Current accounting and tax platform Coconut is set to close its latest equity crowdfunding campaign on Crowdcube with more than £2 million secured. The funding round was launched last month, originally seeking £700,000 in funding.
As previously reported, Coconut describes itself as a current account that takes care of a user’s accounting and tax. The platform is designed specifically for freelancers, self-employed, and small business owners. Since launching, the platform now has 3,000 accounts open.
“Coconut automatically tells customers which transactions are tax deductible, provides guidance about the tax rules, forecasts their tax bill and fills out their tax return automatically.”
The Coconut platform does the following:
- Automates accounting and tax
- Connects users to accountants to chat through the app if they have a question
- Automates the review and file process for tax returns and accounts
Coconut also opened up its accounting and tax platform earlier this year to anyone with a current account or credit card from 20 different UK banks. In the past year, Coconut has grown to 25,000 registrations, a growth of more than 3x. The company also formed a partnership with Paypal, and the Coconut accountant portal has been used by more than 1,300 accountants to manage clients.
“Within minutes of connecting their account, customers can see business insights that are generally only available with time-consuming manual data entry in traditional cloud accounting products.”
Funds from the Crowdcube round will be used towards the Coconut platform. Coconut is now offering 6.16% in equity with a £12 million pre-money valuation.
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