The round was co-led by DN Capital and FPV Ventures
- Aibidia is the world’s first platform to help multinational enterprises and advisors manage transfer pricing obligations together, through a single collaborative platform
- By translating reams of international tax laws into code, Aibidia’s Digital Transfer Pricing Taxonomy helps multinationals to automate compliance and meet tax obligations more efficiently
- More than 80% of the world’s trade involve transfer pricing, and meeting the regulatory burden around it can impact companies and the communities they operate in to the tune of billions of dollars a year
- Demand for Aibidia’s services saw revenue soar by 4x in 2022 and the platform now manages 5000+ entities across 150+ jurisdictions
May 15, 2023: Aibidia – the world’s leading transfer pricing platform – has raised a €13 million Series A round co-led by DN Capital and FPV Ventures (DN Capital - Auto1, GoStudent, Incode, Remitly & FPV Ventures - Flexport, Canva, Guild), with existing investors Icebreaker.vc (HoxHunt,Klaus, Tesseract) and Global Founders Capital (Deel, Personio, Brex) also supporting the round. The investment is San Francisco-based FPV Ventures’ first co-lead level investment in Europe.
Aibidia is the world’s first platform to help multinational enterprises and their advisors manage global cross-border business and related transfer pricing obligations together, on the same platform. Using the technology, multinationals like Volvo, Bridgestone and Recipharm can effectively define fair global transfer pricing and automate related reporting. It empowers such companies to consequently comply with global cross-border tax obligations and regulations.
Today, more than 80% of the world’s trade is driven by transfer pricing (TP) – internal transactions made by multinationals, and thus effectively contributing to the communities within which they operate. It’s a highly regulated practice designed to ensure a multinational’s taxes are fairly distributed and collected as part of the wider, $28 trillion international trade sector. For these companies, there is also potential transfer pricing tax liabilities that come through operating on a cross-border, global model.
Until now, managing transfer pricing has been a laborious and expensive process which, despite the widespread adoption of spreadsheets and databases, remains largely manual. Aibidia’s technology finally modernizes and speeds up this process, resulting in significantly lower costs and increased control and visibility to businesses.
Aibidia’s collaborative transfer pricing transformation
Aibidia’s platform currently facilitates collaboration for all stakeholders including the in-house finance and tax teams and external advisors. In the future, this will also include tax authorities. Unlike other transfer pricing technologies, Aibidia uniquely allows these stakeholders to collaborate on transfer pricing workflows together, and define, allocate and report tax issues at the click of a button.
Not only does the platform deliver time and cost savings, it helps companies respond to shifting market and regulatory conditions at a time when the burden of transfer pricing for multinationals is significant and increasing, because of international tax reforms - including changing transfer pricing regulations in the UK, as well as BEPS (Base Erosion and Profit Shifting), which is being implemented by the OECD.
Turning deep knowledge into actionable code
Aibidia’s world-class team has 100 years of TP experience. Founder and CEO Hannu-Tapani Leppänen is a lawyer, former manager at EY and has more than twenty years’ experience providing international tax advisory to multinational enterprises. He previously founded transfer pricing advisory firm Alder and Sound.
"At Aibidia we’re helping solve one of the biggest problems for multinational companies. We’ve built the first data-driven, end-to-end platform where all TP stakeholders can conduct their activities without the time and cost restraints that have plagued the sector for decades. We have big plans for the coming months and years and it’s fantastic to have FPV Ventures, DN Capital, Icebreaker.vc and GFC with us for the journey.” says Hannu-Tapani Leppänen.
Leveraging this expertise, the Aibidia team has translated reams of complex transfer pricing laws from 150+ countries into code to build its Digital Transfer Pricing Taxonomy and API. This allows multinationals to integrate features and functionality like never before. The platform now manages 5000+ entities across 150+ jurisdictions from offices in Helsinki and London, and has signed partnerships with PwC Finland plus other leading global accounting and consulting member firms.
The funding will be used to further expand Aibidia’s world-class team and global presence in London and Helsinki and continue innovating the platform.
Teemu Mattila, Partner at DN Capital, said: “We love software products which use modern technologies to transform old industries and automate manual, resource-heavy processes. This is exactly what Aibidia does with its AI, data, and automation-driven transfer pricing management platform. Hannu is a visionary founder who has built a truly unique product and a world-class team at Aibidia who we are proud to support in the next stage of their growth journey.”
Pegah Ebrahimi, Co-Founder and Managing Partner, FPV Ventures, said: “We love founders that take complex hard things that are tedious and costly and build elegant tech using data and AI to completely reimagine them. We are so excited to back this ambitious team tackling this $100+ billion dollar problem.”
Riku Seppälä, General Partner at Icebreaker.vc, said: “Finding a founder and team with such strong expertise, product market fit and ambition is an ideal for investors at the best of times. Let alone during times of economic uncertainty. The diligent and steady way Hannu-Tapani and his team have approached the growth of Aibidia, even since we joined them at pre-seed, inspires a huge amount of confidence for the future and we’re pleased to be continuing our individual journey with them, but also see FPV and DN Capital join the fold to help take Aibidia to even higher levels.
Philippe Klintefelt Collet, Partner, Global Founders Capital said: “Aibidia is unique in how they use software to untangle a space that historically has been quite distant from technology. With a basis in their proprietary transfer pricing data model, Aibidia’s collaborative platform allows them to directly address the needs of the hundreds of thousands of multinational enterprises across the world, who all face the same challenges and abide by the same global regulatory guidelines. The horizontal and globally consistent nature of the problem makes Aibidia’s serviceable market vast.”
Viktor Nilsson, Tax Manager, Transfer Pricing at Volvo Group said: “Before implementing Aibidia’s platform transfer pricing compliance was time-consuming, expensive and complex. This is a strategic issue for every large, international firm, and Aibidia is the first to meaningfully address and provide a tech solution for it. With Aibidia we can manage our transfer pricing compliance risks efficiently and remain compliant from just a single platform - managing all of our TP liabilities and commitments on one easy to use tool.”
Aibidia is the global leader in digital transfer pricing management founded by a world class multinational team of tax lawyers and accountants, economists, data scientists and software developers. It is pioneering a truly collaborative digital platform that will allow all stakeholders from in-house professionals, to advisers, to tax authorities to work together to revolutionize the transfer pricing process, while empowering tax professionals to make data-driven decisions.