ClearTax, an online tax filing platform, announced the acquisition of Karvy’s goods and services tax (GST) filing business. Details of the transaction remain undisclosed. The deal comes at a time when Karvy was eyeing to sell assets and raise capital to clear its dues.
ClearTax will acquire the GST business of Karvy Data Management Services, which will include around 200 enterprise customers and 25 employees, apart from the tech platform. However, the ownership of the entity will remain with the Karvy group of companies.
Archit Gupta, CEO of Clear-Tax, said, “We’re buying the tech assets, the employee assets and customer asset, but the entity will remain with them. It’s almost an arm’s length kind of transaction. It made sense this way as we didn’t need another entity to take over their business.”
Gupta added that Karvy’s business will be absorbed into ClearTax’s and that the company was looking to drive consolidation in the space. Gaining access to Karvy’s customer base also comes at a time when ClearTax is looking to take advantage of the requirement for mandatory electronic invoicing for large enterprises from April 1.
The acquisition will help the company to grow its base of 1500 customers, as per a media report. Gupta said that ClearTax was actively looking at more acquisitions to grow inorganically.
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