way2VAT’s key strengths and growing our business development and sales pipeline. By providing integrated VAT claim and return solutions in 40 countries and in over 20 languages, serving hundreds of enterprise businesses worldwide, Way2VAT is playing a leading role in the global shift to digital taxation systems and the streamlining of many of the antiquated systems that still exist for VAT collection.”
Providing an outlook, Mr Simantov said, “We are seeing positive sentiment returning to both the business and recreational travel industries, especially in the EU and North America. This change is a positive tailwind for Way2VAT, and will add to system growth in the coming quarters. The increased audit and compliance processes performed by VAT authorities is pressuring companies to use automated VAT recovery and compliance services. Further, COVID-19 has allowed companies to revisit their current operations and make improvements, with Way2VAT ideally placed to meet these growing market needs.”